I personally started out this year saying that, to date, gold has been sold on strength and bought on weakness. And that the day strength is bought is the day we begin a much bigger rally.
Every time we look at the price of gold, we take one step closer to realizing our prediction of the $3000-$3500 price target by 2024 and not ruling out a trip to $5000 by 2025.
Yes, gold is overbought at current levels. Yet, haven't you heard the expression, "Overbought can become more overbought?" Of course you have. However, not for some time. Probably not since the huge bull run of 2021--and of course, as it related to equities.
Dear readers, we were primarily commodity floor traders for 2 decades. We are presently bullish in the metals. We have been hammering this home since post-COVID.
Now, though, we see a new phase, a parabolic one.
Back in the day on the COMEX Exchange in the World Trade Center, pre-social media, pre 24-hour news loops, and pre-"everyone is a trading genius at least once in their lives", in the late 1970s, floor traders bought dips in gold and silver. Local traders did not concern themselves with calling corrections or tops. We were there to trade price and momentum.
Now, after a very long wait, those days in the metals have returned.
With proper risk management ALWAYS, dip buying on corrections appears to make a lot of sense. Other than a very rich relative strength indicator, we see little in the way of a top at this point. The landscape mimics (on steroids) the 1970s. We believe, with current macroeconomic and geopolitical conditions such as they are, 2023 is even more bullish for the metals than it was five decades ago.
Silver is not far behind.
Retail investors have yet to load up on precious metals. Most are trained to buy equities and know little about commodities.
Right now, retail investors sway bullish in stocks. Once metals gain more of the retail traders' attentions, can I get a P-A-R-A-B-O-L-I-C?
Mish's Picks are already up 10-20% outperforming the SPY!
Want to take advantage of her stellar track record and ensure a profitable trading year? For more detailed trading information, contact Rob Quinn, our Chief Strategy Consultant, to learn more about Mish's Premium trading service.
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Catch Mish January 26th on Fox Business' Making Money with Charles Payne and on TheStreet.com!
In this appearance on CMC Markets, Mish digs into her favourite commodity trades for the week and gives her technical take on where the trading opportunities for Gold, oil, copper, silver and sugar are.
Mish gives her thoughts on the big NYSE glitch on Tuesday, January 24 on this appearance for BNN Bloomberg!
Mish discusses the continued bull case for commodities and why the SPY will remain in a trading range in this appearance on Business First AM.
Mish maps out why gold is still the shiniest in this appearance on Making Money with Charles Payne!
In Singapore, Mish discusses China and whether the markets are bottoming or going lower from here on CNBC Asia.
In StockCharts TV's Charting Forward 2023, Mish sits down with a round table panel of experts for an open discussion about the things they are seeing in, and hearing about, the markets.
You can also read Mish's Charting Forward thoughts in article form here!
Director of Trading Research and Education