Issue #184
Dear Member,
Yesterday you should have been able to sell your remaining shares in the Direxion Gold Miners Bull ETF (NUGT) and the VelocityShares 3X Long Gold ETN (UGLD), for gains of roughly 69 percent and 21 percent, respectively.
You should have also purchased shares in Direxion Daily S&P 500 Bear 3X ETF (SPXS), at roughly $21, and entered a protective sell stop for the position, at $19.39, good till cancelled.
The profits bagged on yesterday’s gold trades, combined with the first half sold, are substantially identical: Approximately 69 percent for NUGT, and 21 percent for UGLD.
Unfortunately, those bagged profits have been watered down a bit by yesterday’s decline in Eldorado Gold Corp. (EGO). The stock was hit hard by a company announcement that 2015 gold production will fall from a record 789,224 ounces in 2014 to between 640,000 to 700,000 this year.
At the same time, average cash costs of production will rise to between $570 to $615 per ounce, and all-in sustaining cash costs to between $960 to $995 per ounce.
That’s not good news. But I am willing to stick with the stock for now, as my models are showing very strong technical support, just below the market at the $5.74 to $5.86 level. Maintain your protective sell stop at $5.50, good till cancelled.
Also hold your shares in Kinross Gold Corp. (KGC), with your stop at $2.45 in place, good till cancelled.
Gold has fallen back to the $1,282 to $1,284 support levels. There is a chance we will see one more rally in gold and silver. But it’s too soon to say.
Importantly, the European Central Bank will announce today a Quantitative Easing program, to print as much as $1.3 trillion euros, to help stave off deflation. It won’t work. But it’s sure to cause wild swings in nearly all markets today.
I’ll keep you posted, so stay tuned!
Best wishes …
Larry
Do you have any questions regarding any of our holdings, or gold in general? Send them here, and I’ll have an answer for you in a future issue.
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