Gold is doing all it can to trade above $1,200 as it is stuck in a range between $1,190 and $1,212 the last 4 trading days. One has to be patient waiting for a move. I had mentioned a few days ago that some of whom I follow have been calling for a move higher. I couldn’t tell you if that’s the case or not, but only would say if you are trading the metals, wait for a move above or below those levels. I would even say a break of $1,200 buy JDST, but keep stops. Gold is up 3.50 after hours to $1,205 as of the time of this writing. GDX did however hit a green daily arrow up. Mixed bag at present.
If you are looking to buy physical metals, the plan is different. I have many, many people waiting for me to call a bottom. I would love to call a bottom. I just can’t do it yet. Some of these people are buying on the dip and that’s what I recommend. Dips will always come. I just so happen to think we still get a dip below $1,000. The first sign of this would be a break below the $1,142 low in gold set on Nov. 5th, 2014. Below that and I think $1,000 will be a magnet and we’ll get a push below that level. Silver will tag along. When/if gold hits $1,000, silver will be around $12. Let the break below $1,142 tell you to hedge your longs if you are going to sit through any downturn in the metals.
Silver was just $18.41 a month ago. It’s about $2 lower now. It seems to be acting a little stronger than gold. But if we do head lower, silver will fall faster than gold. A month ago gold was right around $1,300. Silver fell 9.94% while gold fell 7.3% during this time.
The stock market keeps on moving but it is still a slow march, not a “run with the bulls.” This could be a sign of the top nearing. As such, volatility will increase so I am adding two more ETFs to the trading picture, one of which can make traders some serious returns. The two are UVXY and SVXY.
UVXY hit a 52 week low today and then had a nice move up off of that to 18.88 and a close of 18.49. If we have a stock market turnaround, then UVXY may be 20.41 then 23.12. With any momentum, it can go to the 26-28 range quite easily. Above 32.60 and 34.80 and we’re off to the races. Because this ETF is so volatile, I suggest only very good traders take a stab at it. If you feel you are up to the challenge, I would definitely consider smaller shares and taking profits quicker. The spread on this sometimes can be around 80 cents, so I would also incorporate limit orders and let the price come to you. Market orders and you may get killed.
SVXY can also be a good trade at times, but the volume today says to watch UVXY. Over 24 million shares traded today says it’s a must watch. Keep an eye on the general market and for any move down in the averages as well as any negative news to see if it agrees with this side of the trade. Be aware and awake when trading this ETF and have a pre-determined plan.
TNA trade slightly higher but not much could have been had with it. Still look for TZA for a turnaround. It will come eventually.
DGAZ hit a green arrow up today, possibly resuming its trend higher. I’d still stay out of either UGAZ or DGAZ until tomorrow’s supply report gives us an indication of trend. I do still lean long because of the weather situation in most of the country is still bearing down on us. All the Great Lakes are frozen from what I hear. Let the price action dictate your next trade, but this isn’t as easy of a setup to trade right now.
RUSS and RUSL are trending at present and also looking for a direction. If we get an overall market reversal in the U.S., then look for RUSS to move past 12 again and on to 13 or higher.
Oil got a lift today and DWTI fell 13 or 10.69% and UWTI rose 30 cents or 10.10%. A higher high for UWTI came at 2.96 and it went as high as 3.24. Remember, when you are going against the trend you are scalping, so you would have sold with a .25 gain at least half and moved your stop up. You may still be in this with some shares but keep a stop and see if it has momentum to keep going higher. I’d keep your stop at 2.96 if that is where you got in.
DWTI might have got you in trouble in the morning. It opened at 119 and moved as high as 126 before falling. This is why you move up your stops and take profit, especially on these high flyers. Next thing you know and DWTI kept going lower and lower.
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
2-25-15 GLD Chart
2-25-15 SLV Chart
2-25-15 GDX Chart
2-25-15 GDXJ Chart
2-25-15 NUGT Chart
2-25-15 JNUG Chart
2-25-15 JDST Chart
2-25-15 DUST Chart
2-25-15 UGAZ Chart
2-25-15 DGAZ Chart
2-25-15 TNA Chart
2-25-15 TZA Chart
2-25-15 UWTI Chart
2-25-15 DWTI Chart
2-25-15 UVXY Chart
2-25-15 SVXY 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.