[Music] I'm Charlotte McLoud with investingnews decom and here today with me are Patrick and Kevin of Northstar bart.com thank you both so much for being here great to have you it's good to be here Charlotte thanks for inviting us on hi Charlotte yeah really good to be speaking with both of you for the first time really happy to have you here gold I think is is really top of mind for many investors and certainly our audience right now so where I wanted to begin is with a a pretty big concept that I've heard you


talk and write about elsewhere which is this Capital rotation event that's going to take us into not just a gold bll market but a gold bll era so I think that'll be maybe setting the stage for other topics that we go over so if we could just begin there and and either of you feel free to jump in at any time okay sure do you want me to speak about this patter or do you w to do you want to cover it uh well the only thing I want to say about Capital relation event just to said the preface there's a terminology


there that some people might not be aware of it's U well everybody knows the world bull bull market right but as a chart uh technicians a bull market essentially is price trending upwards above a moving average and a bull market usually we look at the monthly chart so if you're the price is trending nicely above a 12 months and 36 months moving average then you're you're in a bull market now the C what that's going to provide as a valuable information for your viewers is once you have this C and


Kevin's going to go and show you those beautiful charts there those visuals how how exactly how the CR has played out in the past and how it's it's playing out right now once you have the CR when you're outperforming when gold is outperforming gold gold right now is in the bull market but once you're outperforming SPX another major asset class now that bull market has been upgraded to Bull era so it's it's Nuance you could be in a bull market but Bull errow and it means is


you're more susceptible to outperform you'll have greater gains in shorter amounts of times and the dips that you have in your bull market once you're in a bull era those dips you probably have a good chance of buying them and riding them up higher and faster and you're outperforming the other asset classes so bull market price trending upwards bull era price is trending upwards but you're also uh after a c event and you're outperforming the SPX I did you you prepared the charts


yeah I've got the I've got the charts ready here so I I'll try and make that I mean people say a picture paints a thousand words so um I'll I'll try and do that for you so as Pat said a capital rotation event is pretty much what it says I mean we didn't Inver invent the term Capital rotation but I think what Pat and I have done is to help um visualize it uh for people who perhaps you know haven't encountered it before we produce some very strong visuals that illustrate what a capital rotation event


is and we're defining it in relation to Gold so it's a capital rotation away from stock markets away from General equities towards gold and when that happens it's not just gold that benefits it's silver it's um the Commodities complex in general and that old saying if it's heavy and you drop it in your foot and it hurts you know that that that that old adage um so we're talking about you know um base Metals precious metals soft Commodities oil energy all those kind things and this is one of the


charts that I first um noticed that was breaking in favor of gold and there's a whole series of charts Capital rotation charts that break in order to confirm a capital rotation event and I'll just um get rid of the the border at the top of the screen there if I can um and these are the charts on the right hand side of the screen um these ones with a with a flag on them there's there's two more at the bottom that don't have a flag so all of the ones with a red flag have now broken and confirmed a capital


rotation event the final two haven't quite yet so what we're looking at here is uh US money supply versus gold okay and when this chart breaks down um it's indicating a huge gold bull run it broke down last back in 22 2001 there and the chart dropped very rapidly which meant that gold was outperforming uh the US money supply and the same thing happened here it broke down and started has started to drop rapidly so when it broke down a couple of years ago I put this chart out there and said that I thought


that gold was about to enter a very bullish phase and since I did that gold has risen well I need to update this I think it's $1,400 so for $1300 that sort of thing and all of these charts you'll notice they've got um if you focus on the green moving average line that's the three-year moving average if you focus on this red and green spludge on the chart that's called the ichimoku cloud bull markets happen above it bare markets happen below it so if we move on to dxy versus gold so this is the US


dollar Index versus gold and when this chart breaks down and moves to the downside it's telling you that gold this gold strength is outperforming any strength that the US dollar has versus its peers so we'll know that the US dollar Index is um the US dollar versus of other currencies so um you know primarily the Euro and when dxy is rising it means the US dollar is getting strength primarily versus the Euro so when the US dollar is displaying strength gold has to battle against that and if gold can overcome whatever


strength the US dollar Index has then that's a very strong bullish sign and again you can see that during this period from 20012 2002 and into 2003 the ch broke down and this ratio dropped rapidly and that was signaling and warning us ahead of time that a strong meaningful gold bull market was about to happen and what just you know look at the chart now and you can see what's just happened the chart has broken down again and gold is outperforming the US dollar Index so gold strength is outperforming US dollar strength uh if


we look at gold versus CPI CPI consumer prices of course and this is gold versus CPI chart again it's above the green three-year moving average that green uh line it's above the ichimoku cloud and more important than that really is that it's broken above the key resistance lines so when it breaks above an important horizontal or an important an important meaningful resistance line then it means that there's a strong indication just as it did in 2003 and the chart starts moving up that means gold is


