The Last Time This Happened, Stocks Exploded... I’m Buying Now

It's been an ugly couple of weeks in the stock market, but I think right now is the time to buy. And today I'm going to show you both why that is and the two stocks I'm going to be buying right now. So let's go ahead and dive in. And if you're not already a subscriber, what are you waiting for? Hit the button, subscribe to the channel, and I'll do my best to keep you. Now let's go ahead and take a look. This is the NASDAQ index, and if you haven't been following the markets this year, basically it started out pretty flat to ugly. We invaded Iran, and then suddenly in April, things just went parabolic. Led by the semiconductors, the NASDAQ and the other indexes absolutely surged in April and May. And then we hit the summer and just kind of went chomping around, going nowhere, selling off, recovering, but absolutely no progress. But there is an indicator, and I use the term indicator very lightly here, that helps to identify when it might be a good time to buy stocks. I'm going to show that to you right now. Now this, you can put this on your trading view charts, by the way, okay? The ticker symbol is NCFD, Nancy, Charles, Fred, David. And what it tracks is the percentage of NASDAQ composite stocks above their five-day moving average. Now, here's why that's important. The five-day moving average, it's going to flip all over the place, but it's kind of a read on whether stocks are sort of overbought or oversold in a short-term basis. If they're all below that five-day moving average, it means there's been a lot of selling, it probably got exaggerated, and you could see a little dip buy coming in. If it's very, very high, not guaranteed to be the top, but that means majority have been buying, everything's getting pushed over the short-term averages there, and you are more at risk of a pullback. And if we go back, I've got two lines drawn here, one in green at 80% and one in red when it's down to 20%, and not 100% here, okay? But typically, let me kind of zoom in on some of this so you can see it, because it's sort of hard to tell back here in hindsight. If you look at some of these little dip moves here, notice how this one right here at the very end of the year came right there to low, not saying the market went up 8,000% from there, but it was a nice little 3, 4, 5% rally over the next week or two. The next time, this was obviously the war with Iran, we got a couple of spikes there in a row, but nonetheless, this would have been a great buying opportunity right in here off those lows before that huge rally in April and May we looked at. We haven't hit that since the end of March, which, again, was the best time to buy stocks all year long, and guess what? We just hit it today. So, not a guarantee, not saying you're going to win 100% of the time, I'm saying if you're looking for time to buy pullbacks, and we know historically the market has a long bias, we know that typically buying when stocks dip is going to make you more money, this is one way to measure that and figure out when to buy. So if we're buying, what are we buying? Well, what I'm going to look at today is the metals market, because I am extremely bullish on gold and silver, even copper and the industrial metals over the next couple of years. I'm not going to get into the weeds on the inflation and the money printing and the fact that all the central banks across the world are buying up gold by the tonnage, that gold is now the number one asset held by central banks over treasuries for the first time since the 90s. We won't get into all that, let's just say I like gold, okay? Now, we call the gold breakout over in here in early August, that typical rounded bottom pattern we see usually when a stock's consolidating and running. I bought some gold futures here, I sold them right up in here, a little bit before the peak, but did fine, and now we have this pullback opportunity. So two ways to play gold, one is futures or GLD, which is the ETF, they're going to move lock, stock, and barrel, but the other way, the way to get a leveraged move on the price in these metals is with the mining stocks, and there are two I'm going to be buying right now. I'm going to pull those up and let's take a look at them, okay? So first stock, Kenross Gold, ticker KGC, now this is one of my favorite gold stocks, I actually bought this, my alpha stock service, back in 2024 here, like $6 and change, rode it all the way from $6 to $38, so absolute monster, and this company's just an absolute cash machine. The stock trades just 10 times forward earnings, they're also buying back shares, $520 million of buybacks so far this year, with management committed to returning 40% of free cash flow to investors. And so we've got a great gold stock in a market I'm fundamentally bullish on, and it had this nice big rally off the low, I showed you that gold move, you can see the exaggeration, right? So if you look at the move in gold from that breakout, it went up to the peak 13.5%. Compare that to Kenross on the same move, it went up 32%, double what the price of gold did. And the reason for this is these mining stocks get operational leverage, so when gold goes up, their