Last week and so far this week, the price of gold has also traded above the 9-12 month cycle moving average. These are both signs that those cycles have bottomed, and are poised to turn up. Gold must now close above the high of the range of the past 4 weeks of 1215 to confirm a tradable upturn in those two cycles. If it does, it could be off to the races.
I suggested a couple of low risk plays to participate in a rally.
Both gold itself, and the mining stocks have since had a nice move.
Here’s a brief look at the outlook, and a review of my suggested strategy…
The Fed has shed $293 billion in assets since mid-October 2017, just before the first cuts under the Fed’s balance sheet “normalization” program. It started at the rate of $10 billion a month in October 2017, and has increased that by $10 billion per month every quarter.
As of October 2018, the rate of money expungement is now scheduled at $50 billion per month, where it is scheduled to remain for the duration of the program.
They’re close to their targets, and they’re going to continue to at least attempt to hit them.
And that’s bad news for the stock and bond markets.
Here’s why, and what you should do about it.