The headlines are all negative for gold of late. Whether it’s the $4 billion erased from funds or the Greece deal optimism, gold has opened down in Asia at $1,201 at present, but still holding above the $1,200 round number resistance.
On Friday, gold was down and JDST was up 4.88% closing at 9.63, near it’s high. Look for $10 to be taken out and if we gap up, trade the first higher high long especially if we have gold below $1,200. This could be a great trade if we stay under $1,200, and if the news of the day sways investors away from gold and into a stock market that is still breaking to new highs. I won’t even mention longs in the miners right now, but as always, any move higher in gold the higher high will work for a scalp, but I wouldn’t marry it. Many of my insiders I follow seem to think we get a bounce here in gold, but it’s hard for me to see it at present. Dollar still above 84. Stock market breaking new highs. Maybe we will get a temporary reversal in the dollar and stocks that may have some short term money go to gold. We’ll have to wait and see and know that I am aware of it, but that $1,200 mark above or below will set the tone.
I had said on Thursday and for a while now that TNA has been bullish and could be traded long. I said 80 was the first stop and in my last current thoughts it was “still bullish with all arrows still pointing up.” Friday we hit new records in the DOW and TNA moved up past 85 to close at 85.26. While I still lean bullish, look to TZA on any reversal of a higher high for a scalp. Asia has opened higher and the Nikkei is at new 15 year highs.
Oil gave up any rally and jumped one more time on the deflationary trend of heading down with DWTI moving from the open at 103.89 to close at 110.39 near the high. Oil has opened up trading down just a little. Look for a trend to develop in the morning and trade the higher high of DWTI at 110.69 (it may gap up over that amount) or UWTI which may get a dip and break out higher.
UGAZ stayed bullish and closed up 12.14% closing at 3.51. Stops should be moved up to 3.25. All you hear about is cold everywhere still, so momentum may be on the side of the longs despite the negative storage reports. Reversals may come but natural gas has opened up 1.46% and UGAZ should have a nice gap up at open. If you’re sitting on nice profit, it’s up to you when to take it, but keep moving your stops up.
RUSL and RUSS didn’t do much on Friday, but RUSS traded up 4.60% after hours to 12.20. Still lots of issues in Russia and simply play the higher high which was 12.20 for RUSS and 27.40 for RUSL (or if it gaps down look for a higher high reversal).
Gold and Silver Stock Mining Package
The mining package that we will be offering has been waiting for a release at a time that I feel would coincide with my overall view of gold and silver prices reaching the lower 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 the release of the mining package. 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. I sent out an email to all who have subscribed on Friday with an update. If you haven’t signed up, read the following and express your interest.
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
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