Weekly Briefing 4/25/21 - The Forecast

Weekly Briefing 4/25/21

Weekly Briefing 4/25/21

The current technical picture continues to be bullish with only small-caps struggling, and the major indexes are still trading very close to their all-time highs. The S&P 500, the Dow, and the Nasdaq are all above their 50-day moving averages despite this week’s dip, and the benchmarks are also well clear of their 200-day moving averages.  On a positive note, the Russell 2000 showed early signs of strength ahead of the weekend but it still closed below its 50-day moving average on Friday. The Volatility Index (VIX) hit a three-week high amid the pullback in the major indexes, but it topped out below the key 20 level, and the fear gauge continues to confirm the ongoing bull market.

Next week is looking to be a busy week with an FOMC meeting and big tech earnings. Not only the largest tech stocks like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Google parent Alphabet (GOOG), Facebook (FB), and Tesla (TSLA), but financial and energy behemoths Visa (V), Mastercard (MA), Exxon (XOM), and Chevron (CVX) will also publish their first quarter numbers. The economic calendar will be much busier than this week as well, with the CB consumer confidence numbers coming out on Tuesday, the Fed’s rate decision and statement highlighting Wednesday’s session, the first reading of the first-quarter GDP released on Thursday, and the Core PCE Price Index, Personal Spending, and the Chicago PMI scheduled for Friday release.

As we examine insider sales activity we can conclude one important point: This type of activity almost always leads to a significant correction in 3-6 months. After major equity indexes peak, investors should be prepared for the most powerful correction we have seen since the Covid crash of March 2020. We will be sharing short positions and hedging current positions at the Forecast for gold members through our Educational Trading Grid the second half of the year.

From cars to homes to commodities, one does not have to look far for consumer price inflation. The dollar’s purchasing power is dropping like a rock and you will not hear the Fed report such data through its crafty inflation formulas. Every day consumers are aware of this cold hard truth that they currently face in everyday living. If you are looking for evidence of price suppression in the precious metals, just examine the chart above. This suppression will just make the price explosion even greater as buying pressure continues to grow. Once silver and gold surge, mainstream financial media will have to report on runaway inflation, something the US government and Fed are trying to delay as long as possible. Not only will they will not be able to stop the coming move in gold and silver over the next four months, but their past and current attempts at price suppression will have only added rocket fuel to the fire.  Gold Members are poised to profit handsomely.