Riding The Gravy Train: DJIA Chart, UCO Stop Updated

Riding The Gravy Train

Beating the market is fun and profitable. This is how we do it.

Sunday, March 06, 2016

DJIA Chart, UCO Stop Updated

Late in 2015 we were strident in our assertion that equities would soon plunge. 
 
For example, on December 19th we wrote:
 
"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."
 
Here's a look at gold since then, with the back circle showing when we made that call:
 
 
 
As it turned out gold made a 5-year low the day before we posted the quote above, and has since gone up 22% in just over two months.
 
 
Our bearish outlook on equities was also validated, given the start of 2016 turned out to be the worst start of a year in stock market history.
 
On January 20, we presented these two charts of the DJIA:
 
 
 
The title of the post that day was "Equities Finally Somewhat Oversold, Long NUGT, OKS, UCO", and that day proved to be the low for equities so far this year.  Within two weeks the DJIA was over 1000 points higher.  
 
Stocks then plunged again but did not make a new low, and on February 11 our DJIA chart looked like this:
 
 
 
That chart suggested strong support, and since that day the DJIA is up over 1500 points in three weeks!
 
Today the DJIA looks like this to us, with the black lines showing probable resistance:
 
 
 
Since the January 20 buys, NUGT is up 237% (up 297% at Friday's high) while OKS is up 35% and UCO is up 38% (up 52% at the January 29 high). 
 
We've subsequently revised our stop levels on these holdings, and now will raise the UCO stop further to $7.00 
 
 
 
 
 
 
 
 


We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.

To be notified when this blog is updated :
Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a posting only contains general commentary.

This publication has been prepared solely for informational purposes and is made available on an "as is" basis. RidingTheGravyTrain (RtGT) does not make any warranty or representation regarding the information. The material is proprietary and without prior written permission from RtGT it may not be reproduced, copied, modified, performed, published, distributed or broadcast, in whole or in part, in any form, other than for your own personal, non-commercial use.

Nothing in this publication is intended to constitute legal, tax, securities, or investment advice, or an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Nothing in these pages constitutes an offer or a solicitation to buy or sell a security nor is it to be construed as investment advice.

RtGT is not an investment advisor. The general opinions and information contained in herein should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional concerning your own situation and any specific investment questions you may have. RtGT cannot guarantee the future performance of any investment.