Stocks: Next leg down begins, plus new reco!

There’s a sea of red in equity markets this morning with Europe leading the way lower, Germany’s DAX down over 3%. In pre-open trade, the Dow Industrials is down over 200 points. This should be the beginning of the next leg down in stocks, which should take out the August lows.

Therefore, hold your shares in the ProShares UltraShort QQQ, symbol QID, with a protective sell stop at $30.17, good till cancelled.

Also hold your shares in UVXY, with a protective sell stop at $32.14, good till cancelled.

Meanwhile gold has pulled back, but remains in a position to rally further. Hold your shares in UGLD, with a protective sell stop at $8.22, good till cancelled.

Natural gas is not acting well, but I need another day or two of action to determine what to do. For now, hold your shares in UNG, with a protective sell stop at $11.64, good till cancelled.

New recommendation for today, for all members. The U.S. dollar’s recent sideways correction appears to be over. More so now since stocks are falling across the globe and the flight to cash should accelerate, which is bullish for the dollar, by default.

Therefore, I recommend buying the U.S. Dollar Bull ETF, symbol UUP.

Note that if you are trading less than $25,000, simply pro-rate the number of shares you are trading.

For instance, if you are trading $10,000, you would buy 40 shares of UUP instead of 100. The calculation would be $10,000 divided by $25,000 = 40%. 40% of 100 shares = 40 shares.

For those of you who have asked, “or better” is simply a traditional limit order which means you should pay no more than the specified price, in this case $25.25 — but you can buy it if it is trading at less than that.

Put another way, you can buy it cheaper if it is trading less than that price, but you should not buy it if it is trading above $25.25.

Now, please act on the following order asap.

Stay tuned and best wishes,

Larry