[Gold Rush] Gold’s Getting Crowded 🪙

Do you remember when The Economist magazine cover had a rocket ship covered in United States dollars last year?

They said the United States was "The envy of the world."

It was so cringe...

The dollar got blasted over the next several months, and the U.S. stock market had its worst quarter in decades relative to the rest of the world.

Like any other type of market analysis, fading magazine covers is more of an art than a science.

We don't want to fade a trend just because there's a magazine cover.

The dollar was extremely overbought in the prior example, and the COT positioning tipped us off to a potential move in the opposite direction.

We waited for the market to confirm our bias, managed our risk, and made a ton of money.

Fast forward to today, and the latest Barron's magazine cover highlighted a stack of Gold bars and said:

"Investors are loading up on the metal as a haven in chaotic times. How long can it last?"

This comes as Gold futures are running into key Fibonacci extension levels, which we've been pointing out as potential resistance.

It seems like a great time to book profits in the shiny yellow rock. 

And that's what we're doing...

But this doesn't mean we think this cycle is over. 

The long-term trend is still intact, but the price is stretched in the short-term.

The market is confirming our short-term bearish bias 👇