Greg Guenthner

In the blink of an eye, summer just got a lot more interesting.

Try your best to ignore a sagging stock market for a minute. Today, I want to talk about the intense action we’re seeing in gold and gold miner stocks—and how you can play it.

First, here’s your ten-second breakdown of yesterday’s action:

After dropping below $1,318 in early morning trading, gold futures caught fire. Price steadily climbed from below $1,320 to $1,340. That’s when the fireworks began. Just after lunch, gold futures popped $20 on high volume, effortlessly blasting through resistance at $1,350.

This morning, you’ll find gold futures near $1,362.

Earlier this week, I told you to keep a close eye on $1,350. That’s because a break above $1,350 is a fairly good indication we could see higher prices soon.

It’s been a crazy ride—but the breakout is finally here. I expect gold to continue its volatile rise in the near-term. No, I’m not expecting a dash toward 2011 highs anytime soon. But right now, buyers are clearly in control.

The best way to play this rally is going to be the miners.

Gold Miners ETF vs. Gold Spot Price

Even factoring in the big move in gold futures yesterday, the miners are outperforming the metal so far this month. Precious metals miners had climbed nearly 10% since August 1 (as of yesterday afternoon). And I expect this group to continue to rise…

You probably recall just how oversold miners were heading into this rally. Miners were down more than 50% on the year as a group earlier this summer. And even at its worst, gold futures were only off about 28% year-to-date.

These extreme oversold conditions will help quickly propel miners in the coming weeks. They’re ripe for a trade, so don’t hesitate to buy…

Regards,

Greg Guenthner
for The Rude Awakening

You May Also Like:


“Special Situations” and Quirky Opportunities in US Stocks

Henry Bonner

Our own Chris Mayer tells Henry Bonner why he sees no big theme in US stocks today -- just hidden opportunities for those who know where to look. Read the interview here...

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

  • goldencalf

    Gold’s up it’s going to the moon, the new bull!
    Gold’s down it’s going to 1,000, book it!
    I too could be a market forecaster for daily reckoning. ;)

  • Pl0ns

    Greg,
    21 April 2015 – Gold price 1198 USD/oz – have you mentioned rally ?
    …or you just wanted to suck in suckers ?

    You often forecast just rubbish Greg..

Recent Articles

QE = Debt Cancellation

Peter Coyne

If you’re just tuning in, we’re two parts deep into our three-part conversation with Richard Duncan. Part III continues with talks on globalization, deflation, quantitative easing, the dollar crisis and more. Read on...


Anesthetics That Could Put Us Asleep Permanently

Stephen Petranek

Modern anesthesia makes critical operations possible that few humans could survive otherwise. But according to a new study published in the journal Geophysical Research Letters, some of the numbing agents we breathe may also be significant contributors to global warming.


Is the Cheap Oil Trade Dead? Think Again…

Greg Guenthner

Look, we ain’t gonna see $100 oil anytime soon. That's great news for businesses guzzling a lot of fuel. Operating costs are way down, which means higher profits. And higher stock prices. And yes, you can still find plenty of great opportunities to book profits as companies save money on fuel…


It’s Time to Go Nuclear if You Want Double-Digit Gains

Greg Guenthner

Nuclear power has been hammered since the Fukushima disaster in Japan four years ago. But as Greg Guenthner explains, nuclear power is making a comeback as countries around the world appreciate its great potential. He’ll also tell you exactly how to play this trend.