More coming soon, but I wanted to get something out as soon as I could. Busy day today!
From the Trading Desk
With fears surrounding the Greek crisis at center stage this morning, the USD staged a rally against the euro as precious metals sank. Silver dropped over $1.00 (7%), platinum fell to a level it hadn’t seen in six years, and gold made fresh four month lows. The markets had a decidedly risk-off sentiment today with global bourses, commodities, and currencies (non-USD) all trading in the red. Despite the Greek debacle and Chinese equities selling off 30% from their recent highs, the global market is still not viewing gold as a safe haven asset. Physical coin and bar investors most certainly are though. Coin and bar demand in the last few weeks, and especially today, has been exceptionally strong. We’ll see if any of this demand can actually help lift the price of the precious metals in the near term.
NOTE:
The US Mint announced this morning that it has suspended sales of 1 oz American Silver Eagles. Premiums jumped immediately higher and have already changed multiple times today.
The drop in precious metals prices has spurred intense demand, most notably in silver. Premiums across a wide variety of products will be volatile in the coming weeks and further delays are expected as refineries and mints try to ramp up production to meet demand.
We do still have product, but the premiums are moving up for the time being. Try going with silver bars and rounds to keep premiums low.
We will be starting our free trial for the ETF Research Trading Analysis soon. Wanted to give you part of today’s report as a tease.
We hit our target of 100 on DWTI! I hope many got into this trade and was able to profit as it was more than a 50% move from when I first called to buy the dips. In fact, DWTI hit 100.74 and immediately declined. I managed to buy UWTI after seeing DWTI hit our 100 target. I would be out of this trade for now, but we could very well see 160 in the near future. Yes, I said 160! I want to see if we get a bounce in commodities at all or if we just continue to capitulate. Keep an eye on UWTI for a bounce. I would be a buyer over 2.31.
I said the UGAZ trade may be done and had DGAZ as the one to watch and buy if it it went over 6.12. We opened at 6.31 and closed at 6.30. I had bought pre-market and sold for profit after the open closer to 6.54. I would buy tomorrow’s open and keep a stop at 6.27.
YANG gapped up tremendously and even though we wanted it at 78.10 I wouldn’t have chased at the open of 89.25, even though it did go 4 points higher. We spotted this trend awhile back and have taken some from it. It is still in buy the dip mode, but I would be a buyer of YINN over 33.25 too for a rebound play.
TLT I said to buy over 118.65 and it opened at 119.66 so you may not have chased. Closed at 119.26. If you have followed my Current Thoughts, you know I think interest rates are going to continue to go south and TLT is still a good buy the dip candidate.
I had mentioned that even though their were many green short stock market ETFs that triggered yesterday, that I did not trust them and to look for the opposite long plays for the market instead. There wasn’t any real action worth chasing and I have taken all off the table that were green yesterday because it is too hard to call direction right now with the volatility. UVXY for example had a 9 point spread which is just CRAZY to think you can trade it. I do look at UVXY and SVXY for direction.
I should have put JDST on the buy at open yesterday and apologize for missing it. The long mining ETFs have got KILLED of late and we didn’t take advantage of it. If you followed my Current Thoughts though you know overall I have been calling for lower lows in the metals for quite some time and maybe some of you have profited from that call or at least kept out of going long these mining ETFs! DSLV, JDST and DUST are all buy the dips as long as gold and silver continue to go south. Look at the dollar for clues and also I would jump on a higher high in JNUG, USLV, NUGT, GDX and GDXJ if we get green gold as well. You have to know the supply for silver right now is very low as the various suppliers and mints were not expecting the prices to fall this quickly. That has to account for something at some point.
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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.