Trade Alert: Time to go long bonds and short the euro!

Gold and silver are starting to rally nicely just after my forecasted late January pullback! Gold is trading up nearly $10 this morning, rising to around $1,206 on the April Futures contract.

You should have added to your UGL and USLV positions late last week. Great move! Gold and silver should continue moving higher into April and I have my eye on new recommendations in the sector. Stay tuned.

Meanwhile, crude oil is still in a short-term topping pattern, bouncing around between $52-$55. I expect oil to head lower soon. So continue to hold SCO.

Yesterday, the Dow gapped back below the key 20,000 level in what looks ominously like a bearish reversal. My AI cycle forecast models confirm this, showing a temporary decline for stocks heading into March. Continue to hold DXD and FAZ, both will benefit from a correction in this overbought stock market.

Bottom line: Hold all open positions and related protective stops. Just to recap, 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 on to the new trades!

First, I recommend that you get back into a long position on bonds. Bonds have sold off since mid-January, but now my models have bonds rising into late February-early March.

To play the next move higher in bonds, I recommend using the Direxion Daily 20 Year Plus Treasury Bull 3x Shares, symbol TMF, per the following instructions below.

Second, the euro has been rising steadily off of its early January low, now bumping into resistance near the 1.08 level. I recommend that you get short the euro by using ProShares UltraShort Euro, symbol EUO, per the following specifics below.

Here’s what to do right away …

Go ahead and get these orders in and stay tuned!

Best wishes, as always …

Larry