Current Thoughts for 2/23/2016

From the Trading Desk

Following the two week run up in gold to kick off the month of February, the yellow metal has spent the last week consolidating in this new higher range.  US data was positive this morning with January home sales rising .40% month on month versus the expectation of -2.50%, this was up 11% in comparison to January of last year.  Existing home sales also came in at a six month high of 5.47 million units.  Gold shrugged off the positive USD data though, held psychological support at $1,200, and finished up on the day nearly $20.  The Dow losing nearly 200 points in combination with strong ETF inflows appeared to attract bids to gold.  The SPDR gold ETF, the largest of the gold ETFs, added approximately 610,000 ounces on Monday which brings its holdings to a one year high.

Near term resistance in gold is coming in at the recent high of $1,263 while support is proving to be strong around the $1,200 area.  Silver traded down to just below its 200 day moving average at $15.01 before traders scooped it back up.  It is consolidating between $15 and $15.50 and will follow gold’s short term direction.

It’s hard to step in front of a bull market and we’ve had one in gold for a bit. But I am still sticking with my eventual reversal. In the meantime we have been profiting on holding JNUG/NUGT/GDX/GDXJ/GLD as they have been green on the nightly report for quite some time now. We also went long these ETFs yesterday that you see below. The entry price and current percentage gain is included. If you are not a part of the ETF Leveraged Trading Service at Seeking Alpha that I offer, you are simply missing out.

ETF Trades

These again were given out as trades yesterday and are presently being held with the appropriate guidance for taking profit provided.

For those who are not signed up for the ETF Service, there is a 2 week free trial and you can sign up here; http://seekingalpha.com/author/doug-eberhardt/research

These are the reviews of the service so far:  http://seekingalpha.com/author/doug-eberhardt/research/reviews

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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


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.