The wild action in global equity markets continues, with the Dow Industrials plunging as much as 500 points intraday before recovering going into the close yet still ending down 249 points.
The recommended position in UVXY surged as high as $59.00 before settling back down at $50.64.
Today and tomorrow will be critical for the Dow. If it can break below and then close below the August 2015 low of 15,370.33 …
We will see the Dow begin a waterfall decline down to the 13,900 level.
If you own UVXY, hold, but raise your protective stop per the below instructions.
Meanwhile, gold and silver are starting to lift their heads nicely. But we need to see more upside progress unfold, which I expect we will soon see based on all the recent cycle forecasts I have shown you for the equity market as well as gold and silver.
Oil: Despite how ugly crude oil looks, I maintain my view that it is bottoming and will soon rally very strongly. Hold UWTI as well as the UCO call options. I may soon elect to add shares to UWTI, so stay tuned.
The euro continues to trade sideways, but the major trend is lower and it could break hard at any time. Hold all related euro positions.
Per Tuesday’s recommendation, you should now be out of GDX.
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For members who own UVXY: CANCEL and REPLACE your order to SELL ALL your shares of ProShares Ultra VIX Short-Term, symbol UVXY, at $22.24, STOP. NEW PRICE: $33.58, STOP. This order is good-till-cancelled. |
Stay tuned, today and tomorrow will be important days for several markets.
Best wishes, as always …
Larry
