| For ALL Members:
Per each $25,000 in equity you are trading … 1. Buy 100 shares of the ProShares UltraShort Silver ETF, symbol ZSL, at the market. Place a protective sell stop at $59.10, good till cancelled. 2. Buy 400 shares of the DB Gold Double Short ETN, symbol DZZ, at the market. Place a protective sell stop at $4.41, good till cancelled. |
Issue #35
Dear Member,
No time to waste: Gold is now coming under pressure from the cycles that I previously discussed with you, showing a slide in the precious metals for this month. Gold is down $22 this morning, silver over $1.00.
This, despite the very fragile and chaotic situation in Syria also proves my point from my last issue: Markets always act in advance of actual events, not because of them.
This morning you were stopped out of your long position in the DB Gold Double Long ETN, symbol DGP when it hit my stop at $33.73. No problem. It should have bagged you a small gain.
And while it would be nice to have gotten out of this position earlier for a larger gain when we had the opportunity, keep in mind that’s not how you trade!
The way to trade is to always keep your risk minimal, and let the market’s trend carry your positions to a stream of single base hits, and then the triples, home runs and even grand slams. That’s how real traders trade.
That said, it’s time for two new trades as outlined above. Gold and silver should move lower though most of September. Therefore, I recommend bearish positions on gold and silver, using the above vehicles and protective stops.
The risk on the ProShares UltraShort Silver ETF is roughly $9.00 per share, or $900 on 100 shares, before market slippage and broker commissions. The risk on the DB Gold Double Short ETN (DZZ) is roughly $1.50 per share, or $600 on 400 shares, before slippage and broker commissions. If your broker does not allow trades in DZZ, for whatever reason, then I would simply do the silver trade, but double the amount of shares to 200.
Go ahead and get those orders in as soon as possible.
Best wishes and stay tuned,
Larry
