BY MARK SEBASTIAN 

October 18, 2023 

Hey Traders,

Normally I would be talking about changes in the choice of consumers,  breakthroughs in technology, or big policy changes in the US government to lead into this week’s stock.

But this week’s stock is different because it’s not a stock … it’s an asset class.

An asset class is something like bonds, equities (stocks), volatility, or the dollar. This week we are going to be taking a hard look at the precious metals, namely gold.

No I am not a gold bug – never have been, never will be. I don’t need to stockpile a commodity to make myself feel financially stable; instead, I trade.

But that doesn’t mean I don’t see the value in owning gold.

It has been craved by humans since before written history … it clearly has value.

Look at the national debt, something that caused gold to explode in 2011:

It’s only going up.

Yet GLD, the ETF that tracks gold:

It’s high, but below the peaks of 2011.

And in the last 6 months, as US debt is only going up…

Yep, it’s down.

Over the next couple of days, you’re going to see some expert chart analysis from Licia and a real fundamental dive from Bill.

I am good at analyzing stocks … not so much something like gold.

But here is what I will say.

Gold is a long term store of wealth. If you are a millionaire without trading chops or you make the majority of your wealth somewhere else,  it totally makes sense to own some. From an investment perspective you are betting hard against the US dollar.

This is a 12 year chart of the Invesco DB US Dollar Index Bullish Fund (Ticker: UUP):

Even with the debt exploding the dollar is stronger than it was more than 10 years ago.

Before I invest in gold,  I need to see the dollar pull below levels from 2010.

Until then, the charts show me that GLD is stuck in the channel it has been in for the last decade.

Thus, for the wealthy, diversify into gold. For the short term trader, talk to Licia.

But for a trader looking to make money just beyond the capital gains limit that is not a millionaire…

I think there are better places. I am going to be finding those places in my trading rooms… If you want to join me LIVE every day and want our charting and education suite give us a call at (888) 872 3301.

If you want to take the class on Saturday where we unveil our Option Pit Engine – we can’t make it any easier than this – just click here.

Questions about that? Leave a comment below!

Your Only Option,

Mark Sebastian