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The Most Powerful Gold-Stock Trading System Ever... Says BUY!

By Dr. Steve Sjuggerud
Wednesday, April 6, 2016

What I will show you today is nothing short of phenomenal...
 
It is a simple system for making money in gold stocks – that has delivered truly outstanding results.
 
Even better, it just entered "buy" mode last week...
 
The results from testing this system were so good, I didn't believe they were real at first... I checked the numbers by hand. My numbers checked out... but I still didn't believe them. So I had my top analyst Brett Eversole run the numbers as well. They all checked out.
 
Here's the deal:
 
•   The return on gold stocks has been flat over the last 20 years – the annualized return on gold stocks has been less than 1%. Meanwhile...
    
•   When this simple system was in "buy" mode, you would have made a compound annual gain of 19.2% a year in gold stocks.
   
•   When this system was in "sell" mode, gold stocks fell at a rate of -13.7% a year.

The results of this system are astounding. What's great is, this system has been in "buy" mode about 48% of the time, and in "sell" mode about 52% of the time, over the last 20 years. So it's a real, tradeable system.
 
To help you visualize its performance, take a look at a chart of this system (courtesy of our True Wealth Systems service):
 

You can see that the simple system stays on board for all the gold-stock bull markets, and steps aside for all the gold-stock bear markets. Great.
 
So... what's the catch? What's the downside to this system?
 
There's no catch. And the only real downside that I can see is that this system gets into the trade very late... It misses the first part of the move – which is often BIG in gold stocks.
 
But based on the history of this system, that's just fine! In fact, its most recent move into "buy" mode – just last week – came AFTER a big move in gold stocks.
 
So... what is this simple system? You won't believe how simple it is. Here it is:
 
If gold stocks are up over the last 12 months, buy them for the next month.
 
That is it.
 
You would think it would have to be more complicated than that, right? But it's not...
 
I can spell it out a little more for you, but it's exactly what I just said:
 
Digging in a little deeper... Here are the "rules" for the system:
 
1.   If gold stocks – as measured by the Amex Gold BUGS Index ("HUI") – are up over the last 12 months, then you're in buy mode. Buy the Gold BUGS Index for the next month.
    
2.   At the end of the month, if gold stocks are once again up over the last 12 months, then you are still in buy mode. So you hold for the next month. This continues, until...
    
3.   If gold stocks are down for the last 12 months at the end of a month, that's a sell signal. You sell your gold stocks. (Or sell them short, if you're so inclined.)

It's simple. One decision. Once a month.
 
By following this simple idea you can crush the typical "zero" return on gold stocks.
 
Again, when this idea is in buy mode, gold stocks return 19.2% annualized gains. And today we're back in buy mode for the first time since 2014.
 
Now is the time to own gold stocks.
 
Good investing,
 
Steve




Further Reading:

Yesterday, Steve shared the shocking benefit gold has that nobody is talking about. "Most people aren't even aware of it," he writes. "But after I share it with you, you will wonder why every remotely intelligent investor DOESN'T own gold (at the right time) – simply to capture this massive benefit." Get the details here.
 
Earlier this year, Ben Morris told Growth Stock Wire readers about a way to maximize profits during a bull market in gold stocks. "If you want to hold on to gold stocks for 100%-plus moves," he writes, "you'll likely need to use wide trailing stops." Learn more here.

Market Notes


THE HIDDEN 'HOUSING BOOM' STOCK

Today, we highlight another big (but less-known) winner in the housing boom...
 
Yesterday, we noted that home-improvement chain Home Depot (HD) had hit a new all-time high... and explained why it has been one of the top-performing stocks in the market over the past five years. It has been a huge beneficiary of one of Steve's favorite investment ideas: the tremendous value in housing.
 
But it's not just HD shares that are soaring higher... Many other housing-related stocks have been on the rise, too. Just check out small-cap concrete firm U.S. Concrete (USCR). Just about every building uses concrete as part of its foundation. It's also used in driveways, patios, walls, and home interiors. As more and more homes are built, business for USCR will stay booming.
 
And as you can see below, shares have risen an astounding 1,258% over the past four years. And shares are still working their way higher today (up 15% in the past month alone). It's yet another sign that Steve's housing thesis is still intact...
 

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