Gold Keeps Winning

Gold hit our upside objectives last Summer.

"See ya! Now it's someone else's problem", was our mentality.

I didn't know whether it would take a few weeks or a few months to finally break out to new highs. Maybe even a few quarters or potentially never. I didn't know. So we focused on the things that were working, like stocks, almost any stock to be exact.

And avoiding gold and bonds this whole time paid off very well.

But a funny thing happened in March. Gold Miners presented a favorable risk vs reward from the long side. AND THEN, when Gold Futures broke down in April to retest former lows, those Gold Miners DID NOT.

We saw a tremendous bullish divergence in the Miners, confirming that approaching Gold and Gold Miners from the long side was the best course of action.

When those Gold Miners $GDX put in a higher low while the metal itself was retesting former lows, you know who the leader was?

Newmont Mining! (when the hell did they change the name to Newmont Corp? I hate when they do that. How many old timers still call it CitiCorp? Am I now one of those?)

Just look at this base.

Are you kidding me?

You guys who have been here for a while know how "JC" of a chart this is.

The bigger the base the higher in space, right?

This is all of that in one chart.

And the best part, as usual? The risk vs reward is very much skewed in our favor.

Why?

Because if $NEM is not above all those former highs, then we can't own it. It's that simple.

But if it is, flip the book, as brokers used to say in the 90s.

JC