It’s Time to Take Profits on the Gold Sector...

The next few weeks could be tough on the gold stocks. [Jeff Clark's Market Minute]( It’s Time to Take Profits on the Gold Sector… By Jeff Clark, editor, Market Minute The next few weeks could be tough on the gold stocks. The Bullish Percent Index for the gold sector (BPGDM) just triggered a sell signal. Regular readers will recall the BPGDM generated a buy signal [two months ago](. The Gold Bugs Index (HUI) was trading at 211 back then. It closed at 266 on Tuesday. That’s a 26% gain in two months – which is on par with previous BPGDM buy signals over the past two years. Now though, it’s time to sell. So, if you didn’t heed my advice [two weeks ago]( when I argued the gold sector was due for a shake-out, you now have a second chance to trim profits in the gold sector. The BPGDM measures the percentage of gold stocks that are trading in a [bullish]( technical formation. It’s basically a gauge of overbought and oversold conditions. Recommended Link [Man who spotted Apple at $1.49 says: “Buy These 6 AI Stocks.”]( [image]( For over 40 years, Louis Navellier has made a career out of spotting the most promising tech stocks, long before anyone else. Like Apple at just $1.49… Dell at less than a dollar… And Microsoft at 39 cents. Now, Louis says a second boom is coming for AI stocks. [And these will be the biggest winners.]( -- Since it’s measured as a percentage, a bullish percent index can only reach as high as 100% or fall as low as zero. Typically, a sector is extremely overbought when its bullish percent index rallies above 80%. It’s extremely oversold when it drops below 30%. Trading signals are generated when the index reaches extreme levels and then reverses. Take a look at this long-term chart of BPGDM… [(Click here to expand image)]( The red arrows on the chart point to the previous sell signals over the past two years. Each sell signal occurred at about the same time of the year, and lined up with the seasonally weak period for the gold sector. Here’s how the Gold Bugs Index (HUI) performed after those two previous signals… [(Click here to expand image)]( HUI fell 25% in one month following the sell signal in April 2022. It lost nearly 45% of its value by the time the sector bottomed six months later. The gold sector dropped 14% last May following the BPGDM sell signal. HUI would lose 29% by the time it bottomed last October. This past Tuesday, the BPGDM triggered another sell signal. If this one plays out like the previous two did, then gold stocks could be quite a bit lower in the weeks/months ahead. Of course, there’s no guarantee that will happen. Financial markets are unpredictable. It’s possible the gold sector could ignore the recent sell signal and just keep powering higher. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. But, the odds are against it. BPGDM sell signals have a pretty good track record. So, if you bought on the buy signal two months ago, then it’s a good idea to take profits on the new sell signal. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](