The creator believes that gold is poised for a significant rally, potentially reaching $8,500, driven by the miner stocks' performance relative to gold and the historical pattern of violent breakouts from long-term bases.
The creator sees a bull flag pattern forming on the monthly chart of gold (XAU) and silver (XAG), suggesting a potential breakout with significant upside momentum. The creator's thesis is that when investors lose faith in their stock portfolio, they will likely move their capital into government bonds as a safer alternative.
Gold is positioned for a significant move due to the current government bond crisis, with the Fed likely to print money to prevent a collapse, and historical momentum patterns suggesting a major bearish move in the past that has now reversed. Momentum is present but not breaking any structure.
The creator believes the current gold and silver market is resembling the 1979 scenario, and he's scared we could be going down, way down before we go up.
The Fed doesn't shape realities; they're lagged and respond to events after they happen, not as causal factors. The current inflation numbers, particularly CPI wholesale prices, are lagged and don't reflect recent collapses in oil and commodities, making them unmeaningful.
The creator states that monetary metals, particularly gold and silver, are entering an acceleration phase after a decade-long uptrend, with silver potentially headed to a new reality, while the US stock market is in a topping process with extreme danger in certain sectors.
Bitcoin is going to move lower, down to 25 to 30k before the downside is done, based on bear flags and breakout patterns.
The creator believes coal is still a good bet despite the recent sell-off, with the coal ETF down 5.3% for the week and Atlantic thermal coal down 10.1%, but they are buying into the dip and believe the 2250 line will be hit next week.
The creator is looking at a potential bull pennant pattern in natural gas, which could break out above the 200-day moving average at 343, and suggests playing this with the BOIL ETF.
Uranium is facing a potential sell-off due to seasonal factors, with fuel buyers on vacation during summer leading to reduced demand, and the Sprott Physical Uranium Trust has broken below a head and shoulders pattern, suggesting further downside potential. The creator also sees a potential move lower forming a bear flag pattern and plans to buy more if the price reaches around 17 dollars due to summer vacation affecting fuel buyers.
Copper is showing bearish signs, with a breakdown below key support levels including the 615 line and 50-day moving average, and potentially forming a bear pennant pattern.
Silver is in a downtrend, and the creator is skeptical about an immediate bounce, noting that breaking through the $63-$64 resistance level would be a significant feat.
Gold is down 3.5% for the week, tested the 4100 level and broke, closing slightly below it, indicating a nice sell move in gold.
The S&P 500 is in a downtrend with lower highs and lower lows, and SpaceX is showing a bearish chart with a topping tail and a bear pennant formation, indicating potential further downside.
PHNX is undervalued now at ~$3 stock, but if their mining method works as expected, it could reach $20 stock with a market cap of ~$20-25 billion, given the high-grade deposit, strong IRR, and short payback period.
The chart of silver looked like a hockey stick and whenever you see a chart like that, it almost always reverses and when it does, it typically reverses aggressively.
The creator believes that gold price could settle around $3,500 range for 1-2 years if Kevin Warsh follows through on his hawkish policies, but acknowledges that the Fed may reverse course under political and social pressure.