Issue #132
| Recommendation:
For each $25,000 in equity you are trading … Buy 200 shares of Direxion Daily S&P500 Bear 3X Shares, SPXS, at the market and place a protective sell stop at $23.81, good till cancelled. |
Dear Member,
I strongly recommend an aggressive bear position in the stock market. All signals are now in place for a top. We may see one more stab higher in equities, but every indicator I am monitoring is telling me the U.S. equity market is on the verge of a sharp, sudden selloff ― one that could take the market down by as much as 10% and in short order.
Keep in mind that the long-term trend is still very bullish for U.S. equities. My strategy will be to catch the move down, then reverse to a long position.
Gold and silver right now are consolidating, preparing for their next legs up, while the euro is preparing for another leg down.
As I’ve been saying all along, we are starting to see a split between the metals and the dollar, with the metals likely to rally along with the dollar as capital starts pouring out of Europe.
Hold all other positions, including your shares in IAMGOLD (IAG), which is now trading at $3.66, holding its recent gains, and showing excellent relative strength.
Best wishes, as always, and stay tuned!
Larry
