GST Issue #220
The next few trading days – between today and the middle of next week – are going to be critical. We should soon see the tight trading ranges of late give way to heightened volatility and renewed trends.
That means lower prices for gold, silver and mining shares … another move down in the stock market … a move higher in bonds … a move lower in the grain markets … and in essence, another round of deflation.
So right now I recommend you sit tight and hold all existing positons and their related protective sell stops. You are properly positioned in all markets, according to my models.
Gold is acting very heavy, in line with the “Path A” down I mentioned in my recent webinar. Right now gold is hovering just above support at the $1,180 level, but once that gives way we should see gold plummet to at least $1,130 … then bounce slightly … and then plunge to even lower levels.
I may opt to soon add a bearish position in silver, so stay alert.
I am also watching crude oil for a potential wonderful trade. This Friday OPEC meets and oil has rallied a tad in anticipation. But all my sources tell me OPEC will do nothing to cut supply, and instead, will keep the pedal to the metal at full production.
Oil is nearing a great opportunity for a bearish trade, so stay very alert.
Importantly, Greece is reaching a crossroads. No progress has been made in its negotiations with European leaders and the IMF. There is a very real chance Greece will default in the next few days.
If, by some miracle, a bailout is reached, it will just drag out the inevitable. Greece will ultimately have no choice but to default and pulling out of the euro would be the best thing Greece could do at this point.
Whether Greece defaults in the next few days or buys more time doesn’t really matter for the markets. The trends – mostly deflationary – are already baked into the cake.
I repeat, hold all positions and their related stops and stay tuned. I am watching the markets like a hawk, getting ready for a big payday.
Best wishes, as always …
Larry
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