Issue #194
Dear Member,
If you’ve been following my column in Money and Markets, you know I’m travelling through Western China checking out China’s new massive infrastructure investment that will total nearly $1 trillion when all is said and done, bringing eastern coast economic development to Western China …
And tying China to Russia and Europe, to develop and exploit the massive natural resources that lie in the western parts of the country.
Needless to say, the profit opportunities, which I will bring to you once I vet them, will be enormous!
Rest assured, however, that I am on top of the markets as I travel through Western China. While the Internet is sporadic, at best, the western parts of China are served by satellite TV, and I am able to stay on top of the markets via the likes of CNN and Bloomberg. Plus, when I do have Internet, I am getting my data and charting feed.
Best of all, the markets are going our way! As forecast, deflation is now hitting the U.S. even harder than I had expected at this stage. The dollar continues to soar, putting downside pressure on the precious metals, with gold sinking back to the $1,168 level. Miners, as I forecast, are also getting crushed again.
This has given you a nice boost in Direxion Daily Junior Gold Miners Bear 3x ETF (JDST), which as I pen this issue, is showing an open gain of better than 33 percent.
Meanwhile, the position in ProShares Ultra Yen (YCL) was stopped out Friday as the dollar surged higher. Not to worry. I will have you get back in at the appropriate time.
As for the stock market, the recommended position in iPath S&P 500 VIX Short Term Futures (VXX) is holding its own, and should soon pop higher as the U.S. equity markets are now coming under pressure.
In fact, I believe the markets have more downside in the near-term, so I now recommend adding an inverse ETF on the Dow Jones Industrial Average.
I recommend you purchase 100 shares of ProShares UltraShort Dow30 (DXD) at the market. Don’t forget to place your protective sell stop as indicated in the trade window below.
Hold all positions, with their related stops. If we can get a bounce in gold and silver this week, as I expect we will, I will be looking to add bearish positions. After a bounce, we should see gold and silver plummet to new lows, with gold thrusting to below $1,100.
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NEW TRADE: For all members, for each $25,000 in equity you are trading:
Buy 100 shares of ProShares UltraShort Dow30, symbol DXD, at the market and place a protective sell stop at $19.25 stop, good till cancelled. |
Best wishes and stay tuned!
Larry
