Gold prices powered above the $1,200 level this morning, in highest print in the past seven weeks! The move is largely in reaction to President-elect Trump’s contentious news conference yesterday, when he bashed drug companies, among others.
The dollar dove yesterday in a vote of no-confidence to Trump’s lack of detail about fiscal stimulus policies, just as my models had forecast. My AI Neural forecast also shows gold enjoying a nice rally into April before there’s any decent pullback, but as I mentioned earlier in the week, we need to be cautious of a late January pullback in gold.
For now, continue to hold your position in UGL and USLV with your good-till-canceled protective sell stops at $31.39 and $10.60, respectively.
Oil prices have been moving a bit higher over the last few days, but my models are still indicating trouble ahead for oil prices. I expect oil prices to fall and fall hard very soon.
Also, please note that the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), just had a 2-for-1 split today. No big deal; a split simply means there will be an increase in the number of ETF’s shares outstanding – and the shares you hold – along with a proportionate decrease in the ETF’s share price. Nothing has really changed to your overall investment.
The overall value of your SCO ETF position is not affected, the increase in shares is offset by a decrease in price. Continue to hold and make sure to adjust your stop price appropriately based on the new number of shares and the reduction in price. Your adjusted stop price should now be $29.37.
For now, rest assured I am watching all markets like a hawk. Continue to hold all open positions, including yesterday’s recommendation on FAZ – where you should have been filled around $21.02.
Best wishes,
Larry
Position Trackers
Click here for your Supercycle Trader position tracker.
Click here for your Alternative Recommendations position tracker.
