Gold and Silver Current Thoughts 2-19-2015

From the Trading Desk

The precious metals were looking weak for the majority of the trading session yesterday and then the FOMC minutes prompted a reversal of course.  The Federal Open Market Committee January minutes implied that a majority of members are still of the mindset to keep rates unchanged for longer than expected.  The committee considered such factors as USD strength as well as slow wage growth.  Instead of tightening around mid-2015, economists are now forecasting that it will occur for the first time around September.  Gold traded higher off the news and finished yesterday’s afternoon session on the highs of the day.

In the overnight session, the chairman of the committee of 19 eurozone finance ministers announced that an emergency meeting will convene to consider an extension for Greece’s bailout.  This was the clearest sign yet that the two sides may be nearing a deal.  This news acted as a counterbalance to the FOMC minutes and gold proceeded to sell off from its overnight highs before finding support in the NY session ahead of psychological support at $1,200.

The Reserve Bank of India announced that the import of gold coins and medallions is no longer prohibited.  This comes with caveats though.  Only certain nominated banks are permitted to trade coins and all coin sales must be against upfront payments.  Overall, this is friendly for the precious metals and it is a move in the right direction for India’s coin market.

Gold hit a high of $1,222 overnight before falling most of the day from that level to its current price of $1,208.30. JDST could have been bought with a higher high in the 8.90 range for a trade up to 9.25 for a scalp. JDST closed at 9.00. The miners are all in a trading range and when acting this way, I only recommend scalping moves with 1000 lot shares and going for the small $250 gains if you can get it. Silver hit $16.76 overnight and fell most of the day down to $16.40 its current price. I do think gold and silver will break down further barring any economic data that can influence it higher in the short term. Any influence will be temporary.

TNA broke to a higher high today and could have been bought at 84.30 for a ride up to 85.25. It closed at 84.70 and is acting still bullish with all arrows still pointing up.

UGAZ is still green on the daily, but not weekly. It turned green on Feb. 10th at a price of 2.65 and is presently trading at 3.13. With all the cold weather everywhere, you would think the price would move higher, but today’s storage report was again not a good one for natural gas. Even so, UGAZ closed where it opened. Look for a move higher tomorrow and stay bullish if it moves over 3.27. If it does this, move stops up to $3.00.

RUSL opened at 25.03 and hith a higher high quickly and never really looked back most of the morning, hitting a high at 27.75 by noon EST. One could have sold anywhere in there and made a nice profit. RUSS gapped up but never hit a higher high and was never a trade.

DWTI gapped up a bg 13 points to 113.32, hitting a high of 13.92 and then trended lower all the way down to 99 before settling at 103. That would have made UWTI the trade at 3.09 which could have been ridden all the way up to 3.50. I had said that this would be best played with 1000 share lots and you would have done nicely with it. We don’t know what tomorrow will bring, but since these had such a wide range today, look to see if UWTI, which was bullish most of the day, even though down for the day, will continue higher. Otherwise play the higher high with DWTI.

The mining package that we will be offering has been waiting for a release at a time that I feel would coincide with my overall view of gold and silver prices reaching the lower targets I think they can fall too. Many so called experts last year in July thought the miners would take off and next thing you know they broke to lower lows. Some called this latest run up the final fall for the miners. It obviously hasn’t been and I know that’s frustrating for many who are long or have been long for some time. There is a reason why I have been patient with the release of the mining package. There is also a reason why I chose the stocks I did and I’m excited about their potential. The mining package release date will be announced soon. There will be an email that goes out to all that have signed up. If you haven’t signed up yet, please click on the link at the bottom. Thank you.

Gold and Silver Stock Mining Package

We will be coming out with a mining package where we pick what we believe to be the best mining stocks to buy based on my research the last 8 months. We have been patient in releasing this because of the timing in purchasing these mining stocks can be tricky. We were one of the only one’s who recommended selling mining stocks in September of 2010 when the HUI was trading at 512.56. Much has transpired in the mining industry since that call with many companies disappearing or being taken over. Today many companies are struggling and if we do get a further pullback in the price of gold and silver, more companies will go bankrupt. Knowing which companies have the best opportunity moving forward will be key to you getting returns that we believe will be in the 100% to 500% range, and possibly much higher for some of the miners. This package will be released in the next few weeks and we will announce it on the site.

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Gold and Silver Stock Mining Package