If you are, put your money where your mouth is and buy put options

OK, gold haters. It’s time to put your money where your mouth is.

You think gold could be going down to $350 an ounce? That’s great. Then go out there and buy some put options on the yellow metal. They will pay out, but huge, if your prediction comes anywhere close to being right.

We’re talking very little money down, and a profit of more than 3,000% if you’re right. Cha-ching!

…..read more HERE

                                                                                                                                                Larger Chart

On the heels of continued volatile trading in key global markets, the Godfather of newsletter writers, 90-year-old Richard Russell, discusses what is really happening in the United States. Also, Dr. Paul Craig Roberts weighs in with his thoughts about the ongoing crisis in Greece.

….read it all HERE

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.

When Dickens first shared these thoughts he was alluding to London and Paris during the era of the French Revolution. Were Dickens to reappear as an astute financial news reporter, I think he might share the same thoughts for the two worlds of technology stocks and gold today. For the former, things have never been better.  For the latter, things have never been worse…. CLICK HERE to read the complete article

and… 

What About Diamonds?

We did see diamonds reach a reaction high in 2011, yet that high should stand right now as prices move back to retest support. Keep in mind that this is correlating with gold to a large extent. Likewise, gold did not exceed the 1980 high of $2300 when adjusted for inflation.

Gold: The Pending Question

QUESTION: Martin,

With your recent comments on gold; you seem to be implicitly suggesting people to sell their gold, since there is a good chance for it to bottom-out at a sub-$1000 level. Wouldn’t it make far more sense to hold onto it at least till November?

1) We don’t know for sure whether some of the central banks actually have all the gold they claim to hold:

2) Not all of the large scale gold transactions are performed overtly:

3) The gold accounts without physical holding/delivery go unaccounted in the total global demand for gold.

Kind regards,

….Martin’s answers the questions above including time/price HERE

Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.

DOW                                                   – 128 on 1400 net declines 

NASDAQ COMP                                 – 49 on 1200 net declines

SHORT TERM TREND                         Bearish 

INTERMEDIATE TERM TREND       Bullish 

STOCKS: On Friday, we thought Monday would be higher, but that was before a drop of 8 1/2 % in China which spread to Europe with the German market dropping  2 1/2%. 

Just to put it into perspective, these percentages would result in drops for the Dow of 1400 points and 450 points respectively.        

GOLD:  Gold rallied $8. A severely oversold condition is helping, but I still don’t see a real turn. Perhaps soon.  A dropping dollar is also helping.      

NEXT DAY: Tuesday. Should be higher.     

CHART: Five day RSI for the S&P 500 is now oversold. Moves below 30 frequently are precursors for the initiation of a multi day rally. 

BOTTOM LINE:  (Trading)

Our intermediate term system is on a buy. No intermediate term positions for now.

System 7   We bought the SSO at 65.01. If there are more declines than advances at 3:45 EST on Tuesday, sell at the close.                               

System 8   We are in cash. Stay there.                    

GOLD  We are in cash. Stay there.     

News and fundamentals:  The Dallas Fed Mfg. Survey was minus 4.6%. better than last month’s minus 7.0%. Durable goods orders rose 3.4%, better than the anticipated rise of 3.1%. On Tuesday we get consumer confidence and the Case Shiller home price index.

Interesting Stuff  Crude oil is crashing and in California, where I live, gasoline prices are surging. We have the worst state legislature of the 50 states in my opinion. They don’t care. They think that driving contributes to global warming —– or something.  

TORONTO EXCHAN GE:   Toronto dropped 185 points.      

S&P/TSX VENTURE COMP: The TSX was down 11.       

BONDS:  Bonds keep rising, a flight to quality no doubt.                                                          

THE REST:  The dollar sank sharply. Silver was up slightly. Crude oil is crashing.                  

We’re on a buy for bonds as of June 11.                      

We’re on a sell for the dollar and a buy for the euro as of July 21.                          

We’re on a sell for gold as of  July 2.                         

We’re on a sell for silver as of June 23.                        

We’re on a sell for crude oil as of July 16.                             

We’re on a sell for the Toronto Stock Exchange as of May 6.    

We’re on a sell for the S&P\TSX Venture Fund as of October 30, 2014.    

We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.  

 INDICATOR PARAMETERS

Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 13.0 or above is oversold). CBOE Put Call Ratio ( .80 or below is a negative. 1.00 or above is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative). Trading Index (TRIN) 1.40 or above bullish. No level for bearish.

      No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.