Trade Alert: Two Trades plus Update …

It’s 3:34 AM EST as I pen this issue. Gold is down another $5 in Asian trade and silver is down roughly $0.10.

This is good follow-through to Friday’s devastating hit to the precious metals, which you can see on this chart here.

Notice how gold smashed the main uptrend line of the rally – like a hot knife through butter.

Moreover, gold is now below the down sloping median line set – also a very bearish sign.

Silver’s chart looks similar, only more bearish!

Main support in gold now still stands at the prior sell signal at $1,320 – followed by $1,298. If $1,298 is taken out – as I expect it will be – gold should tumble to $1,250.

But it’s early. We need to see gold take out $1,320 first on a decisive basis.

Hold your shares in ProShares Ultrashort Gold (GLL), and if you haven’t already, place a good-till-cancelled protective sell stop at $62.42.

The GLD $121 Aug16 puts are likely to expire worthless, unfortunately. But if gold continues to fall, I will look to pull some money out of it for you, as long as it covers the typical brokerage fees. Ditto for the ZSL $40 Aug16 calls.

The euro is flat this morning, trading sideways along with the dollar. However, the euro also got smacked in the face on Friday and is now back below resistance levels.

Many have asked about the EUO $24 Aug16 calls that expire on the 19^th. They are only worth $0.90 and my recommendation is to hold. The euro is edging closer and closer to a collapse.

Also hold your longer dated EUO $28 Jan17 calls as well as ProShares UltraShort Euro with a good-till-cancelled stop at $21.16.

Bonds are flat this morning, but still in a very bearish mode. Hold your shares in Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV), with a good-till-cancelled stop-loss at $14.87.

Also hold your Direxion Daily S&P 500 Bear 3X Shares (SPXS) with a good-till-cancelled stop-loss at $11.18.

Now, on to My Trade Recommendations for Today

FIRST, I recommend grabbing your gains of as much as 23.66% on The India Fund Inc. (IFN). Details to follow.

SECOND, I recommend an inverse ETF on Europe’s stock markets. Why?

Because Germany’s DAX – the EMU leader – is in a very bearish mode and the biggest companies in Europe are getting thrashed by the combination of EU problems from Brexit … to the potential exit of France now (Frexit) … to Italy’s banking system – which is in effect, dead broke and desperate for capital.

Here’s what the chart of the Euro Stoxx 50 looks like. Notice the recent peak back in April.

Since then, we’ve seen three successively lower highs.

More importantly, the index is now at the top of a newly formed downward sloped medial line set, a low-risk entry point to short Europe.

To do so, I recommend buying ProShares UltraShort FTSE Euro (EPV).

This inverse ETF seeks results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the FTSE Developed Europe Index.

Here are the details for today’s two recommendations:

Best wishes,

Larry