Gold and Silver Current Thoughts 3-10-2015

From the Trading Desk

Gold had a dismal previous week, trading lower for five consecutive days with the worst performance of the week coming on Friday.  Strong US jobs data figures on Friday propelled the USD higher which caused investors to liquidate precious metals positions.  US nonfarm payrolls rose by 295,000 in February, easily beating the consensus estimate of 235,000.  The unemployment rate fell to 5.30% from 5.50% as well.  Last week’s poor technical close for gold has fueled sentiment so far this week for speculative shorts.  The euro’s continued slide, now below 1.07 versus the USD, has also not done any favors for the yellow metal.  Previous support for gold at $1,174 has clearly given way and it is now a near term resistance level (also the high of yesterday’s session).  Chart wise, there is no major support until $1,132, the low from October of 2014 and also a five year low.  Silver has performed just as badly as gold recently and has traded lower for seven consecutive sessions.  The $16 handle has become resistance while the quadruple bottom at $15.55 is the next key area to watch on the downside.

The star of the day was once again JDST, up another 11.76%. It did however sell off in the afternoon after reaching a high of 17.42 to close at 16.16. It’s down to 15.91 in after hours trading. Today was definitely a profit taking day and it seems that gold has bounced off the 1159 level and is now 3.40 to $1,163.50 in Asian trading. Keep an eye on JNUG for a higher high in the morning and see if we get a reversal for a bit. Any buying of a reversal in trend should only be a scalp with tight stops. We saw JDST open down this morning as market makers tried to shake out weak hands. I know it shook off a few, then proceeded to move higher and higher till the end of day.

TNA took it on the chin today and for a bit dipped under 80. We are still in a bull market and don’t let anyone tell you otherwise. Tomorrow Draghi speaks so there may be some continued volatility. Remember, market makers love to shake you out of trades. That’s how they make money. But if you are trading leveraged ETFs, you need to simply keep a stop and lock in profit and wait for the right setup.

DGAZ had a reversal in another market maker move to trap those long. Neither DGAZ or UGAZ was tradable today.

It turns out that UVXY had a positive day, but it was impossible to handle the volatility on it. SVXY had the same pattern. I’ll still lean long SVXY and a move over 62.48 tomorrow or the next day would be good for a long. UVXY has the momentum for now though. I would play the higher high of either, but they definitely are not my favorite trades with this kind of volatiltiy.

In yesterday’s Current Thoughts I said this about RUSS;  “If it can break 13.62, then this could really turn into a very nice trade with resistance at 14.53, then 18.16. That’s a big jump if we can get past 14.53.”

RUSS was another star today gaining 12.18% to close at 14.83. I would move stops up to 14 now and see if we can’t get this up to over 18 before selling. It looks like clear sailing, so lets see if we can squeeze it for some good profit now.

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.

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Gold and Silver Stock Mining Package