Gold is trading down nearly $9 this morning, falling to around $1,188 after reaching my initial price objective at the $1,220 level earlier in the week. A pullback was expected, but I think this will be short lived and the models still have gold heading higher into April. Therefore, it’s time to add to your position in UGL.
Ditto for silver, so I also recommend adding to your position in USLV as well.
Meanwhile, crude oil is still in a short-term topping pattern. I expect oil to head lower from here. So, continue to hold SCO.
The Dow finally breached the 20,000 level. But, my models are still showing a temporary decline for stocks heading into March. Continue to hold DXD and FAZ, both will benefit from a correction in the market.
Bottom line: Hold all open positions and related protective stops. Those stops are $29.37 for SCO, $31.39 for UGL, $10.60 for USLV, and $18.89 for FAZ. For DXD, I am monitoring the stop for you. Now …
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For ALL Members Using 3% of the capital you have allocated to this service, buy ProShares Ultra Gold, symbol UGL, at the market. Using 3% of your capital allocated to this service, buy VelocityShares 3x Long Silver ETN, symbol USLV, at the market. Then, be sure to adjust your outstanding good-till-canceled stop orders to match the new number of shares in your account. Your stop loss for UGL should be at $31.39 and $10.60 for USLV. |
Stay tuned!
Best wishes, as always …
Larry
