Issue #54
Dear Member,
Natural gas has rallied a tad, and in turn, the Velocity Shares 3x Inverse Natural Gas ETN, symbol DGAZ, has fallen triggering my recommended sell stop at $13.09. That’s too bad, as all of my indicators for natural gas remain bearish.
As a light position with a tight stop, the loss is minor. Not to worry, with all of my models still bearish natural gas, I will be expecting another sell signal and will look to recommend you re-enter the short side of natural gas again, via the same ETN. But wait for my signals.
Gold and silver are holding steady, showing some signs of wanting to rally. But I don’t think the metals will be able to muster up the strength to pull off a decent rally. Gold is now building strong technical resistance at the $1,333 level, followed by $1,340. If gold cannot get through those two levels soon, the current strength should rollover to the downside.
Silver has important resistance at the $22.45 level followed by $23. The same applies. If silver cannot get through those two levels, and soon, the momentum should roll back over to the downside.
On both a short- and intermediate-term basis, there is NO question that the metals have not yet put in a final bottom and will not do so until early next year.
Meanwhile, the mining share sector is also weak, the result of the weak, sideways action in the metals, and also the weak overall broad stock market. Hold your shares in Direxion Daily Gold Miners Bear 3X Shrs (DUST), with your new protective sell stop in place at $35.18 stop, $34.48 limit, good till cancelled.
Stay tuned,
Larry
