Issue #158
| For all subscribers who own shares in EUO and UUP:
1. SELL ALL your shares in ProShares UltraShort Euro (EUO) at the market. Cancel your protective sell stop at $15.47. 2. SELL ALL your shares in PowerShares DB US Dollar Index Bullish Fund (UUP) at the market. Cancel your protective sell stop at $18.80. For all subscribers: NEW TRADES: For each $25,000 in equity you are trading: 3. BUY 200 shares of the ProShares Short Russell 2000 ETF, symbol RWM, at the market and place a protective sell stop at $15.50 stop, good till cancelled. 4. BUY 100 shares of the iPath S&P 500 VIX Short-Term Futures ETN, symbol VXX, at the market and place a protective sell stop at $26.50 stop, good till cancelled. |
Dear Member,
No time to waste, we have four signals to act on, above.
First it’s time to grab profits on the inverse euro ETF. The euro’s long decline is not over, but short-term, the currency is deeply oversold and overdue for a big bounce. So now is the time to grab profits, per recommendation #1 above.
Second, the same applies to the long dollar ETF, via recommendation #2 above. The inverse of the ETF, the dollar is now overbought and subject to a downdraft, so let’s bag a modest profit.
Third, the stock market has finallly rolled over and there is much more coming on the downside. One of the weakest sectors is the small-caps. I recommend getting short the small-caps via the inverse ETF, the ProShares Short Russell 2000 ETF, symbol RWM, per reco #3 above.
Fourth, the stop on the VXX position turned out to be too tight. But volatility in the equity markets is now increasing sharply, so we want to get back in. Per recommendation #4 above, let’s do just that, buying the iPath S&P 500 VIX Short-Term Futures ETN, symbol VXX, at the market.
For recos #3 and #4 above, be sure to enter your protective sell stops.
Lastly, a bounce is developing in gold and silver. At this time, I do not think it’s worth playing. The big play will be to take on bear positions in gold and silver, via inverse ETFs, once the bounce plays out.
Hold all other positions, with their related stops, and stay tuned.
Best wishes,
Larry
