Gold took all day to figure out what it wanted to do today while silver was down the entire day. Watch $1,244 to be taken out for the bullish trend to continue and $1,200 for the bearish case. $17.23 bull and $16.61 bear for silver.
If you notice, silver acted more like the deflationary metal today where we saw copper, another industrial metal close sharply lower. My next article will expand on the deflationary side of things and be out later this week.
The mining ETFs all ended up the day with a red arrow down signalling the time to bail. JDST continued yesterday’s move up and look to buy it if it goes over $10 tomorrow, with stops.
There is a chance that the price of gold could continue higher and if it does, the miners would probably rise at a very nice clip, so look for the higher highs as a possible trade. The dollar is still above 92, so no weakness there. If it does fall below 92, then that could benefit the return of the gold bull, so keep an eye on it as well.
UGAZ was the star of the day up 32.82%. UWTI was also up 10.71%. Yesterday I had this to say about both; “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.” Both of them would have been great trades as UWTI opened up at $2.99 and broke to new highs and UGAZ gapped up and could have been bought at a higher high once it breached $4.65, closing at $5.18 for a possible 11% return.
DGAZ meanwhile now has a weekly red triangle and the buy the dip in DGAZ has to be brought into question. Look for Thursday’s Natural Gas report for some fireworks.
RUSL bounced off the mid $15 range again which is presenting a resistance level for possible trades.
The stock market was hit by some negative data with a weaker than expected retail sales report and a drop in import prices, their largest drop since 2009. Slowing global growth was to blame along with lower commodity prices.
Buying the dip in TNA was what I recommended yesterday and one could have made that trade and done ok. Look to see if the market will again march up and TNA back to the 80 level. TZA gapped up and didn’t offer much of anything that was tradeable.
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.
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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