Gold closed Friday above the $1,275 resistance level (basis December futures). That’s a positive technical chart development. However, I am not at all happy with the lack of follow-through in today’s market, where gold is down almost $3. That’s not a lot but I would have been more pleased to see gold open higher today, and hold or increase its gains during the day.
As it is, gold left a high at roughly $1,285 on Friday and is now retesting support. That to me, is a sign of weakness. Ditto for silver, which appears weaker than gold.
Nevertheless, as shown last week, the cycles remain firmly positive for the precious metals sector going forward into late December. So, for now, I’m going to give the sector the benefit of the doubt.
Hold all precious metals-related positions with your protective stops in place.
Also, hold the ProShares UltraShort Dow 30 ETF (DXD) with a protective sell stop, good till cancelled, at $16.25.
Oil is down hard
As expected and forecast, oil is down hard, falling from just over $50 a few days ago to $47.50 (December futures contract) as I pen this issue.
That’s great news for your VelocityShares 3x Inverse Crude Oil ETN, symbol DWTI, which is now showing an open gain of as much as 18%.
Oil had a ways to go on the downside, but a bounce is expected short-term. Let’s grab gains on half the position now, then I will look to get you back in to that half on a solid bounce to catch the next leg down. Here are the details …
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For Members Who Own Shares In DWTI: SELL HALF of your shares in the VelocityShares 3x Inverse Crude Oil ETN, symbol DWTI, at the market. Then make sure you have reduced by half the number of shares you are selling via your good-till-cancelled protective sell stop at $50.67. |
Stay tuned and best wishes,
Larry
