Patrick Karim: Charts Hold the Key to Big Breakouts for Gold
Tom welcomes Patrick Karim back from NorthStarBadCharts to the show to discuss their latest charts. Patrick is a proprietary capital manager and chart trader.
Karim recounts a story of when he bought a penny stock without knowing much about risk management, only to watch it go to zero. He advises traders to always have access to charts and to use trend lines to identify when momentum has broken down. It’s important to not become attached to any asset and take profits when possible. Stories may change, so continually look for chart-based evidence. Wait for a breakout before investing.
Gold and silver prices are indicating that the current recession may be bottoming out. Charts demonstrate past performance during recessions. Silver often bottoms out before a recession was formally declared. The Fed funds rate chart and total public debt suggests that there may still be room for a spike in initial jobless claims, implying that a bigger recession may be around the corner. Patrick makes the argument that fundamentals should be prioritized less and more time should be spent on the price of assets. Since that is what causes the markets to react.
Karim shows several charts which demonstrate past correlations with recessions and the utility of heat maps in quickly determining market sector trends.
Time Stamp References:
0:00 – Introduction
0:40 – Trends & Sentiment
7:40 – Trading & Dumb Luck
13:05 – Gold/Inflation
16:48 – Silver Chart
19:28 – Jobs, Debt, & Recession
23:10 – Initial Claims & Gold
26:10 – Gold vs SPX
30:06 – Other Ratio Charts
31:54 – Heat Mapping
36:32 – Energy & Recession
42:14 – Yachting & Drinks
43:13 – Wrap Up
Talking Points From This Episode
- Sentiment and the importance of watching Technicals.
- Patience and why investors should wait for breakouts and take profits where possible.
- Outlook for energy and the utility of heat maps to track sectors.
Patrick Karim is a proprietary capital manager and chart trader since 2006. Patrick’s background in commerce, psychology, and an ongoing career in systems engineering has allowed him to evaluate trading scenarios systematically.
His psychology background helps him understand the human factor: overcoming stress, which is mostly responsible for maintaining a successful career.