One of the first things you’ll notice about my process is how much emphasis I put on multiple timeframes.
I’m not a long-only investor who just stares at 20-year charts. Most of what we do here at TrendLabs is designed to capture price moves over the coming weeks and months.
That’s where the opportunity is.
But here’s the thing: You can’t trade the short term responsibly without understanding the bigger picture.
That long-term context – decades of price history – is what keeps you aligned with the primary trend and stops you from getting whipsawed by noise.
That’s why we lean so heavily on monthly charts. They give us clarity, strip away the day-to-day drama, and highlight the trends that actually matter.
Asset prices trend. This much we know. And the way I learned it early in my career was simple: “Whenever in doubt, zoom out.”
That’s exactly what the monthly charts let us do.
Gold and Silver Both Hit New Highs
Let’s zoom out on the precious metals.
Here are the monthly candlesticks for the SPDR Gold Shares ETF (GLD) and the iShares Silver Trust ETF (SLV).
Both just hit new milestones, with GLD closing the month at all-time highs and SLV breaking out to fresh 14-year highs:
The message here is simple: The trend is not down.
New highs confirm uptrends. And history is clear: During uptrends, investors who are long make money. Those who sit on the sidelines – or worse, short the trend – don’t make money.
So what does this mean for us? It means we keep pressing our advantage. We add to what’s working.
Our metals positions are paying us, and we want to water those flowers, not cut them.
The Biggest Base In Stocks
I probably look at more charts in a given week than almost anyone on the planet.
There are a handful of people who come close – and I know who they are, because they’re close friends of mine and we trade notes constantly.
I say that to make one point crystal clear: After staring at more charts than most people could imagine, I can confidently tell you this…
There isn’t a bigger base anywhere in global markets than the one in Newmont Corporation (NEM):
This thing is colossal. Decades of ups, downs, and essentially zero net progress since the 1980s have built what I consider the single longest consolidation pattern of any major asset.
And when you’re talking about a bellwether for precious metals such as Newmont, that base carries enormous implications.
Adding to Longs in Metals
I’ll be looking to put even more money to work in metals this month.
The two open positions we have in The Divergence portfolio are firing on all cylinders.
But here’s the truth: I don’t think we’re long enough.
This is one of those environments where the trend is clear, the breakouts are real, and the opportunities are compounding.
The only real question is: Do you have enough exposure, or are you going to watch this run from the sidelines?
For me, that’s not an option.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs