Issue #180
|
For all members, for each $25,000 in equity you are trading: 1. BUY 500 shares of Kinross Gold Corporation, symbol KGC, at the market. Place a protective sell stop at $2.45 stop, good till cancelled. 2. BUY 200 shares of Eldorado Gold Corp. Ltd., symbol EGO, at the market. Place a protective sell stop at $5.50 stop, good till cancelled. |
Dear Member,
Gold mining shares continue to rebound higher. You are already sitting on open gains of 19% in your Direxion Daily Gold Miners Bull 3x Shares ETF (NUGT) position.
Now it’s time to add more. This time I recommend you buy 500 shares of Kinross Gold Corp (KGC) and 200 shares of Eldorado Gold Corp. Ltd. (EGO) at the market. Be sure to place protective sell stops per the above instructions.
Do note: I do not believe the bottom is in yet in the precious metals or in mining shares. But I do believe we are in for an extended bounce, one that could last months, as the broader stock market corrects and money comes (temporarily) back into the metals sector.
Lastly, oil prices have not rebounded like I thought. In fact, crude oil futures closed below $50 a barrel yesterday, putting you underwater in both your UCO and OIH positions. However, I believe oil and oil stocks are deeply oversold and I expect a bounce from here, so continue to hold both positions with your stops in place.
Best wishes,
Larry
