The stock market has put the 2020 election in the rear view mirror and it is full steam ahead into the stock market bubble of 2021. The NASDAQ Index closed above 13000 for the first time ever today and there is no resistance as we move forward. Cycles and sentiment do not work in bubble phases, As was explained in the Market Shifts Video a month ago, this melt up phase should take the NASDAQ to the 15,500 to 17,500 level before topping over the next 3-4 months. We will be recommending advancing stops and adding positions at each dip along the way.
Gold is in the first daily cycle out of its recent Intermediate Cycle Low, but gold is now in the timing band for a Daily Cycle Low. Early in the cycle we want to keep stops loose.
We are now in the phase of the cycle where we will want to tighten the stops daily on gold and silver or exit alltogether. We recommend keeping stops at the 10DMA or tighter until we get stopped out. Once the 5 day RSI becomes oversold and the 10 DMA turns lower, we will wait to spot a swing low and re-enter.
So for now, your strategy should be to put the petal on the gas for your stock positions and to be tapping on the brakes on your metals positions.
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