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"What about gold?!"
It's the question everyone seems to be asking as the market continues going haywire under routine manipulation from the Fed. Gold is thought of as a safe haven sector – a place to store your money and hunker down during times of uncertainty, something COVID-19 continues bringing to the market in spades.
So, of course, traders have been itching for me to give them the green light to jump in on the rising tide of gold buying.
And my response is simple – when it comes to gold, we need to wait for the trend to get the trades. I know what you're thinking – and no, we're not simply waiting for a spike in gold stocks only to jump in on the tailwinds of rally that, for all we know, could already be losing steam.
What we're looking for is a little more technical than that. We need a clear indicator that a rally in the gold sector will stick long enough to turn a profit, rather than turning on us at the drop of an optimistic headline…
And now, I'm seeing just that, both in the larger gold market, and today's Fast Profits trade recommendation.
Today we're talking about a gold miner standing out to me as a prime trading opportunity.
This stock has been checking off technical trading boxes left and right, blowing clear through its 200-, 50-, and 20-day moving averages. That momentum will only keep climbing given a recent announcement that the company will be expanding mining territory in Canada and Greece. It plans to dig deeper, minimalize cost, and ramp up production through 2020 and beyond.
I expect this stock to move another 30% by the end of summer 2020, but that could be just the beginning of the profit potential here as this stock nears the $10 marker, a number proven to have a psychological effect on traders – a milestone likely to welcome a massive influx of buying volume.
Check out video below to get the full trade details…
Two Safe Haven Profit Plays
Action to Take No. 1: Buy shares of Eldorado Gold Corp. (NYSE: EGO).
Action to Take No. 2: Buy to open EGO Jan. 15, 2021 $10 calls (EGO210115C00010000) using a limit order of $1.90.
As I told you a moment ago, we're paying close attention to a particular pattern in the gold market, a technical indicator you can see in the chart above I just can't ignore…
Had we gotten in on this stock during the rally of early March, a time when investors everywhere rushed into the gold market as COVID-19 began infecting millions, we likely would have fallen prey to the plummet later that month.
But now, we can see just after that contraction, a steady upward trend is forming, a clear sign of continued profitably in this "safe haven" sector.
But you'd be surprised to know this isn't the only safe haven folks are clinging to as the Fed continues cutting checks…
Cryptocurrencies have become extremely popular over the last few months, offering investors asylum from the government's reckless, inflation-generating practices.
In fact, my colleague and fellow pro-trader, Tom Gentile, is seeing an opportunity on the crypto market you won't believe – and you won't need to pay through the nose on Bitcoin to take advantage of this opportunity, either…
About the Author
Chris Johnson is Quantitative Specialist for Money Map Press. He's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.