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
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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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