Issue #31
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For ALL Members New recommendation: For every $25,000 in trading equity you have devoted to Gold and Silver Trader … Buy 200 shares of PowerShares DB Gold Double Long ETN, symbol DGP, at the market. Place a good-till-cancelled protective sell stop at $30.67. |
Dear Member,
The volatility surrounding yesterday’s release of the July FOMC meeting notes stirred up quite a frenzy, stopping you out of the recommended morning trade in ProShares UltraShort Gold (GLL) but for a very modest loss of roughly $0.70 per share, before slippage and broker commissions and fees.
That stinks, but the stop was well placed, keeping your risk very small. And importantly, this morning, gold appears to want to make one more stab higher — to the $1,385 level and possibly higher — before a new downtrend resumes.
Therefore, please act on the above new signal, purchasing 200 shares of DGP for every $25,000 you have dedicated to trading Gold and Silver Trader’s recommendations.
If, for example, you have $10,000 in equity to trade, instead of buying 200 shares you would purchase 80 shares ($10,000 = 40% of the benchmark $25,000. Therefore, 40% of 200 shares = 80 shares).
As to the Fed July meeting minutes released yesterday, it was much ado about nothing. The Fed will begin to back off of its bond purchases later this year, and that really should be no surprise to the markets. More importantly, it does nothing to change the immediate trends in any market.
Go ahead and act on the above recommendation, and stay tuned.
Best wishes,
Larry
