Gold and silver really didn’t have much of a move higher, and trended a bit lower after a little pop in the morning. Silver however is all green on the arrows, which is indeed bullish. The same can be said of the mining stocks as they did what gold and silver did on Friday. These are difficult plays when you aren’t getting big moves to jump on. Just look for the higher highs from Friday to trade. Gold is up slightly in Asia to 1233.10 and silver is sitting at 17.30. If I had to lean, I would lean long based on what I see. A break of 8.70 on JDST, the after-hours closing high from Friday, and I’d jump on it.
RUSL continued to be a star up 6.55% Friday and up as much as 27.88% since February 11th when it hit an intraday higher high. Even if you bought February 12th you’d be up 24% at the high. I would be moving stops up each day. I’d also keep an eye on RUSS for a higher high as after hours on Friday we saw a little bounce in it. I’d move stops up to 26 in RUSL and go long RUSS on a break above 12.
TNA just keeps on making higher highs, closing at 83.54. 83.94, the intraday Dec. 29th high seems to be the resistance. I’d keep moving stops up each point it moves higher and while I still lean long, we may be due for a payback and right now would eye TZA on a break of 11.37 for a trade. I’d be quicker with my profits on TZA since we are still in a bull market.
UGAZ had a nice intraday break to a higher high at 2.74, closing at 2.96 while DGAZ opened at 7.90 and never broke out to a higher high, only moving up to 8.00 before spending the rest of the day heading south to close at 7.10. I lean long UGAZ at this point, despite the bullishness we have had in DGAZ. UGAZ seems like it is trying to find a bottom to make a move from.
UWTI opened at 3.79 and would have been difficult to trade long and profit from, hitting a high of 3.92 and closing at 3.71. If it breaks 3.92 I might attempt a quick trade, but not marry it. DWTI hit a low of 90.60 before bouncing to close at 95.90 and after hours hit 94.00. I wouldn’t go long DWTI till a break of 98.82. I will lean this direction from a more macro time frame, as I do think we’re still mired in deflation, but USO and UWTI did get us daily greens which could still have some momentum.
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
GLD 02-16-15 Chart
SLV 02-16-15 Chart
GDX 02-16-15 Chart
GDXJ 02-16-15 Chart
NUGT 02-16-15 Chart
JNUG 02-16-15 Chart
JDST 02-16-15 Chart
UGAZ 02-16-15 Chart
DGAZ 02-16-15 Chart
TNA 02-16-15 Chart
TZA 02-16-15 Chart
UWTI 02-16-15 Chart
DWTI 02-16-15 Chart
USO 02-16-15 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.