Best Performing Stock Sector Last Week - Gold & Silver Mining Shares!

While U.S. and global stock markets cratered last week, the one lone winning port in the storm for investors was the precious metals mining sector. The benchmark Philadelphia Gold/Silver Stock Index (symbol XAU) actually posted a weekly gain of +5.20%! Most of the positive price action in this under-owned and generally hated group of stocks came on Friday (May 31st) following the Trump Administration's surprise announcement of potential tariffs on goods imported from Mexico.

A relatively rare monthly chart buy signal was triggered in my computer trading system yesterday (May 31st) in the closely-watched primary Gold ETF (symbol GLD). And a monthly chart buy signal was also triggered in the largest silver and gold streaming company Wheaton Precious Metals Corp (symbol WPM).

Gold ETF (GLD) Monthly Chart with Computer-generated Buy & Sell Signals

Wheaton Precious Metals Co (WPM) Monthly Chart with Computer-generated Buy & Sell Signals

Weekly chart buy signals were triggered in my computer trading system last week in the following major gold and silver mining shares and ETFs:

AG, AUY, GDXJ, GOLD, IAG, OCANF, PAAS, SIL, SILJ, and SLV

Junior Gold Miners Stock ETF Weekly Chart with Computer-generated Buy & Sell Signals

First Majestic Corp (AG) Weekly Chart with Computer-generated Buy & Sell Signals

Primary Silver ETF (SLV) Weekly Chart with Computer-generated Buy & Sell Signals

Bottom line: Gold and Silver prices have entered the early stages of a major bull market. Before year-end 2019, Gold is projected to advance to $1,500/oz (+15% from current levels) while Silver is projected to advance to near $18.00/oz (+25% from current levels). Of course, if these two forecasts are accurate, then gold and silver mining shares can be expected to double and even triple over the next several quarters! In early 2016, this same kind of percentage rally in Gold and Silver prices triggered gains of more than 500% in many precious metals mining stocks in just seven months (see weekly chart of First Majestic)!!

May 2019 Marks The Official End To The Great Bull Market in U.S. Stocks!

Extremely rare monthly chart sell signals have been triggered by my computer trading system in the following benchmark U.S. stock market indexes:

S&P 500 Index

Russell 2000 Index

NY Composite Index

Monthly chart signals in my computer trading system are incredibly accurate and should almost never be faded.

The 10-year bull market in the U.S. stock market is over! While it's clear now that May 2019 will now go into the record books as negative for stock market investors, what's not clear at this time is how deep the bear market correction will go or how long this bear market will last. My feeling is that the damage to most U.S. equity prices will be significant and that most major indexes will lose more than 20% this year. And I also believe that the eventual bear market low may represent a loss of more than 40% from top to bottom.

However, while the average U.S. stock is expected to lose more than 40% over the next 18 months, precious metals mining shares were standout winners today and they are likely to be standout winners in a sea of red for at least the next several quarters. The price of gold is forecast to rally to near $1,500/oz by year-end 2019 and the price of silver is forecast to soar to near $18/oz during this same period. These gains amount to +15% and +25%, respectively from current levels over the next seven months.

Junior Gold Mining Shares ETF (GDXJ) Daily Chart

New York Composite Index Monthly Chart with Computer-generated Buy & Sell Signals

Russell 2000 Index Monthly Chart with Computer-generated Buy & Sell Signals

S&P 500 Index Monthly Chart with Computer-generated Buy & Sell Signals