Even though gold reached as high as $1,199.30 yesterday (April futures), it’s now trading back down, and more importantly, has already fallen below the weekly buy signal at $1,187.50.
This is not unusual. Typically, when a market is going to elect a major weekly buy signal, it will first exceed it … then drop back below it … trade sideways for up to another week … and then finally rally anew and elect the important signal.
I believe that will be the case with gold and silver. So here’s what I recommend: Take profits on half your shares in UGLD and USLV. Then, you will add to the remaining shares on a test of support, or upon election of the weekly buy signal.
That way, you take some profits off the table, and add back to the positions at the right time.
Details in a moment.
First, a note on oil. It took another tumble again yesterday. But my neural net models are clear: Oil is in store for a very powerful rally. Here is the updated cycle chart. As you can see, despite yesterday’s fall, cycles point higher all the way into April 22, followed by a shallow decline, then another rally into May 23.
The artificial intelligence, neural net models are rarely wrong. So I am recommending you hold all oil and oil-related positions.
Stock market: About to roll over again. Hold UVXY with your stop in place.
Euro: Models suggest a top coming into play, so be ready to short the euro again on a moment’s notice.
Now, to take profits on half your shares in gold and silver …
|
For all Members Who Own UGLD and USLV: 1. SELL HALF your shares in VelocityShares 3x Long Gold, symbol UGLD, at $10.09 or better, good till canceled. 2. SELL HALF your shares in VelocityShares 3x Long Silver, symbol USLV, at $12.74 or better, good till canceled. Keep in mind I am monitoring a stop for you. But in case you have entered a sell stop of your own, be sure to reduce its quantity in half based on selling half the position per the above instructions. Do NOT sell at the market. Hold all other positions. |
Best wishes and stay tuned …
Larry
