Issue #102
| Recommendation:
1. Sell 100 (or half) your shares in Velocity Shares 3x Long Natural Gas ETN, symbol UGAZ, at $36.00 or better, to close. 2. Cancel and replace your protective order to sell 200 (or all) your shares of Velocity Shares 3x Long Natural Gas ETN, symbol UGAZ, at $20.48 stop, good till cancelled. NEW PRICE AND QUANTITY: Sell 100 (or your remaining) shares at $31.24 stop, good till canceled. |
Dear Member,
Natural gas is on another tear higher, due in part to the cold weather, but mostly to the fact that natural gas prices have bottomed after nearly 11 years of declining prices.
Prices will head still higher, but probably not until after a pause. Therefore, my models are signaling that you should take profits on half the position in Velocity Shares 3x Long Natural Gas ETN (UGAZ), per the above instructions.
Also note that it’s time to move the stop up, so be sure to act on item #2 above as well.
Meanwhile, gold closed above $1,320 on Friday, and is following through this morning with another $10 rally. The Friday buy signal indicates that gold should move still higher, to $1,360 and quite possibly to $1,400. Silver is following suit higher as well this morning.
I do not believe that gold has bottomed yet, as I’ve indicated before. Instead, all my signals suggest that we are merely seeing mostly short-covering, setting the stage for a rally that will eventually lead to another crash.
Nevertheless, there remains some decent upside potential. I will be looking to exit the existing long position in the PowerShares DB Gold Double Short ETN (DZZ) and possibly going long gold and silver via leveraged ETFs, but only after a pullback.
Stay tuned …
Best wishes,
Larry
