Yesterday I was looking for the sign of gold to catch up to the miners and today we got just that. The gold price gave us a green arrow up on GLD for the weekly to go along with the green arrows up on all of the mining ETFs. Anyone who bought the higher highs easily made a good profit today. JDST meanwhile is very close to its 52 week low. One can’t ignore price action and the miners gave us a hint of what was to come well before gold itself did. Silver ended up for the day too, but the weekly green arrow up did not trigger for SLV. Higher highs are still tradeable, but look for some volatility tomorrow with the release of the Fed minutes and take profits if the trade goes against you.
From the Trading Desk
Anxiety over the future of the Eurozone caused equities and the euro to tumble yesterday in the first real trading day of 2015. Greek opposition to austerity measures that may lead to the eventual departure of the country from the Eurozone spurred heavy institutional selling of the euro. The beleaguered currency was further hit by figures showing slowed Q4 growth for euro-area services and manufacturing. The combination of investor concern over Europe and US equities falling over 1% has allowed gold to move $30 higher over the past two trading days to a three week high. Gold has broken through its 100 day moving average at $1,215.25 and it is now trying to break cleanly through a seven point trendline (dating back to October of 2012) with current resistance at $1,220. Silver is performing even better than gold and is up over 5.25% so far in 2015. With gold looking like it may have hit its near term target though, it seems that silver will be hard pressed to immediately extend gains. Resistance will be firmly entrenched at $17 while bids should now materialize at the psychological level of $16.
UGAZ, UTWI, RUSL all did their thing and continued lower for most of the day with only UGAZ eeking out a few cent gain by the end of the day. All are still dangerous trades to go long but simply look for the higher high to give you a good risk vs. reward trade.
TZA continued higher with the pullback in the market today, but gave some back by the end of the day. TNA at 72.37 is again looking like it might be a better risk vs. reward trade.
My 2015 predictions for gold and silver will be out by Friday on the main blog.
1-6-15 GLD Chart
1-6-15 SLV Chart
1-6-15 GDX Chart
1-6-15 GDXJ Chart
1-6-15 NUGT Chart
1-6-15 JNUG Chart
1-6-15 JDST Chart
1-6-15 DGAZ Chart
1-6-15 UGAZ Chart
1-6-15 USO Chart
1-6-15 UWTI Chart
1-6-15 TZA Chart
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.