Trade Alert: Update and revised order instructions for DUST …

Issue #78

Dear Member,

The gold trade of late has been like watching paint dry. A tight but volatile trading range, with no clear cut aggressive signals to act on.

Nevertheless, gold and silver remain in interim bear markets that are on track for new lows heading into January.

The reasons are simple:

First, there are no signs of inflation breaking out anywhere. Not in the U.S. and not in Europe, where deflation very much has the upper hand.

Second, the U.S. dollar remains steady to firm, which at this point in the cycle is not bullish for gold and silver.

Much later, when the next shoe drops in Europe, you will see the dollar rally right along with gold, which is not what most expect. But right now, dollar strength remains bearish for the precious metals.

Third, the cycles continue to point lower into January, as you can see from this updated cycles chart. Though it appears from this chart that the slide into January will be mild, don’t let that deceive you: All other indicators I monitor strongly suggest gold and silver will fall sharply to NEW lows come early next year, where a final bottom should be in place.

In addition, gold and silver mining shares remain weak and vulnerable to yet another slide.

Right now, I recommend raising your bid to purchase 100 shares of Direxion Daily Gold Miners Bear 3X Shrs , symbol DUST — from $45.50 to $51.00 or better, on a good-till-cancelled basis. Also, raise your protective sell stop, per the above instructions.

I want to give gold another day or two before making a decision regarding the longer-term call options and SPDR Gold Shares (GLD) holdings. I’m looking for a small bounce to exit these positions, and to get even more aggressive on the bearish side of the metals.

Stay tuned and wait for my signals.

Best wishes,

Larry