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Special NUGT Update

Precious Metals Analyst
August 24, 2012

Gold Sentiment Chart

  • The latest Hulbert gold survey shows gold newsletter writers are net short both gold and gold stocks. Historically, this type of situation indicates a bottom in gold.
  • Although the gold market in recent months has not made huge progress to the upside, the foundation in now laid to see a major move in gold itself, and an even bigger move in gold stocks.
  • I believe that move is underway now.

NUGT vs SGOL (Gold Bullion Proxy) Chart

  • My short term target is $1850 for gold. One of my best contacts believes the hedge funds have quietly been covering their short positions, leaving the trade in very weak hands.
  • I agree with that premise. I think that the coming move to $1850 will feature gold stocks acting much more "as they should", this time. The greatest opportunity is now in gold stocks. An option-like play that I'm very excited about for aggressive players, like myself, is NUGT-nyse.
  • Going forward, I don't see anything that will perform to the extent that NUGT could. I expect 1000% returns, if you are able to get in at current price levels.
  • My momentum indicators continue to advance, and a major rally is now under way in both gold and gold stocks. NUGT has is displaying showcase double bottoms against almost every major asset, including gold bullion itself!

NUGT vs Dow Chart

  • A week ago I issued an alert to the gold community that we were likely within 10 days of putting an intermediate top in the Dow.
  • That time target is on schedule, as the market is now turning down hard.
  • There could be a possible double topping process into Labor Day.
  • All my technical indicators remain green for a major outperformance of gold stocks over general equities. Please note the enormous volume on NUGT that I have highlighted with a blue circle.
  • Newsflash: The Dow plunged over 100 points already today, while NUGT is almost 1 % higher, and that follows an enormous rise of more than 6% for NUGT yesterday!
  • Note my money flow indicators on this chart. They indicate that large smart money is coming into NUGT.

NUGT vs Bond Chart

  • The MACD histograms are very powerful, and indicate that NUGT will take out the ratio high against the bond at .0966.
  • The right side of the double bottom on this chart is itself a reverse head & shoulders pattern. There is an incredible spread trade opportunity here. Aggressive investors can buy NUGT while shorting the bond.

NUGT vs GDX Chart

Note my intermediate term target at .400 on this ratio chart, which is a 60% gain for NUGT against GDX.

  • I love GDX, and I think there is a rare opportunity for aggressive investors to move back and forth between NUGT and GDX, to potentially build even more profits.
  • When NUGT rises a lot against GDX, I recommend selling some. Buy GDX with the proceeds, keeping you in the game!

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About Super Force Signals:

Our Super Force signals are created thru our proprietary blend of the highest quality technical analysis and many years of successful business building. We are two business owners with excellent synergy. We understand risk and reward. Our subscribers are generally successful business owners, people like yourself with speculative funds, looking for serious management of your risk and reward in the market.

 

Frank Johnson: Executive Editor, Macro Risk Manager.

Morris Hubbartt: Chief Market Analyst, Trading Risk Specialist.

 

[email protected]

[email protected]

 

Super Force Signals

422 Richards Street

Vancouver, BC V6B 2Z4

Canada

Morris Hubbartt is the creator of proprietary timing models in the Superforce Signals, Superforce 60 Trading Service. He is senior vice president, General Manager and as Co-Owner of a concrete manufacturing company since 1985. He is also sole proprietor of SFS Newsletter Services that specializes in volume analysis of the gold & silver markets. His website is at www.superforcesignals.com.


With gold stolen by Conquistador Francisco Pizarro from the Inca Empire in 1532, Spain financed its conquest of Europe.
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