Gold Weekly Charts: The Bulls Take Control!

1. Just one of the many roads that lead to quasi-permanent  stagflation and potential starvation for American citizens:
   
   
   
2. This war has hammered not just oil supply, but the supply of many critical items, including fertilizer.  The bottom line:
3. No fertilizer eventually equals… no food.
4. The war will likely add trillions to the US government’s despicable debt, and if the overvalued “poster boy” stock market falters badly, the collapsing American nation could drag the world into a stagflationary depression.
5. Sometimes, the CAPE ratio for the US stock market becomes overvalued via a parabolic surge, and sometimes it gets that way by plodding steadily in a channel.
   
6. The latter is what has been in play since 2008.  When the bull channel dies and the bear begins, it’s usually a long multi-decade bear market that ensues.  Thanks to the outrageous actions of governments around the world, hard times lie ahead.
7. AI (artificial intelligence) and robotics could help postpone a stock market collapse, but the postponement would be accompanied with mass unemployment and significant social unrest. 
8. The mayhem will probably be here by 2035.
9. There’s not much that even the savviest citizens can do to stop what is coming.  By default, they must look after themselves and focus on their ability to survive and prosper in various uncomfortable and surprising scenarios that could unfold in the years ahead.
10. Once a savvy citizen has fully stress-tested their ability to access medical care, food, shelter, and security during such hard times, the next step is to manage their investments.
11. Since 1970, there have been four rallies of significance for fiat money versus gold.  At some point, there will be a fifth one. 
    
12. Amateur investors often become desperate to get into fiat when these rallies commence. Some sell their gold, silver, and miners and do it in a state of terror or demoralization.  In contrast, gold money pros in the West (and most citizens of China and India) wisely use fiat reserves during the rallies… to get more gold.
13. To help get more gold (and silver and miners),
    
    
     Stochastics (14,7,7 series) is overbought, but RSI and MACD (20,40,10 series) suggest a pause here (and Tuesdays are often soft days for the gold price) is more likely than a significant decline.
14. For a look at the weekly chart:
    
    .  Note the fantastic hook up on the key 14,5,5 series Stochastics oscillator at bottom of the chart.
15. The bears, arguably, have a very slight edge on the short-term daily chart.  On the much more important weekly chart, the bulls are in complete control.
16. What about the miners? 
    
    Junior mining stock enthusiasts should take joyful note of the Stochastics buy signal now in play.  It’s in perfect sync with the one on the gold bullion chart.
17. Most CDNX miners peaked in 2006 and have failed to generate any sustained profits in either fiat or supreme money gold since then.  Now, that situation is set to change; a new era is on the cusp of being ushered in.  It’s a stagflation-oriented era that could see the CDNX rise for decades to come.
18. Junior mine stock investing isn’t for everyone, especially with size, but as this gargantuan gold bull era rollout continues, these miners look set to outperform everything!  
19. What about the seniors?   Double-click to enlarge this GDX versus gold chart.  There could be a bit more “pause action” (which would add additional bullish symmetry to the chart) but the technical door is also wide open to a near-immediate upside breakout.
20. For a look at a key GDX vs fiat chart:   Another spectacular bullish hook is in play for the 14,5,5 series Stochastics oscillator, in sync with the CDNX and gold.
21. Also, a stunning bull flag is forming, and it could morph into a pennant if the miners begin to surge later this week.  The price target of the flag is $200!.
22. The global gold bug’s enemies are government, fiat, and debt but sometimes an enemy can be a friend; savvy bugs keep enough fiat reserves to manage the emotional swings that occur with the ebb and flow of the price of their gold, silver, and miners!

 

 

Thanks!    

Cheers

Stewart Thomson  Galactic Updates

The NEXT Banking Crisis Will Be the LAST -ALL of the US Dollar’s Purchasing Power is Going to SLAM into Gold & Silver!  -The END GAME Investor’s Rafi Farber

Stewart Thomson publishes the Galactic Updates and Galactic Juniors newsletters. SilverTrade receives no compensation for this column.