Metals
Gold just couldn’t get past the $1,200 mark and stay there Friday. Silver also struggling with the $16 mark but is presently 8 cents above it. I don’t expect too much action in gold and silver this week. Tough to trade this kind of market which makes me look elsewhere. The daily’s on the miners did turn green but a real trade long shouldn’t come until the weekly turns green. JDST daily went red and is a sign to exit and wait for a green signal again. If we do break for some reason this week, simply trade the higher high of the one going higher.
From a directional point of view I simply say as long as we stay below $1,200, look for the $1,141.70 mark to be taken out. If we do move above $1,200 and stay there for a bit, look for the $1,260.50 mark as next resistance.
Last year we had some selling into the end of the year in the metals but the buying started a couple days before the end of the year. Perhaps we’ll get the move after Christmas one way or the other which will be tradeable. If we do get selling it could accelerate with more end of year tax loss selling. If we do break $1,141.70, then perhaps we finally get to that break of $1,000 into the new year that I have been waiting for.
Stock Market
Friday we saw all three indexes stay green as TNA continued moving higher. The Shanghai and HSI both opened higher on Sunday. A week ago I said I was bullish until Christmas and after Obama’s speech on Friday, nothing has changed.
Natural Gas
Natural gas turned weaker with the warmer than expected forecast I have been talking about. The cooler weather it looks like won’t get here until the end of the year and into next, but that’s mostly for the Northeast. UGAZ looks attractive in the low 6’s. I would start cost averaging into a position soon, but you might want to be a little more patient. The 52 week low was 7.20 and Natural Gas is already opening down 11 cents at 3.33. DGAZ is well on its way to a higher high on Monday.
Oil
Oil had a nice day Friday with USO up 5.88% and UCO up 10.71%. Looks like it might give some of that back with oil opening up trading back down to $57.
RUSL
In Thursday’s report I mentioned that RUSL was a potential good play. The low of the day for RUSL was $3.04 and it closed at $3.51, up 25.36%. After hours it ended up 11 cents at $3.62. At a minimum you could have got about a 10% return from it. Not a bad year for some people!
Economic Data this Week
Tuesday we may seem some action somewhere.
Monday; Existing Home Sales
Tuesday; Durable Goods, GDP, Michigan Consumer Sentiment, Core PCE Price Index, New Home Sales, Personal Spending
Wednesday; Initial Jobless Claims
Thursday Christmas
12-21-14 GLD CHART
12-21-14 SLV CHART
12-21-14 GDX CHART
12-21-14 GDXJ CHART
12-21-14 JNUG CHART
12-21-14 JDST CHART
12-21-14 NUGT CHART
12-21-14 UGAZ CHART
12-21-14 DGAZ CHART
12-21-14 USO 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.