Time to Take Profits in Gold on A Short Term Basis

Thursday  Aug 29 Before the Market Opening
We have had a 20% rally in Gold  since it made a bottom around $1180. You may take profits in Gold related stocks even though we do not have a SELL signal yet.
Yesterday we told you to take profits in Silver.  I want to say it again that we do not have a SELL signal in precious metals yet.

US stock markets will have at least two week rally starting some time today irrespective of whether we attack Syria  now or later.  Thursday &  Friday are off days in Syria.  Rumors are that USA may attack  Syria today. Best time to attack will be early morning  Friday in Syria. They are 11 hours ahead of us. It will be after the markets close today in USA.
 Gold

Gold Mining Stock  ETF  (GDX)  gave a clear SELL signal yesterday. Tuesday morning  would have been the best time to sell this ETF.  It has completed 5 steps down of the first leg down yesterday. There may be a rally which will be the second leg up. So sell GDX & NUGT which is a  3X leveraged long ETF if you  have not already done so, into any rally.
Instead buy DUST  ( 3X Inverse ETF) as it has given a Buy signal. Insiders have been buying it heavily            between 20 & 23.

Some charts:
GDX  Gold Mining ETF

GDX (Two day chart)

NUGT ( 3 Month chart) 3X Leverage  Gold Mining ETF

NUGT ( 2 day Chart)

It is very interesting to look at DUST which is 3X leveraged Gold mining  Bearish ETF. If the mining stocks go down, this ETF goes up. Since  late June , it has been going down. Only yesterday, it gave a buy signal after completing 5 legs down. Notice very heavy buying by insiders near the bottom. Buy into any decline today & tomorrow.

DUST 3 month chart

DUST in last two days

Also sell TZA into any decline  before the end of today & buy TNA ( Bullish 3X leveraged Russell 2000)

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Gold & Silver Will Continue to Go Higher

Wednesday Aug 28 Before the Opening
Gold and Silver  are continuing to rise and  will make new highs. Stock markets will continue to go down till we reach lows established on July 24.

Let us look at some charts
SPY

DJI

IWM  ( ETF for RUSSELL  2000)

TZA

Let us Look at Gold & Silver related stocks

Technical Analysis ( from Kitco.com)

GDX  Gold Miners ETF

The insiders sold GDX at the opening and sold all day long with heaviest buying by insiders at the end of the day, Let us look at one day chart of GDX. The lat bar is for today's buying Till 5 AM PT but the volume is not correct for the last bar.

NUGT   3X Leverage  ETF 

NUGT For One Day for yesterday is below. See the heavy buying  by insiders in the last 30 Minutes. They have loaded up near the lows so they can distribute near the top. NUGT can go back to yesterday's higs or higher but it will take a few days. A stock can go down in a hurry but it takes more time to go up.

Here is the link to more news about Gold & Silver

http://kingworldnews.com/kingworldnews/King_World_News.html

USLV   Silver 3X leveraged ETF. We should take profits in this ETF as nearly 87% of people are bullish on Silver compared to 4% on June 24, 2013. So its rally needs to rest soon. Last candle is a bearish signal.

As far as European markets and Asian markets  like India, Japan, Indonesia and also Brazil, the declines are more severe as they are all in 3rd LEG down which is very ferocious.

US markets are going through 5th step of the First Leg Down. That is why declines are relatively mild.

We will start a 2nd leg up soon . That may recover some of the decline in the First Leg down. After the second leg up we will have a 3rd Leg down which will be quite severe.

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Stock Markets Around The World Going Down Again Except Gold & Silver

Tuesday Aug. 27th 2013

Stock Markets Around The World  Resuming their  declines to new lows. Yesterday, US  Equity Markets Completed the 4Th Step  Up of the First Leg Down and started the 5th step down. US markets will make new lows before the end of this month. On the other hand Gold & Silver are resuming their march up.

Let us look at some charts:

DJI

SPY

IWM  ETF  Corresponds to Russell 2000

TZA is A BUY Again Today

Let us look at Gold & its ETFs
GOLD

NUGT  ( Gold 3X Leveraged ETF) First will Cross 104 today & then march upward to resistance from 112 to 123. We have no SELL signal on Silver or Gold. Insiders continue to buy heavily. Till they start distributing , there will be no decline.

