Gold and silver are flying this morning. Gold up over $25 to $1,184 (April futures) as I pen this issue (9:03 AM EST) and silver up over $0.30 to $15.08.
All of this with a stronger dollar this morning!
Here is an updated cycle forecast chart for gold, as of Friday’s close. As you can clearly see, everything remains on track for a mid-March high.
Importantly, as I mentioned previously, we have a weekly buy signal in gold at $1,187.80 and we are just $3.80 away from that level, which should act as resistance right now.
So don’t be surprised if you see gold bounce off that level, dip and then make a run toward closing above it later in the week. Ditto for silver’s course of action this week.
Hold your positions in UGLD and USLV. They are doing great!
Stock market: Collapsing again this morning, down 245 points in the Dow Industrials in early trade. Hold UVXY with your good-till-canceled protective sell stop in place at $33.58.
Oil is testing the $30 level now, which should hold and lead to the next leg up. Hold UWTI and the UCO call options.
Also hold the long-dated January 2017 $28 EUO call options. The euro may be topping, and if so, I will look to get more aggressive again in the euro.
Lastly, the India Fund ETF (IFN) continues to firm up nicely, trading at $21.39 as I pen this issue. If not on board, using 5% of your trading funds, you may purchase IFN now using a good-till-canceled protective sell stop at $18.43.
So what are the fundamental forces driving all these moves? You can pick whatever fits your fancy from the news or the talking heads on CNBC and the like.
But the reality is that it is simply the convergence of powerful economic forces that are combining to create the back wall of the financial hurricane that started in 2007.
Only this time, it will be far, far worse.
Best wishes and stay tuned!
Larry
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