Friday's action should certainly be a wake-up call for the gold & silver bugs. A textbook lesson in capitulation, as I covered on Friday [link]:
- Euphoric FOMO chasing/ retail short covering (Thursday)
- Catastrophic rug pull, the very next morning (in futures markets).
- Metals— still too hot to touch
- Once the dust settles, you're likely to see a lot of sideways action.
Look, if you're still trapped in your gold trade, then this may be an opportune time to lick your wounds, reassess your trading strategy, and live to trade another day. The market doesn't care about your love for gold.
Oct. 2025 I called, "Gold, the biggest bubble we've seen in over 50 years" (confirmed by Grok/AI) [link]. But Friday was just a pin prick. A massive one day drop, but not an implosion. If this were a black swan event, all the charts would be broken, and that's simply just not the case. Today Precious metals remain in a massive overbought bubble, along with several other markets, but I suspect the implosion won't come until later in the year, if at all.
Lately the market is afraid of its own shadow, hiding in sectors that don't make any sense. Fearing the US Dollar (really). Hiding in basic materials, oil, gold, silver, utilities? I call these chicken-shit trades, because this is where scared investors like to hide, when they hear scary Trump headlines being read off the teleprompter.
Where Else are the Chickens Hiding?
$UTY Utilities - Trading in an apparent wave 4 triangle. Short it into an extended wave 5. There's some advice you'll never hear on CNBC Fast Money.
I mentioned Elliott Waves in the previous blog, and perhaps I misspoke when I said EW patterns no longer work, yet the Utilities chart is trading in a textbook bearish wave 4 triangle pattern, and that's because it's not being endlessly pumped and dumped like so many other sectors. It's trading on emotion, rather than adrenaline. Do you know who's not scared, and not hiding in gold & Silver?
Enter: Cathie Wood of Ark Invest
 |
| many sources |
Don't laugh - Wall Street picks the winners and losers not me... no coincidences. see the chart below:
$ARKK Ark Innovation ETF - Bullish (higher lows/higher highs), Getting ready to test the 200 day SMA
Good News is that as more and more speculative traders are wiped out (gold, silver, crypto, energy), the Investor Intelligence barometer continues to rise, and that brings with it better trading opportunities, but we're going to see continued sector rotations continue to be used to help lift markets. From Gold, into Crypto, and back into Mag7 again.
Now that there's plenty of cash sitting on the sidelines, it's ready to be put to work in beaten up value names that have been selling off for months. in the annual dash for trash, where value is meaningless, and Fed intervention - and new creative ways of stimulating the economy (eg baby welfare cash injections) is everything.
Buy American, buy the dip.
P.S.
I'm not going to name any names, but the same people who were telling you to chase the rally in metals, and miners, have recently been spotted deleting their bullish tweets, and selectively editing their podcasts. This is a dirty business. Conversely:
P.P.S. Brace yourselves: This From reddit
Young Cathie Wood pictures are not priced into ARKK. Bullish! [link]