Silver

USLV  ( Silver 3X  Leveraged ETF)

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Gold & Silver Going Higher and So are their Bullish ETFs

The Gold  & Sliver  are  going higher  but we do not know how far up.
 Let us look at the charts :
Gold

The Above chart Courtesy of

http://www.kitco.com/news/2013-08-26/template_jimw.htm
 GLD ETF

NUGT

 Can NUGT go to 120 in a hurry ? Yes it can.  I do not know why they did not make a new high on NUGT Friday when Gold, GLD and Silver SLV were all higher.  Somebody was buying near the end Friday so that they can explode it higher on Monday.
See somebody else is recommending (NUGT)
http://seekingalpha.com/article/1653992-will-the-miners-save-gold-and-silver-prices

Link to more news about Gold

mhttp://kingworldnews.com/kingworldnews/Business.html

Indian Rupee is going to Rs 95 to  a dollar. So will happen to Indonesia Rupiah & Brazilian Real. How can you stop the citizens of these countries from Buying their ultimate security of Gold & Silver?


Silver ETF

USLV 3X Bull for Silver ETF

If you had bought  USLV as late as 8/10, you will have had almost 100% gain. What about the Inverse Triple leverage ETF DSLV you would have lost money
DSLV Inverse 3X leverage

The following chart Courtesy of Kitco.com

There is another area where we want  you to pay attention today. It is the biggest bubble built in Interest rates. All Central banks have been selling bonds at near 0%. This bubble has started to burst and this is just the start. Almost $900 Billion worth of bonds are traded everyday on exchanges. This is much more than equities traded around the world. Also $85 Billion worth of bonds being bought  By US central Bank has less and less effect on interest rates & bond prices. Buying $85 Billion dollar worth or less will not reduce the interest rates any more. Long term interest rates are not going back to previous lows, but there will be a lot of trading opportunities and bonds.

 Bond 3X Leverage  Bull  ETF  TMF. It goes down when interest rates go up.

Bond 3X Bear Bond ( inverse of Long bonds)  ETF. It goes up when rates go up.

TMV

If you had bought TMV in early May, It would have gone from 49 to 80 ----a 60% gain.

Are you not surprised that  most funds cannot even have  a gain of 10%? Many hedge funds with all their huge staffs, do not gain more than 15% in a year.
http://kingworldnews.com/kingworldnews/Business.html

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US Markets May Go Down One more Time Before a Significant Rally Starts

Some people confuse our postings.We did not post anything  on Thursday. Last posting was for Wednesday Aug 21.

US markets have been going down since Aug 2, 2013. First leg down has five steps. The fourth up leg was probably completed yesterday near the end or may be early morning today. It will be followed by new lows in DJI & SPX. Nasdaq may or may not make a new low. Same can be said about IWM--( corresponding to Russell 2000) The rally may cover 50%, 67% or 100% of the recent decline from August 2 highs.
Cover your short positions when the markets complete new lows. That means selling TZA during the next decline. The markets will go much lower   after  50%, 67% or 100% rally.
Let us look at the charts

DJI

SPY

IWM

US dollar index has been going down . The following two charts are courtesy of KITCO.com
http://www.kitco.com/news/2013-08-22/KitcoNews20130822JW_forexcharts.html

Euro VS dollar

Now let us look at gold. There is no SELL signal on Gold & Gold related stocks. We cannot be sure whether Gold is in a 4th leg up  followed by new lows or it is the start of a big rally that everybody has been expecting. We have to blame Bernanke for the chaos it is causing in all developing  countries. The currencies ( & stock markets ) of India, Indonesia, Turkey, Pakistan, Brazil  and many other countries are being ruined by Easy Money policies of our Federal Reserve. These countries borrowed heavily from USA and now they have to pay back in local currencies which are being devalued big time. The interest rates in these countries are rising and no matter what they do, they cannot stop this.

Gold

GLD

GDW ( Mining Companies ETF)

NUGT ( 3X leveraged Mining Company ETF)

The heavy volume in GDX & NUGT tells us that they have to go still higher .    For more  news about Gold you can also go to this web site:

http://kingworldnews.com/kingworldnews/Business.html

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U.S.A Markets Will Resume Their Declines Today

USA markets will intensify their decline no matter what the FOMC minutes are (to be released at 11AM PT. ) Markets  will go to lows soon  established around June 21 before a meaningful rally can start.
Gold , on the other hand, after early morning decline will resume its upward march.
Let us look at yesterday's charts for 3 months.
DJI

SPY

IWM (  Russell 2000 ETF)

 TZA will regain yesterday's decline as it crosses the 50 day moving average.

GDX ( Gold Miners' ETF

NUGT  ( 3X Gold Miners ETF)

NUGT recovered most of the losses of Tuesday and now will move up towards 120 or so after early morning weakness .

TLT  ( 20+ year bonds)

There is no Buy signal in bonds yet even after some rally yesterday

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