Yesterday the DOW fell over 400 points and the S&P 500 dumped for 1.86%. Remember back in 2017 the DOW had less than four days in which it went up or down more than 1% in a day that entire year?
Now big days happen all of the time for the US stock market like a roller coaster. That’s what bear markets in which a market is below its 200-day moving average are about.
Well gold yesterday had a dip too.
The GLD gold metals ETF pulled back 0.54%.
Gold is now trading LESS volatile than the stock market is and is in a real bull trend as it is still above its 200-day moving average and just made a new high this week as you can see from this chart.
Now a lot of people are looking for “L” patterns now in the markets to trade. This is where something completely crashes and then go sideways.
To give you an example the former 3X ETF JNUG gold stock ETF (now 2X) has an “L” pattern on it after it completely crashed in March.
The lure of the “L” is that if something crashed it must be cheap so it must go back up. The problem with the “L” is that it only works if the thing you buy is good enough to go back up.
The JNUG ETF completely malfunctioned in March and is now ruined.
There is NO reason to buy into this JNUG “L” when you see what GLD is doing and how the best individual mining stocks are trading.
Don’t listen to NUGT and JNUG much less DUST traders – these ETF’s are JUNK!
They are NOT the way to get involved in the gold market.
All you need to do is buy gold or buy the best individual stocks if you want to get the big gains. I talked about one such stock in this video I posted Wednesday:
-Mike
