After the Housing data today, we had a turnaround in the market. Perhaps the euphoria over Fed speak is 24 hours later contemplated as an understanding there is weakness with the economy which the Fed sees in the data, but the market trades on what the Fed does with interest rate decisions instead of the data. Today the data caught up to the market but only to the tune of about 45 points thus far. Gold ironically took the negative data and moved a little south with the market and the only real tradeable mover today was JDST and DUST which are short gold mining stocks as they bounced off their lows nicely to turn green for the day.
I find it very interesting today that Gold was up nicely, but fell from it’s highs, stayed up a decent amount yet the mining stocks, even with the markets higher and dollar lower (but also bouncing a little off those lows), and market makers decided to shake some longs out with JDST up over 6% at one point in time today.
If we do get a market turnaround, and some gold negativity and a push higher in the dollar, JDST and DUST would fare well tomorrow. No call at present as we could get a market turnaround higher in JNUG and NUGT too. No trend except for silver higher, but it did find issues with that $20 level, closing 10 cents below it. We’ll see if this is resistance and leads gold lower and whether gold can still fall and break it’s back below the $1,300 level. If the markets overall start to give up on the Fed in the next week, we may see that occur.
But the key is still the dollar. Below 95 now and long gold and silver is the call. It’s at 95. 37 presently and bounced for some reason higher after the negative housing data today.
Related posts
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.