SCT Issue #246
No time to waste: The expected market rout is happening right on cue, but today we should see a temporary low form, followed by a strong bounce, and then a renewed decline – to even lower lows.
Therefore, the right thing to do is grab some profits off the table, which are indeed, very hefty, especially on your shares in ProShares Ultra VIX Short-Term Futures, symbol UVXY, with gains of as much as 145%.
For your shares in DXD and SPXS, which also have nice gains, I recommend raising your protective sell stops.
Note that on a bounce, I will look for you to reenter a position in UVXY and other bearish ETFs – the final lows are not yet in and we could easily see the Dow fall to as low as 15,672, if not lower. But wait for my signals.
No one should have been filled, unfortunately, on buying EPV. No worries. European markets should soon bounce as well, then fall yet again and I will look to get you in at the appropriate combination of time and price.
As to gold, it failed to generate a buy signal on Friday and this morning it is trading weak. There should be one more bounce in gold, but then I will look for you to establish bearish positions on both and gold and silver, but wait for my signals.
In a final note, the global stock market rout is causing a flood of capital into U.S. Treasury bonds and even into short-term T-bills, sending rates lower, despite Fed intentions to raise rates.
This is a perfect setup for what will soon prove to be one of the greatest trades of all time: Taking on short positions via bearish ETFs on government bonds. But here too, wait for my signals!
Now please act on the following ASAP:
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For ALL Members who own UVXY, DXD, and SPXS: 1. SELL ALL of your shares in ProShares Ultra VIX Short-Term Futures, symbol UVXY, at the market. Cancel your protective sell stop at $20.35. 2. CANCEL and REPLACE your protective sell stop for ProShares UltraShort Dow30, symbol DXD, at $19.25: NEW STOP: $22.39, good till cancelled. 3. CANCEL and REPLACE your protective sell stop for Direxion Daily S&P 500 Bear 3x ETF, symbol SPXS, at $15.15: NEW STOP: $20.39, good till cancelled. |
Hold your UNG long position with your stop in place and stay tuned!
Best wishes,
Larry
