Issue #126
Dear Member,
| Recommendation:
Buy 100 shares of the CurrencyShares Australian Dollar ETF (FXA) at the market with a protective sell stop at $86.88, good till canceled. |
Please act on the above recommendation as soon as possible. My models are signaling a trend change to the upside for the Aussie dollar, which, as a commodity-based currency, should soon rally right along with the prices of gold and silver.
Now, to an update: These markets are some of the toughest I’ve seen in my 35 years trading.
And I’m not alone. Most large hedge fund managers, some of the biggest in the world, are getting chopped up, including George Soros and John Paulson, who has seen some of his hedge funds lose as much as 50 percent of their value in the past year.
There is also the famous Paul Tudor Jones, forty years in the markets, who put it this way recently, stating that “trading has probably been as difficult as I have ever seen it in my career.”
I agree. But we’re holding our own right now, and despite the ongoing troubles we have been having in the markets, I am 100% confident that we will soon turn the corner.
Let me now review with you the key markets. All markets have been decisively and wickedly choppy of late. The chief reason being the ramping up of the war cycles that I have been telling you about that are now impacting all markets.
Just look around the globe: Terrorist attacks in mainland China. China aggressively pursuing territorial claims in the South China Sea, causing violent riots in Vietnam, the worst tensions with Japan and the Philippines since World War II.
Ukraine, on the verge of civil war. And while Putin may seem to have backed down of late, don’t count on it. He’ll be back soon, going after eastern Ukraine, and then Lithuania, Latvia, Estonia and other former Soviet satellites.
Consider Thailand, where I live, now under martial law and in the midst of a coup.
Or the ongoing troubles in Turkey, Yemen, Syria, Venezuela, throughout Europe, and more.
Not to forget the ongoing threats to privacy, the very real prospects of rising taxes and threats of confiscation, in Europe and in the USA.
All of these events are tied together, part and parcel of the ramping up of the war cycles that I have been warning you about and that are having a major impact on all markets, far more than most realize at this time.
They are setting the stage for massive new bull markets in commodities, a short-term slide in the stock market, which will be followed by a major move higher.
Let’s take a look now at our current positions, which are all based on intermediate-term trend trades:
— Gold and silver: Both metals continue to chop up and down, but all of my models continue to suggest that they are on the doorsteps of a potentially very powerful rally, one that could soon take gold up to the $1,449 level and silver to at least $23.75.
Hold your long positions in the VelocityShares 3x long gold and silver ETFs (UGLD and USLV) and maintain your protective sell stops at $14.50 and $35.12, respectively.
These are intermediate-term trend trades, so expect to hold them, targeting the $1,449 level in gold and $23.75 in silver. If my models are correct, there is substantial upside profit potential for these ETF positions.
— Dollar (DXM4): As expected, the U.S. dollar has staged a nice rally of late, with more to come.
This is also an intermediate-term trend trade, and my objective is for the Dollar Index, currently trading just above the 80 level, is to reach the 84 level.
Hold your long shares in the PowerShares DB US Dollar Index Bull ETF (UUP) with a protective sell stop, good till canceled at $18.80.
— Euro: The euro is finally on the verge of a major collapse, the first leg down already in place. Expect a short-term bounce, then a new leg lower that will be very damaging to the euro.
Hold your shares in the ProShares UltraShort Euro (EUO) and maintain your protective sell stop, good till canceled at $15.47.
— Stock market: Despite its incredible strength, my models continue to tell me that there will be no major breakout to the upside until we get a sharp, fast, pullback. There is no question this market is headed much higher long-term, as I have been forecasting all along …
But it will not do so until a good, solid correction has come. Hence, why I recommend holding your shares in the Direxion Daily S&P 500 Bear 3X Shares (SPXS) and maintaining your protective sell stop, good till canceled at $27.67.
Stay tuned, all these markets are on the verge of major moves …
Best wishes,
Larry
