Weekly Hot Take - The return of the Alpha
22/01-26/01
Welcome all!
Hello everyone and welcome to another weekly hot take. In this week’s update, we will talk about the return of the alpha stocks, as that seems to prove that it is still the safest and lowest-risk way to play this bull market.
Precious Metals
XAUUSD
(Monthly)
Last week we talked about how we were stairstepping higher and that we wouldn’t touch silver beta juniors anymore till we were above $26. This remains the strategy, as I’ve got a few new alpha plays that I am watching very closely or have already initiated the first tranches. I will announce this soon on my private Twitter account! The gold monthly candles are almost reconnected with the EMAs, which we expect to hold in this multiyear uptrend. If they were not holding, then we would need to revise our strategy completely.
I've already dropped some hints on the new picks in the next few parts! Make sure to click the button below to be one step ahead!
(Weekly)
On the weekly chart we just got our first reconnect after a few weeks. Indicating that we are probably closer here to a temporary bottom. The line in the send for us remains $1974. As long as that holds we remain bullish.
(Daily)
Higher highs, higher lows. Nothing is broken, so we stick to our strategy. Let’s have a look at the silver charts next.
XAGUSD
(Monthly)
These are monthly candles, which still have about 10 days to make up for the current horrible-looking candle. $22 needs to be held at all costs, or we might revisit the first ICL around $18. No need to panic yet, as we will take this step by step and guide everyone through these wild swings in silver.
(Weekly)
Weekly silver candles are below the EMAs, pointing towards a continuous decline into a new ICL, which might or might not be the final decline. We cannot be sure of this until we break through $26 for good. Junior Strategy remains focused on gold, copper, zinc, and nickel ;-) .
(Daily)
We can clearly see that here we don’t have the pattern of higher highs and higher lows, which is kind of worrisome, but I’m sure there will be a time when silver will shine; moreover, when gold closes above previous ATHs with two consecutive weekly closes and when silver breaks the $26 barrier.
Thank you!
Hopefully this newsletter gives a clear indication that we have a bullish outlook on gold for the long term. Silver, on the other hand, does look a bit uglier. We clearly set out the parameters which it needs to meet before we invest again in silver juniors.
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All love
GG