| Recommendation:
Using 10% of your available Gold and Silver Trader funds, and where “XX” equals the number of shares you would purchase based on allocating 10% of your available funds … 1. BUY XX shares of Market Vectors Junior Gold Miners ETF, symbol GDXJ, at $40.50 or better to open. This order is good till cancelled. If and when filled, place a good till cancelled protective sell stop, at $35.03. Also … 2. CANCEL and REPLACE your open order to buy XX shares in Exeter Resource Corp., symbol XRA, at $0.76 or better, good-till-cancelled. New Price: $0.89 or better, good-till-cancelled. Note: DO NOT buy XRA at the market! |
Dear Member,
Gold and silver popped sharply higher yesterday, stopping you out of the recommended positions in ProShares UltraShort Gold (GLL) and ProShares UltraShort Silver (ZSL) — when they hit my revised risk stops at $92.77 and $95.29, respectively.
If you acted on the original recommendation, you should have bagged small gains of roughly 2.18% or 0.11% of a hypothetical $25,000 account and 0.08% or 0.004% of a hypothetical $25,000 account, respectively. For latecomers to those two trades, you ended up with a modest loss.
Not to worry. Although I believe gold and silver are now largely in no man’s land but still with a negative bias, the action in the mining sector yesterday was fantastic.
More specifically, as I showed you previously, my work was forecasting a possible major low forming in the mining sector on Tuesday, August 6.
Well, I was wrong. It formed the next day, August 7.
You can see it here on this chart of the Market Vectors Gold Miners ETF (GDX). Notice the spike low on August 7 and how it penetrated and closed below the uptrend line.
Then the next day GDX surged back above that uptrend line, exploding 9.08% higher.
That kind of move — plunging below an uptrend line and immediately and strongly reversing higher back above it — is typically only found at major lows.
You can see the same type of action in this chart of the ARCA Gold Bugs ETF (HUI). Note the fake out low and the 9.02% surge that followed.
You can also see it here on this chart of the Market Vectors Junior Gold Miners ETF (GDXJ). Again, notice the fake out move into a low followed by an amazing 15.35% single day surge in the most speculative junior miners.
Importantly, although the action in the mining sector — making a low right on the August 6 turning point then reversing sharply higher — is constructive …
To confirm that this sector has indeed bottomed would require each of these ETFs to close above the downtrend lines I have drawn for you.
But as a more aggressive trading service, I don’t want you to wait for that. Instead, I recommend ALL members act on the recommendation to buy shares in GDXJ per the instructions at the top of this issue.
I also recommend that all subscribers act on my second recommendation in the box and raise your buy limit price on Exeter Resource Corp. (XRA) per my instructions. And I repeat, DO NOT BUY XRA AT THE MARKET AND DO NOT CHASE THE STOCK.
Go ahead and get these orders in and stay tuned …
Larry
