Gold gapped down double digits today but silver ended up green on the day with a score of +90 now. Was still a volatile day and hard to trade the mining ETFs. Volatility simply means be patient and wait for the trend to develop. If you do trade during these volatile times, be quicker with profit. You might have squeezed a little bit of profit from JDST if you could trade pre-market. Later in the day it was the leveraged long ETFs that hit higher highs and towards the end of the day we saw another reversal. Again, volatility is very difficult to trade.
While I still lean for lower lows for gold, it doesn’t mean that we won’t get a bounce now especially since the dollar took a hit today. Something to keep an eye out for is if the dollar will continue lower tomorrow. After trading over 95 on the index, in the last couple weeks we have seen the dollar fall to its current level of 93.76. Watch the miners long vs. short unless we get a break down in gold below the low of the day, $1,254.50. I still think over $1,270 it’s worth a stab at the leveraged mining bull ETFs like JNUG, NUGT and GDXJ. GDX if you are more conservative.
Oil was again the star of the day and both UWTI and USO have now given us green arrows for the weekly. We never hit the 3.20 stop on UWTI so I would move it up to 3.45 now, just below the low of the day. We hit a high of 4.32 and maybe some of you that continued to move your stops up took some profit as we closed at 3.93. It’s been a real nice move off the lows and in the last 5 trading days we have seen UWTI move from the mid-2.50’s to over 4.00, a 60%+ move. Don’t get greedy! Can it continue higher? Sure. But I would be taking profit and buying the dips in UWTI until the trend reverses. If you buy the dips, you can possibly get more profit out of it now rather than “hope” it keeps going higher and sitting through some potential 10%+ drop days. UWTI gave us a weekly green arrow today. Good news for bulls.
RUSL was another star today. I said yesterday if RUSS falls below 22 to look to RUSL. Unfortunately RUSL opened at 20.50 but there still might have been a trade at 17.69 once we broke to a higher high on RUSL. It went as high as 18.84 and worse case scenario you would have been stopped out at 18.18 the next lower low that was hit if you didn’t take profit on the run higher.
Natural Gas did finally follow oil higher today and a long in UGAZ could have been played at 2.77. UGAZ hit a high of 3.04 and one thing to keep in mind with UGAZ is that it is a slower mover than most other triple leveraged ETFs. AT the close of 2.95 it may continue higher. I would buy at 3.05 or a higher high unless it gaps up too much. Look for the higher high in DGAZ then if we get a reversal. The volume in UGAZ says to lean towards it.
TNA was another star today as it tries one more time to get up to 80. I said I had leaned long with TNA and after the $4 a share rise yesterday after hitting the lows we got another $4 a share rise today, up 5.40% to close at 78.29. Will we finally push past 80 now or will this figure still represent resistance. I still lean long, but look to economic news to see what might keep it from breaking out and keep stops if it reverses on you. If the GDP report last week didn’t break it down, I don’t think much will this week so even with the economic news that might negatively affect it, you can’t ignore price action. If we get a move past 80, look for the 52 week mark of 86.68 as the next resistance. A move above that and we’ll see higher highs which is very bullish.
TNA had a daily green arrow trigger today. TZA triggered a daily red arrow.
Gold and Silver Stock Mining Package
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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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