Buy Alert! Legit Gold Price Breakout

August 8, 2019
By Vlad Karpel

RoboStreet – August 8, 2019 

The Luster of Gold in Volatile Markets 

When the forces of expanding trade tariffs, manipulating currencies, intensifying quantitative easing, and the broadening impact of negative interest rates within developed countries converge, it’s a recipe for a bull market in gold. Mounting uncertainties about such issues and plunging interest rates are stoking fears of a pending global recession that will wash up on U.S. shores before long. 

Two days ago, China retaliated to the proposed new 10% tariffs on imports to the U.S. if a deal can’t be reached by September 1 by threatening to devalue the yuan in order to make Chinese exports more attractive. It’s a very risky game the Chinese are playing with what many macroeconomists call Chinese monopoly money. Letting the yuan trade above 7:1 to the dollar threatens a run on that currency.

In fact, hedge fund manager Kyle Bass, known across Wall Street for his prescient bet against subprime mortgages during the financial crisis in 2008 and a noted China bear, said on Monday that without state support, China’s currency would plunge. It was a powerful and riveting interview on CNBC where Bass stated that “What’s happening in China is that they have to have dollars to sell to buy their own currency to hold it up. If they were to ever free-float their currency, I think it would drop 30% to 40%.” That’s nothing short of alarming. 


 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money


On Tuesday, China announced they would stabilize the yuan at current levels, implying they paid very close attention to the Bass interview. Bass went on to say that “and the reason is they claim to be 15% of global GDP in dollar terms, but less than 1% of global transactions are settled in their own money.” Bass added “and so they prop their currency up…everyone calling them a currency manipulator – they are trying to hold this whole thing together.” 

Not only did the global investing world have an “ah-ha moment” from this interview, but China also blinked. Pure and simple. Kyle Bass comes from great investment stock, the Bass family, worth $8.2 billion and #29 among richest families in America, growing up and working with brilliant global in-house managers like Richard Rainwater and David Bonderman. His pedigree is top shelf and he has a lot more event-driving information than most of us could ever be privy to. 

Following an early Wednesday morning swoon when global bond yields whooshed lower following dismal German factory output data, huge foreign capital flows into U.S. Treasuries and equities took hold, reversing a near 400-point down opening for the Dow into a mere 22-point down session. It’s quite clear the market doesn’t know what to think of all that is going on and is why the price of gold is on a tear. 

As the world’s greatest hedge against financial calamity, gold represents the ultimate safe haven and when you can buy it in such a liquid form such as an Exchange Traded Fund like the SPDR Gold Shares ETF (GLD), then there is little discussion on the matter what to buy, but rather how much to buy and at what price. 

Source: fxstreet.com 

From the GLD website, SPDR Gold Shares offer investors an innovative, relatively cost-efficient and secure way to access the gold market. Originally listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007, SPDR Gold Shares is the largest physically-backed gold exchange-traded fund (ETF) in the world. Buying and selling spot gold with the click of a mouse. Awesome. 

After six years of base-building, gold has exploded out of this range on a massive spike in volume, clearly related to the devaluation (voluntary or not) of global currencies and political calamity. It’s a toxic combination that warrants some what I call “chaos protection” and owning GLD is the perfect way to do so. 

Even for purely technical reasons, GLD is a buy at certain levels. My AI-driven Tradespoon tools such as the Seasonal Chart (shown above) gives owning GLD a thumbs up in the very near term. Makes sense given the multiple hundred points swings in the Dow. But other tools I use to price good entry and exit points show GLD to be very overbought in the very short-term. 

Source: CIO.com 

This is where my life’s work comes into focus subscribers in our RoboInvestor stock and ETF advisory service. We embrace a 30-day to 6-month investing cycle to capture a directional move that is confirmed and constantly monitored by our AI platform of indicators. We’re not going to pay up for GLD, but for RoboInvestor subscribers, we’ll be getting long at a quintessential entry point over the near term. The only question is whether you’ll be part of that trade – possibly a generational trade. 

Leading up to this past week, we were holding our typical stable of about 20 positions when my indicators went hyper negative. We cut 11 positions from the model portfolio in the early going of the current sell-off, and admittedly, had to incur a blended nominal loss on six positions in names like Constellation Brands (STZ), Estee Lauder (EL), JP Morgan (JPM) Lululemon Athletica (LULU) and Square Inc. (SQ). 

Prior to this past week, we book 31 straight winning trades. But when you experience a trap door sell-off, it’s always best to “get small” in a hurry while maintaining those safe-haven positions that outperform during times such as the present. We’re currently long the iShares Core U.S. Aggregate Bond ETF (AGG) -whoa yeah – as well as positions in Coca Cola (KO), Dominion Energy (D) and First Energy Corp. (FE).

Managing market pullbacks is where cutting edge AI becomes incredibly valuable. The rest of the 2019 investing landscape just became many-fold more difficult to navigate going forward. That’s not an opinion. That’s a fact. Put my Tradespoon tools to work today and join my RoboInvestor advisory service to protect and profit from what is going to be a highly challenging market for the balance of 2019 and 2020. Take matters into your own hands and sign up today and make RoboInvestor your new action plan. 


 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money


*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.


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