Like we also said Friday, with the NASDAQ having failed to close at
or above 5,851, there’s a much higher probability now we could be
looking at a few more weeks of downside ahead. Keep in mind, anything
can happen on an intra-day basis, but at this point it would really
surprise if these markets found a bottom today that will last. Sure, it
could bottom where it opened this morning, but at this point even if the
markets rally off their lows, we don’t expect it to last.
Precious metals are the clear winners on the day today, and it sure continues to look like there’s plenty more upside ahead for gold. It’s likely not to come without a fair amount of volatility along the way, but there’s a good chance we could see another 20% or so of further upside ahead in UGLD, the primary bullish leveraged gold ETF, before it could be in a position to finally pull back.
There’s one very glaring surprise this morning, especially when you consider the negative impact we’ve seen on pharma coming from the Trump camp lately. With all of the uncertainty surrounding healthcare and the pharma space this morning, pharma is actually among the very few green sectors so far on the day.
Honestly, we figured pharma would get crushed on the open this morning, but it’s actually slightly green, which is a gift with today’s sharp move lower across all of the major indices. This continues to suggest value in pharma on a long-term basis around current levels.
If you’re looking to get short the major index ETF’s, or play some index ETF put options a month or two out for protection, we’d suggest waiting for now, unless of course you entered on Friday when you saw the NASDAQ wasn’t going to close above that 5,851 level.
Considering where these markets opened this morning, it would be no surprise to see them rally off early morning lows today, and maybe even into tomorrow. It would be at that point the risk/reward for a potential short trade would be much better.
Precious metals are the clear winners on the day today, and it sure continues to look like there’s plenty more upside ahead for gold. It’s likely not to come without a fair amount of volatility along the way, but there’s a good chance we could see another 20% or so of further upside ahead in UGLD, the primary bullish leveraged gold ETF, before it could be in a position to finally pull back.
There’s one very glaring surprise this morning, especially when you consider the negative impact we’ve seen on pharma coming from the Trump camp lately. With all of the uncertainty surrounding healthcare and the pharma space this morning, pharma is actually among the very few green sectors so far on the day.
Honestly, we figured pharma would get crushed on the open this morning, but it’s actually slightly green, which is a gift with today’s sharp move lower across all of the major indices. This continues to suggest value in pharma on a long-term basis around current levels.
If you’re looking to get short the major index ETF’s, or play some index ETF put options a month or two out for protection, we’d suggest waiting for now, unless of course you entered on Friday when you saw the NASDAQ wasn’t going to close above that 5,851 level.
Considering where these markets opened this morning, it would be no surprise to see them rally off early morning lows today, and maybe even into tomorrow. It would be at that point the risk/reward for a potential short trade would be much better.
No comments:
Post a Comment