Issue #123
| Cancel and replace your order to sell 100 shares of VelocityShares 3x Long Natural Gas ETN, symbol UGAZ, at $20.49, STOP, good till cancelled. NEW PRICE: $24.11 STOP, good till cancelled. |
Dear Member,
The markets of late, all of them, have been like watching paint dry. Yes, there have been some wild gyrations, but overall, no trend changes.
That’s true even for gold and silver. Although they have moved back to the lows of their recent trading ranges, everything I am studying tells me that their next big moves will be to the upside.
Right now, we need to remain patient. It seems that virtually all markets are now caught betwixt and between …
— With deflation, rising taxes, fear of confiscation of assets, and a new meltdown in Europe, on the one hand, pressuring most assets lower …
— While on the other hand, expectations that inflation will rise in the months ahead, along with ongoing social chaos and rising geo-political tensions in many parts of the world … coupled with a desire to get assets off the grid …
Are serving to pressure asset prices higher.
Hence, the tightly bound trading ranges we are seeing.
Longer-term, the latter forces will gain the upper hand. Here in the U.S and Asia, we will see inflation soon start to rise.
At the same time, in the months and years ahead we will see social chaos and rising geo-political tensions accelerate even higher as the war cycles continue to ramp higher and higher, all the way into 2020.
The most liquid markets, and those that are direct hedges against the collapse of Western governments, will do best. They are the precious metals, commodities in general, and yes, the U.S. equity markets.
But right now, we need to remain patient and disciplined.
You were unfortunately stopped out of the long position in the Direxion Daily Gold Miners Bull 3X Shares (NUGT) the other day when it hit my recommended sell stop at $32.19 for a modest loss.
Stand aside for now. As soon as I see confirmation that the metals are going to stage a rally, I may look to recommend you re-buy NUGT.
Hold all other positions. There are no changes. This includes the Direxion Daily S&P 500 Bear 3X Shares (SPXS) with a protective sell stop at $27.67, good till cancelled …
As well as the bullish dollar ETF, PowerShares DB US Dollar Index Bullish Fund (UUP), with a stop at $18.80 …
The ProShares UltraShort Euro (EUO), with a stop at $15.47 …
The VelocityShares 3X Long Gold ETN (UGLD), with a stop at $14.50 …
The VelocityShares 3X Long Silver ETN (USLV), with a stop at $39.33 …
And the ProShares UltraShort DJ-UBS Crude Oil (SCO), with a stop at $25.47.
Meanwhile, natural gas has moved higher, great for our long position in the VelocityShares 3x Long Natural Gas ETN (UGAZ), which has a nice open gain of 24.32% as of yesterday’s close.
Lastly, be sure to tighten up your stop on UGAZ, per the recommendation in the above table.
Best wishes and stay tuned,
Larry
