Gold will likely be range bound into July/August within a consolidation box. Profits can be generated but pinpoint entries and exits are necessary.
A near term move is about to occur as one can see price is being squeezed. We favor a spike up out of this sideways coil, then reversing back down quickly. Again, $1810 futures is the line in the sand every bullion bank is watching and defending. Silver and the miners will currently follow gold. A great trade should develop for us after this plays out into late June/early July.
To profit in this type of market you need to be long during a particular set of days. If one looks back at the rally since March, only a handful of days have accounted for the vast majority of the gains. Investors frequently give up in panic or frustration before these big days land. Patience is key. Our staff and AI have identified a particularly bullish period coming up in approximately 5 trading days. Sentiment is slowly resetting to provide the fuel for another run at post recovery highs. We favor no large correction until later in July/August. Only a binary event would change our thinking. Don’t fight the Fed and just follow the money. Stocks are the only game in town with the Nasdaq being the new Park Avenue. As they've been for a long time, valuations will continue to be high and will become even higher. Best get used to this new environment. You can already see many 'old school' value-based money managers being left in the dust as they fail to accept this new paradigm.
The same goes for our restaurant holdings in BLMN and DENN. The weakness being observed this past week in certain high dividend stocks has been from pension fund selling. With the discount rate near zero for months, many are underfunded and liquidating to make timely payments. This will be the next great bailout in our country. The great pension crisis will be derived from the Fed having induced artificial low interest rates for years, leaving pensions underfunded. Most of their capital pours into government debt with the rest into high yield dividend companies like BLMN and DENN. The hedge funds will pick up the slack into the end of the quarter. Have no fear.
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