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You are
witnessing history. This is day one of phase two of the gold bull market. Yesterday
the XAU gold stock index blasted through its 93 1/2 resistance level. It broke
its downtrend resistance line! For weeks I have been telling you that this
was going to be the pivot point. It has been breached! The gold cartel is on
the run! Gold bulls held on and have triumphed!
Everything is
lining up for gold stocks. They have been outperforming the metal for weeks
now and by breaking through 93 1/2 they have destroyed a resistance downtrend
line that has kept gold stocks down since November. The next resistance point
is in the 105 area. I think we'll get there within 6 weeks. We'll probably
see a pause there and then you can get ready for another blastoff.
Yesterday was
one of the most important days for gold I have ever seen.
This is the
start Wave Two of the gold bull market. Bull markets usually move in three
waves. The first wave is dominated by insiders and professional investors -
people who understand the sector and know that there is true fundamental
value in the stocks that make it up. In stage two, mainstream investors begin
to realize that the fundamentals for the sector are changing and that stock
prices are likely to go up. Stage three is characterized as a mania in which
people believe that stock prices are going to go higher forever and engage in
furious speculative behavior.
The next year is
going to be about the mainstreaming of gold. This is what wave two is about. And
as someone reading this, you are already well ahead of the curve. Today you
know about gold. Tomorrow Jim Cramer will be talking about gold on Mad Money.
He'll have to, because people will be calling him to ask him about Newmont.
The great thing
about wave two is that it's usually the longest lasting of the three waves
that make up a bull market. Everything is lined up for a monster Fall rally
in gold.
On a day like
this you just have to sit back and enjoy things. Over the next few weeks I
will go over how I plan on participating in this gold bull market. I already
have a large gold position personally, but going forward new issues will
appear on the market. As a bull sector advances companies appear to take
advantage of it and we will see dozens of small cap exploration mining
companies appear over the next year. They will deserve out attention and
scrutiny. There will be a few diamonds in the rough.
But enjoy today.
You did it!
To find out what
gold stocks Mike Swanson holds and plans on buying subscribe to his free
Weekly Gold Report at http://wallstreetwindow.com/weeklygold.htm.
Mike
Swanson
Editor, Wall
Street Window
Disclaimer: Michael Swanson is the President
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