We’ve written about the gold miners in the past, most recently this past October. We remain bullish on gold and the other precious metals and believe they will begin rising in the near future.
But while precious metals have been languishing, there remains another metals opportunity that has been moving higher for almost 2 years and looks as if it could continue its uptrend well into 2018.
Mining Industry History
The metal and mining industry is traditionally a leading indicator of future strength of the economy. These stocks have moved higher as the US and world economies have recovered (and expanded) at a quick pace. Industrial metals are expected to be an important part of the US infrastructure rebuild that’s predicted to begin next year.
XME is the ETF for metals and the mining industry. This includes both the industrial and the precious metals. XME has the following weightings:
XME triggered a Stock State Indicator (SSI) Entry signal back in March 2016 at about $20. It has moved into the SSI Yellow Zone nine times in 21 months, yet each time has moved back higher into the SSI Green Zone. It’s currently trading near its 2-year high above $33 which is a gain of 65 % since triggering its SSI Entry signal.
Our proprietary time-cycle forecast is very positive for XME and shows that it could continue rising through the first 8-10 months of 2018.
The entire TradeStops team wishes you and your family a Merry Christmas and a blessed holiday season. And we hope that you find only gold in your stockings, with no traces of coal.
Make More. Risk Less.
Richard Smith, PhD
CEO & Founder, TradeSmith