Gold tried to push past the $1,200 round number resistance this morning but just couldn’t do it. Silver also struggled with the round number of $17 but did manage to sneak above it for a bit to $17.11 before closing under at $16.95.
The miners didn’t like what gold and silver were doing and retreated from the highs the entire day as the overall stock market also fell hard today with the DOW down 292 points. Are the miners in “buy the dip” mode or is the party over?
Everything I read still tells me that we get a push past $1,200 in gold to the $1,225 to $1,230 range before we head south again. I haven’t read anything that tells me otherwise. The dollar was down early and gold was behaving well, but the dollar bounced and yet it is still under 97 on the Index. I would look to it for answers tomorrow but I lean bullish still on gold/silver and the miners which all have green weekly arrows still.
JDST was good for a scalp from 9.30 to 9.68-9.80. I say scalp because you are going against the short term trend and you should have gone home flat even though it ended the day on a high note.
Here is what I wrote in yesterday’s Current Thoughts about the stock market;
Market seems a little toppy right now for stocks and TNA had a 4 cent loss. Yesterday I said to look for a sustained move above 9.93 for TZA and that seemed to provide resistance. Tomorrow see if TZA can muster a move past 9.93 and especially 10.12. Bulls can’t always run and sometimes need to take a breather. I just try to make you aware of what I see so you can take profit. That’s the name of the game!
Today it played out exactly per the above and TNA took a hit of over 6 points and TZA did move past the 9.93 and 10.12 resistance and gave us a move to 10.64 before closing at 10.61 right at resistance. Since it opened at 9.89, it could have been bought at either of those prices with the 10.12 entry being the most conservative entry. I would stick with this trade because of the momentum and move stops up to break even. I know it is a countertrend rally (and I don’t normally recommend this) but today’s move down in the Dow was pretty big and sometimes it has a little carry over if Asia and Europe continue the trend. But look to see if Europe rebounds or falls and then look at U.S. futures to see if they are green or red. TZA needs a green daily and a break past 11.41 to become a hold. You might just sell if we get a move higher in the market tomorrow.
UWTI continued its merry way higher today despite a storage report that showed an increase in petroleum stock. I said jury is out on this yesterday and it was a volatile play today. DWTI had a false breakout as well and then fell hard. If I am uncertain on something I’ll be the first to tell you and yesterday’s price action had me cautious with these two.
DGAZ did give justice to its green arrow up today closing up 5.50% at 6.90. You might have got a trade out of it, but I prefer to wait for the storage report Thursday and jump on the trend.
The big mover today was UVXY, up 8.80% as volatility creeped in for the day. It was due for a bounce and with the stock market falling the way it did, that’s what UVXY gave us. I thought we would get a further dip before this bounce, and maybe we still will. See what tomorrow brings. Either way, UVXY was a play at the break of 14.74 and you could have got close to a point from it. I would typically day trade this one as I have pointed out in the past. It’s a recipe for a loss if you hold it too long. SVXY fun has ended for now, but with the stock market moving higher will follow along with it when that turn comes.
RUSS and RUSL were tough to play today as they had one of those up, down up days or down, up, down days. Very tough to trade and sometimes you just have to look for better action another day and take your lumps with a stop loss. You won’t be profitable on every trade.
ETF Research Trading Package
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 for free 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 depending on which Mining Package option they choose.
The ETF 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 each day where we typically see a 10% move in an ETF about every other day. 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 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. There will be various options to choose from that fits your personal objectives.
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.