Tim Ord: This Bullish Three Year Gold Cycle is Still on Track
Based on seasonality, Tim says we should have a pretty decent January for gold, and that should carry through into February. He discusses his favorite indicators and how to use them to track the gold miners. Currently, these indicators show that there is quite a bit more potential with the current uptrend, and he makes specific predictions for the GDX.
He outlines the indicators he uses to determine if gold is overbought. We may have a six-month consolidation period, which could begin in late February. Gold has been in a run-up for nearly a year, so we need that consolidation period. Over the next few years, it should do well, and at least break the old highs.
There are long-term cycles within these markets, but they aren’t due to hit until 2022-2023. The current Elliot wave should hold, and the momentum indicators on the monthly look good. We should have pretty clear sailing for the next two to three years.
He says, “When you’re young you’re kind of dumb and you learn from life lessons. When you get older, you quit making those mistakes and become more disciplined. You understand what indicators work better as you gain experience, and it does get easier.”
He feels that agricultural commodities are going to rise to the forefront and that most commodities will soon outperform the S&P. Momentum rules all of the indicators, and on the monthly chart, they are all turning bullish.
Silver has yet to perform, but it should begin to do so during the next cycle later this year.
Time Stamp References:
0:40 – Bullish indicators
3:00 – Predictions for GDX
4:40 – When to sell and gold.
8:00 – Long-term cycles and momentum.
10:00 – Predicting markets and experience
12:25 – His opinion on commodities in general.
14:00 – Predictions for silver later this year.
Talking Points From This Week’s Episode
• Outlook for gold and the miners
• Favorite indicators and how experience improves traders.
• Why he is bullish on agricultural commodities.
• Silver should start performing well later this year.
Tim Ord earned a Bachelor of Science degree as a Mathematics teacher from the University of Nebraska in 1973. He became a Stockbroker in 1977 and worked his way up to Vice President and Senior Option Principal in 1981. Tim has over 25 years of trading experience.
In 1988, using his account, he places fourth nationally in the option division in “The United States Trading Championship.” He has written several articles that have been published in the “Stock and Commodities Magazine.” His first article appeared back in June 1991, where he introduced a new trading method using the NYSE tick index. The tick index method is now used worldwide by short term traders.
This method was derived from the works of Richard Wyckoff, a gentleman who did an extensive study with price and volume back in the 1930s. Mr. Ord expanded and simplified his studies. He is frequently a guest on financial radio shows from coast to coast. Mr. Ord is president, editor, and publisher of “The Ord Oracle” established in 1990. His newsletter is a Monday through Thursday email report that trades the S&P, Nasdaq, and gold issues. He is frequently listed in the top 10 market timers in the country.