{"id":19804,"date":"2022-06-13T07:30:52","date_gmt":"2022-06-13T11:30:52","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19804"},"modified":"2022-06-13T07:30:52","modified_gmt":"2022-06-13T11:30:52","slug":"heres-an-excuse-to-buy-this-metal","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heres-an-excuse-to-buy-this-metal\/","title":{"rendered":"Here\u2019s An Excuse to Buy This Metal"},"content":{"rendered":"

The Bullish Percent Index for the gold sector (BPGDM) still hasn’t generated a sell signal.<\/p>\n

It’s still in the same position as it was when we looked at it earlier this month<\/a>. But, if you’re looking for an excuse to add some exposure to the gold sector, Friday’s action is reason enough.<\/p>\n

Let me explain…<\/p>\n

Gold stock rallies tend to start with a typical pattern.<\/p>\n

The sector gets oversold. The stocks stretch far below all of their various moving average lines. Then, one day, from this oversold condition the gold stocks drop even farther – thereby exhausting all of the selling pressure.<\/p>\n

Then they reverse, recovering all of the day’s losses and perhaps even closing positive on the session.<\/p>\n

That’s the sort of action that tends to kick off an intermediate-term gold stock rally. And that’s the sort of action we saw on Friday.<\/p>\n

Look at this chart of the Gold Bugs Index (HUI)…<\/p>\n

\"\"<\/p>\n

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

The gold sector was already oversold heading into Friday’s opening bell.<\/p>\n

HUI had fallen from a high of 332 in April to 249 last Thursday. That’s a drop of about 27% in less than two months.<\/p>\n

HUI opened lower on Friday, along with the decline in the broad stock market. The gold sector was down more than 2% during the first hour of trading.<\/p>\n

But then… buyers stepped up.<\/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

HUI slowly started to recover. It turned positive on the day, and by the end of the session HUI was up nearly 5%.<\/p>\n

That’s the sort of action that typically signals a new gold stock rally phase. And I suspect this rally still has a long way to run.<\/p>\n

As I mentioned earlier, the BPGDM still has not generated a buy signal.<\/p>\n

Take a look…<\/p>\n

\"\"<\/p>\n

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

The BPGDM needs to turn higher from its current oversold position in order to produce a buy signal.<\/p>\n

Once it does, it’ll confirm that the gold sector has started a rally that should last between two and three months.<\/p>\n

If Friday’s action was any indication, gold stocks should be much higher in the months ahead.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

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

Have you been buying more gold stocks recently?<\/p>\n

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

There\u2019s a typical pattern with gold stocks\u2026 <\/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-19804","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\/19804","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=19804"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19804\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19804"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19804"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19804"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19804"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}