One last flush here in metals and the bottom is in.
DSI (Daily Sentiment Index) as of yesterday’s close is as follows:
Anyone practicing extreme patience it seems we are setting up for the perfect storm in many asset classes. One last flush can do it.
Banks can push things to extremes anytime they want. When sentiment is in the dumps, as @AviGilburt says, buy, buy, buy. We are close. But we have been close for years it seems. As I always say, holders of physical should dollar cost average into a position deemed as “insurance” versus what could be the biggest move down in the dollar ever.
The only thing that is missing is lack of faith in the Fed. It’s been 15 years and 7 days since I wrote my article back when I knew half as much as I know now. Or something like that.
The Fed Is Relevant…. For Now…. However…..
The Fed of course is still relevant. They have kept the game going longer than any pundit who writes about gold could ever imagine. And many who are older know that many were thinking the dollar would crash since the 80’s (if not 70’s as I’ll have to ask my 89 year old Dad when he would hand me copies of The Reaper by R.E. McMaster. https://www.usagold.com/cpmforum/laymans-guide-mcmaster/
It’s been an amazing run for the Fed. Their next move will be to lower rates. The damage of their policies is unknown for now as the dollar is still “perceived” to be the best of the bunch as Daily Sentiment again hits the 90s. The average investor has one last chance to get out of stocks (double top area) on this next move up before Fed policy finally catches up with the reality of “everything crashes” and the insurance of gold and silver rises to the top in 70’s style fashion. The sideshow of politics and the belief that printing more money to pay for things will continue to support the massive size that government has become. Very few will be prepared. Very few have insurance.
As an investor, I don’t care what the market does. I will profit from it. But most won’t navigate the ups and downs of a real bear market. This current move down in the stock market is just a taste of what’s to come. But let’s get a final leg up and my next book “How To Profit In Up and Down Markets” out to the public so at least investors have a fighting chance.
Please go to https://www.profitinupanddownmarkets.com for sign up. It won’t be long before it’s out. It won’t be long before the Fed punts.
Don’t fear The Reaper.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.