This is the first time since January we are seeing this phenomenon happening in the stock market!
Technology stocks, as we all know, have been leading the way since the onset of COVID-19. Tech has become the flight to safety and the “utilities” as people work and stay at home.
This is the first week that consumer discretionary stocks have risen back above technology stocks from a relative strength perspective. We are seeing a narrowing in momentum and an increase in the RSI oscillator, while prices move lower on the NASDAQ-100 (INDEXNASDAQ:NDX). All these technical indicators signal a change in tides.
As the S&P 500 Index (INDEXSP:.INX) hit an all time high in the week, gold dropped $100. This might scare some people away from investing in the precious metal. However, as we indicated above, the stock market could be in for a turmoil time in the near-future. For example, even if we find a vaccine for the Coronavirus, there will be lasting damage to the world’s economy. Therefore, it is our belief that we will see another strong gold rise over the next couple of years.
Watch the full interview for 3 gold miner stocks we are following as the tech sector cools and the gold sector rises.