While many precious metals investors are concerned about the current low prices, I believe gold and silver are setting up for a major rally while the market is primed for a crash. Why? Because the broader market technical indicators versus the precious metal have been pushed to opposite extremes. Thus, when one goes down, the other will rise. And, we also must remember, gold and silver act as a FEAR TRADE when the conditions get ugly in the market.
And if you don’t think the markets are getting ugly, you should see the intra-day volatile price action of some of the more well-known stocks. I continue to be amazed at the INSANE price movements taking place in the various stocks in the market. While the fundamentals haven’t played much of a role in determining the “PRICE” of stocks for a while, it seems to me that there is no rhyme or reason for the way the stocks are trading today.
So, before I compare the analysis of the overall markets versus the precious metals, I wanted to provide two examples of company stock price movements over the past two days and why investors today are TOTALLY INSANE and IRRATIONAL.
ROKU Stock Jumps 28% In One Day On Lousy Financials
Those who aren’t familiar with the company called ROKU, they are one of the new streaming content providers to compete with Cable and Satellite. It seems as if many cable and satellite customers are growing tired of the high costs of $150-$200 a month for their TV entertainment, so they are replacing them with ROKU via YouTube TV, Hulu, Netflix, etc.
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