Gold not exciting, but QQQ looks good

by JDH on March 17, 2018

A chart of NUGT – Direxion Daily Gold Miners Bull 3x Shares NYSE + BATS , a 3 times leveraged ETF of gold shares, is not a particularly encouraging site:

It is in an obvious downtrend from 2016 (and before).

There appears to be a solid base around $22, if that is any consolation.

Perhaps NUGT will continue to trade in it’s down-trend channel, indicating a bounce back up to $30, or even $35, is possible, but the chart gives no indication that a new bull market is anywhere on the horizon.

So, if you want to roll the dice, buy NUGT here, and place your sell orders at $30, but it would appear that there are better places to put your money.

Like QQQ.

Here’s the chart:

As you can see, QQQ, a proxy for the Nasdaq, is close to an all time high, after a slight pullback this week.  A buy order at $170 looks like a solid bet.

The general stock market gives no indication that we have hit the “blow off top”, so the logical plan is to ride it.

And so I will.

At least until next week.

Stay tuned.