In this article, we look at 4 charts which suggest investment opportunities ahead, at least for investors with an open mind. We would say that these opportunities are contrarian in nature, according to sentiment towards each of these markets.

First, US stocks are trendless, and that is nerve-wracking to most investors. Both bulls and bears have been proven wrong in 2015 and 2016. However, it seems a matter of time until a new trend arises. A breakdown or crash? Not that fast, as crude oil is stabilizing, after crude pushed stocks lower for 18 months, we believe stocks are preparing for a new run higher. Let the market do its work.

Second, the U.S. dollar is still in an uptrend as suggested by the rising 90 week moving average which is the only technical indicator in our methodology. Look how the recent breakdown appeared to be a false one. As ‘everyone’ was ultra-bearish on the dollar, and overly bullish on gold, the dollar did the opposite of what most expected, i.e. establish a false breakdown. We see the dollar going higher, although we do not back the idea from a fundamental point of view (we simply listen to the message of our charts, no matter whether we like that message or not).

Third, silver looks like an incredible short opportunity here. The next chart speaks on its own. Although the whole world got excited about gold, we said that gold was NOT yet in a bull market, and that $1290 should be cleared first. However, as gold reached triple secular resistance, we predicted it would probably be too much resistance to overcome, which seems to becoming true (again, no matter whether we like it or not). Silver also seems unable to push through resistance.

Last but not least, Indian stocks are stabilizing at current levels. As the next chart suggests, support was successfully tested after the breakout in March of this year. We believe India is one of thoese great opportunities, and we will see a significant rally in the coming months. The fact that ‘nobody’ is talking about Indian stocks is fueling our belief.

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