Gold continues to look technically and fundamentally fabulous.
Here's a look at the daily chart action, via the OUNZ ETF:
A flag-like drifting rectangle is in play, and a breakout looks imminent.
Note the phenomenal position of the key 14,7,7 series Stochastics oscillator at the bottom of the chart. The target is $37.50 for OUNZ, which is very similar to the $3760 I have for gold.
What about the stock market?
Well, it's incredibly overvalued. The SP500 sports with a CAPE (inflation-adjusted PE) ratio of 35. Investors have been blasted with tariff tax "cannon balls," making the market extremely vulnerable to an outright crash.
My suggestion to gold and silver stock investors: Avoid that market.
Here's a look at today's stagflationary cannon balls being blasted at stock market investors from the U.S. government's de facto pirate ship:
Here's another disturbing look at the news:
It's clear that the general stock market is at risk of a crash, while the miners look spectacular . . . and more so all the time.
Investors are often looking for the next big thing, and one of the recent big things for gold stocks has been Lundin Gold Inc. (LUG:TSX; FTMNF:OTCMKTS).
Here's a look at the chart:
Lundin sports an AISC (all-in sustaining costs) "handle" of only about $1000, and the stock looks to be headed towards $100.
What could be the next Lundin?
Well, the Lundin family is full of proven mine builders and proven winners.
Here's a look at another very interesting company that is heavily involved in financing.
I think Montage Gold Corp. (MAU:TSX.V) could indeed be the next big (and golden!) thing.
Here's the chart:
Risk can be managed with a stop at $3.80 and/or $3.40 on all or part of the position. It looks like the next "100bagger" is in the gold stocks house.
Mining stock investors need perspective when buying something like Montage that has already surged.
Here's a chart that can help do that:
The CDNX has yet to even reach the neckline of its massive inverse H&S base pattern. Some individual stocks (with Montage being a spectacular example) are going to lead the way, and appear to be overdone, when they are really only the first inning of a nine-inning game.
This is likely only the beginning of a multi-decade bull era for the miners, especially the juniors. It's a long weekend in the United States, but after looking at some of these spectacular gold stock charts . . . investors may wish the markets never close!
Special Offer for Streetwise Readers: Please send me an Email to freereports@galacticupdates.com and I'll send you my free "SGDJ: It's Time For Fearless Play!" report. With the stagflation dynamite fuse lit, it's time to add key SGDJ component stocks to winning portfolios. I highlight top component stocks, with action points for all!
I write my junior resource stocks newsletter about twice a week, and at just $199/12mths it's an investor favourite. I'm doing a special pricing this week of $169 for 14mths. Click this link or send me an email if you want the offer and I'll get you onboard. Thank-you.
Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Stewart Thomson: I, or members of my immediate household or family, own securities of: None. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
Stewart Thomson Disclosures
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
Are You Prepared?