First off let me start by quoting
myself...“after this Wednesday, gold will be skyrocketing”, overnight we finally
saw the 1% jump in gold, 2% in silver, platinum 0.5% even palladium rose 0.4%. This
is just the beginning. Other commodities rose as well with the capital rushing
back in, as the USD weakened. The FED announced that they will not raise interest
rates, knowing how unstable the economy is. With the focus on the Asian and European
market, Britain's FTSE 100, Germany's DAX and France's CAC 40, showed the USD
weaken quickly.
Traders and investors are afraid
that Janet Yellen’s will take the views of her predecessors, Alan Greenspan or
Ben Bernanke regarding her decisions about monetary policies,
which will lead to market volatility as it has before. We can blame this
meeting and low interest rates all we want, but Janet is not the only reason we
are seeing the market move like this. I feel that people are hypersensitive
right now, a lot is happening between ISIS, Japan, Ebola, etc. The world news
is pumping us all up to panic, causing the market to act unstable and unpredictable.
The USD continues to drop right
after Janet’s announcement, but also after a release came out from a meeting
the FED had in September that stated, how if the dollar rises it could very
well have a severely negative “impact on the fragile U.S. recovery”. When the FED states
that they are worried about a strong USD, you can bet its going to weaken. When
this happens, these decisions are made knowing well what will happen and what
is happening now, you have to ask yourself why?
What are the true intentions? This
is when you have to look at all of it from new and sometimes odd perspectives.
Higher inflation is on the rise, it
is important to get your positions correct and hedged accordingly. If you have never traded metals now is the
time to start, throughout history it has maintained purchasing power, and is a
solid investment.
Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $8.20, with a gain of +20.5%
Buy Gold $1191.50, Currently at $1223.20 for a gain of 2.66%
Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $8.20, with a gain of +20.5%
Buy Gold $1191.50, Currently at $1223.20 for a gain of 2.66%