outperforming consumer prices and when it does that in a meaningful way above the the green three-year moving average above the ichima cloud above the resistance line then you embark on a long Bull Run um and that's you know that that is a strong piece of evidence that you are entering not just a gold bull market but a gold ball era and when I zoom out even further you can see the significance of this chart pattern the entire thing is contained below these uh red resistance lines on the top and look


we've just broken out this is historic stuff that's going on it's not just you know you know your everyday kind of gold bull market there's something different something big and something meaningful going on here the same thing can be seen of course for gold versus PPI if I pop this onto the uh quarterly time frame I'll just um adjust the chart and put the quarterly three monthly time frame on just to clean it up a little bit for you what you can see if I readjust the chart is a very clear cup and handle


pattern on the quarterly time frame and I'm sure you can see as well that we've just broken out of this pattern gold is outperforming PPI and just as on previous occasions when it's done that and it's broken above the moving average years above the Hoka Cloud you embark on a a period where gold Rises hundreds of percent currency in circulation uh versus gold is breaking down so when this chart moves to the downside it's telling you that gold is performing currency in circulation and as on


previous occasions um when this chart breaks to the downside you embark on a big gold Bull Run just as it did in the early 2000s and then gold tops when this chart reaches a bottom and we don't know how low it's going to get but the initial uh Target area is this black line down here so we we've broken down we've seen the breakdown we're below the moving averages below the ichimoku cloud was Popp stay on that chart two seconds I just noticed a new trend line there if you go back there if you start one from


the um from the No No the other chart there is that was that the one put put it back on the quarterly for you yes please check it out there there's a if you take the 1980 Peak there draw a trend line from the 9 1980 bottom to the 2012 bottom and extend that there raise it raise it raise it look at that thing it's like yeah yeah and that that was a that was a meaningful breakdown and when you can draw support lines that are close to other pieces of evidence like the horizontal support line we've got


there like the quarterly ichimoku Cloud we've got there um and meaningful moving average breakdowns then what you've got is something called an Evidence cluster you have a cluster of evidence in close proximity and when the chart moves through all that technical evidence it's sending a very strong message not just based on one piece of evidence but on two three four pieces of evidence so you're analyzing the chart not just subjectively with the lines that you've drawn but objectively with technical


indicators like the moving averages and the ichimoku cloud if we turn to stock markets versus gold and we look at the equal weighted S&P so this is um you know if you were to give all stocks in the S&P an equal waiting then this is how that looks and capital rotation events are very clear on this chart if I go back to the one in um sort of the year 2000 you can see this rotation event this rotation um pattern that takes place where the chart breaks below the moving averages below the ich


chimuka Cloud that's this Japanese technical indicator which this this green and red thing I keep referring to as ichimoku Cloud bull markets occur above it and bare markets occur below it so if you want to know if you're in a bullish environment or bearish environment refer to things like the moving averages in the hu Cloud if you're below them then objectively never mind subjectively never mind anything to do with narratives objectively technically you are in a bare Market environment so now


this chart is moving down what it tells us is that the equal weighted S&P is in a bare Market versus gold um I drew this chart at least a year ago and you know it's gold price has moved up sort of 123 00 since then so when I put on here $2,800 gold it perhaps seemed a little bit um fanciful but you know we've we've seen the chart move through this area we've had $28 $2,800 gold and as the rotation continues it would be perfectly normal to expect $5,000 gold and 8 to $12,000 gold as this chart reaches its


eventual Target probably sometime in the 2030s actually um they'll likely to be an initial Peak sometime in the late 2020 and then a significant pullback and then a a second run into the 2030s if we look at and there's a there are good reasons for for thinking that as well based on the capital rotation um thesis and the capital rotation process um this is gold versus the New York Composite Index so the NY chart the New York composite stock index and you can see when the chart breaks out don't worry


too much about all the squiggles and the lines that are drawn on it just focus on the chart breaking out above horizontal resistance line above the moving averages above the ichimoku cloud into a big bull market that's a bull market for gold versus the stock market essentially and you can see what's happening now the chart is breaking out through horizontal resistance through the choku cloud above Rising moving averages so that puts gold in a bull market versus the New York Composite Index if we look at gold


versus um or rather I should say the Dow Jones index versus gold this chart has given four signals now in the last 100 years and if I zoom across to the left hand side of the chart you'll see the first uh the first and second signal that were given in 1930 and in the 1970s so this chart when it breaks down below support lines below the moving averages below the choku cloud when it breaks down that's telling you that gold is in a bull market versus the Dow Jones index signal number two came in the early 1970s the chart breaks


down below the rising trend line below the moving averages below the Hoka cloud and also below what we now know as critical support uh and down it went and when that happened gold doubled it doubled again it doubled again it doubled again it took the S&P well in the 1930s it took 24 years for the S&P to recover in the 1970s it took the S&P um 10 years to get back to where it started so remember the S&P is roughly 6,000 today imagine knowing that it's going to take 10 years or more for the


