I started this year by selling gold on strength and buying on weakness so far. And the day that strength is bought is the day that we see a much bigger rally.
A few golden headlines
- Gold prices hit record highs in Japan
- China increases gold imports in 2022: Swiss gold imports at four-year high, Russia’s gold imports increase
- Swiss pension fund increases exposure to gold
Every time we look at the price of gold, we get one step closer to realizing it our forecast price target of $3000-$3500 by 2024 and does not rule out a trip to $5000 by 2025.
Yes, gold is overbought at current levels. But haven’t you ever heard the expression “overbought can be overbought?” Of course you have. However, not for a while. Probably not since the big bull run of 2021, and of course since stocks were at stake.
Dear readers, for two decades we were primarily floor traders in commodities. We are currently optimistic on metals. We’ve been hammering this house since post-COVID.
However, now we see a new phase, a parabolic one.
Back on the COMEX exchange at the World Trade Center, before social media, before the 24-hour news loops, and before “everyone is a trading genius at least once in their life” in the late 1970s, floor traders were buying dips in gold and Silver. Local traders didn’t bother calling corrections or tops. We were around Trade Price and Momentum.
Now, after a very long wait, those days have returned in the metals.
With proper risk management, dip buying seems to make a lot of sense on corrections. Aside from a very rich indicator of relative strength, we hardly see a top at this point. The landscape mimics (on steroids) the 1970s. We believe that given the current macroeconomic and geopolitical conditions, 2023 is even more optimistic for the metals than it was five decades ago.
Silver is not far behind.
Small investors still have to load up on precious metals. Most are trained in buying stocks and know little about commodities.
At the moment, individual investors are wavering optimistic about stocks. Can I get a PARABOLIC once metals start getting more retail attention?
Mish’s picks are already up 10-20%, beating the SPY!
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Watch Mish on Fox Business on January 26th. Make money with Charles Payne and on TheStreet.com!
In this appearance on CMC Markets, Mish delves into her favorite commodities trades for the week and gives her technical take on trading opportunities for gold, oil, copper, silver and sugar.
Mish comments on the big NYSE blunder on Tuesday, January 24th in this appearance for BNN Bloomberg!
Mish discusses the ongoing bull market for commodities and why the SPY will remain range bound in this appearance on Business First AM.
Mish shows why gold is still the brightest in this performance Make money with Charles Payne!
In Singapore, Mish discusses China and whether markets have bottomed from here or are headed down on CNBC Asia.
In Stock Charts TV Charting Forward 2023Mish sits down with a panel of experts to have an open discussion about what they see and hear about in the markets.
You can also Read Mish’s thoughts on Charting Forward in article form here!
- S&P 500 (SPY): SPY broke above 200-DMA and is now slightly above it, but is still a very narrow price range below 50-DMA. Central support held and now what was resistance is support at 200-DMA and resistance is still at 405 above.
- Russell 2000 (IWM): Filled the gap and continued to hold the 200-DMA and overhead resistance at 189.
- Dow (DIA): Back above the 50-DMA by a hair. Holding support on the 50-DMA at 336.07 and 339 is resistance.
- Nasdaq (QQQ): Crossed 50-DMA on Friday to close above it. The first level of resistance is at the 200-DMA and closes in the middle of the two DMAs.
- Regional Banks (KRE): Near the intersection of 60.72 (50-DMA). The first level of support lies at 58 and resistance at 50-DMA.
- Semiconductor (SMH): On the 50-WMA and 200-WMA, the button support still holds up easily. 233 support and 239 resistance.
- Transport (IYT): Still holding 225 key support here and now holding first tier support; hold 227, close 227.94 with resistance at 230.
- Biotechnology (IBB): Still the best sector with 132 still holding key support and holding first level support at 134 with 137 resistance still (closed 136.79).
- Retail (XRT): Holding central support at 63. First level of support at 66, resistance 70.
Misch Schneider
MarketGauge.com
Director of Trade Research and Education
Misch Schneider serves as director of trading education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and training to thousands of individuals, major financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial professionals to follow on Twitter. In 2018, Mish was the winner of Top Stock Pick of the year for RealVision.
