Yesterday, gold rallied up again, to close over $2400.

Gold is breaking out and shares of Newmont Mining closed up 3.75%, as you can see from the above chart.

I own NEM and was banging the drum as hard as I could on buying mining stocks, gold, and silver when silver was still below $26.00 back in March.

I did Youtube video after Youtube video talking about that coming silver price surge and then once it got above $26.00 stopped doing any videos at all. I told the people to get ready and it happened.

The silver stackers won, and now the metals are running away from people.

As gold went up on Thurdsay, shares of NVDA fell 5.57%. Big cap tech stocks got sold, while money went out of them and into small cap stocks, as the Russell 2000 went up 3.59%. Banks, utilities, and REIT’s rallied too, all of which are sectors that historically go up when interest rates go down.

News partly drove this action, because before the market opened on Thursday the consumer price index (CPI) numbers came out, with a print showing that prices fell by 0.1% in June. That caused commentators I saw on TV to say that the Federal Reserve should lower interest rates this month!

The stage has been set now for a coming rate cut.

Jerome Powell talked about being worried that rates were too high when he spoke to Congress on Tuesday.

Last week, someone in the Biden campaign - one of his close advisors - told Axios that they thought an interest rate cut before the election would help him beat Trump.

And you have all the stock market bulls on TV who want lower rates to make stocks go up more. Cathie Wood needs one for her sinking ARKK fund.

You can see what is going to happen - Jerome Powell is going to declare victory over inflation in a few weeks at the next FOMC meeting at the end of this month to set the stage for a September rate cut.

None of this means that an interest rate cut would be good for the economy or that inflation has gotten any closer to getting to that 2% annualized CPI goal that the Federal Reserve itself has set.

But it means the easy money is going to keep flowing - and more importantly sectors are reacting to it.

I mentioned the RWR real estate ETF a few days ago.

It too went up again yesterday.

Part of what is happening is that the big tech stocks have gone up so much already this year, and have such crazy stock valuations, that money managers are doing some selling and moving that into stuff they think isn’t as highly valued or will benefit more from lower interest rates.

That is a decision where there is more to it than simply reacting to a daily news story. Don’t react to news, get ahead of the masses by getting in on trends AS THEY START, like many did with silver when it was below $26.00.

Who is not making any changes is Cathie Wood.

Her fund is down 12% this year, losing BILLIONS in investors’ money and this week she sent them a letter saying she is sticking to her strategy, claiming that lower interest rates will make her stocks go up.

"Exiting our strategies now would crystallize losses that lower interest rates and reversions to the mean should transform into meaningful profits during the next few years," Wood wrote. "We are resolute!"

Wood is the world’s leading crypto guru, who keeps predicting that Bitcoin will go to one million to get the attention of the internet algorithms.

No “AI” has been used to write this newsletter or edit.

And…..

Everyone on social media and TV in the financial world focuses on a few big cap tech stocks and Bitcoin, all of which are faltering. The crypto market is trading like crap, while gold and silver just keep going up, but there are more to the markets than all of these things.

On Friday, the NYSE composite index went up, while the big cap tech stocks faltered.

Sector rotation can keep the market averages healthy, as big cap tech stocks rest or weaken for the months to come.