S&P to get back to 6,000 again in 20012 2002 breakdown below Rising support eventually a breakdown below the moving averages in the choka cloud and eventually a break below critical support which came much later but again during that process the Dow fell 50% the S&P fell over 50% took 13 years to get back to where it was and gold rose 650 per. now What's Happening Here exactly the same thing break below the moving averages below the ichaka cloud below the rising trend line so what do


we expect why do we expect anything different you know gold should double it should double again should double hold on before you go to the next one there maybe it's a good time to add the re the recession indicator and show people what at the C event what often practically has to happen to instigate this this profound Capital flow shift you know from uh SPX to uh to Gold doesn't mean SPX do goes down to Infinity it it just means that gold will be op foring SPX or SPX will be going down during the in


like during the recession but after that on the recovery even when the SPX has bare Market rallies or starting to Rally up gold will silver all that will go up also but faster so look at the recession indicator look exactly at single three there's recessions events which triggers the governments to increase their debt uh the public debt to Start programs you know to bail out the banks all that all the you could insert your favorite narrative there the recessions are it's like that's what it's like


Market recognition of of that so and every single recession has markets drop so the CR is not just going up performing as p because you can have gold outperforming SPX at any moment it's gold outperforming SPX in a meaningful way but at the instigation at that precise CR confirmation event there'll be a a recession which will be in hindsight they usually like six months to a year late to announce it there'll be a recession that would be back filled at that exact moment and there will be a drop in the SPX 10% drop


5 10 15% drop but not a regular drop that just stops zero correction it's when the markets realize oh oh hold on there it's more than a 15 10% uh 10 15% drop this drop has higher chances of cascading into a 30% drop 45% drop the markets the the market participants discount future events right you can't wait when the market dropped 50% you're probably close to the bottom so once the market realizes that it's not a just a benign correction that will be more nefarious that's part of the like the


big Hallmark Clues you you'd be looking at for CR there and look at the third one so right now are we in a recession are they going to backfill the unemployment numbers and oh yeah finally we were in a recession honestly we're super close we like it's it could be a recession look at signal number two there there was a recession like the markets go like there was a roll over and shortly after there was a there was a recession at that precise moment and there's also often a recession halfway so during that bull


era for for precious metals for gold for silver for uran ium oil copper whatever in those there's all there's that instigating recession and halfway through often there's also another recession you see it in 1960s it was one halfway through and the after single three you had one in 2008 in that second recession it's like another like a I don't want to say booster shot but it's like another booster shot that helps Drive the um the remainder of the bull era for precious metals so we're at some wild times there


Charlotte it's crazy there is it's like this it's it's it's unfolding in front of our eyes there it's like uh it's crazy I mean gold is um an incredible barometer of the health of the markets um you get a if any people talk about leading and L leading leading and lagging indicators if I can get my words out and gold really is um if you know how to use it it's a leading indicator because the weakness in the markets will show up versus gold before it does versus the US dollar for example so


we're so used to pricing everything in the US dollar um that I think people have forgotten that gold is you know gold is a is a valid you know currency gold is a valid um way of measuring the price of something and by by using gold to I mean these these are just ratio charts it's you know it's the Wilshire 5000 priced in gold one you say versus gold it just means this is the welshire 5000 priced in Gold ounces this is how many gold ounces it takes to buy the Wilshire 5000 so my point here is that the charts are


giving an early warning and I put this chart out you know the wilsh all these stock markets the S&P andda they're not they haven't been breaking down nominally their own price charts have been in an uptrend in a bull market and looking okay but the first stage is for gold to start beating them for gold to start Rising more rapidly than the stock market and as that momentum builds Capital begins to flow away because hedge fund managers you know investors that aggregate Market participants can see what I'm seeing you


know I'm not the only one that can pull up a chart on trading view so other people are also reacting the algo not just people but alos are reacting you know the automated trading programs or react and respond to this and so you build up a gradual momentum over time it can happen very quickly in you know almost to the blink of an eye or it can be a sort of a gradual roll over event you know there are different forms that this can take but the point is that as the breakdown occurs it occurs in gold first and then


it'll become very evident in the uh charts priced in US Dollars we've got the Wilshire 5000 wasn't here gave an early warning a while back when it broke down a few months ago this is a this is a quarterly chart I'll pop onto the monthly time frame but it you know it gives us a good early warning of problems ahead the Russell is exactly the same the Russell gave a very good early warning of what we're seeing now you know we're seeing cryptocurrencies sell off we're seeing um tech stocks


breaking down versus gold this is the Russell 5,000 versus gold is Russell 2 always it's the Welsh of 5000 and the Russell 2000 always have to think twice about that but the the Russell 2000 has broken down very decisively versus gold I mean these are monthly candles below the 36 month moving average below the ichimoku cloud that is a very clear breakdown the stock market is breaking down versus gold the final two are NASDAQ and the S&P and we are close to seeing the NASDAQ breaking down versus


gold we're close to seeing the S&P breaking down versus gold but it hasn't quite happened yet it would surprise a lot of people to know that the NASDAQ put in its High versus gold 25 to five years ago so tech stocks since the year 2000 they've had a massive sell-off and despite all the years that have passed Tech STS have not been able to regain the valuation versus gold that they had 25 years ago and now you can see this looking very much like a topping pattern okay gold has been performing equally to


