Issue #173
| For all members, for each $25,000 in equity you are trading:
1. BUY 100 shares of ProShares UltraShort QQQ, symbol QID, at the market. Place a protective sell stop at $37.50 stop, good till cancelled. 2. For ALL of your shares of United States Natural Gas Fund LP, symbol UNG, cancel your existing sell stop at $17.50 and replace your protective sell stop at $18.75 stop, good till cancelled. 3. CANCEL your order to purchase 10 March 2015 Direxion Daily Junior Gold Miners 3X ETF call options with a strike price of $3.00, symbol JNUG150320C00003000, at a price of $1.20, or better. |
Dear Member,
Last Thursday, I put out an issue calling for a bounce in the precious metals and to get long the miners, via your choice of a couple different ETFs and a call option.
On Friday, gold and silver surged higher, right on cue. Fortunately, you were able to purchase the Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) at roughly $3.45 or the Market Vectors Gold Miners ETF (GDX) at roughly $17.37.
The March 2015 Direxion Daily Junior Gold Miners 3X ETF call options with a strike price of $3.00, symbol JNUG150320C00003000, at a price of $1.20, or better, were not filled. Per the above instructions, cancel that option order NOW.
Hold JNUG and GDX, with your good-till-cancelled protective stops in place at $1.30 and $13.48, respectively.
I expect to see a further bounce in the early half of this week in the precious metals, one that should carry the miners higher as well, and of course, the prices of JNUG and GDX.
But stay alert, most of the bounce in gold and silver has already occurred; I may therefore have you exit JNUG and GDX on a moment’s notice.
If not on board either JNUG or GDX, then wait for my next signals.
Hold your remaining bearish positions as well, which include half your original positions in …
* ProShares UltraShort Silver (ZSL), with a protective sell stop, good till cancelled, at $97.87.
* VelocityShares 3X Inverse Gold ETN (DGLD), with a protective sell stop, good till cancelled, at $61.85.
* And the SPDR Gold Shares Jan-15 118 Puts (GLD150117P00118000).
My strategy will be to exit JNUG and GDX with gains on a further bounce, then I’ll look for you to add some more firepower to the bearish side, since the next leg down should see gold bust below $1,100 and silver below $15.
Right now, however, you have a new trade to act on.
Per the above table, I recommend getting short ProShares UltraShort QQQ, symbol QID, at the market. Place a protective sell stop at $37.50 stop, good till cancelled.
Reason: A fairly major bearish divergence between the NASDAQ’s price action and its RSI, or Relative Strength Index. You can see it on this chart here.
Please act on this recommendation as soon as possible.
In addition …
Per the above table, now is the time to tighten your stop on the United States Natural Gas Fund LP, symbol UNG, by cancelling your existing sell stop at $17.50 and replacing it with a new protective sell stop at $18.75 stop, good till cancelled.
Lastly, a couple notes: First, you also still hold a position in RWM, which is down. But I expect the Russell 2000 Index will be heading lower with the NASDAQ, so continue to hold with your stop in place at $15.50, good till cancelled.
Second, ENSV has been getting dragged down with the price of oil just like the rest of the energy service sector stocks. The company reports earnings on Wednesday, but whatever they are, natural gas is acting very strong and the charts tell me a rally is imminent in ENSV’s share price.
Stay tuned and best wishes,
Larry
