Gold and Silver Current Thoughts 1-12-2015

In yesterday’s Current Thoughts I made the following observation on mining stocks;

Right now we are moving higher and that is the trend. Buy the dips or go long until the daily arrow turns red. This has been the trade since Dec. 31, 2014 when when JNUG first turned green on the weekly.

Today we saw JNUG up 15.87% to $41.25 after opening at $36.98 and reaching a high of $42.47. One could have bought the open and had a nice trade. The same could have been said for the more conservative plays GDXJ and GDX. They’ve had a nice run.

JDST on the other hand hit a 52 week low of $7.80 and closed at $8.16. Keep an eye on JDST still for a higher high throughout the day as when it hits, it may be a great trade and possibly develop into a swing trade. In the meantime, the trend is still higher for gold and silver, but the $1,230 – $1,235 mark for gold is offering up some resistance.

Silver is still a laggard, acting more like deflation is affecting it as with oil and natural gas which were both again lower today.

We’ll see what tomorrow brings for the metals and keep dollar cost averaging into the physical in the meantime.

UGAZ hit another 52 week low closing at $3.44 while DGAZ I said would be a trade if over 8.11. It opened at 8.12 and could have been bought and closed at 8.73, a 7.5% increase over the open and 15.94% over yesterday’s close.

Oil had another down day to close at 45.49 and perhaps 45 is the level it might bounce off of. UWTI hit another 52 week low and is now trading under $3 at $2.95.  6 months ago it was trading close to $37.

TZA (+1.12%) and TNA (down 1.08%) didn’t do much today with the Dow down 96 and S&P down 16. The Nikkei is presently down 369 points or 2.07% and this may lead to a lower open by the time Europe and U.S. markets open. I am still in the buy the dip camp thinking we will see TNA approach 80 again. I just see better plays in other ETFs with more probability however. Either way, just play the higher high and see what develops.

Gold and Silver Stock Mining Package

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Gold and Silver Stock Mining Package