It appears surreal that Donald Trump has been in workplace for less than two weeks. That’s as a result of the quantity of pleasure he’s generated to date… is already greater than most presidents generate in a whole four-year time period.
The world was shocked by the 25% tariff taxes he levied on America’s two closest neighbours… and much more shocked when the taxes have been eliminated virtually as quick as they have been utilized.
Socialist media like CNN are claiming that the president “blinked”. Is their assertion right? Sure, however not for causes talked about by left-wing media.
Marco Rubio is quick changing into Trump’s right-hand man and on Sunday he secured concrete concessions from the Panamanian authorities on immigration and canal safety. That’s not what occurs when the US authorities blinks.
Yesterday, “The Donald” himself secured main border safety concessions from Mexico and Canada.
There’s no query that America had the higher hand within the negotiations with Panama, Mexico, and Canada. So, the place is the US authorities’s blink?
The important US inventory market chart. A significant double high, an finish to the bull market, and the potential 1929 or 1966 wipeout have been all just about a “finished deal”… earlier than Trump killed the tariffs and the Panama invasion.
Now the market has a month of respiratory room and cash managers can deal with the constructive elements of the Trump agenda.
Additionally, it may be argued that in comparison with tariff taxes imposed on Mexico and Canada, these imposed on Europe can be much less detrimental (and even perhaps a web constructive!) for the US markets. The underside line: At this time limit, new US inventory market highs are as seemingly as a swoon.
Sadly, Trump and his entourage would seemingly must enact a coverage that generates progress of 8%+ to cut back the horrifying overvaluation of the US inventory market.
Given the US empire’s late stage, fiat orientation, and comparatively small inhabitants in comparison with China and India, that’s a really tough activity to undertake, not to mention obtain.
The one different option to cut back the overvaluation is in fact with a significant bear market within the indexes and most shares.
The attractive day by day chart. What’s notably fascinating about gold is that it barely recoiled when the discount in tariffs and invasion threat was introduced.
That’s the signal of a really robust market, and naturally all through world historical past, gold has been the strongest and best asset for traders and common residents to carry!
The gorgeous weekly chart. The lead Stochastics (14,5,5 sequence) line is now overbought however the goal of the gorgeous symmetrical triangle is $3000+. Stochastics seemingly stays overbought whereas the worth strikes properly increased.
From 2020-2023 gold consolidated whereas charges soared. Then gold soared in 2024 (and into 2025) whereas charges consolidated. It’s unknown what occurs to charges subsequent however what might be mentioned is that the “Trumpian Tidal Wave” is upsetting many world socialist “apple carts”, and traders are in search of each the minor secure haven of US fiat… and the most important one among gold!
The CDNX day by day chart. Will the sixth time be a allure? I believe so, and the large reversal bar yesterday and the momentum zone purchase sign for 14,7,7 sequence Stochastics suggests it may occur by the tip of this week.
Whereas GDX (NYSE:), GDXJ, SGDM, and SGDJ are staging unbelievable rallies from my Jan 1 purchase zone, it’s actually the CDNX that highlights simply how a lot cash supervisor curiosity within the gold shares there really is…. and a surge via 630 is prone to be accompanied with a wave of institutional shopping for that hasn’t occurred for a few years.
A take a look at GDX, the spectacular weekly chart. The huge C&H motion suggests {that a} 5%-10% transfer increased for gold (to $3000-$3200) could possibly be accompanied by a 50% surge for GDX!
There’s nonetheless a variety of room for Stochastics to maneuver increased earlier than reaching the overbought zone.
Additionally, word the unbelievable MACD purchase sign that occurred yesterday… maintaining in thoughts that this can be a weekly chart that carries way more “technical weight” than a day by day one.
It may be argued that the deal with of the cup just isn’t a conventional rectangular drift however an outrageously bullish wedge…and the motion of the oscillators suggests traders ought to give this situation critical consideration.
Gold is the beacon for the miners, and it’s pointing to a lot increased costs. The Trumpian “America First” tidal wave goes to carry capital to America. That’s going to place upward strain on rates of interest, which is detrimental for the ridiculously overvalued inventory market. Gold, silver, and the miners thrived throughout an identical state of affairs within the Seventies, particularly as “growflation” morphed into stagflation. The weekly GDX chart is at present an important chart for traders to deal with, in order that they have an superior day… and a golden yr!
