China lowered rates over the weekend fighting their own slump and many thought gold would take off higher because of this, but is flat in Asian trading that just began at the $1,214 range and silver up 2 cents to $16.61.
JNUG has slowly moved higher from the Feb. 23 low of 26. It hit resistance approaching its Feb. 18th closing high of 30.28 on Friday getting only to 30.20 and needs to break above that for longs to feel comfortable. A break below 8.57 and JDST could be headed to test its Feb. 5th low of 7.68.
Oil opened down and DWTI may be a good play for a higher high come Monday morning. If oil is still down, keep an eye on a gap up in DWTI, then a fall and a break to higher highs. That’s the way to play it. Keep stops on this one since it can reverse quickly. A safe play may be to wait for 117 to be taken out and then go long if it doesn’t gap up above that number Monday morning. If it does, see above. UWTI the last month has tried 3 times to get going and fell short hitting lower highs each time. We may get a bounce, but the overall trend in oil hasn’t changed and is still lower.
Despite the S&P downgrade for Russia to junk, RUSL seems to be following the U.S. lead higher. We did have a pullback Feb. 23rd and it can break 28, then it could have a nice run. It doesn’t help when there is an assassination of an opposition figure to Putin as there was over the weekend however. As much as I don’t like what is going on with Russia and Ukraine, don’t ignore RUSL if it goes over 28. Price dictates everything.
UGAZ and DGAZ are tough to trade right now so I wouldn’t pay as much attention to them except to play the higher high and wait for a better set up.
UVXY headed lower and SVXY higher which is following the trend. Simply waiting for a signal to go long UVXY, but one can still play the trend higher in SVXY. Just keep an eye out for volatility and maybe you can get a 10 point run from UVXY once it bottoms. SVXY has had a 14 point run the month of February.
TNA finally took a break losing 1.59% to close at 85.63. TZA gained 1.50% or 16 cents to close at 10.81. Will stocks rebound and take TNA higher or are we at the reversal. We’ll find out Monday and simply play the higher high. Am I leaning one way or the other? No. This is a play that isn’t as easy to decipher. TZA is very weak and if you go long it, keep stops.
Economic Data for the Week Ahead
Gold and Silver Stock Mining Package
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. I sent out an email to all who have subscribed on Friday with an update. If you haven’t signed up, read the following and express your interest.
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
3-1-15 GLD Chart
3-1-15 SLV Chart
3-1-15 GDX Chart
3-1-15 GDXJ Chart
3-1-15 NUGT Chart
3-1-15 JNUG Chart
3-1-15 DUST Chart
3-1-15 UGAZ Chart
3-1-15 DGAZ Chart
3-1-15 TNA Chart
3-1-15 TZA Chart
3-1-15 UWTI Chart
3-1-15 DWTI Chart
3-1-15 UVXY Chart
3-1-15 SVXY Chart
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About Doug EberhardtDoug 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.