A quick, but important update: Gold has now broken critical support at $1,320 and at $1,311 – in the process issuing two important sell signals. This is very bearish.
However, since both gold and silver are now oversold short-term, don’t be surprised if you see a bounce before heading lower. If we get that bounce, I will take full advantage of it for you and recommend you add bearish positions in both gold and silver.
Given the sharpness of the decline, it is now possible that gold could fall lower than $1,250 heading into early October. It’s too soon to say, but I will be able to make measurements once we see how gold closes out the week.
You have some very nice positions on that are picking up steam. The euro is also falling sharply as the dollar rallies smartly.
In addition, it looks like the stock market is also getting ready to roll over to the downside heading into October. Hold, Direxion Daily S&P 500 Bear 3X ETF (SPXS).
Meanwhile, U.S. Treasury notes and bonds remain weak due to the fact that everyone is waking up and realizing the biggest financial bubble of all time is unsustainable. That’s good news for your inverse ETF, Direxion Daily 20 Year Plus Treasury Bear 3x Shares (TMV).
Hold all positions and related stops, and stay tuned …
Best wishes,
Larry
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