Gold gapped down this morning and broke below the $1,200 mark down to $1,190.70 before bouncing higher to $1,209.90 and closing at $1202 in a whipsaw day. I would use a break of $1,200 to trade gold short and a break of $10 to trade gold long. JDST triggered a weekly green arrow today at 9.85 and closed at 9.75. I’m still not looking long miners at this point, but tomorrow we have Draghi and Yellen speaking that can cause some volatility. It may be a difficult day to trade unless you can catch a wave up or down quickly based on price action which will move fast based on what comes out of the mouths of the aforementioned. Volume was lower for all the ETFs, so many traders are confused and when in doubt, stay out. Wait for a trend to develop and jump on it with stops.
TNA squeaked out a small gain today. Not much was tradeable but you could have got in with a break of 84.78 and rode it to 85.32. It fell again to 84.14 before closing at 85.59. Very difficult to trade TNA today, along with TZA.
RUSS was the star of the day. I said that it was up after hours yesterday trading at 12.20 and today it opened at 12.73 and closed higher at 13.62. You might have been able to squeeze a higher high trade out of it at 13.15 in the afternoon and rode it to 13.74 the high of the day. As with most ETFs that gap up, you want to just scalp them, not marry them. The big move was already made. Look for a break of 13.74 for RUSS on a dip at the open tomorrow or play the higher high. RUSL you’ll just have to play the higher high if it comes.
UGAZ never got going today and if you didn’t sell, you would have got stopped out at the price I gave yesterday of 3.25. I first said I lean long UGAZ at 2.74 and a move to 3.25 is a nice 18.61% return although you could have got as much as a 32.84% return if you were lucky enough to sell at yesterday’s high. I don’t tell people when to take profit, but I do always say “take profit!” There is always another trade that comes along. Play the higher high tomorrow in UGAZ if it comes, otherwise look at DGAZ again on a break of 6.52 or a higher high after open if it gaps up.
DWTI opened up at 119.27 and would have been tough to go long. It was range bound for most of the day then fell like a rock to 111.43 and in a V shaped pattern rose right back up and then hit its high of the day at 122. Market makers like to do that to you to hit your stops and then reverse course on you. I’ve seen it in AAPL and other high volume stocks, many, many times. But in a lower volume stock like DWTI, it’s just market makers having a little fun at a weak traders expense. If you keep stops, you can’t get hurt. UWTI might be good on a higher high tomorrow. You would have got a higher high at one point today at 3.00, but it only went to 3.15. If you are fighting the trend on a trade, like with UWTI, you should scalp it only. A 1000 share trade could have got you close to $150, but even $100 wouldn’t have been bad with it. Tomorrow definitely be long over 3.15 but remember it moves typically slower than other ETFs. Always keep your stops no matter what if you are fighting the trend.
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.
Gold and Silver Stock Mining Package
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.