Gold and silver have continued their climb higher and with it the miners are continuing their bounce as well. In my 2015 Predictions for Gold and Silver I wrote on Friday I spoke about the indicators I see that tell me the final lows of gold and silver are not in. If I play devil’s advocate with my views, which I have to do to keep myself honest, I try and see what else may be causing the prices to continue higher versus reverse course and continue lower. Many who are bullish gold and silver use news or other old reasoning that is rehashed such as inflation or dollar weakness. It just so happens that outside of some momentary blips, there hasn’t been any inflation or dollar weakness.
Since we all know nothing goes straight down, these bump ups in price will always come. Market makers need to do this to make money from both sides. Gold and silver are such small markets that it is easy to move them in the direction they want. It won’t always be this way mind you, but it does occur. There was even a hearing not too long ago on what these banks and other institutions do in moving markets. They admitted to Congress these things occur.
No matter what I may think of what’s going on from a higher or lower perspective, we must look at price action and if you trade, follow the trend whether it is short lived or not. 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. The only laggard has been SLV which is still red for the weekly.
Gold is up $10 to $1,226.30 and silver up 16 cents to $16.58 to start trading in Asia. U.S. dollar is down below 92 taking a breather, sitting at 91.83.
Keep stops and look for JDST and other inverse ETFs when the trend changes.
For those who are looking to buy physical metal I still think you have plenty of time to purchase based on my indicators which I updated in the 2015 predictions article.
TNA finally petered out and TZA is possibly a trade over 12.63. While TNA didn’t break over the 80 mark, it came within $1 and is still a mark I thin will be taken out with TNA currently at 76.66 at present. In other words, I am still leaning long even with some of the terrorist activities that have some worried. Pre-market has the opening down just a bit at present.
UGAZ is trying to turn the corner at the $4 mark. Go long if it goes over 4.11 with stops. DGAZ if over 8.11. DGAZ has had an amazing run. Natural gas is down a couple cents at present.
UWTI continued lower as did oil. Go long if it goes over 3.60 with stops. Oil is down 77 cents at present.
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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.