Dear Member,
Just a quick update here and a note. The U.S. equity markets remain very fragile. Yesterday’s selloff caught most investors offguard. My models remain resolutely bearish, projecting the Dow to fall to about 14,500 over the next few months. Your inverse ETF positions should do just fine, as should the volatility ETF.
As for gold, it looks like the bounce that is unfolding will continue, hence the new long position in UGLD. It should be a brief bounce, but one worth playing.
Please note: Several members have written in mentioning my article in this morning’s Money and Markets, claiming that the article doesn’t jive with taking a long position in gold.
So let me clarify: For intermediate- and longer-term traders, going long gold now, even for a bounce, doesn’t make any sense.
But for short-term action, such as in Gold and Silver Trader, it’s a different matter. I believe the bounce is worth playing and I expect you to be in the position no more than a few days.
Once the bounce is complete, however, I will be looking to get all members short both gold and silver, via inverse ETFs, since the subsequent move in the metals should be another large decline.
Hold all positions, with their related stops, and stay tuned.
Best wishes,
Larry
Position Tracker
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