Issue #119
Dear Member,
Gold and silver continue to stair step higher, making very good progress at confirming bottoming action.
Here’s a snapshot of the gold rally. As you can see, the rally is showing a series of higher highs, and we are now finishing the first leg up. That leg should be followed by a short-term shallow pullback and then a much stronger rally thereafter.
My target remains $1,370 for this next leg up.
Here’s a chart of silver. You can see the same general pattern showing up here as well, a nice initial rally pattern.
We should soon see a pullback, then a rally to much higher levels, with silver ultimately testing just over $22.
Mining shares are following suit, poised to rally, even though the stock market finally appears to have topped out.
Hold all your metal-related positions with your stops in place.
Hold your long position in the VelocityShares 3x Long Natural Gas ETN (UGAZ). Natural gas is forming a base from which we should see a very powerful rally.
Also hold your long position in the PowerShares DB US Dollar Index Bullish ETF (UUP). The dollar is gaining strength, and rallying right along with the metals. This has most investors and analysts bamboozled, but not us. I warned you that there will be times when both the metals and the dollar rally together.
Lastly, I will be looking for a short-term bounce in the stock market, which I will be using to re-recommend a position in the Direxion Daily S&P 500 Bear 3X Shares (SPXS). So stay tuned!
Best wishes,
Larry
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