Important Update And EPV Order Revision …

Dear Member,

If you didn’t own the previously recommended bear and volatility ETFs on U.S. equity markets – you should have easily purchased them yesterday morning (DXD, SPXS, and UVXY). It was great timing – as the market slid hard throughout the day.

You should have also purchased the natural gas ETF (UNG), also with nice timing.

All members should hold all of the above positions, with protective sell stops in place, good-till-cancelled.

For the inverse Europe ETF recommended in yesterday’s issue, symbol EPV, you were not filled. No problem. I have a revised order for you below. Details in a minute.

First, an update:

A. Equity markets are now violently rolling over to the downside. Should the Dow Industrials close today at or below 17,000, the models will issue a weekly sell signal, indicating much lower prices ahead.

Should that sell signal be avoided, the markets will still move lower, but we will likely first see a strong bounce early next week. Don’t let any bounce fool you.

Meanwhile …

B. Gold’s rally was expected, and it’s a huge fakeout. Don’t touch it with a 10-foot pole. Put another way, don’t believe anyone who tells you precious metals have bottomed. They have not. The bounce is merely a bear market rally. Once it plays itself out, the next leg down in the precious metals will be a doozy.

Resistance at $1,132 to $1,139 has been penetrated, and gold did reach as high as $1,167.90 (December futures contract) at roughly 11pm last night EST. There is a chance, after a brief pullback, that gold could reach as high as $1,200.

Here’s yesterday’s cycle chart, again. As noted, gold should turn down today, so don’t be surprised if you see a pullback.

We should then see another rally into mid-September (possibly to $1,200) … then a potential MAJOR collapse into November, where if everything remains on track, we should see gold plunge to well below $1,000 an ounce.

The next down leg in the metals is the one I will have in my crosshairs for you.

So let me be perfectly clear: Trading the long side of a bear market bounce is not what you want to do. Precious metals are in a severe bear market, and the right way to trade it is to let the bear market bounce play itself out, then get aggressive near the top of that bounce with bearish positions.

Miners are now bouncing also, but do not buy into them. Their trading patterns should follow gold’s, that is a bear market rally, then a plunge to new lows heading into November.

Keep in mind we are now experiencing the first winds of the storm that will arrive just a few weeks from now. Stay alert. Stay focused. And be sure to keep an eye on your inbox for my updates and recommendations.

Now, to revising your order to purchase
the inverse Europe ETF (EPV):

Stay tuned and best wishes, as always …

Larry