We need to move quickly. This morning, the Consumer Price Index came out at minus 0.2%, showing deflation in the U.S. …
Also reported this morning, the September Empire State Manufacturing Index at a whopping negative 11.36, much worse than expected and showing a massive slowdown in U.S. manufacturing.
Gold’s first reaction was to rally strongly, mostly on talk that there may be no way Yellen can raise rates this year.
Gold shot up to near $1,192. And while it can move a wee bit higher, as you saw from my cycles chart the other day, gold is now stretching the cycles and a move back down – very possibly a big one – is in the cards.
So right now, post haste, it’s time to act on the following two recommendations. First, grab your profits on UGLD (roughly 17.8%).
Then, buy shares in the gold inverse ETN, DB Gold Double Short ETN, symbol DZZ.
If all goes according to the models, I will soon opt to get more aggressively bearish gold.
Meanwhile, stocks are looking very toppy, and a dollar bottom is coming into play. Hold all other open positions and related stops.
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For ALL Members Who Own UGLD: 1. Sell ALL of your shares in VelocityShares 3X Long Gold ETN, symbol UGLD, at the market and cancel your protective sell stop at $8.22. For ALL Members: 2. Using 5% of your funds, buy the DB Gold Double Short ETN, symbol DZZ, at the market. Place a good-till-cancelled protective sell stop at $6.53. |
Best wishes,
Larry
