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2016/11/02

Gold on Steroids: The Perfect Election Trade

Rude Awakening
November 2, 2016
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Gold Stocks

Gold on Steroids: The Perfect Election Trade

  • The bounce you've waited for…
  • Here comes a precious metals rally
  • Plus: The best way to play the trend

Greg Guenthner coming to you from Baltimore, MD...

Greg GuenthnerWhat's a better scenario for gold…

President Trump?

Or President Clinton?

Either way, we're screwed. But gold stands to make a run no matter which candidate takes the White House.

In fact, the election doesn't matter one bit, according to HSBC. Whether The Donald wins or Crooked Hillary takes the race next week, gold is set to jump at least 8%...

"Both candidates have espoused trade policies that could stimulate demand, with gold offering a potential protection against protectionism," HSBC Chief Precious Metals Analyst James Steel tells Bloomberg. "Even the relatively more internationalist Democratic candidate has argued for the renegotiation of longstanding free-trade agreements. That's positive for gold — even if not on the scale of Mr. Trump's agenda."

Meanwhile, investors are selling stocks with both hands as the race heats up.

The S&P 500 just logged a six-day losing streak, breaking down below key support. The Dow shed more than 100 points. The stock market loves the status quo. As Trump gained in the polls earlier this week, investors ran for the hills.

King Dollar is also retreating this week, capping off a rally that shot the U.S. Dollar Index to seven-month highs…

Add it all up and you get a strong rally in precious metals. Gold settled nearly $15 higher at $1,288 on Tuesday. Silver popped 3.5%. That puts this group in the perfect position to make its first meaningful run since the second quarter.

Back On Track

Gold is knocking on $1,300's door early this morning. That gives you a chance to grab the tiger by the tail precious metals start to shine again this month.

The market's giving you the opportunity to play gold on steroids for quick, powerful gains right now. More on how in just a minute…

First, it's important to know what gold's first-half comeback tells us about this new rally...

We watched precious metals and miners vault to two-year highs just a few months ago as the Fed backed off a summer rate hike and world markets shook in fear of the Brexit vote. But gold's trajectory changed dramatically over the summer. While the major averages chopped along, gold couldn't attract any attention. By the time the dust settled, gold had coughed up every ounce of its summer rally as it dropped toward 4-month lows.

As short-term traders, we've patiently waited on the sidelines ever since gold's summer rally started running out of steam. Just last month, we told you we needed to see signs that gold was ready to halt its slide before dipping our toes in the water.

That's when gold's do-or-die moment came into play. We needed to see the yellow metal bounce at its 200-day moving average. If gold had any shot at finishing what it started in January, it needed to halt its slide.

After flirting with its long-term moving average for nearly a month, yesterday's rally hands us the breakout we've been waiting for...

As the fast money roars back into the gold trade, we want to harness a short-term play that will offer up quick gains. Our best bet at finding this trade heading into the election is to follow the miners.

Gold miners always offer up the potential to post massive moves when gold hits these crucial pivot points. While gold rallied a little more than 1% yesterday, the VanEck Vectors Gold Miners ETF (NYSE:GDX) jumped by more than 2.5%.

Let's take a shot at a gold on steroids play and grab some shares of the miners today. With a wild election breathing down our backs and a frantic media stirring up more controversy every day, you have a shot at booking fast, double-digit gains over the next couple of weeks…

Sincerely,

Greg Guenthner

[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]


Even if Hillary Beats Trump This November, She LOSES...

Does it really matter if Hillary comes out on top in November? Maybe not.

Because, guess what…

According to a new finding by an ex-advisor to the CIA and Pentagon… winning the White House may work out to be a DISASTER for Hillary.

No, it's got nothing to do with her husband's future sex scandals... or the unwinnable War on Terror. It's a whole different kind of threat, one even she didn't count on.

Click this link and find out what it is. Hillary must be terrified…


Rude Numbers

When to Buy... When to Sell
105

points dropped from the Dow Jones Industrial Average on Tuesday. That's a loss of almost 0.6%...

$46.06

buys a barrel of crude today. Oil continues to sink this week. It's down another 1.3% in early trade...

$2.78

is the price of natural gas right now. Natty is falling off a cliff. It's down another 4% this morning...

$1,298

is where you'll find gold futures this morning. The yellow metal is rallying again today. It's up a cool $10 in early trade...

2,102

marks the spot for S&P futures before the morning bell. Stocks are set to open in the red today...


Ignore At Your Own Peril

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