Investment Manager Reveals: Gold Stocks Poised to Dominate Market in Surprising Turn of Events
In a recent discussion on X, a technical analyst on CNBC highlighted an inverted head and shoulders pattern in the -to-SPX ratio, sparking speculation about the future of gold stocks. Despite concerns about the contrarian negatives of being featured on CNBC, there is a growing belief that the macro environment is shifting in favor of gold stocks.
For the past four years, gold stocks have struggled to outperform the headline US stock index, but the tide may be turning. The ratio is showing positive signs, with weekly RSI and MACD in favorable territory and the EMA 10 crossing above the EMA 20, indicating a potential “buy” signal.
While there may still be volatility ahead, the fundamentals are strong, and the ratio is primed for a breakout. Whether it happens now or in the near future, the macro trends suggest that gold stocks are on the brink of a significant upswing.
Analysis: This article highlights the potential for gold stocks to outperform the broader market, based on technical analysis of the -to-SPX ratio. Despite past struggles, the current macro environment indicates a shift in favor of gold stocks, with positive indicators pointing towards a potential breakout. Investors may want to consider adding gold stocks to their portfolio as part of a diversified strategy.