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Basis GDX, gold stocks hit an all-time high yesterday… and gold is powering up the charts again today!
The magnificent weekly gold chart. I’ve been highlighting the bull flag formation for months… and now there’s a massive breakout to complete the incredibly bullish picture.
Here’s another spectacular weekly chart. I’ve been urging gold bugs around the world to respect the fabulous inverse H&S pattern on my 14,5,5 Stochastics oscillator.
Those who did that have been rewarded with a beautiful symmetrical triangle breakout and a rally of significance.
The daily chart is also a de facto work of bullish art and an April-October cycle inversion is in play. In a nutshell:
It looks like tenacious gold, silver, and mine stock investors are going to be getting a lot more higher priced “candy” in time for this year’s October 31 Halloween.
What about the stock market? The disturbing SP500 CAPE ratio chart. Gamblers can play the US stock market, but investors need to await a significant price sale before getting involved.
Some investors forgot that gold often does better under a US republican administration than a democrat one… and they’ve missed what is essentially a gold and mining stocks moonshot against vile government fiat.
Is it too late for them to get involved? That’s a great question and the answer is an emphatic “No, it’s not too late to be involved!”.
This cycle inversion should provide investors with another 6 to 8 weeks of exciting action and even then, what follows should be just a healthy pause in the bull era fun.
The next big downside event for the metals is likely to occur in 2029, which of course is the 100th anniversary of the famous 1929 US stock market crash.Gold could be trading near $10,000/oz by then and GDX should be somewhere between $200 and $500.
I’m projecting the 2029 crash to be a lot like the 2008 crash, meaning it ends almost as soon as it starts.
The next massive five wave surge for gold (basis Elliott analysis) likely begins in the same year the current one ends (2029) and there’s more good news: It’s likely to feature Western money managers treating gold with the kind of respect it currently gets from their savvy Asian counterparts.
I’ve dubbed this as one of the greatest charts in the history of markets. It’s helping create a scenario where the CDNX hits 10,000 or more before the party is temporarily halted in 2029.
Also, the current rally to the 900-1000 inverse H&S neckline zone fits with the April-October cycle inversion scenario. Price arrival at the neckline likely happens soon, and a pause is likely, but not a top.
That neckline area is a great place to book some profit, but not to call a big top. The selling is simply to manage risk and to make sure investors get richer.
The stunning GDX versus Dow chart. I’ve urged senior mine stock investors to study the long-term CDNX charts I’ve highlighted… and use them as divining rods to show what lies ahead for their senior mining stocks.
Clearly, the synergy between the CDNX chart and the GDX versus Dow chart is phenomenal. Horrifically, the US stock market is now powered by little more than an outrageous CAPE 39 ratio and “better than expected” tariff tax news (and perhaps soon by a president eating refund the silly taxes crow?).
To put it mildly, these are not solid investment pillars to bank on for long-term stock market investing success.
In contrast, gold stocks are sporting some of the greatest value-oriented charts in the history of markets. These fabulous bull era jewels. While the Elliott C wave for gold has likely been in play since 2015 or 2019, the C wave for GDX versus gold is barely underway… and it may not end until 2029!
A look at the daily GDX chart. When the price of anything is rising up from a massive multi-decade base pattern (as it is for gold stocks versus gold right now), traditional technical analysts get baffled by the ongoing overbought oscillator situations that occur on the short-term charts.
That’s what’s happening with this GDX daily chart. What could be next? Well, it looks like what’s next will be an even more bullish ongoing overbought oscillator situation… with long term quarterly and monthly charts.
In a nutshell, it’s a 200year gold bull era and the choice for investors is to worship their government and do as they’re told, or be bold …and focus on getting more gold!