You know how I know it's not a downtrend?

JC Parets
January 16, 2023

Yesterday we talked about how early the Phlx Gold & Silver Index was in this cycle.

This index of 30 precious metal mining companies was the first of the Gold related stock indexes to break out. This was about a month after Gold Futures confirmed a buy signal for us in early October.

But of the "stock" related indexes, we look to the Phlx Gold & Silver Index as a leader. It certainly acts like one.

And do you know how I know it's not a downtrend?

Look at its components. Each column represents a different moving average ranging from the 5-day all the way to the 250-day. The further to the right the column sits, the longer the smoothing mechanism we used.

Green cells represent when the price of the stocks are above that particular moving average, and each of the 30 stocks are listed on the left side of the table:

I see a lot of green.

How about you?

When prices are above their moving averages, we know they're not in downtrends. They may not be uptrends, but their certainly not trending lower.

The further to the right on the table you go, the longer the smoothing mechanism and the stronger the trend.

If you're shorting stocks in uptrends, you better have a good reason. And you better have very strict risk management procedures.

I do it sometimes, whenever the data is overwhelming, like in Bitcoin and Microstrategy recently.

But by our work, when it comes to Gold and Mining stocks, this is not one of those situations.

Quite the opposite actually.

The weight of the evidence suggests we’re in the early stages of a major Gold Rush.

And Monday, we’re dropping our next Gold Report and Weekly Gold Video exclusively for All Star Charts Premium members.

We’re doing a weekly deep-dive into gold and precious metals - what’s impacting their prices, where they’re headed, and how we can take full advantage of these trends.

These are Stocks, ETFs, Large-caps, Junior Miners, Silver, Currency Charts, Intermarket Relationships and anything & everything that is related Metals.

It’ll all be in the next Gold Report.

If you’re not already a Premium member, shoot me an email and we'll get you set up.

See you in there!

- JC

Live Mid-Month Strategy Session

Our live Mid-Month Strategy Session for ASC Premium Members is happening Tuesday, January 17, at 6:00 p.m. ET.

As always, if you can’t be with us live, we’ll publish the recording and the chartbook in the Strategy Session archives, along with every other live call since 2015.

ASC Premium Members, click here to register for Tuesday’s Strategy Session.

Non-ASC Premium Members, call Mary at +1 (323) 421-7910 for the best information about how to join us.

 

Filed Under: