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By: Costas Bocelli — November 18, 2021

This Tried and True Sector Is Alive!


Over the years, I’ve learned to make a mental note whenever it feels like I’m seeing or hearing different sources mentioning the same sector repeatedly.

(Not up to reading? Watch the video version, below, instead.)

Click here to learn about the Dark Money Indicator's Shadow Spike scanner.

Case in point...

Earlier this month, I wrote about Gold and the Precious Metals sector.

I mentioned the following traits of technical strength were returning to the sector:

Precious Metals BPI column of X’s surpassing the 30% (oversold) threshold

✔ The Sector Relative Strength turning in a buy signal

(If you missed the November 4th article, click here.)

And then this week, my good friend and colleague, Bill Spencer, in his Micro-Cap Monday article, wrote about a tiny gold and silver mining company. Fortitude Gold Corporation (OTCQB: FTCO) has grown 884% year-to-date.

And then I saw something eye-popping happen in my new Dark Money Indicator program with a number of gold mining stocks.

I’ll come to that in a moment...

Technical Traits of Strength

So… I went back to the chart on SPDR Gold Shares (GLD) I told you was on my radar in my article earlier this month. I wrote this exactly…

You can see that GLD is building into a wedge of consolidation.  At some point—probably sooner rather than later—we’ll get a resolution. It’ll either be a breakout higher, or a breakdown lower.

Well, we got our resolution. Take a look.

(Click any image to enlarge.)

GLD broke out of the wedge to the upside. So, I kept digging.

The Precious Metals Sector BPI has returned to a buy signal and regained bull confirmed status—this occurred last Wednesday, November 10th.

The shorter-term breadth indicator, %30 week MA, is showing a significant increase in stocks moving back above their 150-day moving average. As you can see, since the beginning of November, a lot has happened with the Precious Metals sector.

The Precious Metals sector has also seen notable improvement in relative strength versus the stock market and the other industry groups too.

Since that November 4th article, the Relative Strength (RS) chart has added two additional boxes to its current column of X’s, and is on a Relative Strength buy signal.

The sector is also ranked #4 on our Sector Relative Strength Matrix, so this group is outperforming most of the other 44 industry groups.

Right now, the Precious Metals sector has all the positive technical attributes we follow on our Sector Prophets Pro platform.

What I Saw on The Dark Money Indicator

The Dark Money Indicator is a system that flags unusual option activity we refer to as “shadow spikes.” Basically, they’re volume aberrations on certain stock options. 

Chris Rowe wrote about it in more detail in his “Technical Tuesday” article this week. Click here for more details

And we’ve recently seen a flurry of shadow spikes hit our proprietary options scanner.

These are big, aggressive volume-spikes in Call buying on certain gold mining stocks. 

Those volume spikes are telling us that some large and sophisticated traders think these particular gold stocks are going to make a very big move higher. And they’re backing up their conviction by betting huge amounts of cash in the options market.

One of those gold miners is SSR Mining Inc. (SSRM), a small-sized Canadian gold miner with a $2.4 billion market capitalization.

This past Friday, we got a shadow spike that a large trader or institution was snapping up an unusual amount of Call options. It was a very aggressive order that is betting big on this stock heading a lot higher.

The trader purchased 5,000 of the January 2022 - 20 Calls. The premium outlay was nearly $600,000 to control 500,000 shares of stock.

Here, take a look at the chart on SSRM. You can see it looks like it just had a breakout and is on its way to resistance at around $23 per share.

If you jump into this same trade as this large trader did, you could potentially generate a 100% return or more!

Want to follow the smart money to grab huge gains?

Our community of Dark Money Indicator traders have been spinning off double-digit and triple-digit winners by following the real-time Shadow Spikes our scanner has been detecting.

Want in on the action? 

This past Monday, Chris and I hosted a live event about the Dark Money Indicator, so I encourage you to watch the presentation.

Click here to learn more about our proprietary Shadow Spike Alerts.

Or you can grab your spot right now, there’s only a few seats left before we have to shut down the offer: Shadowspikes.com.

Got Dark Money Indicator? You should…

Costas Bocelli

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