Current Thoughts 5/3/2017

The Fed announcement on interest rates came in as expected and the metals market and especially gold miners shot up quickly, but then the rug was pulled.
With our Trading Service we were in JNUG pre-Fed at 16.50, rode it up with instructions to sell 1/2 shares at 5% gain. It went up 6.97%, Sold last half shares flat, so overall a 3.45% gain. Gold and silver both popped after the Fed. See purple circle in chart below.
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​I also said “Lots of data coming out pre-market too, so know your risk.” The data was all good an negative gold.
Here were our exact trades for the day. We are still long DGAZ and YANG.
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We might have one more leg lower in metals and the markets overall are poised to be topping here. You can see we sold some of our shorts before the Fed rates announcement since we were up.
Silver down here is looking more attractive than gold and when we do reverse back higher should out perform gold.
The dollar needs to cooperate to get gold to go higher. The dollar ultimately needs to fall below 98.77. After it does, then we can get going on gold, but more than likely it will have already started higher. Silver too.
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About Doug Eberhardt

Doug 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


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