the NASDAQ since 2021 so three years four years of gold matching nasdaq's performance the same with gold versus the S&P and this is perhaps the key chart really because the S&P has a good spread of different sectors within it financials material and um you know a whole rent you know tax sector all these different sectors that are in the S&P and so tracking the capital rotation event on the S&P chart is probably the best way best way to do it so gold versus S&P Capital rotation if we can


just push this up convincingly Above This resistance area that's between about 0.5 and 0.51 a nice convincing close up here somewhere and you can declare that gold has moved from a bull Market into a bull era where gold will double and then double again and then double again just as it has done on every previous Capital rotation event um and that basically Charlotte is is capital rotation in nutshell i' I've produced a I don't know if it's on here I'll just move the chart to one side but


I've produced a um yeah here it is if I move the chart far enough to the left uh Capital rotation indicator uh um apologies my computer screen is being very jumpy at the moment I don't quite know why I'll just move it across a little bit further I'll grab hold of the Matrix and bring it over for you so we can summarize all of that by saying that gold has broken out um and put all of these into a bare Market priced in Gold so money supplies in a bare Market versus gold the US dollar Index CPI PPI currency and


circulation the equal weighted S&P the New York composite the Dow Jones the Wilshire and the Russell are all in bare markets versus gold just the S&P and the NASDAQ to go and when they do the S&P would have broken down versus money supply the US dollar Index CPI and currency and circulation all of these things only turn red together at the same time during a capital rotation event so it's all about weight of evidence confidence levels and responding and reacting accordingly toh to what we see happening


there there's two things there we could add never has there you saw like the Dow Jones the Willshire 5000 like the weaker of these indices never has those indices rolled over versus gold and not thex or the NASDAQ eventually it's a you don't want to do technical analysis based on it always did that so it has to do it that that's not how it works its probabilities but from all the evidence we've had there like Kevin said some of they're weaker than the others so those indices they're


they're showing you in slow motion in real time except these are it's not real time because it's like cor candles people it's crazy it's like like you know that train's coming or that bus but it's so far away and so like it's not going very fast but you know it's gonna hit you eventually if you don't move out the track but that's what we're seeing people have time to prepare people go go and say ah I didn't have time it happened so fast no it's like this


process we've been monitoring it for years and people they often say well oh you've been calling it for for years no we've been showing you that role map for years we haven't called the C event we haven't confirmed anything yet but the role map's there it's rolling out in front of your eyes if it stops rolling out and uh let's say by Miracle the US equities decide to to go into like a 1995 to 2000 runup well that's going to be that we're going to tell people well


look there's no C hasn't broken out yet so that road map is has has been altered so that's the thing and also us equities normally have to break down they have to they have to they have to show there is weakness I could show you some charts around the daily chart they're starting to roll over you're seeing a whole bunch of weakness everywhere cryptos often top at or before uh the US markets do that's happening on the daily charts weekly monthly charts the US equities are super


stretched from their moving averages they're super vulnerable for correction so the way it works is all short-term Corrections all Market all important Market tops always start with a short-term correction that fails and Cascades down right a bullish looking short-term correction like a Pole flag usually resolves upwards but eventually if that doesn't resolve upwards and it starts faltering so that daily chart bullish looking pattern Falls and then it Cascades and then on the weekly chart becomes a bigger bigger pattern


that that fails then we see see it eventually on the monthly charts so we got a using smaller time frames we're able to see that that turn so look in hindsight maybe after this interview oh Patrick Okay Kevin you called the top no we're not trying to call the top in hindsight if it happens it happens we're just showing you the possibilities of the top being behind us as these moving averages as these time frames start failing one after the other right so it's all about probabilities guys it's


not uh you know there's a lot of stuff we need to demystify about technical analysis it's not you know oh that guy called it top and bottom color Charlotte they're wrong all the time like nine times out of 10 oh I was right yeah but nine times out of the nine other times that you try to call the bottom that didn't work out for you are we forgetting about that so we're never trying to do that we're just trying to show you the probabilities of a meaningful new trend developing and


that's how people could actually make gains is writing those macro Trends in their favor right that's that's how you make the money not by calling a bottom or calling a top and buying at the bottom calling that stuff it's it's uh it's not going to work out over the long period yeah yeah okay thank you both going for going into that I think that was is really educational and it does give us a good base for where we're going to go and you did kind of anticipate I think my question which


was going to be about timing right because when you look at all of this it seems like the dominoes are really lining up and it feels very imminent that this is going to happen and I think probably people as you said look at that and they Wonder okay when is it going to happen what do I do now so you know any any thoughts on that on timing or on what people should be doing right now given what we see at the moment not necessarily what's coming down the line that hasn't been quite confirmed yet my


my reaction to that would be what is your time frame what are you wanting to achieve here because you could be a day trader you could be somebody who's wanting to trade something for a period of weeks or months or you could be an investor uh wanting to take a position in the overall bull market and and ride the ball Market from the bottom to the top so there's a number of questions you have to ask yourself first what you want to do with your your nav your net asset value um I you know everybody has a


