GST Issue #219
Dear Member,
Gold is tanking, sliding more than $18 yesterday, more than $25 since last week’s webinar where I laid out the two paths gold could take. Path A down has definitely taken the upper hand.
This is great news for the recommended bearish gold positions, including …
* DB Gold Double Short ETN (DZZ), which surged nearly 3 percent yesterday. Hold with your good-till-cancelled protective sell stop at $6.43.
* SPDR Gold Shares July 114 put options, which surged a whopping 40.59 percent yesterday. Hold!
* Direxion Daily Gold Miners Bear 3x ETF (DUST), which surged more than 9 percent yesterday. Hold with your good-till-cancelled protective sell stop at $10.54.
At the same time, the grain markets are also slipping and sliding lower, great news for your PowerShares DB Agriculture July 23 put options, which surged 15 percent yesterday. Hold!
And likewise, the stock market is also under pressure, with the Dow down 190 points yesterday and the S&P 500 also tanking. Great news for your bearish positions, ProShares UltraShort Dow30 (DXD) and Direxion Daily S&P 500 Bear 3X Short ETF (SPXS).
Hold DXD and SPXS with your good-till-cancelled protective sell stops at $19.25 and $15.15, respectively.
Last, but not least, interest rates also declined yesterday as the stock market fell, with capital seeking out the long bond for safety.
Longer-term, that’s a disaster for money being parked in the bond market. But short-term, it’s a trade worth playing. So hold your Direxion Daily 7-10 Year Treasury Bull 3x Shares ETF (TYD) with your good-till-cancelled protective sell stop at 42.49.
Right now, per the chart I have for you here, gold has minor support at the $1,160 level, which should soon give way. Once it does, gold should make a beeline to new lows below $1,129, then even lower as we head into the June cyclical target for a possible major low (below $1,100, and hopefully below $1,000).
Now, to a new trade! Natural gas has bottomed. Buy UNG.
As I mentioned in last week’s webinar, after a long drawn out 10-year bear market that has seen its price collapse more than 87 percent, from roughly $15.78 to as low as $1.92 – all of my models strongly suggest that natural gas has bottomed.
We’ve already seen the initial lift-off rally, as you can see in this chart. Most recently, natural gas prices have pulled back to a major support zone.
It’s now time to go long natural gas, via the United States Natural Gas ETF, symbol UNG. Here are the details of my recommendation:
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For each $25,000 in equity you are trading in this service: Buy 200 shares of UNG at the market and place a |
Note, this trade should be considered a longer-term trade, one you may hold for a few months, perhaps even longer. Naturally, I will raise the protective sell stop along the way, based on market action.
Stay tuned. This week is shaping up to be very exciting indeed. We may even see the first major cracks appear in the euro, as it becomes increasingly likely that Greece will have to default.
Best wishes,
Larry
