All Wrong, And Gold. UCO Update

Before the Wednesday Federal Reserve interest rate announcement we wrote:

"Typical action will be a rally lasting a short while, usually a day or two..."

What went up came easily back down, and despite a rally of over 600 points from the Monday low to the Wednesday close the DJIA finished the week at its lowest closing level of the past two months.  Factor that markets are typically bullish at this time of year, and this does not bode well for the bulls.

Speaking of bulls, in a recent Barron's survey all "experts" polled were bullish for 2016, with some offering wildly bullish predictions.  They're more BS'ers than bullish, we suggest, and our prediction is that they'll all be proven quite wrong, as is almost always the case when "experts" unanimously agree on market matters. 

One can't help but think of the "magazine cover indicator".

It's certainly possible that markets will rocket higher next year, but if that happens it's most likely to be from a much lower level.  In any case, there are no compelling fundamental reasons to be bullish at present, and no compelling technical reasons so long as the DJIA remains below 18000.

What is compelling is the developing set-up in gold and silver.  We'll be announcing a related long position soon.  It may take awhile to get the entry right, however once we do it'll be very memorably profitable. 

Recent gold-related posts:

Gold And Silver Charts - Friday, December 11, 2015

Another Look At Gold - Sunday, November 29, 2015


We're updating our UCO buy-stop to $13.00 







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