Earlier in the week, you should have added the VelocityShares 3x Inverse Silver ETN (DSLV) to your Supercycle Trader holdings, and the timing could not have been any better.
Silver swooned yesterday, dropping nearly 4% in value to close at $17.81 an ounce. Gold and mining stocks followed suit to the downside as well. This overdue correction in precious metals and mining shares is playing out exactly as expected, and completely in sync with my AI neural net forecast charts.
They clearly show a continuing decline this month, bottoming in early April. It’s too soon to say how severe the decline may be in terms of magnitude. Mining stocks, as measured by the Philadelphia Gold and Silver Index (XAU) actually peaked on February 8, weeks before gold and silver. Since then, XAU has already dropped 17.2%, qualifying as a pretty steep correction.
Expect gold and silver to follow, but gold should find good support at the $1,200 level, give or take $15. Silver could fall as low as $16.50 before finding support.
Remember, I fully expect this to be only a temporary, and overdue, correction in the precious metals and mining stocks, with higher highs following soon. As such we want to be nimble with our positions in DSLV and the Direxion Daily Gold Miners Index Bear 3X ETF (DUST).
DSLV is already up 11.2% as I pen this issue, and DUST has gained 32.5%!
I’ll be keeping both of these trades on a tight leash to grab our profits when the time is right, but wait for my signal.
Your ProShares UltraShort Euro ETF (EUO) and ProShares UltraShort Crude Oil ETF (SCO) are likewise moving in our favor, with both posting single-digit open gains. I see more to come as the euro crumbles toward parity with the dollar, and the price of oil undergoes an overdue correction of its own.
Your ProShares UltraShort Dow 30 (DXD) is underwater by 11% at the moment, but I expect a stock market correction is imminent, in fact it’s already overdue according to my models. So I expect DXD to soon bounce back, and I’m looking to add to it, or perhaps another inverse ETF.
Also, your Direxion Daily 20+ Year Treasury Bond ETF (TMF) is also down slightly, about 2% at the moment, but I expect bonds to rally soon, once the stock market finally enters the corrective phase I’m forecasting.
I trust you’ve read my extremely timely issue of March 1, right? If not, be sure to read it here. Here’s the bottom line: My team and I have Supercycle Trader firmly on the right track, spinning off recent closed trade gains of 46.7% and 64% on AK Steel (AKS), 36.1% and 20.4% from VelocityShares 3x Inverse Crude Oil ETF (DWTI), and growing open gains in DUST, DSLV, EUO and SCO, as noted above.
We have much more work to do and as my cycles ramp up, you can expect plenty of additional profit opportunities coming your way soon.
Best wishes,
Larry and David
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