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Gold Is King During Times Like This



  • Looks like we are getting a buy signal in gold. If we get back to $1655.
  • What we have seen recently is an inverted top for silver at $17.61.
  • The market is extremely overdone across the board, including gold mining shares, which are an incredible buy, while the equity markets are offering traders the possibility of a spring rally.
  • Looking for a portfolio of ideas like this one? Members of Mean Reversion Trading get exclusive access to our model portfolio. Get started today »


The last few weeks, the stock market has been falling apart in the face of the coronavirus news. It took time for the equity market to realize the implications of the virus and that the implications economically are uncertain. Right now we are seeing panic in the marketplace, which is causing an incredible amount of volatility across the board.

Gold mining shares, even some of the precious metal ETFs, are being influenced by the stock market. They are being traded as shares, of course, regardless of the sector. We should be patient with this and allow the volatility to calm itself. We should let everyone who should not be in the market get out. It will clean the market of a lot of buyers who came in recently at the top of the market. There are still a lot of people still short in the equity markets who are waiting for a rally to try to liquidate their positions. If you look at every major correction that we have had, the markets always come back. What such corrections represent are major opportunities to add to your positions.


The Variable Changing Price Momentum Indicator (VC PMI) provides a reliable metric to rely on to trade the markets, even when they are highly volatile. The algorithm is written in C++ on the TradeStation platform. The artificial intelligence behind the algorithm relies on reversion to the mean, and creates a five-level Fibonacci structure from which to trade. On the left of the chart are the five levels, two blue, one green, and two red. The green level is the average price for the day. The Buy 1 level is $1654 and the Buy 2 level for today is $1653. The mean represents the point where there is a 50/50 chance of the market going up or down, so we do not recommend trading from that level. The

To learn more about how the VC PMI works and receive weekly reports on the E-mini, gold and silver, check out our Marketplace service, Mean Reversion Trading.

This article was written by

Weekly AI gold, silver and E-Mini S&P reports with 90%-95% probabilities.

The Equity Management Academy (EMA2trade.com) was founded based on a belief in the power of education to change lives. After thirty years of trading in markets from New York to Chicago, CEO Patrick MontesDeOca founded the Academy to pass on all he had learned about the financial markets to help traders from neophytes to veterans become more effective at transforming knowledge into wealth. His knowledge is embodied in the fully automated proprietary trading program: the Variable Changing Price Momentum Indicator (VC PMI). The Academy also assists institutional traders and hedgers.

As a member of the Academy, you can watch our analysts and traders place trades in real time on clear, succinct recommendations based on our proprietary algorithm, the VC PMI. EMA’s advanced trading courses also provide you with hours of instructional streaming video taught by our Chief Technical Analyst. Our videos teach you the skills to identify trading opportunities in the financial markets while learning to manage risk and growing your portfolio through the application of automated trading intelligence.

Experienced traders, hedgers and institutional traders can subscribe to marketing reports based on the VC PMI, which provides clear, precise entry and exit points to trade a full range of markets.

Seeking Alpha reports are based on the VC PMI analysis of various markets and written by Patrick MontesDeOca. He has more than 30 years of trading experience in a range of markets and is a system developer, trader, educator, author, and coach.

Analyst’s Disclosure: I am/we are long NUGT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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