Gold Silver Miners and Stocks (after a quick drop) Ready to Explode / Commodities / Gold & Silver 2020
The move of a lifetime isjust beginning!
The senior mining companieshave led this rally for the past year. In the metals sector you get leadershiprotation from bullion, silver, senior miners, and junior miners. Silver and thejunior miners have yet to break out of their 2016 highs, but it's coming. Webelieve the junior miners will be next and break through the elusive $52 level.
Once this price is broken expect $60+ within a very short period of time. Atesting of the 7 six year consolidation level of $52 should occur shortly. Theseniors moved first based on earnings as they are income-producing companiesand with the price of gold recently elevated for a sustained period of timethey began to soar. As the boom phase begins for the senior miners they startlooking for expansion and acquisition with their cash flow. This next phase canset off an incredible rally in the Junior miners and explorationcompanies.
The second half of May intomid-June should be explosive for all of the Gold mining companies. Our AImachine learning projected a strong rally in early April. We took positions forour own accounts weeks ago at signficantly lower prices. Expect someconsolidation the week of May 18th before the next leg up begins.
We expect GDXJ to outpaceGDX the next 30 days. Worst case scenario the juniors will not be left behind.They should at a minimum keep pace with the Senior Miners.
Below is a look at Gold.
Now for the stock market.
A choppy sideways week liesahead with a Friday, rally into Memorial day weekend. Expect a sharp drop intoTuesday May 26th which should be followed by a bounce and sell off into a lowJune 2nd. Expect SPX 2650 to hold. Then a very sharp rally into the end ofJune. Bottom line we are still in buy the dip mode.
As one can see followingthe smart money, the 1%, is a perfect toool to use for the majority ofinvestors. Follow the 1% , the smart money is buying.
The Nasdaq may shockeveryone as the leaders of this bull market, nano technology, robotics, semi-conductors, and AI are based there and will draw all of the hot money early onas capital is redeployed. America is not going out of business and where elseis the elite going to safe keep all of their cash? Real estate? Governmentdebt? I think not, follow the money.
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By Hedgefund-z
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