GST Issue #208
Dear Member,
As I indicated late last week, I expected the markets to pick up some trending moves this week, and here we are with gold breaking some important short-term support at the $1,188 level.
Overall, gold (and silver) have been acting miserably when you consider the fundamentals. Signs of a slight pickup in European economic growth and more Middle East worries with the latest Saudi attacks on Yemen.
But as you know, I don’t trade based on fundamentals. Even in the short-term. Which is why I always say, price and price action tells you everything you need to know – about the past, the present, and even the future.
Right now, my systems are signaling you can take a light short position in gold via the bearish, DB Gold Double Short ETN, symbol DZZ.
There is some additional support at the $1,167 level, but overall, gold is acting as expected. And we could be on the verge of the decline I have been expecting, to the low- to mid-$1,000 level.
So right now, start with a light bearish position, per the table below. Once gold cracks the $1,167 level on a closing basis, I will get more aggressive.
Meanwhile, hold all other positions. The recommended put options on China’s stock market are underwater, but all of my signals continue to suggest a sharp pullback in Asian markets looms large.
You have just under a month to go with those May FXI put options, but they are worth holding for now.
Likewise, for the recommended inverse ETF, DXD, and for the put options on DBA.
Now, for the specifics of today’s trade …
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For each $25,000 you are trading in this service: Buy 200 shares of the DB Gold Double Short ETN, symbol DZZ, at the market. Place a good till canceled protective sell stop at $6.43. |
Best wishes,
Larry
