Gold Miners ETF (GDX)

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• • • Gold The Breakout?
By: Marty Armstrong | August 3, 2019

Gold elected the Monthly Bullish Reversal at the end of July signaling that a rally should follow with an ideal target at the 1487.50 level. Technically, gold has not broken out until we get through the uptrend channel which stands at 1575 zone. What we still must be concerned about is what unfold after the start of September. There appears to be a fall correction which could scare the life out of a lot of people. But that is what markets will do if they are truly about to shift direction.

As you can see, our Energy Models are just starting to turn upward so there does not appear to be a risk of a major collapse without turning Energy sharply higher. Nonetheless, the smart market is beginning to smell a rat in the woodpile. The Fed lowering rates confirmed what I have been warning about - the Fed has become the central bank of the world. It makes no sense to cut rates when the stock market is at near-record highs. The Fed sees what Socrates has been warning about that the world economy is taking a nose-dive into January 2020. Cutting rates only punishes those who saved for retirement. You begin to see the elderly working in McDonald's, driving Ubers, and working various sales jobs. This is reality compared to theory.

All we can do is follow the Reversals and the turning points. It does appear that capital is shifting and the dollar could decline here in the Fall given this new proposal submitted that the Fed should discourage capital inflows by imposing a tax on foreign money trying to buy US assets. This lunatic idea could be could for a scare.

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