In the meantime, if you haven’t already, you could enter into a
bearish leveraged index ETF like SQQQ on a break below 6,140 (just below
this morning’s low) on the NASDAQ Composite – in anticipation of a
final move to just below the 5,900 level. Or, you could enter into the
bearish ETF on any further relief to the upside.
Just be careful here though because we’re clearly at a major crossroads right now on a short-term basis. Meaning, if the NASDAQ is going to seriously stage a strong reversal back to the upside, it must do it now – and if it does we’ll keep a close eye on the breadth of the reversal.
You could also consider getting short oil if you’re not still short there via SCO or any other bearish oil instrument. Below is a daily chart of the price of light crude, and as you can see, oil got the anticipated relief rally we’ve been looking for over the last few days, but we still don’t believe oil is going to find its way much above roughly $45 and change before it should end up resuming its recent downtrend.
Not only would a clear break below $40 per barrel likely wash out enough bulls at some point, the fundamental landscape for the commodity down below $40 – and specifically right around $37 – would put the commodity in a position to start finding some legs back to the upside again.
As for gold, it’s interesting to point out even with this week’s strong move lower in equities, gold still can’t seem to find its footing, which further suggests our ultimate target on GLD of roughly $113 and change is still in the cards. Not only would that represent a complete 5/8th’s retracement on its daily chart you see here, the move – much like what would happen with oil – would likely be enough to wash out the bullish gold bugs down around that level on the primary ETF tracking gold.
DGLD or DUST would be the bearish leveraged ETF’s of choice if gold can ultimately find its way down to that $113 and change level on the daily chart of GLD above.
Just be careful here though because we’re clearly at a major crossroads right now on a short-term basis. Meaning, if the NASDAQ is going to seriously stage a strong reversal back to the upside, it must do it now – and if it does we’ll keep a close eye on the breadth of the reversal.
You could also consider getting short oil if you’re not still short there via SCO or any other bearish oil instrument. Below is a daily chart of the price of light crude, and as you can see, oil got the anticipated relief rally we’ve been looking for over the last few days, but we still don’t believe oil is going to find its way much above roughly $45 and change before it should end up resuming its recent downtrend.
Not only would a clear break below $40 per barrel likely wash out enough bulls at some point, the fundamental landscape for the commodity down below $40 – and specifically right around $37 – would put the commodity in a position to start finding some legs back to the upside again.
As for gold, it’s interesting to point out even with this week’s strong move lower in equities, gold still can’t seem to find its footing, which further suggests our ultimate target on GLD of roughly $113 and change is still in the cards. Not only would that represent a complete 5/8th’s retracement on its daily chart you see here, the move – much like what would happen with oil – would likely be enough to wash out the bullish gold bugs down around that level on the primary ETF tracking gold.
DGLD or DUST would be the bearish leveraged ETF’s of choice if gold can ultimately find its way down to that $113 and change level on the daily chart of GLD above.
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