Gold just gave a bearish breakout. Blake Young is calling for a 150 point drop in the next three to seven days.
That’s the cleanest signal yet that we hit the top of this business cycle.
Every other indicator already agrees. Bonds are falling, PPI is hot, and commodities are rolling over.
The only holdout is tech. XLK printed another record high today, pulling money out of every other sector to keep climbing.
Blake calls this exact setup the rotation right before defensive names take the lead. Consumer staples, utilities, and healthcare are next.
In tonight’s video, Blake walks through the dividend payers he is positioning into before the rotation accelerates:
- Gold broke down to its lowest close in a week with downside targets at 4,609 first, then 4,500. The metals and mining ETF already hit the first target of 120 with 115 still on the table.
- Suncor (SU) pays a 2.6% dividend yield. Blake outlined selling the 65 put for a 2.7% return on risk over 30 days with a 5.4% margin of safety.
- Colgate (CL) just printed its highest close since March 17. Blake is targeting 90.86 this month and 94.50 by early June, layered on top of the 2.39% dividend with covered calls.
- Enterprise Products Partners (EPD) cleared its prior high with an 8% to 10% directional target and a 5.6% annualized yield. Blake projects roughly 13% total return over six months.
Blake sees the money flowing into energy and dividend payers next.
