I want to point out a major break in the gold market that has taken place this month. The chart below is a weekly chart of Gold with a trend line drawn from the cycle high in Gold from September 2012 to the current date of October 2015.
As you can see, on October 10th, 2015 (Arrow), we had a break of the down trend line for Gold. This represents a paradigm shift in the direction of Gold and we should expect to see a continued move up into a bull market from this point forward.
If you got into the precious metal positions that I recommended a couple of weeks ago, you should be feeling pretty good right about now, but it’s still very early in this cycle and not too late to get in. I would enter into some late 2016 Call Options or even early 2017 Calls and choose out of the money strikes. When you buy out of the money, you are taking on a slightly higher risk, but no more than the cost of the option and your potential gain increases considerably.
This next week should provide some serious upside in the PM markets, so Monday would be a good day to place a trade, especially with the downside retrace we had on Friday. (See red candle in daily chart below.) An upswing is coming soon, maybe as early as Monday.
If you are interested in learning more about trading options, feel free to reply to this email and I will be happy to discuss it with you. I offer free trading classes for local subscribers.