SCT Issue #251
There’s a reason I recommended a very light long position in Direxion Daily Junior Gold Miners Bull ETF (JNUG): With stocks selling off sharply, the risk of the selling negatively impacting mining shares worried me.
You should have been stopped out of your purchase of JNUG from this morning a few minutes ago, when JNUG hit my recommended sell stop at $8.54. Depending upon when you entered, the loss should be roughly about $0.50 a share, or around $50 on 100 shares.
You could say the stop was too tight. Maybe. But my models told me to keep the risk as small as possible, and that’s what I did. It now looks like JNUG should fall back to the $7.00 level. I’ll reassess it then.
Meanwhile, you should have easily been able to purchase shares in iPath S&P 500 VIX Short Term Futures ETN, symbol VXX, at $29.00 or better. Make sure you have now entered a good-till-cancelled protective sell stop at $23.72.
It has come to my attention that several members previously purchased shares in ProShares UltraShort FTSE Europe, symbol EPV. You should NOT have purchased those shares if you are following my recommendations. Please exit your EPV shares if you purchased them.
It is very important that you don’t front run my recommendations. By doing so, you are not following my models to a tee, and while you might get lucky on occasion, you will be hard pressed to beat my performance in the longer-run.
Moreover, you are not being fair to other members of the service, in so much as you impact the recommendation’s price by front-running them and not using my recommended limit orders. Please refrain from doing so.
Best wishes and stay tuned …
Larry