different approach different people have a different um risk attitude some people will place it all on red lose it all and uh that's it they're done whereas other people take a take a longer term point of view and want to want to survive the um the collapse and and come out the other side with some some Capital intact so it's all a question of what your attitude to risk is but I can tell you what the charts are are telling us because we've been telling our followers and subscribers for a long time now you


know a number of years is that a capital rotation event is developing and in fact now we've got to the point where a capital rotation um event is is very close you know the process of capital rotation is very well Advanced all of those charts that I showed you tell us that the capital rotation process is in its late stages now what that and also we know for a fact that gold has matched the performance of the S&P for seven years now okay that ratio chart has gone sideways so given everything that I've just shown you and


you know the evidence that the gold to SPX ratio is going to be trending upwards in the years to come um then you should you know use that information to your advantage um the go to SPX ratio breaking out will tell you that any Investments or any trades that you place in related markets have a far better chance of success something to mention here which has just crossed my mind silver we haven't really mentioned and um Pat brought this up a little while ago and I you know tend to keep forgetting about it but I want to remind


everybody silver is a recovery metal okay so people are saying oh I want to buy silver Silver's great Silver's undervalued you know manipulation and all this kind of stuff forget all of that just look at the gold silver ratio the gold silver ratio is rising and it has been for for a long time it very often tends to spike upwards during this stage of a capital rotation event as the stock markets are at the point of breaking down and breaking down you very often at the point you get the recession declared the


stock market breaks down gold silver ratio can Spike okay it's not until the stock markets have not just broken down really but hit the hit the bottom so if we're saying this is a capital rotation event what we're saying really is that the S&P is likely to fall 50% the NASDAQ could fall 70% or more maybe 80% it's not until they hit whatever bottom they're going to hit coming out of that that silver really outperform I mean silver can probably will go up but I'm talking about it outperforming gold here


do you want to be holding gold or do you want to be holding silver the real time to hold silver because it's a recovery metal is during the recovery I said to you before the stock markets will take probably 10 years to get back to where they were and it's during that at a certain point during that 10year period not for the whole 10e period but probably for a couple of years silver is likely to very strongly outperform gold and again you can use the ratio charts to to tell you exactly when to get in


exactly when to get out and the same goes for the miners GDX gdxj s SJ pull up a ratio chart are they beating gold are they beating the S&P if not what are you doing really you know if they're underperforming the metal you might as well just be holding the metal there's so many different ways to hold the metal you can hold physical you can have exposure with things like GLD you can use um a whole range of digital providers um you know there's a whole range of digital providers out


there so you can you can hold gold physically and digitally very very easily and get exposure to the market and very quickly swapping them out of silver I know Kevin why they don't do that we've I've heard the people ah it's h i have to incure tax loss or it's I get fees people they they create these mental barriers not because me and Kevin like we're showing you the the how to apply the theory to the practical but I understand people after that they they look at their scenario and I can't trade


all that it's in my 401 okay whatever like people have all these barriers but what do you want us to tell you this we're telling you where the what instrument is going to outperform the other ones whether you want to not sell your instruments like let's say your for example like uranium had a great bull market like in the past couple of years but then after that it started like Kevin showed you I could have show you the chart it started closing below its 12 months moving average it started


losing momentum it was time to get out of because once a Corrections start like I said you don't know how long that correction is you have hm in your head I'm invested already I sold the idea of my wife that we put four $40,000 in uranium we're going to be millionaires honey trust me it's the kids the kids uh School fund it's safe there but then after that the price goes sideways in your head you're fantasizing about the Porsche whatever and then the price goes sideways okay it's G to it's going to go


up up and then it doesn't then the price starts going down it's gonna go back up but then goodness gracious we've seen it so many times then it just drags on and on and then you you've given up all your gains you feel awful you get a divorce nobody wants that guys so I know take the take the tax loss or take the the tax gain uh tax and guys if you're getting tax on gains you made money for crying out loud isn't that good it's like I don't get that the reason for me taxes is like the cost of doing


business like I don't have a brick and mortar store I invest in something I I pay I'll pay the government whatever tax I owe them that's it's a pretty cheap price to you know it's you know if you're not happy about the taxes in your country just leave your country for C like but that's the the rules never be afraid to sell if the momentum is slowing down take a step back there nobody's holding a gun to your head to write to write out a one year two-year correction a three-year correction who


knows it's like how long these Corrections last and uh just ride the bull runs guys ride the uptrends like it's with objectively Kevin showed you on the charts we could show you the uptrends right that please guys don't live on hopium it's so people get mad when I I feel bad for people but i' like I've been there you know I bought stuff I refused to sell because I had a narrative in my head it's we self-sabotage ourselves most of the time Charlotte it's crazy right it's like


people say Traders they don't make a lot of money because the the their emotional side sabotages the objective reality in front of them well I'm a classic example of that well the two really spring to mind one is uranium because that idea of it this goes back to narrative versus technicals there are so many narratives and fairy tales out there to put it bluntly you're hearing all these kind of different kind of narratives coming at you from social media you know nuclear power this and


