Segment 1: How to Profit From Gold’s New Long-Term Uptrend
Profiting From Gold's New Long-Term Uptrend
Christian economist Jerry Robinson opens today's show by discussing gold's brand-new Long-Term Uptrend in our trading system and also provides a simple introduction to trend trading. In a special offer, we are providing a free preview to our latest subscriber-only Weekend Briefing.
Do you want to profit from the next major commodities bull market? Would you like to receive our latest trend research each weekend before the market opens? You need FTMDaily’s Weekend Briefing.
The following is a sneak peek from the latest issue of our Weekend Briefing, in which Jerry Robinson alerted all of our subscribers to the brand new Long-Term Uptrend in Gold. Keep reading to get access to the full Weekend Briefing… absolutely free!
2016 has already been one of the most spectacular starts to a year for gold… ever! And the shiny metal has now formed a brand new Long-Term Uptrend in our Trigger Trade Pro system.
Several weeks ago, we alerted our paid subscribers to the new Position Uptrends that were forming in gold (and silver.) Since that time, gold prices have risen more than 11% while silver jumped nearly 8%. As expected, gold mining stocks have also been outperforming since they formed a new Position Uptrend back on Feb 3. I bought shares of the Market Vectors Gold Miners ETF (GDX) the following day (2/4). One month later, GDX has returned us 26%. (FTM Insiders can view our current Position Trading Portfolio here)
We followed up by adding shares of two of our daily trading ideas: McEwen Mining (MUX) on Feb. 16 and New Gold Inc. (NGD) on Feb. 17.
To date: NGD +39%, MUX +23%
(FTM Insiders can view all of our recent trading ideas here)
Trading the miners is fine for speculative capital. However, I would encourage any new trader to use EXTREME caution when playing mining stocks. Their wild price gyrations can generate emotions. And emotions are deadly in trading.
But I digress… Back to gold’s new Long-Term Uptrend. Yes, really, it is finally here! After years of waiting patiently (and sometimes not so patiently) for relief from the yellow metal’s brutal downtrend, the price and volume data now clearly point to a new Long-Term Uptrend. I will begin slowly adding to my long-term gold position now, and over the next several weeks. (As with all new Uptrends, let’s give gold a week or two to confirm this new uptrend.)
And while you and I may be enjoying the price spike in gold, it is jarring Wall Street’s “paper-asset-loving” stock jocks as it has come on some of the largest volume levels in recent memory. (Remember, major volume surges nearly always accompany major price moves.) For example, in February, monthly gold volumes soared to levels not seen since the crushing summer sell-off back in 2013. And the buying volume for physical gold just continues to soar into March. So much so that it appears the huge demand for physical gold is finally catching up with the manipulation of paper prices. According to Blackrock, the issuer of the popular IAU Gold Trust ETF (IAU), the new issuance of shares of the ETF have been temporarily suspended due to “surging demand for gold.”
According to Blackrock’s website:
“Since the start of 2016, in response to global macroeconomic conditions, demand for gold and for IAU has surged among global investors. IAU has $8 billion in assets under management, and has expanded $1.4 billion year to date. February marked its largest creation activity in the last decade.”
This is just more proof that gold remains one of — if not the ultimate — beneficiary of poor monetary policy.
We measure trends within the financial markets in three specific time frames.
Daily Chart (or “Swing” Trend View)
Weekly Chart (or “Position” Trend View)
Monthly Chart (or “Long-Term” Trend View)
When our proprietary trading system detects a shift in an underlying trend on the daily chart, we refer to that as either a new Swing Uptrend or a new Swing Downtrend, depending on the direction of the trend.
Likewise, a shift in an underlying trend on the weekly chart will impact the Position Trend while a change in the trend on a monthly chart will impact the Long-Term Trend.
The shorter the time frame, the more sensitive the trend. For example, a stock’s Swing Trend will change much more often than its Position Trend. Because of this, new Position Trends carry more weight than a new Swing Trend. Likewise, a new Long-Term Trend is an indication that the overall trend has changed.
Not a current subscriber? Create your free account to unlock the Weekend Briefing
(Current subscribers, click here)
Segment 2: Precious Metals Market Update
Precious Metals Market Update with Tom Cloud
Precious metals advisor, Tom Cloud, discusses the latest moves in the precious metals markets.
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