In the last Market Update we wrote the following:
The probability that gold stocks (here: the GDX ETF) will touch the 24-26 level in the next 5-7 trading days is not yet very high - lets say its about 30-40% in our view. This is less than 50%, but given the fact that the GDX January 30 put options are priced around $1 at the moment of writing these words it seems to be worth to take a very small positions in them. The risk to reward ratio is promising, but its not a no-brainer yet, so we remain cautious.
Having just purchased a modest amount of these options and we do not recommend using more than couple percent of ones trading capital (or 1% of ones total capital) at this point to do so. If there is a confirmation from our indicators we may increase this position it will still be small, as we are dealing with a very profitable (and therefore risky) instrument here.
The reason we are sending this Alert is that one of our indicators signals that a top has formed. If you are wondering how this and other indicators have worked in the past, you can check their performance here:
This chart features short term average performance for each of the indicators that we have developed. All of them will be available along with detailed description in the Premium Service, which is to be released in a few weeks. Each slope shows how gold/HUI/juniors performed in x days after a signal from a particular indicator. This Update has been sent, because the SP Gold Stock Top indicator signals lower prices in the next several days. This alone suggests getting back to on the long side of the market in about 8 13 trading days. Naturally there are more factors that need to be taken into account.
In the previous Update we were talking about Jan put options and they currently have only a few days until expiration. Precious metals stocks did not fall to predicted level just yet, so we are going to switch Jan puts for Feb puts. Those of you, who are waiting for a chance to reenter the market, should be ready to do so, once we get below the 25 level on the GDX ETF.
Feel free to pass this e-mail to your relatives and friends. Heres a link if they would like to register and receive Updates from us in the future: http://www.sunshineprofits.com/?q=user/register
Sincerely,
Przemyslaw Radomski
Back
The probability that gold stocks (here: the GDX ETF) will touch the 24-26 level in the next 5-7 trading days is not yet very high - lets say its about 30-40% in our view. This is less than 50%, but given the fact that the GDX January 30 put options are priced around $1 at the moment of writing these words it seems to be worth to take a very small positions in them. The risk to reward ratio is promising, but its not a no-brainer yet, so we remain cautious.
Having just purchased a modest amount of these options and we do not recommend using more than couple percent of ones trading capital (or 1% of ones total capital) at this point to do so. If there is a confirmation from our indicators we may increase this position it will still be small, as we are dealing with a very profitable (and therefore risky) instrument here.
The reason we are sending this Alert is that one of our indicators signals that a top has formed. If you are wondering how this and other indicators have worked in the past, you can check their performance here:
This chart features short term average performance for each of the indicators that we have developed. All of them will be available along with detailed description in the Premium Service, which is to be released in a few weeks. Each slope shows how gold/HUI/juniors performed in x days after a signal from a particular indicator. This Update has been sent, because the SP Gold Stock Top indicator signals lower prices in the next several days. This alone suggests getting back to on the long side of the market in about 8 13 trading days. Naturally there are more factors that need to be taken into account.
In the previous Update we were talking about Jan put options and they currently have only a few days until expiration. Precious metals stocks did not fall to predicted level just yet, so we are going to switch Jan puts for Feb puts. Those of you, who are waiting for a chance to reenter the market, should be ready to do so, once we get below the 25 level on the GDX ETF.
Feel free to pass this e-mail to your relatives and friends. Heres a link if they would like to register and receive Updates from us in the future: http://www.sunshineprofits.com/?q=user/register
Sincerely,
Przemyslaw Radomski
