Interesting thought as I type these Current Thoughts on Monday afternoon is the following; Why has there been no movement in precious metals since Asia opened for trading? Answer: because there was a 3 day holiday in the U.S. and the U.S. market is what makes the metals market tick. Unless of course there is some mysterious seller that brings the metals market down during thin trading in Asia, which has happened a couple times in the last year.
Yes, the U.S. price of gold moves based on U.S. data and while buying gold in Yen or Euro has been a good trade, it matters not to the majority of those who buy physical gold and silver.
We are still in an uptrend in gold and silver but gold seems to be struggling with the $1,280 mark while silver made a nice move through $17 and has seemed to find some resistance at $17.80. I would use a break of those levels to see whether the trade is long or not. If we do break those levels, then I would look for the mining stock ETFs to continue their march higher. Support for gold is at $1,230.10 and for silver $16.77.
One can’t ignore the weekly arrow turned up in silver and gold is now in a monthly green trend. Move stops up if you are long.
The U.S. dollar is trading in the mid-92’s and is something to keep an eye on this week as the Euro awaits news from the ECB as to how much QE will be implemented. I think it might be “sell the news” and a possible bump higher in the Euro and by default a slight decline in the dollar which could benefit gold and silver for the short term.
Not really an easy short term market to call so the best advice is to not guess which way it will go but trade the direction It goes. If you find yourself guessing, as a trader, and you guess wrong, simply keep a stop and change your trading plan.
It was a choppy day for the mining ETFs on Friday as they too look for direction. If JDST trades above $8.18 I would attempt a long. Otherwise look for a break of Friday’s high in GDX, GDXJ, NUGT or JNUG to go long. One can’t ignore that GDX is now green on the monthly. This would make one lean long still the miners, but keep an eye on JDST for the alternative in what may be a volatile week with the ECB announcements coming on the 22nd.
Other ETFs
In Thursday’s Current Thoughts I said; “ I lean towards DGAZ again at this point.” DGAZ gapped up, fell to $5.46 and closed at $6.10. Would have been difficult to trade, but higher it went from Thursday’s close. A break of $6.39 can be traded long. Otherwise a higher high after the open for UGAZ is the play.
Thursday I also said that “Oil seems to have resumed it’s fall, but is showing signs of a bottom. Look for higher highs on UWTI if that’s the case.” UWTI was up 13.47% for the day.
For TNA I said on Thursday, “I thought we might get a run up towards the 80 mark again and would still go long any higher high.” We got the higher high at $72.22 and it closed at $74.61. We will see if we get the move back to 80 again like I have been wanting. Will the ECB announcements wreak hav
RUSL was up 9.68% but still a tough one to go long. I would be conservative and possibly look for a buy in the $15.50 range again, or lower, preferably in the $10 range.
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.
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Gold and Silver Stock Mining Package
1-19-15 GLD Chart
1-19-15 SLV Chart
1-19-15 GDX Chart
1-19-15 GDXJ Chart
1-19-15 JNUG Chart
1-19-15 NUGT Chart
1-19-15 JDST Chart
1-19-15 DGAZ Chart
1-19-15 UGAZ Chart
1-19-15 TZA Chart
1-19-15 TNA Chart
1-19-15 USO Chart
1-19-15 UWTI Chart
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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.