Trade Alert: Gold and Silver …

It’s 5:56 a.m. EST and gold is up nearly $6.50, trading at roughly $1,171.70, above the AI buy signal at $1,167.90. Good news.

As noted previously, a close above $1,167.90 should prove bullish, with an initial objective of the $1,220 level. Let’s hope we get that close today. If not, I’m confident it will occur soon.

Importantly, you should have an open order from yesterday’s issue to purchase another round of UGL, using 3% of your trading funds, but on a buy stop (to enter) above the market at $34.52.

If filled, place a good-till-canceled protective sell stop at $31.39, the same stop for the original position.

Silver is now also trading above a buy signal, at $16.60, with the buy signal at $16.5150.

Therefore, I am going to get a bit more aggressive and recommend going long silver today, using the VelocityShares 3x Long Silver ETN (USLV), a triple leveraged long silver ETF. Details …

I like the action in gold and silver, now following my AI models nicely. Still, vigilance is always required and you can bet I’m on top of them, practically 24/5.

Also keep in mind that per the AI models, the rally should not really get some mojo going until January 9, give or take a day. So be patient, we are positioning for what could be a very strong rally.

Meanwhile, 30-year Treasuries have rallied over 4 full points since the 16^th of December, a nice bounce that should carry higher. This is good for the long bond position I recommended in TMF.

There should be more gains coming, but when the time is right, I will recommend reversing and going aggressively short the bond market.

Crude oil is still topping as is the stock market.

Bottom line: Hold all open positions and related protective stops. To repeat, those stops are $58.73 for SCO, $14.70 for TMF, $31.39 for UGL. For DXD, I am monitoring the stop for you. And $10.60 should you be filled on USLV this morning.

Stay tuned!

Best wishes, as always …

Larry