My cycle models and my technical indicators are both screaming “sell” for both gold and the stock markets. Gold finally broke some key technical levels last week and now is bouncing a little higher today, giving you an excellent opportunity to get short gold before it makes its next move lower.
To be clear, we did not get the official “sell” signal I was looking for with a close below $1,322. But I am confident we will see it hit sometime this week.
Meanwhile, the S&P 500 is still trading at an all-time high and the index has been up for six straight days. The buying spree appears to be waning, so I recommend that you take advantage of the expected pullback coming.
Now, on to today’s trades …
First, if you already own shares of ProShares Ultrashort Gold (GLL), you are going to be adding to your position. For those of you who don’t already own shares of GLL, now it’s time to start a position by following my instructions below.
Second, to take advantage of the stock market’s upcoming move lower, I recommend buying shares of Direxion Daily S&P 500 Bear 3X ETF (SPXS).
Here are the details for the GLL and SPXS trades that I am recommending today …
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For ALL Members: 1. Using 5% of your trading funds for this service, buy ProShares Ultrashort Gold, symbol GLL, at the market. Place a good-till-cancelled protective stop loss on all of your shares of GLL at $62.42. 2. Using 5% of your trading funds for this service, buy Direxion Daily S&P 500 Bear 3X ETF, symbol SPXS, at the market. Place a good-till-canceled protective stop loss at $11.18. |
Hold all other positions and related stops.
Best,
Larry
