Silver is getting hit very hard in overnight European and Asian trade. It’s 4:18 am EST and silver is down over $0.35, trading under $19 and has now smashed key support at the $19.20 level.
Gold is down over $9, trading at $1,333.30 on the December futures contract. The dollar is jumping while the euro and other major currencies are also trading lower.
It’s early in the day, so anything can happen. But the crack in silver is very serious. Silver may bounce a tad intraday, along with gold, but it now looks like the AI models are going to be right on, with a steep slide into the fall.
Unfortunately, it’s coming too late for your silver options, the ZSL $40 Aug16 calls. Ditto for the GLD $121 Aug16 puts, which also expired.
Yes, that stinks, and as I mentioned in the recent webinar, I will only be looking now at long-term, or LEAPS, call options once a bottom is in place.
Continue to hold your shares in ProShares UltraShort Gold (GLL) with your good-till-cancelled protective sell stop at $62.42.
I recommend purchasing ProShares UltraShort Silver (ZSL) today, details below. But note: Silver may bounce first, so don’t be shaken if the position goes against you at some point today!
The EUO $24 Aug16 calls also expired on Friday. However, continue to hold the EUO $28 Jan17 calls (EUO170120C00028000) which have plenty of time to go and plenty of potential.
Hold all other positions and related protective stops, including your shares in PowerShares DB US Dollar Index Bullish Fund (UUP), purchased last week.
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All Members Should Now Buy ZSL: Using 3% of your funds allocated to this service, buy shares in ProShares UltraShort Silver, symbol ZSL, at the market. Place a good-till-cancelled protective sell stop at $25.76. |
Best wishes,
Larry
