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GOLD MINING RELATED ANALYSIS
Thursday’s report I had the following to say about the mining ETFs; “I would keep tighter stops at this point. I see the dollar is close to breaking below 97 on the index and gold should bounce now. Let the dollar guide you. Gold will catch up to what it is doing. At a minimum keep your stop at the low of the day today.” We didn’t break below 97, but if you kept a tighter stop you would probably have got out of JDST, DSLV or DUST on the bounce in gold Friday. We are sitting right at resistance with gold and JNUG, GDXJ, NUGT and GDX had a nice bounce from the bottom, which was again fresh 52 week lows. In catching bounces, you only scalp them, as your are going against the trend and the trading signals are still green on the weekly and monthly for JDST, DSLV or DUST. Still keep an eye on the dollar breaking 97 to have more confidence going long JNUG, GDXJ, NUGT and GDX and play the higher high either way on whichever group breaks higher. Also check the gold and silver price which will help give you conviction. Too tough to call at this point so let the price action dictate your trade or look for something that has a clearer signal.
Please note that JDST did go red on the weekly and we are out of it locking in nice profit. I would be a buyer only on a higher high now.
CHINA
Speaking of clearer signals, YANG took off for us as we entered at 79.61 on Wednesday and it is currently 82.48, up 3.11 or 3.92% for the day. We did break 82.87 and hit a high of 84.07, but didn’t close higher than 82.87. Move the stop from 79 to 80.19 and lock in profit. China is still a mess as I said. Need a break of 84.07 and if we do break that, move stop to 82.
ENERGY
DWTI got us 2.35% more or 2.7 points to close at 117.70 after hitting a high of 121.25. Move stops up to 114.47. Still want to see that 133 resistance level obtained and hopefully a move back to 160. But the move from 121.25 to 117.70 shows a little reversal may be in the picture first. It’s ok to take profit if it gaps down in the morning. But DWTI is a buy the dip candidate.
ERY got us 1.41 points or 5.72% after hitting a higher high at 26.33. Move stop to 24.56 and lock in profit.
UGAZ we stopped out of yesterday and you may have got in DGAZ on that move over 5.62. It closed at 5.79. Keep stops at low of the day from Friday if you went long, but I would only scalp these until we get a clear trend.
INDEXES
TQQQ would only be a buyer at a break of 123.59 but closed much lower at 117.96 and we have been out of it.
Said Thursday that UVXY may trigger if it can get past 28.14 on Friday and I would be a buyer. It did and closed at 29.04, up 90 cents from that point. You could have scalped some of that. SVXY still negative and UVXY could still move higher and is on the watch list, but I would still only scalp it if it moved past 29.88 for a quick trade. SVXY still green on the monthly and I would be a buyer at 94.36.
Thursday I did put FAZ as a one to watch though and would be a buyer if it moves over 10.46 tomorrow. It did and closed at 10.55. If long keep stop at 10.30 and see if it has momentum for a bit. It has not triggered green on the weekly yet so the rule is to only scalp these moves.
RUSS got us 1.75 more points or 4.73%. Move stop to 37.58 and lock in even more nice profit no matter what now. Needs to break 39.70 and if it does, move stop to 38.50.
INTEREST RATES
TLT got us .30 more and move stop to 120.92.
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About Doug EberhardtDoug 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
Disclosure:
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.