Issue #98
| Recommendation:For each $25,000 you are trading …
1. Cancel your protective sell stop to sell 100 shares of VelocityShares 3x Long Natural Gas ETN (UGAZ) at $20.78. 2. Buy another 100 shares of VelocityShares 3x Long Natural Gas ETN (UGAZ) at the market and place a protective sell stop to sell 200 shares of UGAZ at $20.48, stop, good till cancelled. 3. Cancel your protective sell stop to sell 50 shares of ProShares UltraPro Short S&P 500 (SPXU) at $62.23. 4. Buy an additional 50 shares of ProShares UltraPro Short S&P 500 (SPXU) at the market and place a protective sell stop to sell 100 shares of SPXU at $59.89, stop, good till cancelled. |
Dear Member,
Natural gas has staged a sharper than expected correction, and so too has the VelocityShares 3X Long Natural Gas ETN (UGAZ). Meanwhile the stock market is nearly done with its upward correction, and another leg down is imminent. Both situations make this a great time to add to both positions, but with protective stop adjustments as noted in the above table.
Therefore, please act on the above signals as soon as possible, adding more shares of UGAZ and SPXU, cancelling prior stops and entering new stops for each position.
As to gold, it is indeed moving higher yet again. But it is now testing critical resistance at the $1,289 level, where the rally should fail. Gold has NOT bottomed by any of my indicators.
Notably, silver is hardly rallying at all, and this is a very telling sign that the precious metals market is not as healthy as most believe. If a bottom had truly been reached and a new bull market is hatching, silver and gold would be blasting higher, and pretty proportionally. That is not happening.
Put another way, the general (gold) is rallying without the troops (silver), a recipe for disaster.
Meanwhile, you should have been stopped out of the VelocityShares 3X Inverse Gold ETN (DGLD) position yesterday. We will not add to or go back into the metals until the picture clears up. Hold all other positions and stay tuned.
Best wishes,
Larry
