Issue #88
| Recommendation:
For every $25,000 in equity you are trading for this service … Buy 200 shares of the ProShares UltraPro Short S&P 500 ETF, SPXU, at the market. Place a protective order to sell 200 shares of SPXU at $14.67, stop, good till cancelled. |
Dear Member,
There is no question that the gold and silver markets are exceedingly frustrating right now. All models continue to point lower, yet the metals are catching a bid.
As a result of yesterday’s further rally, you should have been stopped out of your long position in the Direxion Daily Gold Miners 3X Bear ETF (DUST) and half your position in the Velocity Shares 3X Inverse Gold (DGLD).
It stinks. My track record has been terrible. I’ll be the first to admit it.
But I am resolute we will do better, much better. I know the metals have not yet bottomed. I know they may be forming a cycle inversion. And I do know that when the big decline comes into a final low, I will be there to help you catch it and profit from it, enormously. Not to mention the inevitable turnaround back to the upside in the metals and the mountains of profits they will offer.
Right now, we simply need to bide some time and let some trading action unfold in the metals before I make my next moves. There is still plenty of evidence that the current rally will fail. Silver, for one thing, is failing to hold on to closing resistance at the $20.50 level.
On the other hand, a cycle inversion may be forming, and if so, that would mean a further rally in gold, to as high as $1,300 and silver to the $23 level.
Either way, rest assured that I will strike at the right time, either long or short.
For now, hold your long position in the DB Gold Double Short ETN (DZZ), with your protective stop in place at $5.52 on a good till cancelled basis. Also hold your original 50 shares in Velocity Shares 3X Inverse Gold (DGLD), with a protective sell stop at $68.99, good till cancelled.
While we wait for further clarification in the metals, let’s take advantage of a special opportunity: The U.S. stock market finally appears to be rolling over to the downside, in what should turn out to be a rather sharp correction.
Yesterday, I received confirmation: A very important sell signal in the S&P 500 index as it plunged to close the day’s trading below 1816.75.
That sell signal should see the S&P 500 Index work its way down to the 1,767 level over the coming days, and the Dow Jones Industrials to the 15,512 support level.
My recommendation: Buy shares in the inverse S&P 500 ETF, the ProShares UltraShort S&P 500 ETF, symbol SPXU, per the above table. Use a protective sell stop at $14.67, good till cancelled.
Stay tuned and best wishes,
Larry
