| Recommendation:1. Cancel and replace your protective sell stop in ProShares Ultra Gold, symbol UGL, at $48.57 and raise to $49.89, STOP. This order is good-till-cancelled.
2. Cancel and replace your protective sell stop in Market Vectors Junior Gold Miners ETF, symbol GDXJ, at $41.51 and raise to $44.71, STOP. This order is good-till-cancelled. 3. Cancel all other open orders. |
Issue #26
Dear Member,
A quick update: As I had expected, gold popped higher yesterday. But this morning, gold is selling off, coming under pressure from the intermediate-term cycles that show a downtrend heading into September.
In addition, the stock market is down hard again this morning, which is causing further nervous liquidation of many asset classes. A sharp rise in interest rates this morning also has investors on edge.
My recommendation: Tighten up your stops per the above instructions for your long positions in ProShares Ultra Gold (UGL) and Market Vectors Junior Gold Miners (GDXJ).
Cancel all other outstanding orders you may have.
Today and tomorrow’s action will set the tone for next week’s trading. Be alert: I have several new signals forming at this time.
If gold closes below the $1,313.50 level by tomorrow, a new downtrend will be confirmed. Conversely, a close back above yesterday’s high at $1,343 would indicate a renewed rally into next week, with gold likely to run as high as $1,400. Mining shares would follow suit on either signal.
Either way, you will be ready to trounce on the next trades.
Best wishes,
Larry
