Tensions with North Korea are rising rapidly, just as forecast by the ramping war cycles.
While we all pray that cooler heads will prevail, military action is certainly on the table.
This is adding upside momentum to precious metals with December gold futures above $1,340-an-ounce this morning as this is penned, after trading as high as $1,345.50 earlier.
That fulfills our near-term price target of $1,340-$1,350, and it increases the odds that gold will pull back to digest recent gains.
The good news: As you can see in the long-term chart (above), gold has decisively ended a downtrend that had been in place for nearly five long years. And a new bull market is just getting started.
The bad news: Our cycle forecast chart (below) clearly points to another downturn for gold and mining shares, likely to come in October but, it’s possible the situation in Korea could extend the rally longer than expected.
Whether we get a small pull back near term, or a larger correction later, either way we expect a better buying opportunity coming soon, which leads me to …
Three Urgent Recommendations for E-Wave Trader members …
These markets are heating up. That’s obvious from the cycles, and the charts. So now is the time to take three important actions …
Recommendation #1: Target gains of about 15% in your VanEck Vectors Junior Gold Miners ETF (GDXJ) position, by placing a sell-limit order above the market. You should be filled if this rally extends. But if GDXJ falls short of our price target, we’ll let you know to adjust your limit asap.
Here’s what to do right away…
SELL to close ALL your shares of VanEck Vectors Junior Gold Miners ETF, symbol GDXJ, at a limit-price of $42.50 or better, good till canceled.
Place this trade asap and continue to hold all other positions. Rest assured, we will be looking for a more attractive entry point to buy back GDXJ and add even more positions to capitalize on the next move higher in metals, after a pull back.
Recommendation #2. Do NOT rush to buy more gold or gold shares this week. Too many investors get carried away by the moment. They see metals surging. They act impulsively. And they jump on the bandwagon precisely when prices are nearing a temporary peak. Don’t fall for that temptation.
Markets often come back to test their breakout pivot-point before moving even higher. And sure enough, our cycle forecast points to another pullback for precious metals in the weeks ahead.
In fact, every short-term cycle for every metal we track is pointing to a near-term correction dead ahead — not a big one mind you – but large enough to warrant the one quality that helps investors make the most money with the most consistency — PATIENCE.
Rest assured, after the correction, a more powerful rally will blast precious metals off to the upside again. Ditto for mining shares. So, wait patiently for my signal.
Recommendation #3. Go here to register for an emergency subscriber conference to be held this coming Tuesday, Sept. 12. That’s exactly one week from today.
After traveling the world to survey investment dangers and opportunities, Weiss Research founder Martin Weiss, Ph.D., has interrupted his travels to rush home and lead the conference. Our Senior Analyst Sean Brodrick will also be there. Together, they will bring you an alarming prediction about the immediate future.
It will be the most important conference since the founding of this company 46 years ago, and I am inviting you to attend. But you don’t have to travel or go anywhere. You can just join us online from the comfort of your home or office.
You will get a clear road map of what’s ahead right now, next year and in the years that follow. You will learn which specific investments will be impacted, how and when. You will receive a detailed action plan for the next five years. Plus, you will be entitled to attend two follow-up sessions (Wednesday, Sept. 13 and Thursday, Sept. 14).
As a charter-member of the Edelson Institute and an E-Wave Trader subscriber, there is no cost whatsoever. But to get your instructions for attending, you do have to register. Just click this link. Or call Stan at 800-393-0189 and he will gladly register you on the spot.
Then mark your calendar for the exact date and time: Tuesday, Sept. 12 at 2:00 PM Eastern Time.
Good investing,
Mike and David
