Home Gold Stocks Mining Stocks Begin To Launch Again As JETS Fire – Mike Swanson...

Mining Stocks Begin To Launch Again As JETS Fire – Mike Swanson (05/06/2020)

So far this week the stock market is drifting following the nasty Friday DOW down day of last week. You can’t say the same for airline stocks though as they have been completely smashed this week. On Monday I talked about how Warren Buffett was selling his entire stake in them worth billions in a video update. However, airlines are among the most popular stocks now to own among people with Robinhood accounts.

Who is right?

In my Monday video I suggested that Warren Buffett is, but a simple triangle chart pattern will resolve soon to tell us the ultimate answer. Take a look at the JETS airline sector ETF.

This ETF has a very simple triangle pattern that will resolve to trigger the next move in the stock. If it closes below the lower blue trendline then you can expect airline stocks to tumble again. The JETS ETF is flaming out burning out making shareholders money go up in smoke. Maybe it can bounce off the lower trendline before making new lows, but it really looks doomed now.

It is simply very difficult to make money in sectors lagging the market like this trading below all of their key moving averages. To beat the market you want to be in the stocks beating the market and right now there is no other sector doing this the way mining stocks are. Yesterday NEM made another high for the year following its earnings report.

You can see how many times NEM has broken through resistance in the past twelve months and is simply doing it again, but right now many big cap mining stocks are doing this too. Take a look for instance at this silver mining giant.

WPM went up again on Tuesday. It’s been an incredible move since its March low. I own both NEM and WMP and I also am very excited about the recent news yesterday of another $1.5 million investment in my top small cap stock pick for this month.