Yesterday, you should have been filled buying the ProShares Ultra Oil & Gas ETF (DIG). And that’s a great move! As noted is yesterday’s trade alert, our E-Wave cycles have turned up for oil, natural gas and energy shares.
We expect a sizeable rally in the weeks ahead. And that’s exactly why we positioned you to profit with the United States Oil Fund (USO), ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and now DIG.
We’ve got all the bases covered for what should be a lucrative profit opportunity. And if you’re worried about the impact on energy for the Texas Gulf Coast region from Hurricane Harvey, don’t be.
Remember, oil inventories have been declining steadily (as you can see above), falling this week to the lowest level in 20 months! So, a temporary hiccup that leads to a short-term inventory build isn’t going to change the trend. And it’s certainly nothing to lose sleep over.
Gold update …
Gold prices pulled back on Tuesday and Wednesday, consolidating the big gain on Monday. But the yellow metal surged higher again yesterday with the December futures contract closing at $1,326.50 an ounce on Thursday!
That’s the highest monthly close since July 2016, and the best weekly close since September of last year. So gold is certainly in a bullish posture.
Key support for gold lies at $1,314.10. And if it can remain above support, the yellow metal may continue to push higher toward the $1,400-$1,500 level near term.
That said, please remember that our E-Wave cycles expect another pullback for precious metals in the weeks ahead, before a more powerful rally blasts gold and silver off to the upside again. Ditto for the miners. The most likely window for a possible pullback is mid-to-late September, so we must remain cautious. Stay alert for more precious metal updates and analysis from us.
Meanwhile, hold all other positions.
Good investing,
Mike and David
