There’s an awful lot of volatility on Wall Street. Gold and silver and oil are back and forth, there’s various talks regarding interest rates, and other things that are going on that affect the market. The bottom line is that the trend is still lower, even with the rallies the market’s had in the last couple of the days. Let’s go over some gold and silver stocks, and a few ETF's, and show you where they are at so that you can get an idea as to what is going on.
The Direxion Daily Gold Miners Bull 3X ETF (NUGT) has been having an incredible ride. It was at 17 mid Jan, and on Thursday, less than a month, it is at 54.80. It had a target here and reached it. There’s a little bit of resistance up at 58.80. That could happen on Friday. But anything up in the high 50’s, I’m going to pull back on. It needs a set-up consolidation, and if it gets a major, 5-wave long-term, move down, this could be leg one. Let’s look for two, and set up for three, four, and five.
The Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG) has gone from 21 1/2 to 57 on Thursday in less than a month. Resistance and a target are up in the low 60's at 62,3,4, maybe even 65, if there is any kind of extension. That would be a good place to take profits.
The VelocityShares Daily 2x VIX ST ETN (TVIX) had a big spike up on Thursday, and had a solid close at the highs for Sept, up 1.40 to 12.74, or 12.4%. A spike up to 14 may be tested short-term. Even as high as 15 1/2-3/4. Getting up in that zone this stock has to be extended. The angle of ascent shows the possibility that if this really rips, it could see 16 or 17. I wouldn’t get too carried away yet, though.
The ProShares Ultra VIX Short-Term Futures (UVXY) has a similar pattern to UVXY, very choppy, indeed. This stock is already up in the resistance zone. It was up a whopping 6.26 to 58.04, 12%, on 40 million shares. The target on this one is in the low 70’s, maybe 71-2.
CenturyLink, Inc. (CTL) had a big day on Thursday. This is a stock that was in the mid 40’s, came all the way down to 22 in a very nice, orderly falling channel, formed a little left shoulder-head-right shoulder, and then it spiked up on Thursday, up 2.70 to 27.29, on 15 million shares, the biggest volume on an up day ever. It could portend that Thursday was a key breakout as it broke its major declining topsline, 50-day moving average, and created an inverse head-and-shoulder neckline. The move from the low at the bottom of the inverse head-and-shoulder neckline to resistance could get this stock up to the 31-2 range short-term. That’s the target on this one.