After a great week last week for gold and silver, will the trend higher in metals continue this week? If trading in Europe provides us with any clue, then the answer is mixed with not much action so far.
Gold and silver had another good day Friday to continue Wednesday’s strong signal of short term trend. Silver was actually more bullish than gold and has given us a weekly green arrow up. Gold is up $1.50 in Asia to $1,186.10 but silver is down 8 and 1/2 cents to $16.798.
JNUG gave us a buy signal at 17.94 and moved higher Friday to close at 20.45. If you didn’t go long Thursday and stuck with the momentum I mentioned, JNUG could have been entered for a trade at 19.76 for almost a full point. Some may be riding it from the 17’s. If so, move your stops up to 19.36. I would still stay long until the price tells us to get out, but even a reversal may be caught long the next day as long as gold cooperates. We could get a nice move to 25 resistance now with JNUG if gold cooperates. Look for a confirmation of the weekly green arrow to have more confidence in holding overnight. Also keep an eye on the data below that may influence the short term picture one way or the other.
I said JDST wasn’t even worth looking at on Thursday and it fell 11.83% to close at 10.36. Didn’t JDST just hit 17 not too long ago? Yes, it did. That’s why we don’t marry these ETFs; we trade them and take profit.
Oil and UWTI tried to continue the parade higher, but faded as the day went on. UWTI still ended up 6.70% closing at 2.07. Oil is down to 46.01 in Asia. It seems 47 is resistance for now. Need a break of that to see if UWTI can have a little run. DWTI had a 12 point range on Friday closing near the high of the day, but down 6.58% for the day closing at 149.45. Have to wait to see how oil opens Monday to see which of these is the better play. Right now it is leaning towards DWTI.
RUSS did it too us again and couldn’t muster up a move higher. Any longs would have been stopped out. Time to regroup or look for RUSL which needs a break of 21.90 for me to get bullish. If it does, it could end up being a nice move to 23.90. Maybe RUSS will fall below 12 again and we can play the game of over 12 buy one more time. I don’t mind.
DGAZ you might have played at a break of 5.95 in the morning Thursday. It could have been a nice trade all the way to 6.61 or the close of 6.53. I would hold onto it and move stops up and see how NG plays out on Monday. The overall trend is still lower, but maybe it will get some of that bullish commodity love that gold/silver and somewhat oil are getting.
Another day, another TNA 52 week high hitting 93.04. Anyone that reads these thoughts knows I have been bullish throughout this move and that hasn’t changed. Keep the pedal to the metal and feel free to take profits when you feel you want to lock it in. Remember data is irrelevant in a bull market like this. Buy the dip works until it doesn’t, and that’s what stops are for. Trade your plan and you should do fine.
Meanwhile, of course, TZA hit a 52 week low. If you ever do go long TZA because of some event or news, it will only offer a scalp at best.
UVXY does what it does best, break to 52 week lows and SVXY moved up again to 67.98 or 1.68%. These are my least favorite ETFs to play, but for day traders there is profit to be made. No one would ever recommend holding these very long. The volume on UVXY is something to behold though, with over 30 million shares traded Friday. It’s more than likely the many who thought the stock market was turning and they are dumping their “bets” at losses. Many inexperienced traders play UVXY in hopes of riches and professionals love these novice traders.
Here is the upcoming weekly data to know about.
Along with the Mining Package below, we will be rolling out an ETF Trading Service soon that we are very excited about. Our goal is to help you make good decisions with the research we provide. This will be replacing the ETF data I have been providing the last 7 months here in the Current Thoughts section. We are sorry to have to do this but the time involved deserves some consideration as to preparation and naturally compensation. You’ll be happy to know that anyone that purchases the Mining Package will get this information for free for 6, 9 or 12 months however.
The list will be expanded from the ETFs below to 30 and possibly more with the goal of helping you make good decisions in your investing. What is important about this list of course is my continued analysis of what I see occurring to help you in this cause.
Details for the ETF Research Trading Service and sign up form can be found by clicking the link below.
Gold and Silver Stock Mining Package – Release date will be either Thursday 3/26/2015 or Friday 3/27/2015 – If you are signed up, look forward to an email announcement with the details then. If you haven’t signed up, please read below.
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. I still think that lower low will come but I want you to be well prepared before choosing which companies to invest in based on the research this report provides.
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 the miners 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. If you haven’t signed up, read the following and express your interest.
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 9 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 like Allied Nevada just did on March 10, 2015. 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.
If you are interested in this Gold and Silver Stock Mining Package let us know by clicking this link below and completing the form. Thank you.
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.