After a better than expected jobs report on Friday, both gold and silver took a big hit. I had said in Thursday’s Current Thoughts “Under $1,255 and JDST will be the play.” JDST didn’t disappoint. The higher high came at 8.62 and JDST closed at 8.99. Gold, after trying several times to move past the $1,300 resistance and pulling back each time, just broke down to $1,237 at present in Asia, up $2.80 over Friday’s close. Silver fell sharply as well on Friday. Very tough to trade the miners long with the arrows all being mixed for most.
I have said for quite some time we get a further smack down in metals and that we were not yet off to the races. The dollar rose sharply on Friday and I think has much further upside potential as all the issues going on in Europe and Greece play out. This should still have a heavy negative effect on gold and silver.
The stock market took the jobs report well and TNA did move up to 82.20 but then closed down but still above the 80 mark and still bullish overall. The arrows are also all green now which is very bullish. But we very well could see a retracement so keep your stops. If you see TZA go over 11.76 then look for it as a long. A move over 80.82 on TNA may be tradable as well.
UWTI continued higher hitting 3.93 before settling up 6.63% at 3.70. Oil seems to have a little momentum and if so, UWTI can move past 4.00 and I would keep a stop there on any long trade. The wild one DWTI had a high of 108.72 and a low of 95.15. Look for a higher high before going long and be quick with stops if it goes against you. If it gaps down below 100, look for a move over 100 to go long.
UGAZ did what it does best; hit another 52 week low. A nice bounce should be coming in UGAZ. Meanwhile, DGAZ broke to a penny of a 52 week high and all arrows are green. A move over 9.12 and I’d be long with stops. It closed at 9.07.
RUSL seems to be moving higher along with U.S. stocks. I believe we’ll get a nice run on RUSS soon and a move above Friday’s high of 17.42 I would be on board. Over 18.22 and it could be a run to 20.96 and then 23.80. A move above 21.79 on RUSL and it too could be on its way to 22.72 and then a potential of a nice run as well. I just don’t believe that story, but can be proven wrong by price action. One cannot ignore price action no matter what one may personally believe. The market is never wrong. Remember that in your trading if you are in a losing trade.
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.
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Gold and Silver Stock Mining Package
2-8-15 GLD Chart
2-8-15 SLV Chart
2-8-15 GDX Chart
2-8-15 GDXJ Chart
2-8-15 NUGT Chart
2-8-15 JNUG Chart
2-8-15 JDST Chart
2-8-15 UGAZ Chart
2-8-15 DGAZ Chart
2-8-15 TNA Chart
2-8-15 TAZ Chart
2-8-15 UWTI Chart
2-8-15 DWTI Chart
2-8-15 USO 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.