Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us look at the big picture technical setup, and what factors he is watching to confirm if the US Equites have begun their secular bear market, which will allow the precious metals to begin their secular bull market.
One of the key technical indicators that Jordan is looking at is how the S&P 500 index will respond to the 40 month moving average, and if it breaks below that.
If we see another move down this fall in general equities where that level breaks down, then it is a cue that the PMs can then start to diverge in a more meaningful way. However, if we see a bounce around the $3650 level, and then the markets head back up to make all time highs, then any moves higher in the PM sector will be more short-lived and muted.
Jordan wants to see gold break above $2100 to signal new all time highs are in the future for some time to come, and he believes a divergence from weak stock markets and the economic backdrop that comes with that will be the signal. We wrap up discussing the gold and silver mining stocks, where he sees them as more “cheap” than “undervalued.”