nuclear power that and uranium can only go up well wrong you know even in a b Market uranium could go sideways for two or three years and in the meantime you could have made 100% in Gold so what are you doing you know opportunity cost look at the market when it reaches a measured move Target which uranium did get out wait for the inevitable consolidation correction whatever the heck is going on we've not been in uranium for probably about a year now you know we took profits and and ran from that sector and haven't


touched it with a 10 foot pole since because uranium is not outperforming gold one one simple measure of whether you should buy something from now onwards for the next several years price it in Gold do not price it in dollars price it in Gold if it's not outperforming gold do not buy it it's pretty much my my manchion yeah what Pat said is right you know that things can you know that stock a or stock Stock B could be going up slowly nominally and you may have a a very good reason why you want to earn stocks rather than um


than gold so I do understand that but at least be buying stocks uh in the in the market that are outperforming gold and there are you know PL there are always plenty of them you can find gold miners good gold miners that are are performing gold at any given point in time so uranium was a good example anyway and the other one is cryptocurrencies I mean what's this idea about hoddle hodle hodle hle what through an through 80% decline really why we know bit we know Bitcoin Falls 80% every couple of


years what is this huddle thing why would you do that why would you not rotate out of Bitcoin and into gold or even out of Bitcoin and into F currency for that matter save yourself an 80% decline when it's finished declining and breaks out what can you do with your money I tell you what you can do you can buy a Bitcoin back at half the price that it was before so you get twice as much Bitcoin huddle I mean that's pathetic that's again because it's a hopefully with your viewers and with


people listening to us it's people have to break that mindset of seeking confirmation bias because as soon as you have a stake in anything let's say I buy whatever a Cadillac I'm gonna Cadillac's the best uh I'm gonna I did my research I have more horsepower like you seek you seek these articles to re to confirm you know the decision you took right or else you'll take it personally if you see something better and trading is the same thing people bought a narrative they didn't buy Bitcoin let's say or based on


the chart that was breaking out they they bought in the idea of whatever it is and then it goes the price goes up it reinforces it confirms or bias and then they're always looking for articles about why Bitcoin is the next best thing oh guys I'm I'm not picking on bitcoin it could be anything right they're always seeking stuff you know I'm going to follow that YouTube channel because they're bullish that and but then when the price starts falling me Kevin will see it chart Traders will see the price


of momentum falling we'll see the new bare Market we'll see the capital rotation event which is the huge trap all these crypto guys are not seeing because crypto wasn't there back in 2001 in the previous one right Bitcoin started in 2009 so they've only seen the bull run but if you overlay Bitcoin chart with the NASDAQ or leverage NASDAQ or black rock or any speculative growth uh play it tracks it so the es and flows of Bitcoin is the same so we're anticipating there's a high high


likelihood that Bitcoin will go down with with the rest of those uh the NASDAQ if ever it starts going down so guys stop seeking confirmation bias look at the the charts objectively right cover the ticker and just say is that an uptrend or downtrend or flip the chart you could on the scale you could just uh invert the chart and if it looks bullish on the chart then that means it was actually bearish it's a good tricks you know to remove that uh that you know that hopium you know it's a word that's


out there on social media hopium there and it's just terrible because it's just gonna sabotage it's gonna sabotage your trade and uh yeah we don't want to see that I mean and for example you know gold has reached its measured move Target which was around about $2,800 it's exceeded it by a fairly wide margin so you know don't don't don't be at all sry I'll show the chart of that that gold chart don't don't be at all surprised to see you know gold consolidating pulling back


for you know perhaps several weeks or even months having made such a strong move yes that's what look gold gold okay let's let's people the we have to show a gold chart here here was the breakout the last there was two great entries for gold Charlotte it was June of 2019 on the monthly close out of this beautiful base and then it did a great run and then after that we had a great consolidation then we had another breakout the lowrisk entry for gold they're they're they're gone look this


is a classical measured move Char itte pull flag pull we we've we've extended above and that's where a lot of people get trapped is once the price really gets stretched and above measured moves people they say oh it's different this time they're they're they're bringing back all the gold to the US and they're running out of gold you hear all these stories right you it's it's it's h the system's going to blow up right all these stories you you practically always hear them when the


price remember silver squeeze you always hear the these things when the price is stretched the banks were failing here back in 20112 right in Greece but guess what it was a it was a move there that extended way above its previous measure move the price was stretched from the moving average here at the bottom pain Charlotte is that how far the price is away from that red line and look every time not every time but when you get when you're stretched here look how stretch it was from the three-year


moving average that red line just just in case anybody didn't keep up with that because it was sort of explain that fairly quickly the red line is the 36 month moving average and the indicator at the bottom is the distance from 36 month moving average so the indicator at the bottom that that black indicator at the bottom that's visually showing you how far the price is above the 36 month moving average so sorry yeah that's right thanks no so now look where the price is today Charlotte there is no


