I’m sure you saw the stock market drop yesterday and saw the news that China is set to launch new tariffs in retaliation to Trump’s Friday tariffs. The trade war is on even though in theory there is a negotiating window of a few weeks for a miracle.
People bet on that miracle last week now suffered the consequences – and really there is no signs that it is going to happen.
I’m not going to talk with you about the news today. This email has in it all the key news stories you need to read if you want to keep up with the important details.
What I’m going to focus on instead is making gains in your portfolio.
And if you want to do that the best thing you can do is to not make any decisions based on tweets, news items of day, or people’s predictions on what must happen.
A lot of people who predicted a trade deal was going to happen now have egg on their face.
Instead if you want to make money you must focus on the trends and the charts and the key principles of technical analysis.
One obvious thing happening now is that gold is coming alive again just like it did back in October as gold rallied back above $1,300 yesterday to break the corrective wave it began in February when it peaked at $1,350.
Take a look at this gold price chart and you can see how it closed above the downtrend line that can be drawn at the start of that February high.
This month gold also broke a downtrend of the relative strength gold/spx ratio.
That means that gold is now starting to outperform the stock market
The odds of a rate cut before the end of this year jumped up to over 75% in the past few days and gold is going to be a big beneficiary of that new easy money regime when it begins.
Gold is not only acting as a safe haven, as it began to do in October, but is now emerging once again as the simplest way to beat the market. Look for gold to now rally back up towards it February highs and go through them before this year is over to launch through its megabase.
Of course some mining stocks turned up huge yesterday and are just going to go up and away.
That’s what the charts are showing us, and this action is telling us how important it is to return to principles when it comes to trading and investing and not just chasing rumors, tips, and tweets.
There are heroes who came before us in the markets who paved the way for us. I talked about one of them in this new video:
To watch this video click here:
-Mike
