Trading Alerts were very short-term oriented, so – while I provide a quick update as well – today, I’d like to show you several charts that will help you see what’s really going on with the major trends. After a sharp run-up and a failed attempt to break above $100k, the “new gold” is forming a monthly shooting star/gravestone doji candlestick. Which one of them is formed is irrelevant as both are reversal candlesticks.
We saw something similar in late 2021, and that was THE top for many months. Has the tide turned for cryptos? That’s quite probable. Silver being the best, and copper being second-best (but much cheaper, which is why it’s used much more often). Copper is not only after a break a fake breakout above many previous highs, but it’s also after a breakdown below two rising support lines – one based on the 2020 and 2022 lows and the other based on the late-2023 and 2024 lows. Please note that copper “should have” soared along with stocks as increased industrial demand should have caused its price to rally. No extra demand suggests that maybe not all was right with the strong economic performance. So much money has been created since 2020 and all the world stocks were able to do was to move back to their 2008 highs, then slightly above it and then they failed and moved back below them. It all happened in nominal terms, which means that in real terms, stocks are much cheaper than they were in 2008. The above-mentioned invalidation is a strong sell sign, which means that stocks are likely to decline, just like copper. If you look at the lower part of the above chart, you’ll see that the XAU Index – proxy for gold and silver stocks – just invalidated its own move to new highs and above the declining dashed resistance line. When we saw that in 2022, a big decline followe