This is the 3rd day in a row for a sneak peak at the ETF Research Analysis Service we are offering. Many of you have signed up and some of you might be confused as to what it really is.
In my next book I address the fact that investors need to take more control of their investments and not leave them to “the experts.” I dive into what we as financial advisors have been taught over the years and how I disagree with some of it and why. Those who presently own Index Funds, which I do like overall, have got hammered the last week and saw some of their wealth disappear. What protection do they have from this blood bath that just took place? What protection do they have should we keep moving down?
Hopefully you can see from this “hands on” trading that you can profit in a down market.
To sign up for the 2 week free trial for the ETF Service, click the link below. Once signed up you will find what all of the various rules are for trading the 46 ETFs that I write about 5 days a week in helping you profit no matter what the stock market decides to do. This is the new way to make money and you are the few who will profit from at least trying it out for 2 weeks free and seeing for yourself.
Before I get to the ETF analysis which includes my current thoughts on gold, please note that even with this bounce up in the price of gold, which I said in the last report would be a dead cat bounce, many suppliers are still having trouble with demand for the physical metals and because of this are still delaying delivery on certain products. Please we aware of this and also know this will get worse as the prices dip to lower lows.
ETF Research Analysis Service 8/23/2015
We are lucky to be on the right side of most every trade where you would be hard pressed to make any mistakes. Trading won’t always be this easy and a reversal and probably a sharp reversal will come. Just keep moving your stops up and enjoy the ride while it lasts. Monday futures are already opening lower by triple digits. Gold is up about $5 but mining stocks may still get hit. I would imagine they will bounce first, as long as dollar under 95 now and gold green. Might be a good risk vs. reward play coming there.
Meanwhile, some incredible returns the last few days. UVXY, which I put on the one to watch list for aggressive traders to take a stab at, went up almost 8 points from the open, or 22%. UVXY hit a lower low and any aggressive trader would have got out at the break of that low. DGAZ actually triggered green on the weekly now. DWTI broke my 199 target and went as high as 205 before closing right at 199. From 60 to 160 and from 160 to 199, DWTI has been a superstar.
RUSS and YANG have also been superstars and EDX and ERY have also done fantastic.
GOLD MINING RELATED ANALYSIS
The dollar decided south is where it wanted to be with the weakness in the U.S. markets and elsewhere and has now even fallen below the 95 level. That helped buoy gold but it didn’t help buoy anythng paper related, including the gold and silver mining stocks. Silver acted more like an industrial metal along with oil and natural gas.
This sell off in paper is similar to the 2008 period, but that too saw gold, silver, mining stocks and all stocks fall but the dollar rise and treasuries rise. Now we are only getting one asset to rise, outside of our ETFs that have been on the right side of the fall masterfully, and that is treasuries and why we have seen TLT perform well.
YANG on Thursday I said the next stop could be the 114.70/115.70 mark hit in March and it broke to 119.18. Unbelievable fun for YANG as I have said a few times China has issues. They still do. YANG will find more resistance at 123 and then 141 with a potential move to 179 in the cards.
YINN I would now be a buyer only on a move over 22.30 for a reversal play.
RUSS next stops are 57, 59 and 63. Above that and 72 is within reach. When you get big moves on these, like with YANG and RUSS, only you know when to lock in profit. A move over 13.80 and I would be buying RUSL. That might be a key for you. You may lose 10% after making 20 or 30%, but you have a choice of locking in a higher gain now, always remember that. Separate your business plan from an emotional one where greed is involved to one of; if I lock in that trade now, regroup, what else has a better risk vs. reward aspect to it. That or simply keep moving your stops higher.
DWTI got us the 199 target I said to look for once we broke 160, another 24% gain. The move from the 60 range when I first saying I like DWTI all the way to 199 is a 231% gain. Naturally I don’t expect anyone to hold that long and you would have taken profit on it many times by buying the dip. Where to now? We are at a 52 week high and have taken out the double top for the last 2 years. We are in uncharted territory so it becomes more difficult to give you a goal. Keep moving stops up and see what the price of oil is doing. The fact the dollar is weaker should give UWTI a chance here sooner than later. I would be a buyer of UWTI now on a break over .96. It’s sitting at at .88 and its 52 week low is .85.
ERY got us 3.49 more points or an additional 10.58% and we are up 4.63 points on it now. Keep moving stops up.
UGAZ, despite the better report Thursday, simply broke down. Always keep your stop no matter what at a 52 week low and forget about going long. Our psychology wants us to go long. Perhaps it is a good buy, but the weakness makes it difficult to buy and profit. Lower lows are not a trade to go long on. DGAZ triggered long and is a buy if positive at the open Monday. Really bizarre to see UGAZ so pathetically weak, but look at oil and you’ll get an idea of how deflation is wreaking havoc everywhere, even with some reports that should be positive about supply.
Many of the ETFs turned green for the monthly. As long as there is no reversal, adding to positions now with stops at break even can turn out to be a good trade. We don’t know if we are going to capitulate now or now, but this trend is undeniable. What would cause it to end? What can CNBC convince you of in their Sunday night show which I assure you will spin everything positive?
EDZ got us close to the 55.48 hitting a high of 54.51. Still eyeing 59 and possible breakout to 96.
BIS was a buy at the open at 31.46 and closed up 1.29 points. Move stops up accordingly.
UVXY is now green on the weekly. It took a 60% move higher to get it there which shows you how strong SVXY has been for so long. These are very, very risky plays and you must keep stops and watch for a quick reversal. I would be long UVXY at the open, with caution, and see if you can get another nice run Monday. I already think it will open higher. But still keep an eye on SVXY for a buy at a higher high for a scalp only.
TLT moved a little higher and the 10 year is closer and closer to falling below the 2% figure I have been looking for.
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
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