In yesterday’s current thoughts I said to expect some volatility during this Fed meeting week and today we got the first swing for gold and silver and it was down. Both the metals broke their $1200 and $17 resistance and they took the mining stocks with it as the dollar saw yet another rally. The scores for GLD and SLV fell to -75 and the miners maintained their -100 scores with JNUG and GDXJ breaking to fresh 52 week lows and NUGT coming within 4 cents of its 52 week low. GDX is still 80 cents from its 52 week low.
JDST, with a score of +100 was the star of the day, up 24.84%. It will be interesting to see if tomorrow we get a whipsaw and the miners take one last move higher before gold and silver bottom out on a final leg down that I have been saying would eventually come. Perhaps then I will finally be writing my all in article, but my indicators have to convince me. So far they haven’t.
Oil continued to fall hitting a low of 55.56 and has now turned up and is sitting at 56.14. USO hit a 52 week low at 20.97 and closed at 21.06. A break of 22.05 and it might be worth a trade long.
UGAZ started the day up nicely but spent the whole day hitting lower lows before closing at $9.03. DGAZ opened down and ended the day positive. The warmer weather outlook might be playing havoc on the natural gas longs and this morning pre-market would have been a good time to exit any trades.
I forgot to mention TZA yesterday. It finally broke the $14 mark and was worth a long. It is currently at 14.35 and we’ll see if it has any momentum to keep going higher. 14.48 was the high today.
Look tomorrow to see if gold can break 1200 again and silver 17 before going long. Otherwise JDST is the play on a break to higher highs. Watch for the whipsaw I mentioned yesterday.
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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