Issue #172
|
For all members, for each $25,000 in equity you are trading: 1. BUY 10 March 2015 Direxion Daily Junior Gold Miners Bull3X ETF call options with a strike price of $3.00, symbol JNUG150320C00003000, at a price of $1.20, or better, good till cancelled. Alternatively, if not trading options … 1A. BUY 300 shares of Direxion Daily Junior Gold Miners Bull 3X ETF, symbol JNUG, at the market. Place a protective sell stop at $1.30, good till cancelled. And if not able to purchase a leveraged ETF … 1B. BUY 150 shares of Market Vectors Gold Miners ETF, symbol GDX, at the market. Place a protective sell stop at $13.48, good till cancelled. |
Dear Member,
You should have been able to bag some nice gains on half your bearish gold and silver positions yesterday, with the SPDR Gold Shares January 2015 put options really shining, allowing you to bag gains of up to 176%.
I recommend holding the remaining half of those positions, as more declines are still in store for gold and silver, though we may see a bounce first.
I see another opportunity right now: Gold mining shares have been taken to the woodshed over the last few weeks; but now, many are so cheap and so deeply oversold, mining shares may actually lead the way to the upside for any bounce that we may see in the precious metals.
As a result, there is a great, short-term opportunity to take on a long trade in miners, per the specs in the above table.
I have given you some alternatives: You may purchase either call options on the 300% leveraged Direxion Daily Junior Gold Miners Bull 3X ETF … you may purchase shares in the actual ETF itself … or, if not able to trade leveraged ETFs, for whatever reason, then you may purchase the third alternative, the non-leveraged Market Vectors Gold Miners ETF, symbol GDX.
Which recommendation you choose to act on is entirely up to you. You can also trade all three. Again, the final decision is yours. I will be monitoring all three.
This recommendation stands by its own merits. But it has the added feature that if indeed we do see the metals bounce, the above recommended trades will also act as a hedge for the remining bearish positions that you own.
In effect, we are straddling the market right now by doing so, one of the rare occassions where such a strategy makes good trading sense.
If we get a bounce, as expected, I will be looking to grab profits on the above trades, and then reverse back to the bearish side by letting the existing bearish trades rack up even more gains as the metals subsequently turn south again. As noted yesterday, I may even opt to add back to those bearish positions, at the right time.
There has been some very serious damage done to the precious metals, and I am thrilled that I have been able to forecast it, and start racking up some gains for you. More gains are coming.
Hold all other positions and related stops, and act on the above recommendations, according to your individual circumstances, as soon as possible.
Best wishes,
Larry
