If you've followed my recommendations for some time now,
you know that I utilize a proprietary program I call
"CycleProphet," a market forecasting tool my team developed using
decades of research. This sophisticated tool combines and compares
peaks and troughs in timewaves with highs and lows in the markets,
and has been an uncannily accurate market predictor much of the
I like the way the forecast charts are setting up for what could be
big move up in precious metals and, to a lesser degree, oil. Take a
look at the forecast chart for
iShares Silver Trust
SLV is an exchange-traded fund (
) that tracks the price of silver. My data suggest that silver
looks to bottom on about March 9 and then begin an ascent higher
(blue line). Plus, what you don't see in the chart above is that
silver gets another big boost higher in April, topping out in May
at the $18.50- to $19.00-per-ounce level. This indication is
generated from a time-cycle forecast (red line), based on
CycleProphet's proprietary time-mapping algorithms.
The readings from my 30 market indicators tell me that while March
could be flat to slightly bearish for silver, April looks very
positive. Especially encouraging is that the U.S. dollar is
forecast to begin a move lower at the end of March. The directional
move of the dollar tends to be a decent "tell" on the direction of
precious metals. In other words, a strong dollar will normally
weigh on the prices of precious metals while a weak dollar is
usually supportive of higher prices.
The S&P 500, the Dow Jones Industrial Average and the Nasdaq
indexes all show a move higher toward the end of the month...
another good harbinger of a bullish move in precious metals. A
significant up-move in small-capitalization stocks could begin even
sooner, according to my forecast, perhaps starting later this week.
If the forecasts are reasonably accurate, it looks as if the market
is getting ready for a nice move up in precious metals. But don't
be surprised if this move takes a couple of weeks to get untracked.
In my personal portfolio, I am now almost 100% invested with a
significantly overweight position in gold and gold-related
equities. If you read my weekly
Mastering the Markets
letter, you know which of these stocks I am recommending.
Editor: Mastering the Markets, Trade of the Week
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Disclosure: Mike Turner does not own shares of any security
mentioned in this article.