Is Inflation To Blame?

Hey Market Pilot,

Recently I have been talking about one of my best setups, the Trampoline Move, showing itself on the daily chart of the gold miner exchange-traded fund (ETF) known as GDX. The Trampoline Move is a high-energy, high buoyancy trade that shoots price higher after a dip. When I saw this form on the daily chart, I knew we were in for something good.

Since I was seeing the signal in GDX, I figured gold (GLD) and silver (SLV) would probably be in a similar configuration and indeed they were. We are now seeing the fruits of that setup as the precious metals space has been having a strong few days. Below is GDX with the Trampoline Move circled.

Economic numbers also came out and year over year customer price index (CPI) is at a 40 year high. Additionally, producer price index (PPI) is at an all-time high. Precious metals are usually a flight to safety and a hedge against inflation, so it makes sense that we are starting to see strong moves in this area. Bitcoin and Ethereum, along with their respective miners, are also seeing strength as investors flock to these assets to hedge against inflation and protect their purchasing power.

Only time will tell where these sectors might sway, but for now, they are looking pretty ripe.

Your Profit Pilot, TG


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