In a September 6 podcast, Equity Management Academy CEO Patrick MontesDeOca predicted a drop in the stock market and a major bullish market in precious metals.

MontesDeOca discussed the 90-, 60-, 45- and 30-year cycles that the Academy uses to try to identify where the markets are heading.

 

Ninety years ago was 1926, just before the Great Depression. Sixty years ago was the assassination of John F. Kennedy, which led to Lyndon Johnson becoming president, with Richard Nixon as Vice President.

 

“This was the beginning of America,” MontesDeOca argued, “becoming the most corrupted form of government in the next 60 years.”

 

Forty-five years ago was in the middle of the Nixon administration. In 1971 Nixon took the US off the gold standard and, MontesDeOca said, “That was the beginning of the end of the US dollar,” since it was turned into a fiat currency.

 

Thirty years ago was the 1987 stock market crash, with the biggest single-day loss ever of 22.6%.

 

“What we are getting during 2016,” MontesDeOca said, “is a cluster alignment of all of the cycles coming together…What this tells us is that we are about to experience one of the most incredible moves in precious metals to the upside, one of the biggest drops in the stock market to the downside, and essentially we are witnessing the end of fiat currency as we know it. The US dollar has come to the end of its reign that was basically set in motion 90 years ago and implemented 30 years ago.”

 

MontesDeOca warned that the “central banks have never been in such a precarious situation regarding world debt, which is running at record levels” and “we anticipate that bubble to burst in a big way in 2017.” He said, “Beware and prepare; 2017 will be one for the record books.”

 

The cycles are supported by recent Academy reports based on market means.

 

In the gold market, the December gold futures contract was at $1,325.90, which, MontesDeOca said, “is very bullish long term.” However, if gold closes below $1,218, “this bullish trend will go neutral.”

 

The price momentum or average monthly price is $1,269 and the market closed above that mean, which, MontesDeOca said, confirms that the price long term is bullish. If gold closes below $1,269, this long-term bullish momentum will be neutralized. If it closes above $1,269, it is bullish and “you should look to take your profits” as we reach $1,441 to $1,556 levels. MontesDeOca is anticipating the market to hit $1,556.

 

The strategy he recommends for gold is bullish, long term, with initial stops at $1,269 and a secondary stop at $1,218. If gold closes below $1,269, the market may come down to the lower levels of demand at $1,154 to $983. Note, MontesDeOca said, that the second level is under $1,000. If for some reason the market were to break to those levels, MontesDeOca said, “This would be the lowest level you could possibly buy the gold markets, if you missed the previous rally which bottomed in December 2015.”

 

Turning to the silver market, the December contract is at $19.47, which is above the $16.44 moving average. MontesDeOca said this is “very bullish.”

 

With the market above the mean of $18.45, long-term momentum is bullish. The Academy pointed this out in an August 26 report. MontesDeOca said, “We told you to exit shorts in silver at $18.31 to $17.57, and the low so far is $18.44.” Since that low, the market has risen to $20.20. MontesDeOca said, “Silver closing above $18.45 tells you to look to take profits on your long term positions as the market reaches $22.27 to $25.07 levels this year.”

 

If you are interested in a guest pass to see the Academy’s live trading room and watch how MontesDeOca executes these signals for the accounts he handles and for self-directed accounts and the Academy’s hedge fund, please email support@ema2trade.com

By Equity Management Academy