The Fed is clearly reluctant to raise interest rates, or even to put out a hawkish statement. That’s exactly what it did yesterday, causing the dollar to sell off, the euro to pop higher and the precious metals to jump toward overhead resistance.
Not to worry. The precious metals are still clearly in a downtrend heading into October. There is a record number of long positions in gold and silver. All it will take is one spooked seller, and the herd of long positions will run for their lives, causing some very sharp declines in the precious metals.
Yesterday, you should have tightened up your stop on The India Fund (IFN), and placed a protective stop loss on your Teucrium Corn Fund (CORN) and Teucrium Wheat Fund (WEAT) positions.
If you haven’t done so already, please refer to yesterday’s issue and take action on those stops immediately.
Crude oil has sold off nicely and is currently trading around the $42 level. You have a modest profit on SCO. Hold, and maintain your protective sell stop at $84.54. I expect more gains to come for SCO, more losses for crude oil.
Best wishes,
Larry
