Let’s get right to it.
First, you should be filled on Tuesday’s recommendation to buy Direxion Daily Junior Gold Miners Index Bull 3x (JNUG). Great!
While the position is under pressure this morning, we think it will be short lived.
And that’s because there’s a great deal of political uncertainty on both sides of the Atlantic that will keep safe-haven demand in place.
Yesterday, it was the former-FBI Director James Comey’s testimony in front of the Senate Intelligence Committee that stopped short of labeling President Trump’s action an obstruction of justice.
The testimony did cast doubt upon the administration’s dealings, which is sure to embolden the far-Left’s pursuit to dig deeper into “Russiagate”. And it’s also likely to delay the administration’s pro-growth initiatives.
Then last night, it was the U.K. elections that resulted in a hung Parliament. This sent a major blow to the Conservative Party and Prime Minister Theresa May’s hopes to clinch a parliamentary majority.
Focus now turns to whether there’ll be a softer Brexit track and to whether Labour’s Corbyn will be the next prime minister.
The result so far was a jolt of volatility into currency markets that pushed the U.S. dollar higher, and that’s weighing on precious metals going into the weekend.
Now for a quick update on the Dollar …
Your call options on PowerShares DB US Dollar Index Bullish Fund (UUP) are seeing a lift in the wake of yesterday’s ECB monetary policy meeting and U.K. election.
Stability came into the Dollar after the ECB decided to lower their inflation outlook, which undermined recent strength in the Euro currency.
More support for the greenback came overnight following the U.K. election outcome that sent the British Pound sharply lower.
The Dollar’s focus now turns to next week’s two-day FOMC meeting. It’s widely expected that the Fed will lift rates Wednesday, but uncertain whether they will signal more rate hikes later in the year.
Continue to hold your September UUP call options and all other positions in the E-wave Trader Portfolio.
And stay tuned for more updates coming your way very soon.
Good investing,
Mike and David
