Gold and silver gave back much of what they gained on Friday, and the miners did too in a complete reversal of fortune.
Miners
The miners didn’t look attractive at all today. Until we get a green triangle on the weekly, it is a risky play to go long. I thought that possibly buying the dip might be good, but the price kept falling. If one practiced tight stops that I suggested they wouldn’t have got hurt too much. I should have waited for a short term trend to develop with the weekly triangle going green. Then you can turn from day trading the miners to holding for more gain. Gold and silver miners are just too volatile to go long right now.
JDST was the star of the day again. In yesterday’s outlook I had suggested you put it on the radar. It may have triggered a buy breaking Fridays high. If you notice on the triangles for JDST below, it is the only one that signaled a buy on the weekly. This was back in August. The first short term signal that turned the triangle red was Friday. But the weekly is still green which means its still in play.
At some point we will have the weekly triangles turn green for the miners. Until then, they are a risky investment.
The prices I would be looking at now are as follows as to whether to buy. If we break the 52 week lows I would go long JDST. If we break the highs from today I would go long the miners. Those prices follow (52 week low and today’s high):
GDX 16.45 and 18.32
NUGT 9.51 and 12.80
JNUG 2.84 and 4.13
JDST 52 week low irrelevant. Go long if it breaks 30.85.
KEEP STOPS – Remember, market makers like to break the high or low and then reverse course. For the triple leveraged plays, using smaller shares and wider stops helps a trader avoid their shakeouts.
UGAZ
If you bought the dip in UGAZ, which I had said was due for a pullback but only mentioned it yesterday because of the colder than expected temperatures forecasted, keep a tight stop now. If we don’t get the continuation higher then it’s market makers wreaking havoc on your account. Just sell and wait for a better set up.
USO
USO looks like it is testing the low of $29 again. Still on the radar but not attractive. It did bounce off of $29 for a possible trade for the nimble of about $1 but now is heading south again. Keep an eye for that break.
11-10-14 GLD CHART
11-10-14 SLV CHART
11-10-14 GDX CHART
11-10-14 JDST CHART
11-10-14 JNUG CHART
11-10-14 NUGT CHART
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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.