Weekly Update: October 28, 2015

Weekly Update: October 28, 2015

 

Big Picture Outlook:

Today’s a big day for precious metals…

As you’re likely aware, the Fed releases their FOMC decision coming up at 2pm ET today.

Given the tightly wound technical patterns for both gold and silver, we could see a rather large move in the metals space the next few days.

Here are a few things to think about…

Should the Fed announce a delay in their plans to raise interest rates, precious metals should rally.

If the Fed is murky with their outlook, we may still see some solid upside in gold and silver.

However, if the US central bank comes out hawkish, projecting a rate raise by the end of this year, look for metals to reverse quickly lower.

Here’s the problem…

It’s hard to make a risk-controlled bet ahead of the news this afternoon.  That’s why I’m sending you today’s update a bit early.

I want you to be ready for a trade in precious metals either this afternoon or tomorrow morning.

Let’s quickly check in on our open positions…

 

Portfolio Highlights:

Editor’s Note: I won’t update every open position in every update.  I focus on the positions with significant news or price movement.

. . . . US Oil Fund $USO December 18, 2015 $15.50 calls

$USO hit our risk control line at $14.15 a few days ago.  If you’re a conservative investor, you should have already closed this trade to conserve capital.

If you’re aggressive, consider holding these calls for an oil rebound.

. . . . Newmont Mining $NEM November 20, 2015 $18 calls

$NEM is rallying over $20 a share ahead of today’s FOMC announcement.   Our $18 calls are trading at a $2.26 bid as I write, which is a sweet 194% gain from our entry at $0.77 earlier this month.

Keep holding any remaining calls you may have left for our second profit target at $21.00!

. . . . SPDR Gold Trust November 20, 2015 $111 puts

Gold is rallying ahead of this afternoon’s Fed meeting.  The rally triggered our risk control line at $112.50 this morning.  If you’re conservative, you may want to close this trade ahead of the 2pm FOMC meeting!

 

Category: Commodity Trading