Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
The U.S. added over 943,000 jobs in July, according to the Aug. 6 jobs report — a sign that the economy is on its way to recovering from the 2020 shutdowns.
That expected growth sparked a colossal sell-off in gold with some major margin calls over the past weekend.
Prices broke below $1,800 an ounce all the way down to $1,677.90 — the lowest price seen in more than four months.
Meanwhile, this week’s sessions were as kind to Bitcoin as they were cruel to gold.
Prices broke over 6.5% Monday and moved above the $45,000 mark for the first time since the crypto collapse in mid-May.
How to Play the Gold-Bitcoin Relationship to Your Advantage
I know some of you are thinking, “Lance, this is crypto we’re talking about. It’s always super volatile.”
Well, this Bitcoin move isn’t some flash-in-the-pan pop chasing out a few short bets.
We saw the 50- and 20-day moving averages cross on Monday as volume picked up for the world’s largest cryptocurrency.
But I’m not really a crypto guy, so what I want to do is use the relationship between Bitcoin and gold to do some bottom fishing in the precious metals market.
From the charts, Bitcoin has an inverse relationship with gold — as gold and silver go down, Bitcoin will go up. Now, I don’t have a crystal ball, I can’t tell you if the precious metals have bottomed out yet, or if you should buy crypto right now…
What I will say is that I’ve got my eye on names like Pan American Silver Corp. (Nasdaq: PAAS), Wheaton Precious Metals Corp. (NYSE: WPM) and the SPDR Gold Trust (NYSEArca: GLD). I think there is still some downside in these names as they haven’t hit their bottom yet.
And when they do, we won’t see a V-bounce to the moon... But by the end of the year, they could be back up and we’ll see a return on investments. So keep your eyes open and be patient.
Sadly, through a combination of some MONSTER overnight wins over the past three weeks, a super choppy market and some bad breaks on earnings, Future of Wealth doesn’t have any new big winners for you this week.
No one, not even the most legendary traders and investors, win all the time, and I’m no exception. That’s right, no matter what rumors you’ve heard otherwise, I’m still human!
If you follow me for any length of time, you’ll hear me talk time and time again about position sizing and proper risk management. And weeks like this are the reason why. I know for a fact that I’m not overextended in any one of my positions, and that a few bad bounces aren’t going to put me out on the street. That peace of mind means I can do what I want, when I want and sleep like a baby every night.
Above all, my mission at Future of Wealth is to equip readers with the tools they need to achieve that same relief from worry. That way we can free ourselves from having to stare endlessly at a computer screen so we’re free to focus on the things that make life worth living.
And if there was ever one thing that is 100% certain in these crazy markets, it’s this... I’ll be back in the War Room on Monday ready to build a brand new streak and crush the old records, so be sure to join us!
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I’m talking about gains like 22% on XOM… 23% on RBLX… 26% on SBLK… 26% on SSRM… 43% on TPGY… and 73% on MUDS — all during my live 60-minute trading room.
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If you’re looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here’s what other experts at WealthPress are saying:
Disclaimer & Disclosures The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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