Gold & Gold Stocks still have appeal for those uncertain about Technology

Markets look to have bottomed on 3/13, coinciding with the surge of fear into mid-March. The resulting bounce happened on much higher than average breadth and volume, making a tell-tale technical low that many refused to believe given the lack of proper downside volume capitulation. Technically speaking, the rebound in momentum as a factor looks important, as this group was hit hard in recent months. Furthermore, the combination of cycle composites bottoming coinciding with fear having spiked to multi-year highs was an important development. As discussed, most “Magnificent 7” issues experienced short-term deterioration only and had failed to break weekly uptrends. Moreover, SPY, QQQ, and DJIA have now successfully exceeded their downtrends created in February, and the Elliott-wave structure looks positive for a meaningful move up into April. While it’s difficult to call for indices to carry straight higher back to new all-time highs without any meaningful backing and filling, I feel like any stalling out and pullback happens from much higher levels and likely begins sometime in May. Overall, it looks right to favor Growth stocks and overweight Technology, Financials, Industrials, and Consumer Discretionary.

I’ll forego my normal discussion of Equity indices given that the upward ascent looks to be ongoing and should arguably begin to accelerate in a more meaningful fashion into early April. While some investors have chosen to hold off on overweighting US Equities given the possible additional tariffs announced on April 2, I feel that Equity indices successfully bottomed on 3/14/25 and can rally ahead of this possible tariff announcement afterward. 

However, for those still unsure about US Stocks, I will turn the attention towards Gold stocks which have been showing stellar performance in recent weeks. Moreover, this surge has actually allowed Gold stocks to outperform Gold this year, which doesn’t always happen in tandem.  

checkout-thomas-lee image
checkout-logo image

Become a Member To Access Fundstrat Research

Fundstrat Direct gives individual investors access to Tom Lee's research, previously only available to banks and hedge funds.

Monthly

$199/mo

First Month Free

Join Now

Annual

-15% $2,028/yr

List Price $2,388

Savings: $360/yr

Join Now

Why Join Fundstrat Direct?

Fundstrat Direct helps you invest confidently with the same research banks and hedge funds use to navigate the market.

Daily Strategy Icon

Daily Strategy from Tom Lee & Team

Stay ahead of consensus with daily updates on key developments & catalysts and opportunities ahead.

Real-Time Market Alerts Icon

Real-Time Market Alerts

Analysis on market-moving events and actionable opportunities delivered instantly from us to you.

Curated Stock Lists Icon

Curated Stock Lists

Choose the portfolio that best suits your investment style, preferred asset class, and time horizon.

Monthly Market Update & Top Ideas Webinar Icon

Monthly Market Update & Top Ideas Webinar

Attend engaging webinars with Tom & team featuring our top ideas and near-term market outlook.

Daily Technical Strategy Icon

Daily Technical Strategy

Receive tactical opportunities, actionable signals, and fundamental analysis from our proven research team.

Live Analysis on Your Holdings Icon

Live Analysis on Your Holdings

A monthly webinar featuring live analysis on member-submitted stocks and questions.

Disclosures (show)

Events

Trending tickers in our research