Issue #201
Dear Member,
Gold is jumping this morning, apparently on worries over the Iran deal and a dip in the U.S. dollar.
I don’t think gold or silver have much more on the upside, with tough resistance at current levels of $1,217 in gold and $17.20 in silver. However, if we can hold current levels and rally a tad more, then we may just see a further rally, with gold reaching as high as the $1,240 level and silver the $17.62 area.
If it looks like that’s what will unfold, I won’t hesitate to recommend a long position. But let me be perfectly clear: The next big move in the metals should be back down, big time, whether that decline starts from current levels or slightly higher is all that remains to be seen.
Oil is also jumping this morning, good news for your long position in the PowerShares Ultra Bloomberg Crude Oil ETF (UCO). With an open gain of better than 11%, keep your good-till-cancelled protective sell stop at $6.25 for now. I will look to raise it soon.
You should also be long the ProShares UltraShort Dow30 ETF (DXD), with a good-till-cancelled protective sell stop at $19.25. Hold, the stock market is definitely toppy.
Now, to a new trade: Last week, the USDA’s Q1 Quarterly Grain Stocks and prospective planting acreage report was very bearish for the grain markets.
This could be the catalyst the helps set up the grain markets for another leg down.
So, I now recommend you buy 6 July put options on the PowerShares DB Agriculture Fund ETF (DBA150717P00023000) at $1.00 or better to open.
There are no decent inverse ETFs on the grain markets, hence the reason I am recommending put options on a bull ETF. If I’m right and grains sink anew, the ETF will fall in value, and the recommended put options should jump.
If filled, your maximum risk on this trade is $600, plus brokerage commissions and fees.
If you are not or do not want to trade options, then simply skip this recommendation.
If you do, here are the details:
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NEW TRADE: For all members, for each $25,000 in equity you are trading: BUY 6 July 17, 2015 PowerShares DB Agriculture Fund ETF put options with a strike price of $23.00, symbol DBA150717P00023000, at $1.00 or better to open. This order is good till cancelled. |
Lastly, I am pleased to report that as of March 31st, Gold and Silver Trader (GST) had a fantastic 34.9% return last month, taking top honors at Money and Markets. GST is also the best performing service YTD, up 6.1%.
More gains coming!
Best wishes and stay tuned,
Larry
