Yesterday in the words below refers to the 22nd and “today” the 23rd.
DSI data all showing some signs of some moves that can be made here soon. Ideally we want single digit for buys, but for those who cost aveage into a position based on DSI in the teens, they typically make out ok with the eventual reversal. The best way to play DSI in that case is don’t use leverage and add a little patience.
The first thing that jumps out at me is the dollar hit the 90’s again and topped out at 93 with a current reading of 87. With DXY hitting 1.09, it has put pressure on gold/silver.
Silver hitting 11 yesterday, almost single digits and 13 today and gold 15 and now 18. Personally I have traded in and out of miners the last month. I am staying away from shorting there so took JDST and DUST off my trading platform. I’m only looking at dips to buy and at some point, perhaps soon, we finally break out. Those who have bought physical metals, and the pace of buying has still been non-stop, will all be rewarded, especially buying the dips. As may have said, whether it is the physical metals or gold miners, don’t get caught up in the price entry, trying to buy at the perfect bottom, versus what you’ll say in a few years when your portfolio of miners is way up off these current lows. Also, from what I can see, and this is not trading advice, but if you want to go on leverage in your purchases of mining stocks, look at the top holdings of JNUG or GDXJ and just buy those and get more leverage with your 4x trading account than you would with buying JNUG which is 2X and reduces your margin availability. Not a recommendation to buy, but PAAS is the most oversold on my list, a downhill trend since their last earnings report. But when miners get going, all of that move down should be forgotten about.
Nat gas hit 89 yesterday and almost the 90’s and hit 82 today.
CRB Index has been rising.
Crude light has been rising.
Bitcoin hit 9 on 8/19 and 8/22 and is 13 today. It has struggled and I have avoided for awhile as it is easier for me to trade others.
Volatility at 25 up from 16 but the 24th we don’t have that reading yet and with the Friday Jackson Hole retreat and Fed Chair Powell speaking, we may see a pick up from the pullback in UVXY (24th) Initial jobless claims Thursday too.
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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.