Gold Buy Signal

At the September 30th close, weekly chart buy signals were triggered in the popular Gold ETF (symbol GLD) and in the Gold Mining ETFs (major gold mining stocks ETF symbol GDX and the junior gold mining stocks ETF symbol GDXJ).

While the S&P 500 Index ETF (symbol SPY) fell 3.02% last week, the Gold ETF (GLD) rose 1.08%. Against that backdrop, most gold and silver mining share prices soared!

The Major Gold Mining Shares ETF (symbol GDX) jumped 7.49% last week, and the Junior Gold Mining Shares ETF surged 9.07%.

Bottom Line: A major new bull market in gold, silver, and related precious metals shares has clearly begun. Gold and Silver mining shares could easily double over the next 12 months as the Federal Reserve pivots from its current hawkish monetary policies toward a more neutral-to-dovish posture in the face of increasingly disturbing (recessionary) economic data to be reported on the very near term horizon and over the weeks and months immediately ahead.

Gold ETF (symbol GLD) with Proprietary Weekly Chart Buy Signal

Major Gold Miners ETF (symbol GDX) with Weekly Chart Buy Signal

Junior Gold Miners ETF (symbol GDXJ) with Weekly Chart Buy Signal

Oversold !

The U.S. stock market looks oversold and ready for a meaningful bounce!

Sentiment indicators clearly point to a rebound. There is currently too much bearish sentiment among often-wrong investor groups.

Put volume set an all-time record on Friday, September 23, which stands out as the best contrary indicator in this market at this time.

Traders and investors are understandably fearful of the dramatic hawkish turn from the Federal Reserve in recent weeks following worse-than-expected August inflation numbers.

However, I don't believe that Fed Chairman Powell and his team are ready to back up their inflation-fighting rhetoric with continued hikes in interest rates when recessionary data builds in earnest and when "deflationary" forces begin to prevail over the next few weeks and months.

The obvious best asset play for when the Fed "blinks" is in the precious metals sector, with silver and silver-related mining stocks probably leading the way higher.

Even though gold and silver look best here, "all boats" will rise when the Fed rhetoric changes from hawkish to neutral which I expect will happen over the very near term. The Nasdaq-100 Index will probably lead the way higher in the general market when the Fed turns as tech stocks rebound sharply.

Nasdaq-100 Stock Index Daily Chart with 200-day Moving Average Line

Nasdaq-100 Stock Index Weekly Chart with 200-week Moving Average Line