I'll start this post with a quick review of my last Best Opportunity Sector which was Energy OIL December 2015. This proved to be the absolute bottom in oil at $26. Granted at this same time there were only 4% of Energy stocks that were bullish and analyst reports and firms were saying Oil was going to $19. It's always a difficult buy when no one wants it but the risk to reward is off the charts.
Below you will see that the Energy stocks went from 4% bullish to 94% bullish. Very difficult not to make money. So for an entire year we held long Oil and Energy related names such as XOM, OIH, MRO, XLE and MPC just to name a few.
Gold for 2017
There are a number of ways to play Gold. As it goes through the process of ringing out the weak hands, you may want to look at names that pay dividends. You can also play Emerging Markets that do well such as Australia, Brazil, Argentina, South Africa.
The charts below show that the Metals ETF bullish against the Energy ETF suggesting Energy should see a pullback and metals should see an uptick. The metals and mining are within the Institutional Buy Zone.
For more information on how to track Institutional Money Flow feel free to contact me.