Metals and Miners
Today started out flat for gold and silver but as the day moved on the price of the metals and miners fell. While gold is still above resistance, a break below $1141.70 and things will get ugly. Yesterday I said; “I simply say as long as we stay below $1,200, look for the $1,141.70 mark to be taken out.” That’s pretty much what happened today.
I also said the following yesterday; ” If we do break for some reason this week, simply trade the higher high of the one going higher.” We did break down and JDST was available for a scalp long despite the fact the daily has not gone green. The weekly and monthly still are however. A break to a higher high today was definitely playable. With gold breaking down I imagine some are holding JDST overnight as well.
JNUG came close to its 52 week low but didn’t push through it. Tomorrow we may see this occur if gold doesn’t get a bounce. Silver just tagging along with gold. Both GLD and SLV are now all red arrows. As we move into the end of the year, will be get more selling? Where will the buyers come from? For long term holders of gold, it is only down 1.47% for the last year. Not bad considering all the negative articles that are out there. These same writers won’t see the bounce come and will keep writing negative articles.
My Predictions On Gold
I’ll tell you right now, if we do get below $1,000 an ounce on gold I will write my all in article between the gold price of $850 and $1,000. I will explain in detail what I believe will occur. I wont’ look back and second guess. As you know, I have been calling for a break of $1,000 for a long time. No one who owns gold wants this, but I have said several times that if I was a market maker, this is the price I want to take gold to and break the gold bulls back. I don’t discount this potential. My indicators still point to this possibility.
Well, with the stock market in full on bull mode, the buyers of metals aren’t going to come from those selling stocks. TNA moved up past 80 today and the rally till Christmas is still in play. Move stops up on this of course.
Yesterday for Natural Gas I said to practice a little more patience. I said; “The cooler weather it looks like won’t get here until the end of the year and into next, but that’s mostly for the Northeast. UGAZ looks attractive in the low 6’s. I would start cost averaging into a position soon, but you might want to be a little more patient.” Today we saw a beat down on UGAZ and DGAZ has all arrows pointing up. If you dip your toes in UGAZ, be quick with profits. For DGAZ I would watch for higher highs in Natural Gas as a signal to exit.
USO continued the downtrend but didn’t break its 52 week low, however it is close. Still catching a falling knife. Same goes for UCO.
Is this deflation or what?
RUSL closed up another 7.69% today to close at 3.78 after hitting a high of 4.14 earlier in the day. It had a dip in the middle of the day but never turned negative. If you are still in it, I would move up your stop to 3.52, the low of today and look to take profit soon unless we break to higher highs (above 4.14, today’s high).
GDP report tomorrow. How much you want to bet it comes in better than expected? If true, this should hurt gold and silver more. Look to see if they revise higher last quarters numbers too.
But we do have a lot of data coming out tomorrow so expect an up and down day overall depending on when the data is released. You can see the release schedule here: http://mam.econoday.com/
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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