Somethings got to give soon between the scores of GLD which has improved to +70 and silver and the miners which are sitting at -100. GDX is only 70 cents off its low hit earlier this month. Watch to see if JNUG breaks to a lower low as this may be the sign the miners have had it. A break below 9 will be the first signal that lower lows are coming for GDX as well.
The dollar moved up over 85 again putting more pressure on gold short term.
The stock market moved higher as well like I thought it might, but TNA didn’t enjoy the stock rally by the end of the day. You can see from the chart below that TNA was up 2.3 points early on, but gave all that back and ended down 1%. Monday will be an interesting day to see if the selling continues. Would love to see TNA hit the 53-54 range again.
UGAZ is still one I am keeping an eye on as it hit a 52 week low of 11.70. Some of these I mention are setting up for some nice swing plays, but the miners still have much room to fall if/when gold breaks down. If this was all the gold bounce she had, that’s not a good sign. Silver still acting more like the industrial metal than the monetary metal.
Gold and silver opened down in Asia with the dollar up to 85.25. If you are bullish gold, buy the dip. But with the miners and silver at these scores, I’d be hard pressed to do so.
10-17-14 GLD Chart
10-17-14 SLV Chart
10-17-14 GDX Chart
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.
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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.