Market Indicators and Warnings
When utilities dramatically outperform the S&P 500, it’s a big warning sign for a market correction, as seen before COVID and other market crashes.
The “Magnificent 7” stocks (Meta, Tesla, Apple, Nvidia, etc.) are camouflaging a weak market by pushing up, while underneath, markets are pretty weak.
Technical indicators and market sentiment are very similar to last year’s 15% correction, with this year’s market 20-25% higher from those lows, suggesting a potential 20-25% correction.
Gold and Precious Metals
Gold is on the verge of breaking out, warning of a global financial reset as people move away from currencies and other assets into physical gold.
The current gold price is at a bull flag chart pattern, with a 19-20% rally potential to $4,100, similar to the 2007 scenario where gold outperformed the stock market.
Gold miners are a leading indicator of gold price movements, as smart money moves into leverage plays like miners before gold.
Other Commodities and Debt Markets
Silver has a noisy chart but is still pointing to higher pricing, with a target of $40.80, though it has less potential and higher risk compared to gold.
Copper, as a “Dr. Copper” indicator, shows significant highs followed by big corrections, with the current news-driven move being cautious due to its 20+ percent drop.
Debt markets are showing a stage two launch pad for higher yields, with a technical analysis chart pattern pointing to an 8% 10-year yield.
The debt market’s 8% yield prediction implies a financial reset with big drops in housing prices, making gold a safe-haven investment.