profits go up by a multiple of that, because their profit is the distance between what they spend to get out of the ground and what they sell it for. And I'll show you an example with Hekla Mining here in a moment. Kenross's all-in sustaining cost on an ounce of gold is roughly $1,800, this is what they call their all-in sustaining cost, AISC, they take all their expenses, what it costs them, the byproducts they sell, divided by how many ounces of gold came out of the ground, that's our cost, that's what it costs us to mine an ounce of gold. So if they can then sell that ounce of gold for, you know, $4,200, right? Their profit on this transaction on the gold they sell is $2,400 an ounce, right? But if gold goes up, you know, say 10% to $4,600, well, their profit goes up to $2,800. So in a 10%, this is getting sloppy, up move in gold, their profit, what is this, 400 divided by 2,400, so what's 4 over 24, 2 over 12, 1 over 6, 16.5, 17%, something like that. So 10% move in gold, 17% move in their profits, that's why these move in a multiple of the price. So anyway, Kenross Gold, I like it here, nice big run-up, kind of pulled back with the rest of the market of the dip in gold, right here into this supply-demand zone, right in here we've seen a lot of buying, so right here on the 200-day moving average, I like Kenross Gold here, I'm going to go ahead and buy some, I'll pick up maybe 500 shares, right here at the market, and I'm going to set a stop loss right down here below this spike move, about $28 a share, okay, so we're at about 7% on this one. So I'll put a stop at 28, buying 500 shares, good till canceled, buying Kenross Gold at the market. Alright, long Kenross. Now before I show you the next stock, listen, if you're ready to take your trading to the next level, if anything I've said doesn't make sense, if you want to learn how to identify leading stocks, what the patterns look like that lead to these breakout moves higher, where to buy, where to sell, let me help you, $5 for the entire year, and you can get a membership to my Black Ops Trading Service. What that includes is a live trading session that's interactive with you, me, and the other members for an hour every single week for the entire year. Another session every Thursday with my analyst, I'm going to send you my weekly newsletter by email every Friday evening, plus a couple bonus reports, plus some indicators, we'll hand you tons of stuff, no strings, it is just $5, so to get signed up for that, click the link, scan this QR code, or just go to TradeWithRoss.com to get started. Now, let's talk about the other stock. Now, the other side of that coin when you're looking at gold is of course silver. Silver is even higher beta than gold, it's even more volatile, which means the up moves are bigger and the down moves are bigger, and for silver, I like Hekla Mining, ticker HL. Now, this is America's oldest, it's largest primary silver miner in America, operations go back to like 1890s, and now this one trades at a higher earnings multiple than KGC, but the reason is they have zero debt, none, no company in the history of the world has ever gone bankrupt without any debt, so a little safer long-term. Now, their all-in sustaining cost, get this, which we just covered, on silver, this is from their report, is $6.07 per ounce. That's their cost. Now, that's after getting the byproduct credit, so when they're mining for silver, they also pull out some zinc and some lead and some gold, they sell that, but net-net their cost is $6.00 an ounce, okay? Folks, silver is at $65.00, they are printing money, and so Hekla Mining, that's why they're trading at a higher multiple, the fact that there's no debt, the fact that their margins are so good, it's worth a higher multiple of that, but again, just like the other, with the gold stocks ripped, here it is breakout early August, pulled right up here to the top of this range, notice how, kind of like around $21.00 a share, you've got this level that was support and support that became resistance and resistance and resistance, so normal place for it to pull back, right here into the meat, right here to the 200-day moving average, bouncing again, so I'm going to put a stop at a low of this little sell-off, only going to risk about, again, 7%, we'll call it $18.80, going to pick up, let's see, 700 shares of this, going to put a stop-loss at $18.80, go ahead and fire away, tight spread, we'll take it, okay. Alright, so, charts got a little murky, but hopefully you took the lesson there and understood that 5-day moving average number, it's not the end-all, be-all, but if you're like, look, I want to buy, I think the market's going higher, I want to own good assets, but I want to give it a better price, well, that could be a nice little tool you can use to identify when might be a good place to buy the dip. Those are the two stocks I'm following today, folks, if you're not already a member, make sure to subscribe, and again, that $5 Black Ops special is still going on, weekly mentoring sessions, my weekly newsletter, indicators, bonus reports, access to my team, all for just $5 for an entire year, so click the link to get signed up, and I'll see you in the next video.