Prudent Investors Pay Attention: Gold Making A New High At A Time Nvidia And Bitcoin Are Making New Highs

To gain an edge, this is what you need to know today.The Message For Prudent Investors Please /a> for an enlarged version of the chart of SPDR Gold Trust (ARCA:GLD).

Note the following:

• The chart shows that gold has broken out to an all time high.
• The chart shows higher volume. This indicates conviction in the breakout.
• RSI shown on the chart is at an all time high. This indicates there is high momentum behind the breakout. Breakouts that happen with RSI at all time high tend to lead to big moves in the longer term. However, when RSI is this overbought, it often leads to a short term pullback.
• In The Arora Report analysis, there is an important message here for prudent investors:

• • Stock market sees clear skies as far as the eye can see.
  • Bitcoin (CRYPTO: BTC) is near all time high indicating that the speculative juices are running at all time high.
  • YOLO (you only live once) is taking over in penny stocks, junk stocks, highly speculative tech stocks, as well as highly speculative biotech stocks indicating the breath of extremely positive sentiment.
  • Gold is bought when investors want to hedge their portfolios, when investors see trouble ahead, and when investors want to be defensive.
  • Who is buying gold at a time when the sentiment is at extreme high? The answer is prudent investors who have studied the history of the markets and know that when sentiment gets this high, it is time to buy protection.
  • Historically when sentiment gets this high, something comes out of the blue that nobody has foreseen to drive the stock market lower.