Gold not exciting, but QQQ looks good

by JDH on March 17, 2018

A chart of NUGT – Direxion Daily Gold Miners Bull 3x Shares NYSE + BATS , a 3 times leveraged ETF of gold shares, is not a particularly encouraging site:

It is in an obvious downtrend from 2016 (and before).

There appears to be a solid base around $22, if that is any consolation.

Perhaps NUGT will continue to trade in it’s down-trend channel, indicating a bounce back up to $30, or even $35, is possible, but the chart gives no indication that a new bull market is anywhere on the horizon.

So, if you want to roll the dice, buy NUGT here, and place your sell orders at $30, but it would appear that there are better places to put your money.

Like QQQ.

Here’s the chart:

As you can see, QQQ, a proxy for the Nasdaq, is close to an all time high, after a slight pullback this week.  A buy order at $170 looks like a solid bet.

The general stock market gives no indication that we have hit the “blow off top”, so the logical plan is to ride it.

And so I will.

At least until next week.

Stay tuned.


QQQ: The Trade of the Year

by JDH on March 10, 2018

So if you wanted to roll the dice and put all of your money in one trade, right now, what would it be?

QQQ PowerShares QQQ Nasdaq GM

Yup, bet it all on the Nasdaq.


Because we had the big correction (so this was a fantastic buy last month at $150), and on Friday it made a new high, so there is no overhead resistance.  Everyone who owns the Nasdaq owns it at a profit, so there is no burning need to sell to get back to even.

For now, let it ride.

And yes, I realize that the RSI is at 65, and there was a 2% pop on Friday, so it’s likely that there will be a pullback, but if I had to guess, I would guess that we are entering the “blow off top” phase of this crazy market.

In the USA, unemployment is low.  Donald Trump is on track to be the most successful president in the last 50 years.  ISIS is gone, the Middle East is peaceful, amazingly the Saudis are leading the peace charge, and the pressure Trump put on China to bring North Korea into line has virtually eliminated the possibility of nuclear annihilation, at least for today.

That bodes very well for the stock market.

So, back up the truck, and let it ride.

I will keep my core gold holdings, but I plan to have at least 20% of my portfolio in a vehicle like QQQ, so let’s see what happens.

Stay tuned.

Everyone is getting into Blockchain

March 3, 2018

So here’s an interesting press release: Lucara Diamond Announces Acquistion of Clara Diamond Solutions Corporation.  From the press release: Lucara Diamond Corp. (“Lucara” or the “Company”) (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX Stockholm:LUC) wishes to announce the acquisition of Clara Diamond Solutions Corp. (“Clara”), a company whose primary asset is a secure, digital sales platform that will transform how […]

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Nasdaq Set to Pop

February 24, 2018

I’m on the road today, so my report will be very brief: Take a look at the chart of the Nasdaq, and tell me if you don’t think it’s about to pop. We have not had the blow off top phase of this market yet, and after the correction of two weeks ago, it appears […]

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Time to Go All In?

February 17, 2018

Last week I said that after the big sell off this looks like a buying opportunity.  Today, I still think it looks like a buying opportunity. Why? Ignoring all of the technical indicators, the answer is the same as it’s been for the last 9 years.  Politicians want the market to go up, so they […]

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Looks Like a Buying Opportunity

February 10, 2018

Nice two weeks on the markets, eh?  The DOW touched 23,360 on Friday, pulling it all the way back to where it was on November 20, 2017.  The “crash” has wiped out all of the gains over the last two and a half months. Is two and a half months of crash really a crash?  […]

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Dow Falls 666, But That’s Not The Real Story

February 3, 2018

The Dow is down.  Could be a story. The memo got released.  That could be a story. Or perhaps those are just minor details.  Perhaps there is a bigger story. So a guy named Nunes writes a memo, and the Democrats don’t want it released, but the Republicans do, so they vote to release it, […]

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Gold Breakout?

January 27, 2018

Sure looks like it: From $1,302 on New Year’s Day, the low point of the year, gold has steadily advanced to $1,352, with only two slight pullbacks.  Not a bad month, so far. The peak came on September 8, 2017 at $1,357, before a pullback to the $1,240 level in December.  On January 25 gold […]

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How Crazy is Bitcoin?

January 20, 2018

Pretty crazy. On December 7 it touched $19,697 on the Bitfinex exchange.  (Bitcoin isn’t like a stock, traded on one or two exchanges.  Cryptos are traded on many exchanges, and you can trade peer-to-peer without an exchange, so determining an exact price is not precise). On January 7 it touched around $9,000. That’s a 45% […]

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No, I am Not Dead

January 13, 2018

There was no post here last week because, well, there just wasn’t. Also, for some reason the Buy High Sell Higher Forum is broken; not sure what the issue is, I’ll attempt to fix it at some point.  Now, down to business. Gold was up in 2017, and is up so far in 2018, but […]

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