13
Dec

Gold, One More Trip Lower Post Fed?

The following is from the Illusions of Wealth subscription service I run. It is tonight’s analysis and gives you some insight as to where gold is going presently. Presently we are offering a 1 month free trial to check it out.

Today’s Trades and Current Positions (highlighted in yellow):

Good day all around today. Special note that the two new red weekly opposites we played, JNUG and NUGT, got us an extra 2%+ overall, improving our winning percentage with these.

 

 

Economic Data For Tomorrow 

 

Core Retail Sales and Initial Jobless Claims tomorrow.

 

 

http://www.investing.com/economic-calendar/

Stock Market 
The markets behaved pretty good today. /ES did go red at one point, but no momentum. UVXY was all over the place but still hovering around the 11 base. Needs to get over 11.40 for a run. That’s why we are long. Anything can set it off. Otherwise we stop out. Risk vs. reward with it for the simple reason with this market strength, we haven’t seen it fall lower.
Foreign Markets
 No trades here at present.
Interest Rates
TMF moved up today and ended up 2.15%. TMV may very well take over again post Fed with the Fed’s 3 rate increases next year on the table. Of course, wrong medicine but they don’t know it. They can’t will inflation higher by continuing to raise rates as the CPI isn’t keeping up. Yellen still wants 2% but has failed to accomplish this. Hey Yellen, print trillions more. That will do it.
Energy
Oil we took our profit from and then stayed out, despite the bullish news, as we got signals to go the opposite before and after the data came out. Neutral right now.
Nat gas had another trip lower before it went higher today and then settled down up a half a percent. We can’t be confident we have bottomed as there is still the possibility of a move down to the 2.40/2.50 range before a big move up. When I say big, I mean over the current price we are at now and then over 6.90.
Precious Metals and Mining Stocks
The metals and miners trade paid off for us twice today and I wanted to sit on the profit rather than give any back as I think we still get one more downturn in gold to wash our bulls. It may not be what some of you want to hear, but I have called metals and miners pretty good. This is another reason you don’t put all your account in one ETF. Gold still has a date with 1220 and possibly down to 1204. That should be it. USD/JPY will be key still. It took the Fed meeting to have it break 113 and now if we go over 113 again, it may mean JDST is the trade.
Wednesday Afternoon Price
Tuesday Afternoon Price
Monday Night Price
Friday Night Price
Thursday Afternoon Price
 Hot Corner (the biggest movers – 3% or more – or new ETFs that are green on the weekly – those in bold are consecutive days in the Hot Corner):

Today’s Hot Corner:

JNUG, NUGT, BZQ, YINN, USLV, LABU, DWT

(TMF new green weekly)

Cold Corner (the biggest move lower 3% or more that are green on the weekly and or weekly/monthly or turned red on the weekly – those in bold are consecutive days in the Cold Corner):

JDST, DUST, BRZU, YANG, LABD, GUSH

(UWT, GUSH, DGLD, DSLV, DUST, JDST  new red weekly’s)

 

Green Weekly’s

These are the ETFs that have turned green on the weekly and the dates they turned green. This is used for tracking your percentage gains so you know when to take profit for each ETF per the Trading Rules profit taking guidelines. These green weekly’s work as you can see from the %Gain/Loss tables. You won’t get the exact high with your trade but you will also be out typically well before they start to fall again or turn red on the weekly. Your best way to profit with the service is stick with the green weekly trend and take profit while using a trailing stop on remaining shares. Also, if these green ETFs are up for the day at the open, they offer the best scalping opportunities. I am always fine tuning this section so if there is confusion at all, email me and be specific and I’ll be happy address.

I know I have said this many times but it is worth repeating; If you stick with the green weekly trades your odds of profit increase as there is more risk with the day trades. I call the day trades with the intent of catching some runners, so will get a few 1% stop outs but eventually catch the 5% to 10% or more runners.  The important part of the list below is that the longer the ETF stays on the list (the one’s at the top of the list by Entry Date) the more likely it is to turn red on the weekly and the opposite ETF comes into play as a long.

Sell half shares on a spike up on any ETF you are long, even if goal is higher. Spikes higher are almost always followed by moves in the opposite direction. Try and get out with a market order quickly before the quick move back lower. Lock in that profit! 

 

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

Disclosure:

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.