Deflationary forces are still lurking in the background and soon they will surprise the market.

I want to explain my view on why buying precious metals and miners is a very bad idea here!

Look below 👇
(1) The money stock has been expanded by a whopping 94% since 2011 yet Gold miners are almost -40% from ATH. That doesn't look bullish at all.
(2) You have a tech bubble that just made an throw-over in an expanding triangle. It's in the late stage of the rally. I believe we are in the blow-off top stage.

We all know what happens to commodities when the stock market crashes. Everything is sold off due to margin calls.
(3) Even though the money stock has been expanded by 94% since 2011, Gold is still not at ATH. The Gold pattern doesn't look bullish at all. You have an ending diagonal pattern.

Elliott wave theory says that Y must undercut W. So Gold could crash hard!
(4) $BPGDM(Gold miners bullish percent index) has recently been at the MAX value 100. Such a high number has never been recorded before, not even in 2011 when miners exploded.

The sentiment is clearly too optimistic and we all know the majority is never right.
(4) $BPGDM(Gold miners bullish percent index) has recently been at the MAX value 100. Such a high number has never been recorded before, not even in 2011 when miners exploded. The sentiment is clearly too optimistic and we all know the majority is never right.
(4) $BPGDM(Gold miners bullish percent index) has recently been at the MAX value 100. Such a high number has never been recorded before, not even in 2011 when miners exploded. The sentiment is clearly too optimistic and we all know the majority is never right.
(5) VIX has been decimated since March. I think it will go for that Gap-fill then explode to the upside and we will have a potential stock market crash again, which would crash precious metals too!
(6) COVID-19 curve has started to flatten during the summer. More sunshine, more D vitamin, stronger immune system. Cases will explode to the upside if there isn't a vaccine before fall. Second lockdown is very likely, plus central banks need an excuse to print more.
(7) I will be a stronger buyer of precious metals and miners after the coming deflationary bust. Central Banks will print like mad mans and most likely implement NIRP, which will shoot precious metals up to the moon.
You can follow @Hoz94s.
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