Hubert Senters here.
Number question I get when the market sells off is what gold mining stocks should I buy. So my recommendation is I don’t buy any. I would just outright buy GLD. For me personally, I would rather buy gold futures the December contract so right now you could do the set too but you’re going to run out of time. You know a couple two or three weeks, you have been jumping out on the trade.
But if you don’t trade futures whether it’s you know the September contract, the least contract, the big contract, the minis, the micros, all great products some of them a little bit easier to trade than others in my opinion. I think the micros are better to trade than the minis and I like the big contract.
But anyway, I don’t particularly like going into gold mining stocks even if you’re talking like Newmont Mining which is up $1.54 today. The only problem with doing a mining stock is humans have to find the gold in the ground then they have to extract it from the ground and have a profit left over in order for their stock price quote unquote to go up.
Where if you just do GLD which is just the Gold Trust ETF they don’t have to worry about it. It’s just the spot price of gold in an ETF form so I would recommend that over gold mining stocks now will some of gold mining stocks have a little bit in intrinsic value sometimes they will sometimes, they won’t so it’s not a one to one ratio where GLD is hey, you think anybody is getting scared and freaked out they’re going to go on gold jumping GLD.
Now, this is an example of the Ultimate Breakout Pro Indicator and as you can see the last trade that it did it was a $9.1X and then oh, not the last trade, the last trade it lost $1X based upon a risk reward ratio so it’s minus one here it was plus $9X and then on this next trade right here you’ve got an entry, a stop, target 1, target 2 so target 1, target 2 and this is going to be more than a minus $1X so positive expectation if I’m only risking $1 to make $9 and if this holds true I’ll probably make more money on this set-up in this trade to fight it off back in here.
So if you haven’t been long gold or GLD it’s still not too late I’ll wait for a pullback. Today this is up $143 so the next time that the gold market decides to pull back get you some of that looks like it’s going to go slightly higher.
I’m going to HYPERLINK you to the registration page for Mark Helweg’s webinar tonight on ‘’How to Crack the Code of the Market Wizards for Potential Huge Gains with Limited Risk.’’ That webinar takes place tonight at 8PM EST.
Good luck. Hope it helps. See you on the next video.
Hubert.
