From the Trading Desk
The hangover from last week’s Federal Open Market Committee meeting continues to afflict the precious metals. Gold has traded lower for four consecutive sessions now and is set to make its lowest close in over a month today. Recent equity and USD strength has contributed to traders and investors exiting from long precious metals positions. Gold is now well under all major moving averages and next major support is coming in at the psychological figure of $1,100. According to US Mint data, gold coin sales in October totaled 44,500 ounces, down 50% year on year for the same period. Silver coin sales over the last month totaled 3.8 million ounces, a drop of 35% year on year. Keep in mind that the silver figures don’t reveal the full story as the US Mint has been on allocation since June of this year. This means that authorized purchasers have been restricted each week to a finite number of coins even though market demand has clearly outstripped supply. While silver coin demand has remained robust over the past few months, silver exchange traded holdings are at their lowest level since July of 2013.
Dollar up, gold and silver down. It is what I have been expecting and today we saw gold and silver take it on the chin with gold down to $1,113.10 and presently $1,115 and silver hanging in there down 16 cents to $15.24.
The dollar is up 34 cents to 97.25.
Another taste of my ETF Research Trading Analysis
We entered TQQQ and are up 1.63
We entered UDOW and are up 1.25
Got 30 cents to 80 cents from SVXY.
Got 50 cents (ore more if aggressive) from GASL.
UGAZ down 8 cents on but it hasn’t triggered on the weekly. Still may run but will keep a stop.
One losing trade on DWTI.
Doug Eberhardt, Contributor
GASL (low volume and more risky play – scalp only)
UGAZ – falling back from earlier highs
UVXY – falling back a little from earlier highs
RUSL – slow moverMarkets have recovered a little but still in negative territory for the open. Europe also all negative.
DWTI (on a reversal) over 91.75
DUST is a buy over 16.65
TQQQ not there yet.
DUST broke high of day too.
If you are swing trading JDST or DUST and are up nicely, you can keep a stop at low of day. Reversals come and I like taking profit.
If you are daytrading it, you need gold to continue south, so keep an eye on it for a bounce and locking in profit.
Been a nice move but pullbacks ALWAYS come.
UGAZ broke past 3.50 resistance and should continue higher. I let some profit go there.
UDOW is at 44 cents in the green now and so far a good trade.
NUGT a buy at 34.03deja vu of yesterdays whipsaw.
UDOW now up 65 cents.
NUGT a buy at 34.03all triggered. scalps only please.Gold bounced a bit but the trend is not with gold or the miners. Bounces always come in these and we scalp only.
TQQQ up 72 cents
TQQQ + 1.44
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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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.