look how stretch it is you are as soon as the price the momentum so I could write I could draw a rising trend line here I think it even lost it lost a very acute one recently could be back testing now there's another line here but as soon as the momentum so the distance from that threee moving average starts to WAN so as soon as the that indicator starts going below those lines look look what happened here when I went below that line we entered a huge correction and you it's healthy you let the moving


average catch up to the price right you let either the price goes sideways and the moving average catches up or the price goes sideways but more violently downward to let the moving average catch up and that creates the lowrisk entries they're down here when the price is quailed in tight close to the moving average and exploding upwards but we're at the opposite of the spectrum right now so gold has reached measured Target measured moves it stretched from its moving average yes the price could keep


going up so there's no low risk entry here and you got to be really careful that if it starts losing these Rising support trend lines here then you're most likely gonna have a gold uh going sideways here as the moving average catches up and when if if the gold price goes up significantly from here look back at history and see what that tells you because you're in you're sort of into a sort of a super Spike kind of territory if that happens you're you're in a point where um if it carries on


going up to say 3003 3005 it'll be so stretched from the moving average that it's going to take probably more than months for it to to cool off and be ready for the next move so personally I don't really want to see it going to above $3,000 right at the moment i' be happier to see it pull back to 2750 um and then you know spend a period of time consolidating before the move Beyond 3,000 and towards 4,000 and Beyond yes especially if there's a CR um event happening Li if if it's like


liquidity driven Gold's like it's set up now to correct and you possibly correct hard there the set the setups there that on the C gold does not blast upwards gold goes down or stays flat probably because it's stretched now the odds are it will correct it will be but it will correct less than the SPX so on the C event they're both going down SPX and gold but Gold's going down less so the racial chart of SP SPX price and gold is going to shoot upwards and that's beautiful that's that that is what's


going to scare the markets into starting okay we got to print we got a public works public works you know like the Napoleon thing there let's save everybody and Gold's going to love that destruction of purchasing power programmed in the pipeline and that's when gold silver oil insert your favorite commodity there is going to go Bonkers okay okay also really good to go into and I want to take you back at least just briefly to Gold stocks because I know we have a lot of people wondering what's happening with gold


stocks as we see gold at these really high levels and I think there's there's this expectation that gold stocks as a group are going to follow gold up and maybe we're learning at this moment that that's not necessarily true and you need to focus in on particular companies versus going in that group approach so anything else you would add on approach to Gold stocks and and maybe mindset ideas when it comes to the gold stocks you come gold stocks there's there's no catch-up moves


there's there's no such thing as a catch-up move gold at 3,000 Golds yeah if you put two charts and you see Golds there and your mining stocks down here and it's not catching up that's because you're not looking at the good driver chart but if you're just gold for let's say SPX there and I overlay gold charts gold versus SPX and then I overlay a gold chart oh a minor a minor chart you'll see oh they track if I overlay if I do gold adjusted for CPI and ijust gold for the inflation you'll see that


some of the better performing mining companies let's say I don't know Weeden dunde Ora there's a whole bunch of these companies that are better than the index of them you'll see they'll track that so the M once you start seeing the r Kevin's gonna do a demo there while I rant it's the the mining stocks don't track gold they just don't because the mining stocks some some do like the royalty Place some like they're really close like they're doing higher highs like


gold is but if if the mining index Aza or huie or the GDX whatever your favorite mining index is not tracking gold well you're just not tracking gold don't try to invent a store in your head where there's a catchup you're GNA you're gonna be disappointed gold stocks over they're just terrible pricing gold since 1970 the the majority of gold stocks are horrible because they they ijust it for dividends a little bit better but usually they're they're just terrible over long periods of time but


there are there are this is this is the gold miners versus gold chart um going back to if I just adjust it there it goes back at least 50 years so this is just a reminder so I don't want to like Pat said I I I don't want to sort of um say that gold stocks are a waste of time but as a sector as an index versus gold the miners have lost 97% over the last 50 years so the idea of Buy and Hold for a selection of gold mining stocks especially the indices is is a terrible idea but set within that


long-term downtrend for the gold mining indices versus gold there are periods of time where you can see this ratio goes up and the mining index is outperforming gold for many months actually these are quarterly candles so there's periods of a few years where the miners are outperforming gold on a much more usable basis so you know I I wouldn't expect anything to particularly change over the next 10 years so what I would expect is that there will be a period of time you know over the course of the


next few years when the miners very rapidly outperform gold and silver and we can take advantage of that um you know there's there's no reason not to take advantage of that but for most investors you're probably better having the majority if you know if if you're a precious metals investor have the majority of your your now sitting in what we know is going to do well gold is going to do well it'll double it'll double again and probably double again after that but you know use a portion of


your now to to try and pick out these these outperforming miners because there are miners that over several years or many years are you know going from bottom left to top right and outperforming outperforming goals so you just need to pull up the charts of those individual miners versus versus gold but you know at the moment if you look at s versus silver I think that was a chart I had on just a moment ago you need this chart to break to the upside to break out to tell you that the silver miners


