Gold: The Bull Market Resumes

by JDH on September 9, 2017

It’s back.  Gold.

On the late evening/early morning of November 8, Donald Trump was elected President, and the gold market spiked up over $1,340 an ounce.  The spike only lasted overnight, and once the world realized that the world was not going to end, gold collapsed, and was trading under $1,140 by Christmas.

So, for gold to resume it’s upward trend, it needed to get back above the Trump Bump.

It did, this week, and traded over $1,362 on Friday before closing for the week at $1,351.  That’s a daily and weekly close above the Trump Bump, so that tells me we are back in bull market territory.

And yes, I realize that the RSI is now over 76, a pullback is likely, but that’s fine, we are back in business.

So, I have placed below market bids on the gold stocks I want to buy, and I have begun to accumulate positions.

Not all at once; that would not be prudent.  I’ve put in bids for 25% of the positions I want, and will buy more on down days (and raise cash if we have a few good up days).  I expect the next few months to be good.

I also expect that some stocks that are down this year will get hit with tax loss selling later in the year, so that’s where I hope by very low stink bids get filled.

We shall see.

For now, the ride is beginning, so enjoy it.