{"id":19138,"date":"2021-11-11T07:30:55","date_gmt":"2021-11-11T12:30:55","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19138"},"modified":"2021-11-11T07:30:55","modified_gmt":"2021-11-11T12:30:55","slug":"this-is-just-the-beginning","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-is-just-the-beginning\/","title":{"rendered":"This Is Just the Beginning"},"content":{"rendered":"<p>Gold exploded higher yesterday morning.<\/p>\n<p>The shiny yellow metal started the session trading at $1,867 per ounce &ndash; well above the neckline of the inverse head and shoulders pattern one of my analysts <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/this-could-signal-an-uptrend-in-gold\/\" target=\"_blank\" rel=\"noopener noreferrer\">Imre Gams pointed out in yesterday&rsquo;s essay<\/a>.<\/p>\n<p>And, all of a sudden, everybody wanted in on the trade.<\/p>\n<p>Many of the financial television talking heads &ndash; who had previously sneered at the thought of owning such a &ldquo;barbaric&rdquo; relic as gold &ndash; looked at the &ldquo;hotter than expected&rdquo; Consumer Price Index (CPI) and admitted, &ldquo;maybe gold can rally from here.&rdquo;<\/p>\n<p>The price of gold then peaked for the day and drifted lower the rest of the session.<\/p>\n<p>By the close of trading, gold was back down to $1,842 per ounce. And, that action has lots of traders wondering if we have a breakout or a fakeout in the gold market.<\/p>\n<p>Folks&hellip; it&rsquo;s a breakout. This is just the beginning of a major rally in gold.<\/p>\n<p>But, that doesn&rsquo;t make it an easy trade. Gold is notoriously volatile, and the folks who trade it tend to be a bit high strung. So, gold is subject to wildly emotional moves.<\/p>\n<p>Yesterday&rsquo;s action was a good reminder that we shouldn&rsquo;t chase gold and gold stocks higher. Rather, have successful gold traders buy the dips and then sell the rips.<\/p>\n<p>Yesterday morning was a rip&hellip; Yesterday afternoon was a dip.<\/p>\n<p>Make no mistake, though. Gold and gold stocks are headed higher in the weeks and months ahead. Traders should be using any weakness in the coming days as a chance to add exposure to the sector.<\/p>\n<table bgcolor=\"#eeeeee\" border=\"0\" cellpadding=\"10\" cellspacing=\"0\" width=\"100%\" style=\"border: 1px solid #D7D7D7; margin-bottom:20px;\">\n<tbody>\n<tr>\n<td style=\"padding-left: 15px;padding-right: 15px; padding-top: 15px; font-family: Arial,sans-serif;font-size:17px; line-height:24px;\">\n<p align=\"center\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Bullish Percent Index for the gold sector (BPGDM) generated a <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/the-strongest-buy-signal-in-years\/\" target=\"_blank\" rel=\"noopener noreferrer\">buy signal in October<\/a>. Since then, gold is up roughly $80 an ounce. And, the Gold Bugs Index (HUI) is up about 12%.<\/p>\n<p>It hasn&rsquo;t been a straight shot higher. Heck, the metal and the stocks sold off pretty hard at the end of October.<\/p>\n<p>That action had a lot of folks doubting the validity of the BPGDM buy signal. But, I argued prior to the decline in <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/this-sector-is-going-much-higher\/\" target=\"_blank\" rel=\"noopener noreferrer\">late October<\/a>, that any weakness in the gold sector was a time to buy &ndash; not sell &ndash; the gold stocks.<\/p>\n<p>I&rsquo;m going to make that same argument today. BPGDM buy signals typically last about three months. We&rsquo;re less than one month into the current signal.<\/p>\n<p>So, gold and gold stocks will likely be much higher two months from now than where they are today.<\/p>\n<p>Traders should be buying any dips in the sector.<\/p>\n<p>Best regards and good trading,<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\" alt=\"signature\"><\/p>\n<p>Jeff Clark<\/p>\n<p><!-- MAILBAG BEGIN --><\/p>\n<h2 style=\"text-align:center\">Reader Mailbag<\/h2>\n<p>Will you be buying into gold now that the \u201ctalking heads\u201d are once again taking an interest? How do you feel about the sector as a whole?<\/p>\n<p>Let us know your thoughts &ndash; and any questions you have &ndash; at <a href=\"mailto:feedback@jeffclarktrader.com\" target=\"_blank\" rel=\"noopener noreferrer\">feedback@jeffclarktrader.com<\/a>.<\/p>\n<p><!-- MAILBAG END --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s prone to wildly emotional moves&#8230;<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-19138","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19138"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19138\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19138"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19138"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19138"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19138"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}