{"id":20093,"date":"2022-09-09T07:30:58","date_gmt":"2022-09-09T11:30:58","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20093"},"modified":"2022-09-09T07:30:58","modified_gmt":"2022-09-09T11:30:58","slug":"why-you-shouldnt-ignore-another-flashing-signal","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-you-shouldnt-ignore-another-flashing-signal\/","title":{"rendered":"Why You Shouldn\u2019t Ignore Another Flashing Signal"},"content":{"rendered":"

The Gold Miners Bullish Percent Index (BPGDM) just flashed a new buy signal.<\/p>\n

But most traders are ignoring it because gold stocks performed poorly following the previous buy signal.<\/p>\n

That’s a mistake.<\/p>\n

BPGDM trading signals have a long history of working out profitably. They’re often early – and that can be frustrating for traders who want immediate gratification.<\/p>\n

But for traders who can buy today and then close their eyes for a while – there’s likely to be a big payoff in the months ahead.<\/p>\n

Let’s look at the BPGDM chart…<\/p>\n

\"Chart\"<\/div>\n

The BPGDM measures the percentage of gold stocks that are trading in a bullish technical formation. It’s 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%. It’s extremely oversold when it drops below 30%.<\/p>\n

Trading signals are generated when the index reaches extreme levels and then reverses. The blue arrows on the chart point to previous buy signals of the past two 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

Here’s how the Gold Bugs Index (HUI) performed after each of those signals…<\/p>\n

\"Chart\"<\/div>\n

All three of the previous BPGDM buy signals proved quite profitable. But those profits didn’t always happen right away.<\/p>\n

For example, the largest gold stock rally happened after the BPGDM buy signal last December. But that rally took several weeks before it finally kicked into gear.<\/p>\n

Once it got going in late January, the HUI gained 38% in less than three months.<\/p>\n

The HUI is trading lower today than where it was when the BPGDM generated a buy signal in late July.<\/p>\n

And that action has a lot of traders doubting the viability of these buy signals.<\/p>\n

So they’re ignoring the signal that was generated last week.<\/p>\n

But given the relative value of the gold sector to the S&P 500 (which I wrote about on August 18<\/a>) – the gold sector could experience a rally similar to what happened from February through April.<\/p>\n

And there’s a good chance that rally got started with last week’s buy signal.<\/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<\/strong><\/h2>\n

In today\u2019s mailbag, we\u2019d like to welcome new subscribers to Jeff Clark Trader<\/em><\/a>\u2026<\/p>\n

\n

I want to thank you, Jeff. For about nine months I’ve been bouncing around looking for a great options teacher. Trading options doesn’t make a person a great or even a good teacher. I walk away from your training videos feeling that I understand what is being taught. Thank you very much.<\/p>\n

– Jim G.<\/strong><\/p>\n<\/blockquote>\n

\n

I joined over the Labor Day weekend. I immersed myself and refreshed my knowledge with your eight videos about options. Excellent.<\/p>\n

– Kent F.<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n

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

There\u2019s likely to be a big payoff in the months ahead\u2026<\/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-20093","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\/20093","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=20093"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20093\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20093"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20093"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20093"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20093"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}