Gold and silver are down hard again this morning, gold trading at roughly the $1,194 level, silver at $16.40. As bad as they look, they are now testing long-term support levels, are deeply oversold, and a bounce is way overdue.
This is the kind of action though, that tests traders’ souls. Do you get out now, and risk a rally back? Or do you give it a bit more time to reverse and rally, especially since long-term support levels are holding.
My view: I recommend holding your shares in UGL for now. A turn-around can come at any time.
Meanwhile, the euro is tanking again and the dollar is soaring. The dollar is overbought and subject soon to a pullback, which should boost gold prices. Conversely, the euro is oversold.
As to the Dow Industrials and the recommended positions in SPXS, I also recommend you hold them. The major averages in the U.S. are as overbought as gold and silver are and subject to a reversal back down.
Also hold your remaining shares in AKS, which is now up a hefty 61.64% as of yesterday’s closing price.
Stay tuned, and have a happy Thanksgiving.
Best wishes,
Larry
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