Tag Archives: nugt

ETF Leveraged Daily Trading Service For 10-15-2015

Summary UVXY continued to give us nice profit. Gold miners are still looking up but is caution warranted? Call for leaning short the market came to fruition. (Subscribers received early access to this article here .) INDEXES Yesterday I said it’s hard to be bullish on anything with the kind of a market turnaround we had on Monday and that overall I still see problems all over the place. Today we got a worse than expected retail sales report and lower producer prices fitting perfectly in with my deflationary scenario. The market at first shrugged it off in a bizarro world fashion, but then began to fall, rebound and fall again. I said to keep an eye on (NYSEARCA: UVXY ) for clues and 2 days ago, before broke 35 I said it will give us a tremendous buy. Today broke over 40 before settling in at the close at 38.21. It’s down a little after hours and right now in buy the dip mode. That run up could have been caught for a trade once it broke 37.92 using the higher high rule. I caught it for almost 2 points, but I also like taking profit and do so more quickly on as it can turn on you sometimes. While news can cause a short term move one way or the other, we saw (NYSEARCA: TWM ) trigger as a buy at tomorrow’s open if it is higher than today’s close per the Trading Rules. Keep an eye on China and Europe for some direction if aggressive and looking to go long all of the short market indexes that are green on the monthly; (NYSEARCA: TZA ), (NYSEARCA: SPXS ), (NYSEARCA: SPXU ), (SQQ), (NYSEARCA: SDOW ), (NYSEARCA: SDS ), (NYSEARCA: QID ), (NYSEARCA: DXD ), and (NYSEARCA: FAZ ). (NASDAQ: BIS ) bucked the trend today but is still a good potential if the market continues to fall. I have to lean towards this trend but conservative investors will wait till we get more of these monthlies turning green on the weekly again before jumping in. (NYSEARCA: SVXY ) turning red on the weekly helps with our trend analysis to lean short the indexes. A few more greens on the weekly and we can get our more reliable trend to trade again instead of the last month of volatility. CHINA/RUSSIA/EMERGING I was a little early in (NYSEARCA: YANG ) and (NYSEARCA: RUSS ) yesterday as they both opened lower and stayed lower despite the move down in U.S. markets. I am still a fan despite today’s price action. Yesterday I said I would be a buyer of (NYSEARCA: EDZ ) if over 40.10. It only got to 39.71 which I would be a buyer over that price tomorrow. INTEREST RATES Yesterday I said I still like (NYSEARCA: TLT ) for a longer term trade as I have been saying for months. It was up 1.08% today and still liking it. ENERGY Yesterday I said I would go long (NYSEARCA: DWTI ) over 95.50 tomorrow. It opened at 96.22 and moved as high as 98.39 before closing lower at 94.46. I would buy (NYSEARCA: UWTI ) over 11.45 tomorrow for a possible few day trade and see if we can’t get back down to the 60’s to swallow up and ride to the 100’s again. I would however still be a buyer of over 98.39 but only for a scalp. I don’t think we’re quite ready to go for the home run yet. (NYSEARCA: UGAZ ) I said I would wait till Thursday’s report for some action to trade. I want to lean long but why gamble? Wait for the report to come out and jump on the higher high per the Trading Rules. (NYSEARCA: ERX ) I said yesterday we need a little more patience for a trend to set up. It may have started today as it moved up 2.4%. For aggressive traders I would attempt a long tomorrow at the open if it is higher than today’s close of 34.53 or if conservative wait till it is over 34.96 to go long. GOLD MINING RELATED ANALYSIS Yesterday for the miners I said we may still have one last push higher to grab the last bit of bulls for gold and silver and take them to the woodshed one last time. (NYSEARCA: GLD ) joined (NYSEARCA: SLV ) and turned green on the weekly and monthly now and (NYSEARCA: GDX ), (NYSEARCA: NUGT ), (NYSEARCA: JNUG ) and (NYSEARCA: GDXJ ) all had great days. They probably have a little more room to the upside here as we approach the $1,200 to $1,220 mark in gold I have been looking for. The dollar moved lower on the data that came out today and many think a rate hike is even further off because of it and view this as positive for gold. I said I will be all over (NYSEARCA: JDST ) soon enough and if you read my Current Thoughts the last week you’ll know how I view the dollar and Euro and how I see things unfolding for precious metals. A few days ago I said you can’t ignore this strength in the metals and miners and today would indeed qualify as a “push higher.” Expect a little continuation and then a pullback and look for the potential of a higher high in . I won’t say we’ll catch the exact moment will turn higher, but we’ll come close. (click to enlarge) (click to enlarge)

