Last week I had a subscriber ‘Unsubscribe’ indicating that it’s ‘Not my preference to continually focus on the doom and gloom.’
Ok, I understand. My commentary tends to focus on financial facts as they are reported in alternative financial media sources and the probability of the global economies crashing and blindsiding the ignorant masses. It’s me yelling from the rooftops for people to wake up to what’s going on around them.
What I write about is not a personal theory, but commentary from some of the most respected financial advisors and economists in the world.
There are two sides to every trade; you just need to be on the right side. There is always a way to profit from doom and gloom. It only becomes doom and gloom for the people who are not prepared or for those who are positioned in the wrong sectors. I call this being informed.
I feel it’s important for you to be aware as an investor or trader that you could be wiped out, if you’re not paying attention or holding the right positions to benefit from the direction of the markets.
If you’re a day trader, then it doesn’t matter what’s happening in the long term, since you only care about the daily gyrations in the short term market. But that’s not me, nor what this newsletter is about.
I’m a swing trader and long term investor. I focus on longer term trades with huge profit potential utilizing stocks and options. That’s why right now I’m promoting gold and the fundamental news stories of the current and future market conditions which affect the way my positions will move.
I’m looking for ‘home runs’; and the precious metals sector has been and will be a huge home run over the next few years. Case in point, just in the last couple of months our model portfolio is up several hundred percent and it’s just getting started.
As more sectors show promise, I’ll recommend those sectors as well.
I assume that most of my subscribers have similar goals. That is, to trade sectors that have huge profit potential and to stay informed about the direction of these trades, so you know when to place stop losses and maximize your gains.
The reason I’m mentioning all this is to pose the question to my subscribers, ‘What do you want to read in these pages?’
Leaving out the news and commentary of the current financial markets, which is a big part of my decision making process, is only giving you half the story, IMO.
If you find my commentary offensive or of no interest, I could omit the market commentary and just focus on the technical analysis of the sector trades, but I feel like that would be a disservice to those of you who want to know what’s going on in the markets.
I lost my entire fortune after the crash of 2008. I was not paying attention and I was not informed well enough to see it coming. I promised myself that I would never let that happen again. That’s why I’m so intent on the current financial news and I try to stay ahead of any possible black swan events that could affect your net worth and mine.
Gold and silver have been on a tear and many are afraid of a substantial pullback due to the massive short positions by the commercial banks as reported from the COT report. But I don’t think so.
I think the commercial banks have lost control and their attempts to manipulate the market back down have ended with multiple failures and they will soon have to cover their losing short positions. This will probably happen when gold reaches 1400 or above and holds.
This will also cause a huge short squeeze as all these shorts scramble to cover and that will force gold to skyrocket even higher. I wouldn’t be surprised to see $100 moves in the daily chart in the next few weeks.
You can see that we are experiencing a slight pullback in gold’s daily chart above, but it hasn’t broken the uptrend line. I think we will continue to see the price of gold and silver climb with only slight pullbacks until we reach the 1400 resistance zone, as shown below.
The price should consolidate for a short term at the 1400 level before really taking off to new highs.
Stock Market: (SPY) (QQQ)
The stock market is stubbornly hanging on, but the pressure is really building for the next leg down in this cycle. As the European economy is imploding, we have multiple potential black swans just teetering on the edge of the financial cliff. Italian Banks, Deutsche Bank, and now in Germany, Bremen Landesbank are all on the verge of failure.
These bank failures will be the next domino to fall and the result will cause a huge selloff in the markets.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
In the past few reports I’ve been telling you that crude oil was due for a rollover and to cycle back down. This daily chart shows that we achieved that rollover last week and got confirmation this week.
Oil should continue down over the next few weeks and as the stock market picks up its downward momentum, you should see similar moves down in crude.
Commodities: (FCX) (JJG) (DBA) (JO)
Commodities have been clobbered this week, but we’ve hit a major support zone within the blue rectangle shown above. If it breaks through the rectangular support zone, the next major support area is the red line at $20.75.
If you had stops in place on this position, you’ve probably been stopped out already. I would then wait to see what happens next week. We could see a bounce out of the current support zone.
If so, I would consider going long again for the next leg up.
(SLW) January 2017 CALLS
(GDX) January 2017 CALLS
(ABX) January 2017 CALLS
(FNV) January 2017 CALLS
(RGLD) January 2017 CALLS
(DBA) January 2017 CALLS
(JJG) January 2017 CALLS
(SPY) December 2016 PUTS
(IYF) August 2016 PUTS
EU Banks Crash To Crisis Lows As Funding Panic Accelerates