We start with gold tonight. As strong as gold is, to expect a move through 7-9 year resistance on the first attempt is probably not a good bet. Miracles do happen but in this game we monitor calculated statistics. We don’t see gold peaking until sometime in late May early June, target $1923 all time high? There will be violent whipsaw action, 50-60 point moves , so one be best prepared for that . On a sizable pullback or short raid by a bullion banking cartel buying GLD would interest us. From the sentiment chart shown above you can see when we get a bullish sentiment reading over 80, gold normally corrects, at least briefly.
Now onto the miners as shown below. One has to realize that when gold first broke out of its bear market in December of 2015 and ran to $1375, broken just last June, the GDX gold mining ETF hit a high of 31+. Yet today with gold at nearly $1760 June futures contract, it is only $30! Now there are many reasons for this which we will explain in the near future. The bottom line, GDX is massively undervalued. Now that the realization has set in of higher sustained gold prices for the foreseeable future; the market will play catch up. We show GDX as this represents some of the largest, best, and most profitable gold-producing companies in the world. Once it breaks through $32 it's just a short time before we see $40. We just received a weekly trade signal today and it's still very early in this cycle, so a false breakout is unlikely. This looks like the real deal finally for gold bugs! The next major resistance area will be 34.50. We favor NUGT, the levered senior mining ETF to profit on this move. The next 6 weeks should be positive for the gold miners. Depending on the action tomorrow morning we may purchase for our own accounts. Our Gold Members will be alerted through sms, email, and twitter alerts.
In the share market, we are expecting a tradable bottom to emerge after a brief pull back over the next 7-10 days. At this point there is limited upside in going long. We will wait patiently for this and be buyers. We expect the SPX to go no further than 2900 over the coming days before a pullback ensues.
Today we had weakness in the SPX and DOW but Nasdaq was positive. We feel the markets may top on different days. When you see a divergence like this it normally portends a short-term turn is coming . For the NDX we expect the 8600 level to hold on this current push up followed by a shallow choppy sell off into the end of next week ,which will be a great buying opportunity into Mid-May time period. We will alert the GOLD PORTAL when HFZ takes Long positions in a select ETF. We expect significant gains out of this low but timing ones entry will be key.