NUGT: Fed Statement Boosts Gold

The Direxion Daily Gold Miners Bull 3x Shares ETF (NYSEARCA: NUGT ) is in the midst of volatile trading after split in the second week of September. On Wednesday morning the instrument, like the rest of the gold market, is being driven by one thing and one thing only . The Federal Reserve’s outlook on its target interest rate in the US will be revealed later on today, and the gold market is betting that traders will flee to the yellow metal as a result of the market chaos in the wake of the statement. When markets get volatile money is supposed to flee to gold, but there’s reasons to think that may not happen this time around . Gold market waits for Janet Yellen The US dollar weakened ahead of the big reveal from the Fed , and the change in relative vale appears to have been at least partly responsible for the rise in the price of gold on Wednesday. At time of writing futures for December were selling for $1,116.90 per troy ounce, up 1.3 percent for the morning so far. NUGT is supposed to triple the returns of a basket of gold miners, but the fund has faced its own technical problems lately. After a 1:10 split earlier this month trading has been volatile. At time of writing shares in the ETF were selling for 3.08, up 15.79 percent for the morning so far. Stuart Hoffman, chief economist of PNC Financial Services Group told CNBC “It is time for the FOMC to start bringing monetary policy slowly out of its ‘self-induced coma’ in response to much improved vital signs for the U.S. economy.” A survey from the TV station found that 49 percent of economists questioned were looking for the Fed to raise rates this month. Gold waits for Fed numbers For Wednesday the only number that really matters is the target interest rate that the Fed reveals in its statement. If the central bank decides to keep rates the same for the time being, little effect will be seen. Wall Street, the same as after each other recent Fed reveal, will try to pick out key info to inform forecasts of a rate hike. If, however, Janet Yellen and her team on the Fed board decide that now is the time to boost the target rate, chaos will ensue. No one is sure what kind of effect that might have on the world markets. Those with the most confident of outlooks all disagree with one another. Archer Financial’s Blake Robbin reckons that “Gold will get a pop if the Fed keeps things unchanged.” After this morning’s jump in NUGT that pop may already be priced in. Wall Street doesn’t exactly expect Yellen and crew to tighten up this time around. Any gold jump might be short lived heading into the next major central bank meeting, or the next piece of key data from China.

NUGT Rides On The Cautious Case For Gold

The Direxion Daily Gold Miners Bull 3x Shares ETF (NYSEARCA: NUGT ) and other gold ETFs might see some sort of stability in the next couple of weeks as gold buyers take cautious views ahead of the Federal Reserve meeting holding next week. The fear in the market before now was the Fed will raise interest rates this month, and the fear has been forcing downward pressure on gold. The WSJ notes that spot gold was trading down 0.02% at $1,121.27 a troy ounce in Europe this morning; yet, the fact that China bought 16 tons of the bullion in August suggests that fears about the situation in China are overblown. Now, weak economic data from last week suggests that the Fed might hold off the rate hike until December. If the Fed waits until December before raising Interest rates, the price of the yellow metal will stabilize as investors breathe a sigh of relief. However, the stability doesn’t mean that gold prices will soar because stable gold prices ahead of a Fed meeting could easily be the calm that precedes a storm. The cautious case for gold The last couple of weeks have seen some analysts take side on the bullish case for gold while other analysts camped on the bearish side of gold. The next couple of weeks however, are likely to see analysts finding common ground in the cautious case for gold. Adrian Ash, head of research at BullionVault says that the bullion has had its slump and it has missed the rally in global stock prices. In his words, “After riding out the risk-off slump in productive commodities last month, gold missed most of today’s risk-on rally.” Lukman Otunuga, a research analyst at FXTM notes that gold has support at $1,110 and that economic data will influence where gold ETFs such as NUGT are heading next. In his words, “if data from the United States this week is robust, then more pressure may be seen for gold which may trigger a selloff to the next relevant support at $1,110 [an ounce]… The major catalyst for a potential heavy selloff in gold continues [to] revolve around whether the Federal Reserve begins to raise U.S. interest rates this year.” Commerzbank sums up the bearish case for gold because the effects of demand and supply in the physical gold market has been mixed. The firm says “In the run-up to the Fed’s meeting next week, market participants are likely to be exercising restraint, so we are unlikely to see any pronounced price fluctuations”. A balanced market, in the meantime NUGT and other gold backed ETFs are not likely to see much changes going forward because the bulls and bears are exerting almost the same amount of pressure on the market. Howie Lee, an investment analyst at Phillip Futures opines that “We are long-term still bearish on gold, but current market conditions may suggest that gold bulls are in control of the market in the near term.” Link back to the original article on Learn Bonds