An Eye-Popping Chart
Stocks failed to cling to their morning gains on Tuesday. The Dow and S&P slipped into the red, while the tech-heavy Nasdaq Composite eked out a small gain.
Tuesday’s sluggish action also broke the Dow’s four-day winning streak — an incredible feat when you consider the Boeing Co. (NYSE:BA) controversy weighing on the blue-chip index.
The markets are quite this morning as we wait on Powell’s presser. By this afternoon, we’ll learn just how dovish the Fed is feeling as stocks continue to rally from their December lows.
As the major averages tread water, gold is recovering from its sharp pullback.
Gold posted another solid performance early this week, pushing back above $1,300 and making up for the hard reset that followed its move toward $1,350 last month.
Of course, gold will need to fight back toward $1,350, which just so happens to mark an important resistance zone. As I’ve noted several times this month, the $1,350-$1,400 area has stymied gold ever since it broke below this level way back in early 2013. A significant rally above $1,400 could spark a powerful new bull market for precious metals.
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As gold gets it mojo back, palladium is once again streaking to new all-time highs. The forgotten precious metal embarked on an insane tear more than six months ago, culminating in a breakout above $1,400 for the first time ever before finally taking a break. Following this powerful rally, an ounce of palladium was even more expensive than an ounce of gold.
But palladium’s eye-popping run didn’t end there. After just a few weeks consolidating, palladium is once again streaking to new all-time highs above $1,500. Just look at this ridiculous chart:
As I mentioned in February, some analysts are quick to point out how shortages of the metal due to a worldwide crackdown on emission controls have played a key part in platinum’s recent rise. That’s probably true. But we can only assume wild-eyed speculators have taken over this trade as palladium has shot straight-up over the past several months.
Every time Palladium looks like it’s set to cool off, the metal explodes to new highs. If it settles in the green today, palladium’s winning streak will extend to six straight days.
Switching gears from hard assets to pretend money, Bitcoin is silently sneaking back toward a $4,000 breakout.
“Questions are being asked constantly when it comes to bitcoin’s battle with the $4,000 mark,” chief Think Markets U.K. analyst Naeem Aslam writes, via MarketWatch.
While most investors have left bitcoin for dead, the flagship cryptocurrency looks like it could finally put in a bottom and begin a new rally. But it needs to convincingly clear $4,000 first…
To clarify, I’m not going crypto crazy. But I do see some interesting signs that are pointing toward an elusive bitcoin rally. The most glaring is the CBOE Global Markets pulling the plug on its bitcoin futures contracts. CBOE sent a notice to traders explaining that it will not list additional XBT futures contracts for trading, The Wall Street Journal reports. The move was likely prompted by investor apathy for the crypto trading contracts.
News of the CBOE abandoning bitcoin could turn into the contrarian signal the crypto market desperately needs right now. Just as the last bull turns off the light, a new rally might begin…
Finally, our Advanced Micro Devices Inc. (NASDAQ:AMD) trade is back in action.
This chipmaker trade rocketed higher by 20% in a single trading day back in January, giving you the opportunity to book quick double-digit gains.
After nearly two months of sideways action, AMD is now posting new 2019 highs. Shares are off and running after posting a gain of more than 12% yesterday following reports that AMD will power Google’s new cloud-based gaming service.
AMD isn’t the only comeback play I have my eye on this week.
Amazon.com (NASDAQ:AMZN) just posted an impressive three-day winning streak, lifting the stock back near its November-December highs.
It’s no secret that the performance of the FAANGs — Facebook, Amazon, Apple, Netflix, and Google (Alphabet) — has been hit or miss this year. But now that Amazon and Apple are playing catch-up, we could see these household names retake their leadership roles during the second quarter.