Issue #185
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For every $25,000 you are trading in this service: 1. Buy 200 shares of PowerShares DB Gold Double Long ETN, symbol DGP, at the market. Place a good-till-cancelled protective sell stop at $24.54. 2. Cancel and replace your protective sell stop for your shares in Kinross Gold, symbol KGC. NEW STOP PRICE:$2.89, good till cancelled. |
Dear Member,
Gold is trading lower yet again this morning, down more than $13 at $1,273 basis the April futures contract as I pen this issue. Nevertheless, important short-term support is a tad lower now, at the $1,268 level, which I expect to hold.
As noted previously, the potential for another rally cannot be ruled out. If support holds, and the stock market remains weak, gold would have all the impetus it needs to stage one more pop to the upside.
Therefore, I recommend a light long position in the PowerShares DB Gold Double Long ETN (DGP), per the above recommendation.
I also recommend you hold your shares in Kinross Gold (KGC). But as noted in the table above, now is the time to tighten up your protective sell stop, raising it from $2.45 to $2.89 on a good-till-cancelled basis.
Unfortunately, you were stopped out of your shares in Eldorado Gold (EGO) when it hit my recommended protective sell stop at $5.50. Long-term, Eldorado Gold is still a good play, but with the miners and metals still in longer-term bear markets that have not yet bottomed, the downside pressure is simply too much to bear for all the best miners.
This is precisely why I have not yet been aggressive with any miners and instead, look to play short-term moves. Eldorado did not work out. But if gold makes another run to the upside in the short-term, as I expect it will, then we could see a nice run up in Kinross, your only miner right now, which is holding its own, in the red by only 0.6 percent, despite gold’s near $40 decline over the past few sessions.
The stock market is under some severe pressure, and bounces are to be expected. But overall, the trend is now down. Hold your shares in the Direxion Daily S&P 500 Bear 3X ETF (SPXS), with a protective sell stop for the position at $19.39, good till cancelled.
Stay tuned!
Best wishes …
Larry
