Let me get right to the heart of the matter, the markets.
First, U.S. equity markets are bouncing, but that’s all it is, a bounce. Another leg down that should slide right through the August lows should start at any hour now.
So don’t be deceived by the bounce and hold ProShares Ultrashort QQQ (QID) … ProShares Ultra VIX Short-Term (UVXY) … and ProShares UltraShort FTSE Europe (EPV).
I will now raise the protective sell stops on QID and UVXY, so see the details below.
Second, gold is acting weak, but here too, don’t be deceived. A turn back up should develop at any time, and my models show gold rallying as stocks slump again. Hold VelocityShares 3X Long Gold ETN (UGLD) with a protective stop, good till cancelled at $8.22.
Third, the euro is biding some time, largely trading sideways. But we are now entering a period where the euro currency will likely fall hard, for most of the remainder of the year.
Hold your ProShares UltraShort Euro January 2016 call options, strike price $25 (EUO160115C00025000).
NOTE: New members who do not own any of the above positions, please see the table below for what to do.
Lastly, natural gas is slumping and yesterday you should have been stopped out of United States Natural Gas ETF (UNG) when it hit my recommended stop at $11.64.
Not to worry, the loss, at roughly $624, is a fraction over 2% of the theoretical $25,000 portfolio. As I mentioned in my webinar on Tuesday, keeping losses small, while letting your winners run, is the key to success.
Generally, I will keep losses at no more than 3% of a portfolio, and often, far less.
We’re seeing more and more people pick up on the real
trend right now, which is governments going broke.
Maverick billionaire investor Carl Icahn is now warning of a sovereign debt crisis. So too is the International Monetary Fund. Other big money managers are starting to position themselves as well, with Japan’s Postal Savings Pension, the largest government pension in the world, also realizing the crisis that is coming will be in government debt.
As a result, authorities at Japan Post, the country’s largest employer managing a $1.7 trillion pension system – is now in talks with various funds to start shifting more of its assets out of government bonds and into other assets.
This is merely the beginning of a whole new world, where unlike 2008/2009 the crisis will not be in the private sector, but instead, in the public sector.
Now, to raise stops and to get up to speed …
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1. CANCEL and REPLACE your order to sell your shares in ProShares UltraShort QQQ (QID). NEW PRICE: $31.71. 2. CANCEL and REPLACE your order to sell your shares in ProShares Ultra VIX Short-Term (UVXY). NEW PRICE: $34.10. For members who do not own certain positions, please act now on the ones you do not own, via the below instructions: 1. Using 5% of the funds you have allocated to this trading service, buy shares in ProShares UltraShort FTSE Europe, symbol EPV, at the market. Place a good-till-cancelled protective sell stop at $56.29. 2. Using 5% of the funds you have allocated to this trading service, buy the January 2016 ProShares UltraShort Euro call options, strike price $25.00, symbol EUO160115C00025000 at a price of $1.10, or better, good till cancelled. Alternatively — if not trading options — using 5% of the funds you have allocated to this trading service, buy shares in ProShares UltraShort Euro ETF, symbol EUO, at the market. Place a good-till-cancelled protective sell stop at $21.56. 3. Using 5% of the funds you have allocated to this trading service, buy shares in ProShares UltraShort QQQ (QID), at the market. Place a good-till-cancelled protective sell stop at $31.71. 4. Using 5% of the funds you have allocated to this trading service, buy shares in ProShares Ultra VIX Short-Term (UVXY), at the market. Place a good-till-cancelled protective sell stop at $34.10. 5. Using 5% of the funds you have allocated to this trading service, buy shares in VelocityShares 3X Long Gold ETN (UGLD), at the market. Place a good-till-cancelled protective sell stop at $8.22. |
Go ahead and act on these new recommendations as soon as possible.
Hold all other positions and stay tuned …
Best wishes,
Larry
