Those were some nice profits bagged on Wednesday! Six different positions with gains of as much as 187.67 percent, depending upon when you acted on the recommendations.
Not bad. And yet “we’re just warming up!” In the weeks ahead, we will see more and more nicely trending markets, precisely the kind of action that can be used to rack up a lot of nice profits.
If, for whatever reason, you did not exit your currency holdings – options and/or ETFs, per Wednesday’s issue – please do so now, at the market.
I will have you re-enter the bearish side of the euro and the yen – and the long side of the dollar – at the right time.
There are only three open positions at this time: UVXY, DZZ, and either SCO or the United States Oil Fund January 2016 $14 put options (USO160115P00014000).
Yesterday, we saw a slight bounce in gold and oil, but a very weak one. Everything remains on target for oil and gold to move lower.
One of the most popular email questions I am receiving from members goes like this: “How can gold plummet to $1,035 or below by November 25, just five days from now?
“And if it doesn’t, will it mean that gold has not bottomed?”
So let me address that right now. Simply put …
First, there is some evidence starting to come in that the November 25/26 date may stretch out a bit further, into the first week of December (probably due to the Thanksgiving holiday).
Second, even if the cycle does not stretch out any further, YES, gold can plunge more than $50 in five days. Hard to believe, but such a decline can – and has – happened many times before.
Third, if – for whatever reason – gold does not fall to roughly $1,035 by the cycle low date, that does not mean that gold is not bottoming.
Gold has already made a new low for the bear market that started in 2011. That was the minimum qualification.
So now that gold has made a new low, the crucial next step to confirm that the recent new low is indeed a major one will be …
Whether or not certain buy signals are hit once the post-cycle low rally begins.
That is the key, and I will keep you apprised as that rally unfolds.
Nevertheless, right now, the trend is still down, and there is a very real chance the metals can CRASH over the next few days, regardless of what the dollar does or doesn’t do.
Therefore, hold your position in DZZ, with your protective stop in place. Also hold your oil positions, either SCO or the United States Oil Fund January 2016 $14 put options (USO160115P00014000).
Lastly, the stock market. There are more holes in it than Swiss cheese. Worse, bullish sentiment is at an extreme high, which is a bearish sign. So as hard as it is to hold your shares in UVXY, please stick with them, and maintain your good-till-cancelled protective stop at $22.24.
New members, or members who do not own UVXY, DZZ, SCO, or the USO put options: Please wait for my next, new recommendations.
Stay tuned and best wishes,
Larry
