In today’s alert summary we wrote the following:
“The situation didn’t improve either – the pre-announcement rally was something that we saw in late October as well and it didn’t result in higher prices – conversely, a major decline followed. Overall, we think that the medium-term trend will resume and that the precious metals sector will move lower, but we will wait for additional bearish confirmations before doubling the short positions.”
Today’s $17+ slide in gold and a decisive move lower in silver serves as a good bearish confirmation. The markets seem to be resuming their medium-term trend and it seems that the next major downswing is underway.
Consequently, we think that doubling the size of the current speculative short position in gold, silver and mining stocks is justified from the risk / reward point of view.
As always, we will keep you – our subscribers – updated.
To summarize:
Trading capital (our opinion): Short positions (FULL) in gold, silver and mining stocks are justified from the risk/reward perspective with the following stop-loss orders and initial target price levels:
Gold: initial target price: $973; stop-loss: $1,107, initial target price for the DGLD ETN: $117.70; stop-loss for the DGLD ETN $81.84
Silver: initial target price: $12.13; stop-loss: $14.37, initial target price for the DSLV ETN: $101.84; stop-loss for DSLV ETN $64.26
Mining stocks (price levels for the GDX ETF): initial target price: $10.23; stop-loss: $15.47, initial target price for the DUST ETF: $31.90; stop-loss for the DUST ETF $10.61
In case one wants to bet on junior mining stocks' prices (we do not suggest doing so – we think senior mining stocks are more predictable in the case of short-term trades – if one wants to do it anyway, we provide the details), here are the stop-loss details and initial target prices:
GDXJ ETF: initial target price: $15.23; stop-loss: $21.13
JDST ETF: initial target price: $52.99; stop-loss: $21.59
Long-term capital (our opinion): No positions
Insurance capital (our opinion): Full position
Thank you.
Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts
