IF YOU LIKE METALS, FORGET GOLD. BUY COPPER.

In light of the ongoing conversation of dollar/precious metals, if I were to take a look at the long side of this, you cannot ignore what copper has been doing into all this weakness in the metals.

Here’s a look at a 10yr profile of Copper futures.

Copper has a similar chart as the metals, up until the puke phase. I’ve been a long term follower of Dr. Copper, using it as a daily indicator from 06-12. After that, it seemed to have lost its predictive value in terms of equity prices.

The relative strength in this is a thesis I am focused on going into next year. I’ve already placed long term money in FCX and SCCO. If I had to play metals, Copper interests me more here than Gold or Silver.

Just my humble opinion.

OA

If you will, tell me your personal opinion of Gold here. Is this a buy opportunity?

https://www.surveymonkey.com/s/VJ2CWX3

Thank you,

OA

The “SPEED” of this market is what’s most critical here. Stocks will be up or down, but so long as the market remains calm, trends are more likely to continue than reverse.

This move in Gold is not entirely in the bag just yet, but barring any overnight surprises, you might be in for a real treat here. Members of 12631 enjoyed a 15% ramp in JDST today which helps a portfolio stay positive while stocks fluctuate.

Into tomorrow, I like TSLA and TWTR.

Tonight on After Hours with Option Addict, we’ll discuss the advantage to being anticipatory in your analysis versus reactionary.

OA

Most instruments correlated to Gold are wound up pretty tight here. This should trigger an initiative move that will dictate the next 20% move in the GDXJ, and perhaps a 10% move in the metals.

Gold 30m

GDXJ 30m

This should start today. I’m back to full size in JDST. Godspeed.

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I was a little over exposed to TWTR coming into analyst day. It’s one of my largest stock positions, my largest Nov option position, and I bought December calls yesterday.

Let me take you back a few weeks to this post: http://ibankcoin.com/option_addict/2014/10/29/twitterpated-2/

In Vegas, we broke down this trade as one of my top conviction longs, based on sentiment. Conversely, while in Las Vegas I had the pleasure of watching CNBC – something I rarely do. One particular segment I caught was about TWTR, and “Where does it go from here?” This underlined the perception of this stock. People remember it being up huge, and down considerably in the past. My take was that at these prices, traders were averse to risk, and that the stock was vulnerable for a chase.

Today was nothing short of that.

For the November options I am targeting no less than $45, and $50 into December. Hope you caught this.

OA