Gold finally managed to move past the $1,200 mark today and is now trading $79 off of its low established Nov. 7th. The weekly green triangle has given its signal that it’s safe to go long the metals now and that should make the miners move higher at the same time. The miners however seem to be stuck in a range. Today, JNUG for example couldn’t push past the $4.05 high of the day and just meandered the entire day and all the miners sold off at the end of the day. The most aggressive miners to trade, JNUG and GDXJ are still sitting with scores of -100. GDX and NUGT though have shown a little more strength with a score of -65. Perhaps tomorrow is the day to make a good trade in the miners if they take off above today’s highs. If you do go long I would take a drop below $1,200 in gold as a sign to stop out.
Euro Death
I have written about for awhile now how I have been dollar bullish. In January of 2012 I wrote an article Euro and Yen Make Up 71.2% Of Dollar Index Which Is Why I Am Dollar Bullish. The main reason is I am Euro negative is because the Euro makes up more than half the dollar value based on the Dollar Index. The chart below is from a Swiss friend and it is in German but charts in any language tell the same story. The Euro is on the verge of breaking down. It also still plays in my mind as one of the indicators that will put pressure on gold still.
Other ETFs I Follow
UGAZ broke to a new 52 week low and I think is a good swing trade now. Tomorrow’s supply report may not make a difference since it has been beaten down hard this week. I really like it.
USO was flat today and looking for a reason to go higher. I am leaning towards a long here. It tried to break out for a bit but didn’t stay strong.
TZA continued to fizzle with the strength of the stock market still intact.
12-03-14 GLD CHART
12-03-14 SLV CHART
12-03-14 GDX CHART
12-03-14 GDXJ CHART
12-03-14 JNUG CHART
12-03-14 JDST CHART
12-03-14 NUGT CHART
12-03-14 USO 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.