I’m seeing that gold doesn’t want to break down to new lows for the year. This resistance has been tested all week and just can’t break it. I’ll note that gold miners perked up today and next week we may get a little run higher in gold and the miners.
I wrote this report on Friday and the only thing I am changing is this paragraph; With the situation France it should continue the downward trend in stocks. We’ll have to see what it does to gold and the miners come Monday.
I want to highlight the trades we made today over at the Seeking Alpha trading service I offer to all. It was a good week and a good day for us.
For our swing trades, DWTI, EDZ and RUSS did well for us. DWTI was also called for a day trade and got us 2 points.
The carry over from yesterday was UVXY and it gapped up and kept going higher and has triggered long on the weekly. DGAZ I wanted us to be flat going into today’s Natural Gas storage report and we jumped on UGAZ at 3.68 and it moved higher the rest of the day hitting 3.84
JNUG and NUGT we caught on the higher highs and they still might be held.
We caught GASL on a higher high. I traded it and sold too early but the new strategy paid off well as we called it at 16.50 and one could have got the normal .50 or rode it to where I said sell at 17.68, 2 cents from the high.
YANG also got us over a point.
Some of you who follow me know I had been calling DWTI to 200 back when it was in the 80’s and 90’s consistently. Today it hit 138.19.
Another comment I made regarding trading gold;
If you look at the chart for JDST, it’s a week of lower and lower lows for the peaks each day. Something has to give here because gold still hasn’t closed below that 1080 mark. Yet it is right there as we speak. These next two hours will set the course for next week. We will have plenty of time to jump on JNUG and NUGT to ride them up, but this resistance is quite powerful. Because it is powerful, once broken down it can be significant, but also the move up off it can be significant. Although you know I lean longer, we have to be ready to profit form the other side as it will be a very nice profit if it comes. Again, I don’t care from a micro level. I will trade it.
Retail sales disappointed today and the PMI came in lower at -.04% than expected confirming the deflation trend.
Markets are only 275 points from falling below 17,000. I am not ready for a break to lower lows yet please, but the Fed has to see this data and anymore data that comes in and make a decision come mid-December that won’t be easy. Everyone been calling for higher rates for so long, believing in the story called America, and willing the economy to growth but it just isn’t happening. This is the story of deflation. You never hear any pundits talking about it because we haven’t really experienced it in most of our lifetimes. There is a reason I am pushing to get my book “Illusions of Wealth” out and I am hoping to by the time or shortly thereafter with some last minute changes, the next Fed meeting comes.
If you haven’t already, please sign up for the notification of when the book will be available by going here: https://illusionsofwealth.com
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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.