Gold and silver took another hit today as the dollar moved ever higher approaching the 100 mark on the index. The Euro sunk to the 105 region and is ever closer to parity with the dollar. Many may not know I have been dollar bullish for quite some time and have said during this time that we may get some pressure on gold and silver prices because of it. In January of 2012, a little over 3 years ago I wrote this article; Euro and Yen Make Up 71.2% Of Dollar Index Which Is Why I Am Dollar Bullish. At the time the Euro was trading at 130 and the Yen at around 75. Today the Euro is at 1.05 and the Yen 121.46. Gold was in the $1,600’s at that time in 2012 and today it is trading at $1,154.
While there are many reasons for gold’s fall, the above is one of the major reasons. At some point I see a rising dollar and gold together, but not just yet. It is what investors will call “perceived safety” that will make this occur. Right now there is not enough fear going around, especially in the financial capital of the world; the U.S. Fear will come at some point.
JDST did an about face today. It gapped up a little, continued to rise to top yesterday’s high to 17.61 and then spent the rest of the day falling to close at 13.73. That’s quite a drop from the high, and especially significant on a day when gold was down most of the day.
There was a mining stock that I must mention today. It’s one of the stocks that didn’t make the cut for the Mining Package below. I am releasing as part of the mining package many of the stocks that didn’t make the cut and why. The following is what I wrote, among other things, about Allied Nevada Gold Corp (ANV) which declared bankruptcy today.
This company is on its last leg. While it may have some good talent at the top, you can’t turn a frog into a princess with a kiss and you can’t get this company to turn things around with all the debt and raising cash by selling assets. Can someone come in and take over? Not with all the debt.
Needless to day, there was no volume on ANV today and the last price was 86 cents. The party for this one is over.
I had said in yesterday’s Current Thoughts “Keep an eye on JNUG for a higher high in the morning and see if we get a reversal for a bit.” JNUG was a buy at 14.43 and could have been rode up till close without getting stopped out. I also said that trading a reversal of trend means to take profit or scalp so I would have went home flat today. Tomorrow simply look for the higher high in either JNUG and JDST. I’ll lean long JNUG at this point with gold moving higher in Asia a bit.
Yesterday I also said that we are still in a bull market and don’t let anyone tell you otherwise. TNA listened and moved up 1.78 points. Buying the dip in the stock market it looks like is still the game.
UGAZ may have been a buy today for a scalp (going against the trend) at 2.78 to 2.95 but it was a somewhat flat day overall. Look for the higher high tomorrow to see if this reversal has any legs.
RUSS finally took the turn south and if you didn’t take profit you should have kept your stop at 14. RUSL became the play at 20.10 and could have been sold for a profit up to 20.90 as another scalp play. Not an easy call at this point. could go either way, but as I have said many times, I am negative overall on Russia. That said, if RUSL can get over 20.67 it may go to 21.96 rather quickly. Simply don’t ignore what the charts tell you. Don’t think you know more than the market. While I may “think” one thing, I can’t ignore what is on the screen in front of me. I can be wrong but the market never is.
UVXY would have been a good entry at 19.31 and if you kept the stop at the low of the day or just below, you would have rode it up to a potential high of 20.15. It closed at 19.82. The SVXY looks rather week, but if we get a move higher in the stock market tomorrow, look to go long SVXY which closed at 60.26.
DWTI was a perfect play on the break of 121.23 and could have been ridden up to the high of 127.86. On these ETFs I would always lock in that kind of profit, especially when you get the spike up like we had after the supply report showed a surplus today. You bail and wait for the next setup.
Lots of economic data coming out soon, so stay on your toes for reversals.
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 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.
If you are interested in this Gold and Silver Stock Mining Package let us know by clicking this link below and completing the form.
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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