The breakout in gold, and gold miners was no surprise - after watching it consolidate in a downturned triangle for most of the summer. The breakout of the pattern was followed by several more important technical signals, on August 10th.
1.
What's up with the $VIX higher, on a Monday? Gold also continues to be bought at support. #SHTF #Trade pic.twitter.com/uG10vfNkGr
— Veteran Market Timer (@3Xtraders) August 10, 2026
2.
$GDX gold miners are bought at the 200 day SMA pic.twitter.com/YqgBQf53eA
— Veteran Market Timer (@3Xtraders) August 13, 2026
3. 8/22 Today Saturday - Gold still has room to run.
Friday's close on Gold, shows it's poised to go higher. pic.twitter.com/UTGIRAJ3tQ
— Veteran Market Timer (@3Xtraders) August 22, 2026
What I didn't see coming, was the perfectly scripted narrative:
- "Yield driven sell-off in Equities" - with the $VIX trading below 16? I don't think so.
- National Debt reaches $40 Trillion (headline grabbing round number)
- Treasury's failed attempt to sooth the bond market - a Gloomberg favorite!
But first came an article published by Barons - pumping not gold but the gold bugs' favorite ETF the $GDX (Gold Miners), just as money started fleeing US markets (again). Yep, it's the return of the rotation trade that Mike Wilson helped coordinate... Remember he specifically mentioned gold miners.
Tweet August 6th
The Barron's pump: Why These Bargain Stocks Can Outshine Gold $GDX https://t.co/BofhI4DD7U
— Veteran Market Timer (@3Xtraders) August 6, 2026
What I believe happened is the rotation into the Dow came to an abrupt end, and the rotation did a hard left back into gold and gold miners, but also, after the S. Korean chip rally was vacated, the Bank of S. Korea signaled a pivot into gold. Look, BOK buying physical gold isn't a strategy, it's a hostage video. Above my paygrade.
Just In: Bank of S. Korea buys physical gold for first time 🚀
— Veteran Market Timer (@3Xtraders) August 6, 2026
Meanwhile: Chip stocks tank 💩 pic.twitter.com/bd2VYd4sv2
The Rotation The Talking Heads Finally Copped To - Energy: That's the kiss of death.
The other new all time high that's already begun to unwind. Healthcare. Because bankrupt nations can't afford things like higher Medicare costs.
$MRNA is mocking the antivaxers. #Vaxcine #AI #Therapy #Healthcare #FollowTheMoney pic.twitter.com/6ecXdA6R6h
— Veteran Market Timer (@3Xtraders) August 20, 2026
Semiconductors remain volatile af, and not too easy to predict. You're on your own there.
The kicker is that the cycle seems to be wrapping up right around a key Options target:
August Options Expiration Friday
The timing is proof that the hedge funds were behind this, and the bought and paid for talking heads helped by fanning the flames on the weak dollar ($40t debt story, Treasury story, Bessent, etc.) #Rigged #OPEX #Gold #Silver #Metals #Copper #Uranium pic.twitter.com/dvxfZ4fQV3
— Veteran Market Timer (@3Xtraders) August 21, 2026
Like I said: I think we'll see another breakout on Gold, and it could take some time for the smart money to offload their gold miner shares to unsuspecting retail investors.
Same goes for Bitcoin: You don't typically see a parabolic 3 day move - like we just saw - come to an abrupt end. For instance, the top in S. Korean chips took several weeks to gain any downside momentum.
How long can rotation trades continue to fuel the broader rally? Not much longer, I'm afraid.
In fact while the talking heads continue to fan the flames on dollar weakness, I'm hiding out in bonds, which continue to consolidate just below the 50 week moving average.
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P.S. is a Latin phrase that means "let the buyer beware". It is a principle in contract and commercial law which states that the buyer takes the risk of a product or property having defects or poor quality unless a warranty is given or fraud is involved. Source: AI Overview
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