Gold moved past the resistance in the morning only to come back down by the afternoon. Silver finally moved higher as it was lagging gold and triggered a green weekly arrow which is bullish. While the mining ETFs all still have green weekly arrows, they did take a hit today. JNUG lost 10%, GDXJ 3.8% and GDXJ 4.37%. After hitting a lower low at 7.50 today, JDST rebounded closing up 10.42%. Next resistance will be at 10 for JDST. If gold and silver do continue higher like the weekly arrows up suggest, then look to buy the higher high for the miners. If not, then look to buy the higher high of JDST which is 9.36. Volume was percentage wise higher on JDST showing good interest and possible accumulation for the next leg down in gold if it comes.
From the Trading Desk – from midday price action
Crude oil is approaching six year lows, the USD is stronger, and the Dow Jones is up 200 points… under normal circumstances, this would mean the precious complex would be trading lower. All four are trading higher today though. Gold is breaking out to the upside and hit twelve week highs today. Since breaking through a long term down trendline dating back to October of 2012 two days ago, gold hasn’t looked back. It is up for the third day in a row and its near term target is the 200 day moving average at $1,254.25. Silver exploded through $17 today but has found heaving selling emerge at $17.20, the fifth point on a down trendline dating back to August of 2011. This move higher for the precious metals seems to be largely technical as shorts have scrambled to cover positions. It would be surprising to see a sustained move higher in the near term unless US equities roll over.
Keep an eye out for US Retail Sales m/m tomorrow, US Unemployment Claims on Thursday, and US CPI m/m on Friday.
In yesterday’s Current Thoughts and also Sunday’s, I said that TNA should get to the 80 mark and as you can see by the high of the day today, it hit just that mark before falling to close at 75.98.
We are kind of in nomans land with stocks but I still lean long and buying the dips as long as there isn’t any data that comes through and rains on the parade. If so, look to go long the higher high of TZA.
UGAZ and UWTI both gave us higher highs today but are still clearly in danger territory. If they are signalling a short term bottom is in place, go long just over the highs of the day which is just a few cents from where they are, with stops.
RUSL is still one I keep an eye on and haven’t mentioned in a few days. It hit a recent lower low of 15.23 earlier in the day and bounced to close just below yesterday’s close. I still see it too weak to go long.
The U.S. Dollar still trading over 92. If it does start to falter, gold and silver can continue higher. This doesn’t mean they have to, but this could be a catalyst for higher prices which seems to fit the weekly green arrows higher below.
Gold and Silver Stock Mining Package
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.
If you are interested in this Gold and Silver Stock Mining Package let us know by clicking this link below and completing the form.
Gold and Silver Stock Mining Package
1-13-15 GLD CHART
1-13-15 SLV CHART
1-13-15 GDX CHART
1-13-15 JNUG CHART
1-13-15 NUGT CHART
1-13-15 GDXJ CHART
1-13-15 JDST CHART
1-13-15 TNA CHART
1-13-15 TZA CHART
1-13-15 UGAZCHART
1-13-15 DGAZ CHART
1-13-15 UWTI CHART
1-13-15 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.