Issue #189
Dear Member,
Gold is now testing strong support levels, which are entrenched from the $1,226 level up to $1,238. All indications from my studies indicate that support should hold and we should soon see a pop higher in gold.
That’s good news for the long ETF position, PowerShares DB Gold Double Long (DGP), as well as the shares in Kinross Gold Corp. (KGC).
Hold both positions and keep your good-till-cancelled protective sell stops in place at $24.54 and $2.89, respectively.
Many members have asked if a gold rally is the start of something bigger. It is definitely NOT. We are playing the long side of gold now for a short-term rally, probably gold’s last bounce – before it crashes to new lows – below $1,000 – later this year.
So please do not get fooled into buying gold, silver, or mining shares for the longer-term at this point. If you do, even the smallest most beaten down of miners, you are most assuredly going to get clocked.
Instead, if you are long precious metals, outside of this service, for whatever reason – do the smart thing and hedge those positions, as I have done for my Real Wealth Report members, with inverse ETFs or put options.
Also, hold your (re-established) long position in ProShares UltraShort Bloomberg Crude Oil, symbol SCO, with a good-till-cancelled protective sell stop at $68.98.
My models also continue to suggest the stock market will soon be rolling over back to the downside. Therefore, also hold your position in Direxion Daily S&P 500 Bear 3X ETF, symbol SPXS, with a good-till-cancelled protective sell stop at $19.39.
Best wishes and stay tuned …
Larry
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