A huge distribution day yesterday sent all indices that I'm tracking into SELL mode. The rally was weak from the very beginning, so I think recent lows should be easily taken out.
To avoid missing the entire down move if drop turns out to be considerable, I opened a minor short position in LVS. LVS was a big winner of the last bull market advancing more than 5000% from the 2009 lows when it was still in penny stock area. It has topped in a spectacular climax 10 months ago when it got more than 100% in 2 months. Since than it has witnessed several failed breakout attempts and broke below MA50 and MA200 many times. I suppose LVS is now ready to give ground. It has been pretty strong during the last mini rally in general merket, but the problem is that I found virtually no other stock to short, which was not too extended below MA50. And I always tend to short stocks as close to their MA50 as possible to keep a safe stop. We'll see how the trade goes.
Regarding gold. The yellow metal yesterday broke into new all time highs. I speculated about a possible double top before, but a moderate volume and not-reversal-looking candle suggest there is still more upside to go. I'm going to keep gold on NEUTRAL signal for now until I see some reversal signals. However, I strongly suggest that anyone still holding gold, silver or miners, uses any additional strength for selling. Personally, I'd just enter a trailing stop of 5% and let it go as high as it wants.
To avoid missing the entire down move if drop turns out to be considerable, I opened a minor short position in LVS. LVS was a big winner of the last bull market advancing more than 5000% from the 2009 lows when it was still in penny stock area. It has topped in a spectacular climax 10 months ago when it got more than 100% in 2 months. Since than it has witnessed several failed breakout attempts and broke below MA50 and MA200 many times. I suppose LVS is now ready to give ground. It has been pretty strong during the last mini rally in general merket, but the problem is that I found virtually no other stock to short, which was not too extended below MA50. And I always tend to short stocks as close to their MA50 as possible to keep a safe stop. We'll see how the trade goes.
Regarding gold. The yellow metal yesterday broke into new all time highs. I speculated about a possible double top before, but a moderate volume and not-reversal-looking candle suggest there is still more upside to go. I'm going to keep gold on NEUTRAL signal for now until I see some reversal signals. However, I strongly suggest that anyone still holding gold, silver or miners, uses any additional strength for selling. Personally, I'd just enter a trailing stop of 5% and let it go as high as it wants.
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