Critical action in gold. It’s now trading below the $1,138 support level and this morning it just dipped below an important sell signal at $1,133.
That’s great news. BUT, we do need to see gold continue lower. It’s okay if it bounces a tad, but what we want is an overall steady decline to continue at this point, accelerating into the mid-November expected cycle low.
Hold DZZ with your stop in place. If I get signals to get more aggressively bearish, you will be the first to know. Ditto if I see a good opportunity to add a bearish position on silver.
As for the stock market: I maintain my view that it is topping. Ditto for Europe’s markets. So hold UVXY with your stop in place and I will update you accordingly.
The dollar is starting to climb again and the euro has now broken, again, the 1.10 support level. We should soon see the dollar’s upside move accelerate, and conversely, the euro’s decline also pick up momentum.
Hold UUP and EUO, as well as their related, recommended call options.
Likewise, the Japanese yen is depreciating again this morning. Hold YCS and the FXY March 2016 put options, strike price $78.00.
Oil is also moving back up, not much yet, but it is building a nice base. Hold USO with your stop in place.
You are on the right side of these markets. I am watching them like a hawk and I will soon be issuing some new trades as well.
Stay tuned and best wishes…
Larry
