Trading Places with Tom Bowley

Is Gold Truly Our Safe Haven Right Now?

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At this exact moment? Yes. Am I a fan longer-term? No. Gold ($GOLD) nearly always is a good choice during periods of anxiety and we sure have plenty of that right now. So owning a piece of it would make sense for anyone wanting a hedge against the stock market or simply trying to outperform that benchmark index while equity prices are falling. Take a look at this chart:

There's a lot going on here, but note the relative strength of gold vs. the S&P 500 ($GOLD:$SPX). The blue directional lines show that gold is a great relative performer after the 5 day SMA of the Volatility Index ($VIX) climbs above 15. That's a very simplistic explanation of one part of this chart, but it will be featured as part of my Talking Technically segment this morning on Trading Places LIVE at EarningsBeats.com.

My show starts at 9:00am EST and Talking Technically will begin at roughly 9:05am EST or so. If you'd like to listen to a deeper conversation on this subject, please join me! You can access the show live by following this link:

https://zoom.us/j/248920901

If you do decide to join us, we'll add your email to our EB Digest (it's free!) newsletter as we keep our entire community up to date on both free and paid webinars. And don't worry, if you read this article after the show is complete, all of our shows are archived at YouTube, so be sure to check it out later today! Also, please subscribe while you're there!

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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