{"id":19778,"date":"2022-06-02T07:30:54","date_gmt":"2022-06-02T11:30:54","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19778"},"modified":"2022-06-02T07:30:54","modified_gmt":"2022-06-02T11:30:54","slug":"this-beaten-down-metal-is-nearing-a-turning-point","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-beaten-down-metal-is-nearing-a-turning-point\/","title":{"rendered":"This Beaten Down Metal Is Nearing a Turning Point"},"content":{"rendered":"

The past two months have been brutal for gold stocks.<\/p>\n

The Gold Bugs Index (HUI) peaked in early April right above 330 and it finished May just below 255.<\/p>\n

That’s a 22% drop in just two months!<\/p>\n

That action has once again, crushed the hopes and dreams of the die-hard “gold bugs.”<\/p>\n

Investor sentiment toward the gold stocks was wildly bullish<\/a> in March. But today, it’s horribly bearish<\/a>…<\/p>\n

This contrary shift in sentiment likely indicates we’re nearing a turning point for the gold sector.<\/p>\n

But even more potentially bullish is the gold sector Bullish Percent Index (BPGDM)… which is on the verge of generating a buy signal.<\/p>\n

Take a look at this chart…<\/p>\n

<\/p>\n

\"chart\"<\/p>\n

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

<\/p>\n

The BPGDM measures the percentage of gold stocks that are trading in a bullish technical formation. It’s basically a gauge of overbought and oversold conditions.<\/p>\n

Since it’s measured as a percentage, a bullish percent index can only reach as high as 100 or fall as low as zero.<\/p>\n

Typically, a sector is extremely overbought when its bullish percent index rallies above 80. And it’s extremely oversold when it drops below 30.<\/p>\n

Trading signals are generated when the index reaches extreme levels and then reverses.<\/p>\n

The blue arrows on the chart show the previous two BPGDM buy signals.<\/p>\n

The Gold Bugs Index gained 17% in two months following the buy signal last October. It rallied 30% in three months after the December signal.<\/p>\n

Those were big, profitable moves for traders who bought into the gold sector following those two BPGDM buy signals.<\/p>\n

Now, the BPGDM is in position to generate its first buy signal of 2022.<\/p>\n

The index closed below 30 last week… the gold sector is extremely oversold.<\/p>\n

And once the BPGDM turns higher (which could happen any day), we’ll have a new buy signal.<\/p>\n

If it performs anything like the previous two, then gold stocks should be much higher in the months ahead.<\/p>\n

Best regards and good trading,<\/p>\n\n\n
\"signature\"<\/td>\n<\/tr>\n<\/table>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

In today’s mailbag, Jeff Clark Alliance<\/em> member Ross and Earnings Trader<\/em> member Daniel share their thoughts and thank Jeff for his trade recommendations…<\/p>\n

\n

Jeff, I was an energy commodities trader for my career, and I subscribe to many publications to increase my bandwidth to monitor equities and bonds which I may miss in my searches for investments. Of all these publications, I have to say yours has proven to be the most valuable to me.<\/p>\n

The technicals you use are different from those I used in my career but have proven to give me a much more robust analysis process. Another plus is that most of your trade recommendations are for much shorter durations than those recommended by the other publications I use. Thus, giving me the opportunities with less risk. Keep up the great work!<\/p>\n

– Ross W.<\/strong><\/p>\n<\/blockquote>\n

\n

Dear Jeff,<\/p>\n

On May 19, you sent a buy alert for a trade.<\/p>\n

I was able to make 74.3% on this investment within seven days. Jeff, thank you for your research, recommendations, and for making investing fun and profitable.<\/p>\n

– Daniel D.<\/strong><\/p>\n<\/blockquote>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s in position to generate its first buy signal of 2022.<\/p>\n","protected":false},"author":55,"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-19778","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\/19778","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19778"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19778\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19778"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19778"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19778"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19778"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}