In the coming months expect higher prices for the stock market. Ignore the depression chatter. As main street suffers, Wall Street will thrive as capital runs for safety in high-end equities. After June you will witness interest rates start to rise and big money will flee bonds into only short-term 90-day paper or AAA preferred rated corporate debt. Just follow the money, not the news. This week you have seen many of our peers in the investment community on TV talk down the stock market because they have not entered the market yet. They are still looking for an entry and trying to help themselves with negative headlines on the economy. They failed to ignore the negative headlines from the main stream media, whose high ratings and profit come from drama and sensationalism. Wha you will see is a quick rebound of a new economy with different drivers. Shrewd investors are contrarians and sentiment has a long way to go before this rebound ends. This will be no different than the large ICL declines in February 2018 and December 2018. Buying these dips is prudent for any long-term portfolio.
We favor a bounce into Friday. Our indicators are temporarily oversold. They will turn down again after our bounce sometime next week. We will wait for a good risk/reward shorting opportunity.
We still stand by our long-term cycle targets for Natural Gas if you are still long. June should represent a top of some sort with possible extension into July. The junior miners and Silver will go up with the senior miners on this rally. Our expectation is for Silver to stay in its trading range and not break out until July. The junior miners, GDXJ/JNUG, may start to outpace the seniors in the weeks ahead. We will alert our members to any investment vehicle changes. We expect to be active next week with the tremendous wild swings our AI is forecasting. Please make sure you are signed up for alerts via twitter and email. We will let you know soon when SMS alerts are available again.
HFZ