{"id":19458,"date":"2022-02-28T07:30:59","date_gmt":"2022-02-28T12:30:59","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19458"},"modified":"2022-02-28T07:30:59","modified_gmt":"2022-02-28T12:30:59","slug":"its-just-the-beginning-for-this-metal","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/its-just-the-beginning-for-this-metal\/","title":{"rendered":"It\u2019s Just the Beginning for This Metal"},"content":{"rendered":"

The long-awaited gold stock rally has finally kicked into gear.<\/p>\n

Some folks will argue that it took the outbreak of World War III to wake up the gold sector from a multi-year slumber.<\/p>\n

But, as we’ve noted many times in Market Minute<\/em> over the past several months… the gold stocks were cheap enough, and investor sentiment (a contrary indicator) was bearish<\/a> enough, that there was little risk and plenty of reward to buying into the sector.<\/p>\n

And here we are… just two months into 2022 and the Gold Bugs Index (HUI) is up 8.36% while the S&P 500 is down 8%.<\/p>\n

In other words, the gold stocks are beating the S&P 500 by more than 16% over just the past two months.<\/p>\n

This is just the beginning…<\/p>\n

After a few years of underperforming the broad stock market, gold stocks look set for a sustainable period of outperformance.<\/p>\n

Take a look at this long-term ratio chart of gold stocks versus the S&P 500…<\/p>\n

\"\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

This chart compares the price action in the gold stocks to the action in the broad stock market.<\/p>\n

When the chart is falling, gold stocks are underperforming the market. When the chart is rising, the gold sector is outperforming.<\/p>\n

For the past ten years, gold stocks have provided a spectacular example of underperformance. This chart entered 2022 near its lowest point in 20 years.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’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 click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Over the past two decades, this chart has ranged between 0.05 on the downside and 0.55 on the upside. A rally back up to the middle part of that range seems like a reasonable objective.<\/p>\n

So, either the gold sector is set up for a massive rally, or the broad stock market is set up for a massive decline… or we’ll get some combination of the two.<\/p>\n

But, no matter how we get there, the gold sector is just beginning a long-term period of outperformance.<\/p>\n

And, as we’ve argued numerous times over the past few months, traders should take advantage of any weakness in the gold stocks and use it as a chance to buy.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

How well have you done trading gold recently?<\/p>\n

Let us know your thoughts – and any questions you have – feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

We\u2019re due for a period of outperformance…<\/p>\n","protected":false},"author":25,"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-19458","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19458","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\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19458"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19458\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19458"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19458"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19458"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19458"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}