We obviously opened up down on gold and silver which took away any bias I had. I said in yesterday’s thoughts that if we took out 9.00 on JDST it would be a trade long. It gapped up and opened at 9.24 but for those who could trade pre-market, could have got it at 9.01 to that price. It then fell to 9.02 after the open and traded a higher high a 9.18. Currently it is 9.38 with a high of 9.47. I like it at this point since gold is now down and looking to possibly break $1,200 on its way to last years lows that I have been saying for some time would be tested. We’re only $55 now away from those lows with gold trading at $1,205. After we break those lows, I see us breaking $1,000 which I have also eluded to many times as the price market makers would love to take gold below to “break the backs” of gold bugs.
Keep an eye on the $1,200 resistance level for gold if you want to be conservative. We used it on the way up as well in whether or not to go long. If we break it, JDST could be a great trade.
Silver is down 99 cents to 16.30 and is giving you a sign that deflation is still prevalent. Look for resistance at $16. If it breaks that, DSLV may be a star especially if gold cooperates with the above scenario I have laid out. I have said before that if gold breaks $1,000 that silver would be around $12.
Oil and natural gas are down as well making DWTI a star, up 7.51% trading at 103.10 today. I said it would be a good trade on a higher high or over 100. DGAZ up 2.40% to 7.27 is also feeling the deflation.
I had said go long RUSS if it broke 12 and it’s presently at 12.55.
TNA still a long but isn’t moving much. There may be a breakdown coming and TZA would still be the play. Instead of the 11.37 price I said to go long yesterday, I’d move that entry price down to 11.20. TNA can still go higher, but if you see it break 84 again, prepare to enter TZA per above.
I’ll write these updates when I see good intraday action. We patiently wait to trade days like today.
The mining package that we will be offering has been waiting for a release that I feel would coincide with my overall view of gold and silver prices reaching the targets I think they can fall too. Many so called experts last year in July thought the miners would take off and next thing you know they broke to lower lows. Some called this latest run up the final fall for the miners. It obviously hasn’t been and I know that’s frustrating for many who are long or have been long for some time. There is a reason why I have been patient with its release. There is also a reason why I chose the stocks I did and I’m excited about their potential. The mining package release date will be announced soon. There will be an email that goes out to all that have signed up. If you haven’t signed up yet, please click on the link at the bottom. Thank you.
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
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.