From the Trading Desk
Gold sold off yet again yesterday with the USD index making highs it has not touched since the spring of 2003. The euro is almost at parity with the USD, trading at under 1.05 earlier in the trading session today… start planning your summer trips to Europe now! Besides today’s session, where gold barely closed above yesterday’s Comex settlement, gold has trader lower (eight consecutive trading sessions) in every day of March so far. Physical demand is picking up in the Far East but has still not been significant enough to stop the downward trajectory. Historically, March is a slow period in China for physical gold demand as it comes immediately after the stock-piling period of the Lunar New Year.
Gold caught bids early today with the euro making a brief stand against the USD. US equities closing up over 1% and crude oil moving 2% lower weighed on gold as the day wore on though. Gold has more or less held the $1,150 area over the past two days but the next major support level that traders are keenly watching is at $1,132, a five year low. Silver fared better than gold today and managed to gain $.20 / toz. Support is coming in at $15 while rallies will likely be sold into ahead of the $16 handle.
Not much tradeable action with gold, silver and the mining ETFs today. I still lean bullish despite what is written above. But as I have said a few times or for new readers; it doesn’t matter what one may think, price action matters and that’s what you follow. Play the higher high tomorrow for the mining ETFs and if you are looking to go long physical, I would have more patience. I do think we hit lower lows at some point. If March performance is like prior years, then maybe this month. If Dow keeps going to new highs and the dollar breaks 100 on the Index, then it would be ripe for this break to lower lows.
Interesting story from the Gartman Letter today on gold;
Regarding gold, we came across the following bit of news that seems to have evaded everyone else but which caught our eye and our interest. Late last week, officials at the main airport in Bangladesh took custody of a North Korean “envoy” who had travelled there, secreting 60 pounds of gold on his person. The envoy… Son Young Nam…is the First Secretary of the North Korean Embassy in Bangladesh and it appears that he was carrying the gold to be sold into the black market in Bangladesh. It is unclear whether he had intended to send the money from an eventual sale back to North Korea or whether this was a surreptitious sale of gold for his own account. We point this out simply to note how important gold remains as a means of creating liquidity… both legal and “il-.”
TNA continued moving higher as the Dow had a nice day too. Keep moving up stops on it if you took my words a couple days ago of us being in a bull market still to heart and went long TNA.
DGAZ was a buy today at 6.52 and could have been scalped along the way to a high of 7.08 or held for the close at 6.96. If holding it, keep a stop at 6.44. If it moves up to 7.25, move the stop up to 6.80.
DWTI could have been a play from the beginning of the day at 121.39 or a little later at a break of 124.92. all the way to 130.50 with you taking profit anywhere along the way. That’s 2 days in a row of at potential 6 point move.
I said in yesterday’s Current Thoughts “if we get a move higher in the stock market tomorrow, look to go long SVXY which closed at 60.26.” It opened at 61.37 and was a buy at a break of 62.26. It could have been traded up to 63.99 and since it closed on a good note at 63.84, it might have been held. I would move stops up to 62.80 at this point.
You might have been able to scalp RUSS with an entry at 13.98 today and rode it to the high of 14.62. It closed down so I would have sold at close at 14.20.
I’ll be sending out an update by email on the mining package to those who have expressed interest tomorrow. If you haven’t signed up and our interested in purchasing this package, sign up with the form below. There will be options for all to fit your goals and objectives.
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
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.