As you know the stock market has faltered the first two trading days of this month, but that isn’t too unusual as the market entered this month overbought and typically does have a little dip the first week of December almost every year before going higher into the end of the year.
And of course on CNBC all they are talking about is the action in the S&P 500 and the latest Trump trade news and blaming it for the drop. Yesterday the news was bad, but today a new leak from a Trump trade official is bringing fresh hope that the trade deal Trump announced in the oval office in October will finally become real.
What they aren’t talking about is what is going up. Gold stocks broke out of a simple triangle pattern to suggest that they are now starting a new rally already into the end of the year.
Take a look at the big cap miner ETF GDX.
The ETF has been holding support at $26 now for over two months and is now pushing up to the upside like a coiled spring. Forget about the stock market for a moment as this is where the action to the upside is already starting.
And the right mining stocks are exploding. Take a look at Aftermath Silver as it made a new high again yesterday to close over 30 cents a share!
It wasn’t that long ago that this stock was under 8 cents. This action is exactly why I made Aftermath Silver my top stock pick for December. And yesterday it went up another 10.72%.
The fun thing about this stock is that I think it is just going to keep going higher from here with all of the recent developments with the company announced in the past two months, including a huge position taken in the stock by Eric Sprott.
And the big cap miners sure look like they are in gear. Take a look at what big cap silver miner PAAS did.
I own positions in PAAS and GDX and Aftermath Silver too. Before the open I sent a new buy trade alert for a new Top Seven Position for members of my private Power Investor group for a stock in a better buy position than PAAS.
If you are not already in the group get in the group by going here:
The stocks and sectors that lead the market going into December tend to continue to do so going into New Years as money managers and fund managers chase to buy in order to put them on their books at the end of the year so that they can look smart. But we are in front of them on this move.
Disclosure: Mike Swanson owns a position in Aftermath Silver. Because it is a small cap stock with less than $100 million in market he is placing himself on a voluntary 30-day trading restriction period from the date of this post in which he will not buy or sell shares of it.