Update …

Issue #161

Dear Member,

The U.S. equity markets continue to head lower. That’s great news for your inverse ETF positions and your long position on market volatility.

Your position on market volatility, iPath S&P 500 VIX Short-Term Futures ETN (VXX), is showing some nice open gains of up to 6.4%.

Your two inverse ETF positions are starting to show nice gains as well: ProShares Short Russell 2000 ETF (RWM) currently has open gains of up to 4.4% and Direxion Daily S&P 500 Bear 3x ETF (SPXS) is holding onto open gains of up to 3.9%.

I expect considerably more out of these positions as my downside target for the Dow is 14,500 over the coming weeks.

The energy markets have not fared as well this week. Your United States Natural Gas Fund (UNG) position is currently down a bit, but I am still confident natural gas is headed higher, so continue to hold.

Your position in ENSERVCO Corp. (ENSV) took a big hit yesterday. There is nothing negative about the company’s operations. It looks as if it was merely an overreaction to news of possible short-selling of the stock.

I have not recommended you place a sell stop yet, because of the relatively light daily volume. I am watching this position very closely, and I expect the stock to rebound.

Earlier this week, I recommended purchasing shares of VelocityShares 3X Long Gold ETN (UGLD). And just as expected, gold has moved higher, leaving you sitting on open gains of up to 3.7%.

Though gold was softer yesterday and this morning, I expect another rally soon, with gold moving as high as the $1,247 level.

Continue to hold all positions, with their related stops, and stay tuned.

Any questions? You can send them in here!

Best wishes,

Larry