Yesterday’s dovish policy announcement from the Federal Reserve gave gold and silver an added boost, while the U.S. dollar was punished again. But we see the makings of a classic reversal in the oversold buck.
Meanwhile, gold likely put in a cycle high this week. It should be turning lower, on cue with our E-Wave cycle forecast. That’s why it makes sense to grab small gains in your VelocityShares 3x Long Silver ETN (USLV) position with it back in profit territory.
Although silver could have more upside going into next week, our models point to a short-term correction coming in August. So, we recommend you grab your USLV gains off the table.
Here’s what we recommend:
SELL ALL of your shares of the VelocityShares 3x Long Silver ETN, symbol USLV, at $11.65 or better, to open. This order is good-till-canceled.
Next, new profit opportunity on the euro …
After initially moving to a new high in the wake of yesterday’s Fed meeting, the euro reversed hard to the downside this morning. It’s now down about 0.4% as I pen this issue.
This looks like a classic exhaustion top in the euro. And we expect a deeper downside reversal to follow in the weeks ahead.
To capitalize on this downturn, we recommend buying the ProShares UltraShort Euro ETF
(EUO).
Here’s what to do right away:
Using 2.5% of the funds you have allocated to this service, buy the ProShares UltraShort Euro ETF, symbol EUO, at $22.25 or better, to open. This order is good-till-canceled.
In the meantime, we’ll monitor risk on this new position in EUO for you.
Unfortunately, you were also stopped out of your position in Sanchez Energy (SN) this morning. We still favor the energy sector and expect oil to move higher next month, and again into October. So we will be on the lookout for better buying opportunities in place of those SN shares. Hold all other positions, and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
