Hey Market Pilot,
Yesterday, the Federal Open Market Committee (FOMC) held a meeting. Promptly afterward the market rocketed to a new all-time high after already doing that for two weeks. This is a bit of bullish insanity.
I am hard-pressed to find a time where the market has moved like this after a major pullback and didn’t at least “tag up” to test near-term support. Initially, I thought I was late to the party — had to fight FOMO (Fear Of Missing Out) — and so I waited for that pullback, but it has yet to arrive.
This made me very nervous about getting long on positions, thinking there was going to be a pullback. But not wanting to miss out on the good moves that just kept showing up, I did get long, and so far it is working out quite well.
The concern I have about whenever and however this streak will end is still very much there. But I can only sit on the sidelines for so long when there is day after day of good setups to be had in this run higher.
In addition to a wider breadth of names to choose from, I think the hedge against inflation trade is also in full force with the Crypto space, and now the precious metals space. Bitcoin has been flagging since piercing new all-time highs, and I believe will resolve to the upside. Ethereum has been on a steady climb to take up the slack from Bitcoin. And the miners of both of those digital currencies have been exploding with volume.
Now it appears that gold and silver want in on the action, especially after the FOMC meeting. It seems something was said in the meeting that is starting to reaffirm the need to protect against inflation. The exact trigger isn’t quite there for the metals, but the precious metals miner’s exchange-traded fund (ETF) is looking good.
I want to see it confirm a little more, but gold (GDX), pictured below, is flashing one of my best trade setups known as the “Trampoline Move.” That setup is when price is below the 50 simple moving average (SMA) but the Moxie Indicator™ is over zero.
If GDX works out, the setup is an extremely buoyant one and the Moxie Indicator™ subscribers will have a great time with it.
Your Profit Pilot, TG