Gold Miners Win Whenever They're Here

JC Parets
January 19, 2022

Even within this disastrous decade for Precious Metals, Gold Miners have still found a way to outperform whenever they get down here.

Look at this chart of Gold Miners $GDX relative to the S&P500. The last 2 times they got down here, it sparked periods of tremendous outperformance:

Is this time different?

Or will we see a similar outcome?

I think the US Dollar could play a huge role here.

We discussed it on last night's call, but this is one of the more important developments we're seeing right now.

Is the US Dollar Index just retesting last week's breakdown? Or was last week's breakdown just a whipsaw and the Dollar is ready for another ripper?

If this is, in fact, a retest of last week's break, then I think that could be a tailwind for the Gold trade. I also think it's bullish for risk assets in general, Gold would just be an ancillary beneficiary.

We still just want to be long GDX, but only if it's above 31. I think 50% of upside from here makes sense in an environment where precious metals are finally outperforming.

What do you guys think? Let me know!

JC

Mid-Month Conference Call Review

We ripped through more than 150 charts and tables during Tuesday night's Mid-Month Conference Call for January 2022.

In a little under an hour, we covered just about every asset class and investing topic, including:

  • Stocks (International & U.S.)
  • U.S. Sectors & Industries
  • Market Breadth & Sentiment
  • Commodities
  • Currencies
  • Intermarket Analysis
  • Cryptocurrencies
  • New Trade Ideas
  • Overall Strategy

ASC Premium Members can click here to review the recording and the slides.

 

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