Great action yesterday with gold reaching as high as $1,186.40 before falling back a tad. Ditto for silver. Good news for your positions in UGL and USLV. Hold with good-till-canceled protective sell stops at $31.39 and $10.60, respectively.
Meanwhile, the Dow Industrials fell 76 points to 19,887, with the 20,000-level proving to be a stiff resistance level, which I pointed out previously. The move down is good for your position in DXD. I am monitoring this position for you.
Bonds also bounced in a counter-trend move, good for your long position in TMF. Hold with a protective sell stop, good-till-canceled, at $14.70.
The most action was in crude oil, where the February 2017 crude oil futures contract plunged from $53.78 to as low as $51.56, a 4.13% single day drop. That pushed your SCO shares up 6.06% on the day, a nice gain. Hold with a protective sell stop, good-till cancelled at $58.73.
Now, let’s take a look at the latest AI forecasts for the underlying above markets:
Here’s gold: As you can see, my AI Neural forecast model for gold shows a nice rally into April before there’s any decent pullback.
We must be cautious of the late January period, so stay alert. I will probably look to sidestep that late January correction (silver chart and forecast is similar).
Now, the Dow Industrials: Here you can see that we should be right on the cusp of a decline. What’s the worst case? Hard to say right now, but there should be very strong support now at the wide range of 17,500 to 18,500.
The lower it can get, the better. I’ll be looking for you to buy at those lower levels.
Now crude oil: Moving down right on schedule, crude should decline sharply into mid-February, then go flat for several months. Clearly, from this AI chart, it indicates trouble with the recent OPEC agreements.
U.S. 30-year bonds: Bonds should continue to bounce into late February, but then turn down sharply in their next leg down, spiking interest rates higher again. If you own any notes or bonds whatsoever, you should already be out. If not, use any rally that comes along to get out.
Then look to get speculatively short via this service, when I make the recommendation.
Bottom line: Hold all open positions and related protective stops. To repeat, those stops are $58.73 for SCO, $14.70 for TMF, $31.39 for UGL and $10.60 for USLV. For DXD, I am monitoring the stop for you.
Stay tuned!
Best wishes, as always …
Larry
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