Crude oil prices rose a tad yesterday, but all my models show a top coming into place. So please make sure you have purchased ProShares UltraShort Bloomberg Crude Oil, symbol SCO – an inverse ETF on crude oil to profit from oil’s next move lower.
If you have not yet purchased SCO, please buy it now at the market using 5% of the funds you have allocated to this trading service. Be sure to place a good-till-canceled protective sell stop at $58.73.
Hold UGL, DXD and TMF – with their respective stops also in place on a good-till-canceled basis.
Here’s an update on gold I want you to see. Yes, gold looks terrible. But looking terrible is sometimes exactly what’s needed: It gets the majority of traders to throw in the towel and go elsewhere, leaving only a minority to profit … and profit handsomely as a rebound indeed comes along.
And that is still precisely the case I expect. First up, my latest AI neural net chart for gold produced at roughly 8pm EST on Tuesday.
Next up, my technical analysis of gold right now:
As you can clearly see, gold is rising, and in its bullish median line set. There should soon be a test of at least the $1,144 level and if gold can get through there, then upwards to the $1,152 level and even higher.
$1,167.50 is a daily buy signal, so a close above that on any trading day would be very bullish and should at last lead to a test of the $1,220 area.
That’s not going to happen overnight, and it’s not even likely until we get past New Year’s. But my point is clear: Betting on the downside in precious metals is not and should not be the strategy.
Instead, waiting patiently on the sidelines ready to strike on the long side is the way to go. If anything changes, you will be the first to know.
Best wishes, as always …
Larry
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