Gold Set to Lead Greatest Bull Market in Our Lifetime
By Toby Connor May 12, 2010 12:45 pm
As other sectors see declining volume, precious metals are headed for a vacuum with no overhead resistance. Golds breakout to new highs has very bullish connotations going forward. It puts the odds squarely in favor of a C-wave continuation.
For those of you thinking about getting sidetracked by a meaningless daily cycle low that's coming due, let me tell you from bitter experience the one thing you don't want to do is lose your position at the beginning of a C-wave or C-wave second leg.
At this point the daily cycle corrections aren't profit-taking opportunities. That will come as we near the end of the C-wave.
At this time a daily cycle low is a last chance opportunity to get invested.
Don't forget that in bull markets and especially during aggressive C-wave advances the surprises come on the upside. Daily cycles can and often do run exceptionally long as a C-wave starts to gain momentum so losing ones position in an attempt to "time" a short-term correction can potentially cost one many percentage points. It's just not worth the risk. Its time to heed OldTurkey advice.
I have no doubt this will be the greatest bull market that any of us will ever see in our lifetime. Since November of 2008 the precious metal sector has been doing everything but hit investors over the head with a pipe to let us know this is the leading sector of this bull.
Miners are the only sector exhibiting massive accumulation.
Market Vectors Gold Miners (GDX)
Im even seeing analysts touting the energy sector as the place to be. Its not unusual to see traders flock back into the leading sector of the prior bull, but if history is any indication, energy won't lead this bull. You can see from the chart of the XLE that energy, just like every other sector, is showing no signs of accumulation. Lets face it, the supply and demand fundamentals for the energy sector are now impaired and will be for years as the world cycles through multiple on-again-off-again recessions and stubbornly high unemployment levels.
The only sector with improving fundamentals is the precious metal sector, which will benefit from governments' ongoing attempts to print prosperity. It won't work, but the blizzard of paper will drive the secular gold bull to amazing heights before its finished.
Once the HUI and silver join gold, platinum, and palladium at new highs the entire precious metal sector will move into a vacuum with no overhead resistance.
That's going to be incredibly bullish for the sector.
CVY Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held