are outperforming silver you know this when this chart's dropping the silver miners are underperforming silver and when the chart is rising the silver miners are outperforming silver well you know look we we're below the moving averages if I put the ichimoku cloud back on this chart we're below that as well um and we're below the uh important horizontal breakout line I'll just get rid of the volume because we don't really need that at the moment um but the point of this chart is just


to remind you that we are so so early in this um precious metals bull market particularly when it comes to the miners you know the miners haven't even started really on as a as a group haven't started to outperform the metal yet it's about having the probabilities On Your Side Charlotte do you want to be in gold and silver miners before this chart gives you the evidence that we're in a bullish period for the miners versus the metal and and it you know if you if you do jump in before then you're jumping


into an environment that is not optimal for the miners so you're going to be swimming against the tide you might you might do well and you might pick a miner that is outperforming but just because it's outperforming now doesn't mean it's going to continue to to outperform you know for for the next few months you know so if you're if you're trading you could easily get stopped Out imagine now the S&P drops a th000 points in the space of a few days what's going to happen to the miners the problem with


the miners is that you it's that old saying you know he's throwing the baby out with a bath water you know all stocks and shares perhaps in times of a liquidity crisis just get lumped together and thrown out to to you know to to to move to cash in a in a in a sort of a a crisis type um stock market plunge and then it's so after that that you know the realization Dawns oh hang on a minute we're moving away from a stock market era and we're moving into a precious metals era and it all comes


flooding back in but here's another thought what if and this isn't so very farfetched I'll just stop showing my screen for a moment what if Charlotte um we are in an inflationary period or even worse a stagflationary period where um inflation doesn't go down it stays stubbornly high or even begins to rise again oil starts to break out I know it's not at the moment but imagine oil starts to break out and energy and some energy charts are start starting to look quite bullish again so


oil energy Rising stagflation what does that sound like it sounds like the 1970s and what happened in the 1970s where the miners were concerned they didn't outperform gold at all they didn't outperform metal at all during the 1970s biggest bull run ever for precious metals precious metals help perform the miners and there's very good reasons for that I mean there's a time of industrial unrest you know there's High labor costs there was very high energy cost the minor hate all that stuff and you don't


have exposure to that when you're um invested in the metal so there is a scenario where the miners really don't as a whole out form gold at all during a 10-year Bull Run how dare you Kevin how dare you we're going to lose subscribers don't say that it's worth mentioning though P I mean I'm but but you know we we can use these ratio charts to identify exactly when the miners break out versus gold and I personally don't really want to put very much of my own hard-earned Capital into the miners


until I see the indices the aggregate of Market participants telling me that the mine is the place to be and that hasn't happened yet yeah yeah I think you might break some hearts there we will see but but you do kind of give alternatives on what you can do so I don't think it's really the end of the world okay this this has all been really good to go through and I did promise I would keep you overly long so I'll I'll put it back to both of you and just see if there's any final thoughts that you would leave


people with I think my parting thought would just be to monitor those Capital rotation charts and be aware of the fact that we are tiptoeing ever closer to what I think is a major stock market event the 10year yield one is the two-year yield the yield curve inversion chart has uh moved back above zero again and I haven't had time to show you the chart and I won't show it this time around because it'll just take too much time but when that yield curve un inverts every time you get some kind of


named event something happens and a big recession hits so it can happen several months after that yield curve on inverts the point is that that is another piece of evidence that something significant is headed our way and that's highly likely to you know have that major impact on the stock market so stock markets are moving closer and closer towards the Day of Reckoning um that would be my passing thought yes Reckoning it's like we're doomers Kevin we're doomers we're not doomers it's


like if I it's like the weather's cold outside I'll tell you it's cold am I am I wishing you cold temperature no but you know be prepared put a code on you know choose choose the appropriate gear that's all we're doing guys if there's bull runs we've identified a whole bunch of bull runs so guys just please just follow the charts don't be a hero don't Hope For Stuff there's no reason I went through that even before I I like I didn't even look at charts I was doing


the penny stock forms based on whatever this guy is saying that's going to go the moon and I look at these charts today and I said oh my goodness that was a $1 million market cap uh micro Junior Explorer like they frauds these things oh I don't want to be liable but possibly frauds the these charts you know like these companies like what are you doing guys go for highly liquid companies that are trending upwards outperforming gold you're safe at least you put the probabilities of you having


a successful trade in your favor right highly liquid highly C capitalized companies in an uptrend outperforming gold winwin win guys I'm getting you on a silver platter and you do that you should have better odds guys okay okay I think this is a good place to wrap up thank you so much for for going through all this it was really extensive and very educational for me for sure would love to have you back sometime in the future maybe to talk even more about the whole mindset thing because that seems


also really important for what you're doing but let you go for now thank you thank you again so much thank you sh thank you sh we appreciate you thanks of course and and once again I'm Charlotte McLoud with investing.com and this is Kevin and Patrick with Northstar mad charts.com thank you for watching if you like this video make sure you hit the like button and subscribe to our Channel we'd also love to hear your thoughts so leave us a comment below [Music]