Just a few thoughts on what I am seeing this morning.
I like TNA over 72.90 as I am still bullish on the stock market and TZA hit resistance again close to $14. Now you have two ways to trade it, long or short. Long is the better play for more profit if it comes IMO.
I like DGAZ over 4.39 because the weather report still shows warm weather the next 2 weeks. Stop would be somewhere below the low of the day 4.25 http://www.atmos.washington.
UGAZ had a nice bounce this morning after market makers played with it yesterday. It will be difficult for UGAZ to get going here with the weather report above being projected to be warmer in all the U.S.
I like JNUG under 2.50 as it will be a 52 week low and I think the 1:10 reverse split has hit it harder than necessary. I also might attempt a long if JNUG breaks 2.87. Scalps only and no taking home. With stops of course.
Deflation is still in the air with today’s PPI report coming in worse than expected where lower gas prices are said to be the reason.
This actually hurt the dollar and gold and silver are rebounding a bit because of it, but still VERY weak.
Consumer sentiment hit an 8 year high. But what does the consumer know, really? The data shows inflation which isn’t necessarily good for the stock markets or commodities. But trends are hard to reverse. Money flows with the trend until it doesn’t. Fighting the trend is very difficult to do.
Oil down again to 58.78 a barrel. It may be due for a technical bounce. Keep an eye on USO for a break of 22.37 to go long (and we are there as I type).
Enjoy your weekend! Next report on Sunday.
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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