Gareth Soloway: The Crowd Will Start Chasing Gold Like They Chased Bitcoin

• Palisades Gold Radio
  Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for InTheMoneyStocks. To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
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  He believes that Bitcoin will survive and thrive but it’s likely to correct further. There is still much irrational exuberance in the crypto space. He argues that the current pattern is more likely to break down. He discusses how resistance level works and how charting measures these areas. The Fed is giving out its playbook and interest rate rises should cause the markets to tighten. Now is a time to be cautious. He expects only a few more rate hikes because the economy will be affected.
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  Historically rate hikes slow the economy and this coupled with high inflation will be difficult. We also see economic problems when the yield curve inverts. However, the Fed is running out of tools to bail out the economy. Inflation will probably stay at 8-10% for some time. Oil is likely at a longer-term high and we may see lower prices from here. He expects a push for alternative energy sources and countries are going to want to become energy independent. We’re seeing a classic breakout mentality surrounding gold. We retested the 2020 high and this pullback is likely going to be healthy. No chart goes straight up and it’s healthy to have a retracement. We’re seeing a pattern that mimics the 1970s for gold but it’s questionable to set a specific target. He likes silver but is slightly cautious due to its industrial demand and the economy being weak.
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  He discusses the crazy move and market reactions in the nickel market. We probably had an enormous short squeeze that blew up some funds. Fertilizer markets have gone gangbusters in a matter of weeks. Don’t chase the hype since that is usually the time to sell. There should be other opportunities to trade the market after a pullback. Generally, the dollar rising is bad for gold and currently, it appears overbought. It functions as a safety hedge for much of the world. Lastly, he cautions that the equity markets will probably have another day of reckoning at some point. Time Stamp References:
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  0:00 – Introduction
  0:41 – Bitcoin and Crash
  6:34 – Resistance Levels
  8:05 – Nasdaq & Fundamentals
  11:50 – Fed & Rate Hikes
  13:17 – Yields Inverting
  14:46 – Oil Chart
  16:40 – Gold Volatility
  21:51 – Silver
  23:15 – Essential Metals
  25:32 – Fertilizers
  27:26 – US Dollar Thoughts
  29:33 – Russian Stocks
  31:53 – Wrap Up

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