North American Investors Awaken to Gold
S&P 500 and Bitcoin Breakdown
Today Mexico tariffs were delayed. Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement’ until April 2, Trump said. Trump did not announce any exemption for the 25 percent tariffs on Canada, and instead blamed Trudeau for the problem.
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!” Trump wrote on Truth Social.
Trump sees right through the phony Trudeau as I do and some other Canadians. Specifically might not be to get himself re elected but the liberal party. He should be going to jail for victimizing Canadians for his own gains.
I am working off a new lap top I got in December and had a newsletter mostly done and the word processor crashed and I found there was no auto backup set yet. Frustrating, so this is a short version of my three key items.
S&P 500 Breaking down
Today the S&P 500 broke down with a lower low. A test of key support around or just under 5,700 is next. A break below that would signal a larger correction in process. A bear market is still way down to around 4,900.
My prediction of a bubble top is looking to be correct, but I am not celebrating just yet. One thing that markets are good at is humbling the best.
North American Investors Awaken to Gold
Wow, and finally North American investors wake up to gold. I guess it took market volatility and a bear market in Bitcoin before they realized they were missing the #1 performing asset in the past year and that is gold.
Global gold ETFs demand surged in February, adding US$9.4bn, with North America (+US$6.8bn) reporting their strongest month since July 2020. European inflows narrowed (+US$151mn), while Asia showed strength (+US$2.3bn).
Before long North American investors will start coming into the under valued precious metal stocks as well.
Meanwhile, Bitcoin entered an official bear market (-20%) the end of February and confirmed with further down side in early March.
I am now suggesting a more longer term bear trade by going double short MicroStrategy with the
MSTZ etf current price around $16.85
MicroStrategy (MSTR) can sell it's stock and buy Bitcoin because their stock trades at a premium to their Bitcoin holdings and leverage it that way. As the market sentiment continues bearish on Bitcoin, I expect MicroStrategy stock will trade at a discount as is most often the case with holding companies. Their leverage will all unwind or work in reverse.
I have given more detail on MicroStrategy and the MSTZ etf in the past, but commented then, I was looking for better timing. This is it.
You can see on the chart, there is lots of potential downside and the MSTZ etf should move about twice as much as the stock.
All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a