Gareth Soloway: The Bottom is in for Gold
Tom welcomes a new Guest Gareth Soloway President, CEO & Chief Market Strategist for InTheMoneyStocks. He explains what led him to become a trader after studying economics and why the markets enticed him. He discusses how it took him several years to build skills and come up with a methodology that worked for him.
He cautions that using leverage can be risky. You need to be careful and understand the risks. InTheMoneyStocks use a system called price, pattern, and time methodology to evaluate stock technicals. When you combine multiple factors you can be sure your trade will be successful.
Interest rates are slowly climbing and putting pressure on high-beta tech stocks. Once we get through this stimulus period there will be new infrastructure spending but those may be funded by higher taxes. Higher corporate taxes may lead to additional selling.
He explains the vicious cycle of money printing, stimulus, inflation and why that causes bond yields to move higher. Investors need to look for assets that are not based directly in dollars like gold and bitcoin. Inflation is driving the housing market and lumber has skyrocketed.
The silver chart is mediocre but there has been a big increase in new buyers from the WallStreetSilver movement. He is concerned that lack of global growth could suppress silver.
He expects the dollar to head lower over the long-term but in the next few months there could be a pullback. He anticipates a further fall in the overall economy later in the year.
Crypto has pulled some attention away from gold. Even institutions have decided that gaining exposure to this new asset class may be important. He believes the long-term bull trend for gold is intact and that by year-end we could reach $2200 for gold.
Institutions use various methods to determine risk and higher rates often mean they will automatically sell some stocks and move to safer assets. He belives the Fed has already stepped into the bond market to stem the sharp rise in rates.
Stocks bottom when people are most bearish and top out when they are most bullish. Going forward he is most concerned about the possibilities of stagflation.
Time Stamp References:
0:00 – Intro
0:35 – Learning from Mistakes.
3:40 – Technical Tools
6:40 – Watching Volatility
8:20 – The Vicious Cycle
9:57 – Alternative Assets?
11:30 – Silver Market Thoughts
12:44 – Views on Gold
15:30 – Growth & Interest Rates
18:25 – Concerns, Panics, & Yields
19:40 – Yields & Institutions
21:15 – Yields & Opportunity (CHART)
24:23 – TLT & Rates
25:13 – Nasdaq and S&P Valuations
26:20 – Resistance Levels & Stops
28:13 – US Dollar Uptrend?
29:44 – Economic Headwinds & Taxes
31:33 – Gold Miners & Leverage
33:13 – Wrap Up
Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial adviser but his heart was always in swing and day trading. He had this long standing belief that he could help investors make more money by advising them on shorter term investments (holding a stock for days to weeks) than the buy and hold crowd who lost 50% of their money during every market collapse. “Why not profit during the bear markets just like the bull markets”, he said. While helping others gain financial independence during the day, he spent his nights studying charts and price action, developing a unique market trading system that put his profits on a rocket ship. Some nights he would barely sleep when he found a new technique that was proven, once back-tested.
After building his personal wealth through trading in 2004, he left the financial industry to trade his own money and continue to study charts and technical signals. This is when he met Nicholas Santiago. The two top traders spent days trading stocks/futures together and nights putting their collective brain power into pure genius that would become the PPT Methodology.
InTheMoneyStocks was launched in 2007 once the PPT Methodology was perfected. Gareth’s goal was to help average investors beat the best hedge funds and traders on Wall Street by teaching them the methodology and giving them his trades as he took them LIVE!
Since 2007, Chief Market Strategist Gareth Soloway has maintained an over 80% success rate on swing trade alerts (verified 300+ trades per year) given to members in Verified Investing Alerts (formally named the Research Center) and a verified 94% success rate on day trades in the Live Day Trading Chat Room. He has given lectures at colleges around the United States, been asked to train hedge fund traders in other countries and taught thousands of investors how to invest and trade profitably, achieving their dreams of financial independence. He lives life to the fullest and puts his heart and soul into teaching his members who come willing to learn the PPT Methodology.