As you know I have been calling for lower prices in the metals for some time and we finally broke below the $1,190 resistance on Friday and gold closed at $1,166.30. In Asia gold has opened up $1.60 to $1,167.90.
Silver broke down as well below $16 resistance and it presently trading at $15.85.
In Thursday’s Current Thoughts I said “you need to break that $1,190 level for JDST to move higher” and JDST was the star of the day and could have been played easily for some good profit, ending up 22.19% on the day. Same goes for DUST.
On the opposite end we had JUNG and the other miner ETFs losing big time. JNUG lost 21.92%. That’s a bad year for many portfolios, but this occurred in one day. If you were reading my Current Thoughts, you wouldn’t have been long the miners.
Doesn’t look like we will get the follow through down just yet, but I do expect continued selling in the metals and an eventual break of $1,142, lats November’s low for gold. This could also be a rebound area (resistance) for a bounce, so be aware of it.
TNA fell sharply on Friday and if you were on your toes you might have got long TZA at 10.93 and got something out of it. TZA is a type of ETF you have to trade a larger amount of shares to get a decent profit. Because TZA is technically against the trend, you have to be quicker with taking profits or scalping it. That was an easy play.
RUSS broke over 12 again and you could have got a half point from it or more as it closed at 12.67. If you are still long RUSL, move the stop up to 12.25.
A new pattern seems to be developing in DWTI where it falls below 100 then rises above 110 within 48 hours. You could have played DWTI long at 110.26 all the way to the high of 117.43 and taken profit anywhere between.
UVXY could have been played long at 17.41 for a ride up to 18.14 or 18.37. Another trade where some decent profit could have been made.
For Monday I would be looking for what is moving but most of the good trades were had on Friday. You may have to be patient fo get a good setup on Monday, but they will come. They always do.
There are 3 different Fed members speaking on Monday, Fisher, Kocherlakota and Mester. Draghi speaks on Wednesday. These speeches can sometimes be market movers. Retails Sales and Initial Jobless Claims on Thursday. PPI and Michigan Consumer Sentiment on Friday.
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 recently with an update. If you haven’t signed up, read the following and express your interest. If you are signed up, look forward to an announcement next week, March 9 – March 13.
For those who haven’t signed up; 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 whorecommended 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
3-8-15 GLD Chart
3-8-15 SLV Chart
3-8-15 GDX Chart
3-8-15 GDXJ Chart
3-8-15 NUGT Chart
3-8-15 JNUG Chart
3-8-15 JDST Chart
3-8-15 DUST Chart
3-8-15 UGAZ Chart
3-8-15 DGAZ Chart
3-8-15 TNA Chart
3-8-15 TZA Chart
3-8-15 UWTI Chart
3-8-15 DWTI Chart
3-8-15 UVXY Chart
3-8-15 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.