Don’t Be “That Guy”

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Earlier today I wrote a post raising the notion that if Donald Trump is now accepting gold as a legitimate form of payment for his real estate properties, then perhaps that is additional contrarian evidence that the bullion has topped out for the foreseeable future. As we know, gold has had a spectacular run over the past few months on top of already being in a potent multi-year bull market. Recently, though, the yellow metal has put in what may very well be a double-top and appears heavy on the GLD daily chart. As our own JakeGint stresses often in this gold run, it is awfully tough to short a bull market of this magnitude. Hence, I have no interest in being “that guy” trying to call the absolute top in gold. All I seek to do is interpret the price action as rigorously and objectively as I can for you.

I also said in that earlier post that the metals and miners can often trade in separate and distinct worlds far more often than you would think possible. After all, when you think of “gold miners,” you cannot help but think of “gold.” However, my good friend on Twitter @Xiphos_Trading also pointed out that the gold miners were still strong and there was little evidence that gold has put in THE top and that the miners were not about to go on an epic run and putting in massive bases on longer-term timeframes. Frankly, looking at a few charts of gold miners this evening, there are indeed some ones that are set up well. All they need now are some buyers to hope back on the miner train to keep the beastly locomotive going.

Hence, I believe the best thesis going forward is that the miners should categorically outperform the metals.

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