The Nasdaq, and Ultrashort ETF, QID tapped their respective 50 dma’s Friday. If the Nasdaq fails to hold that moving average, we could see that 10% selloff the bears have been waiting for. We’re into summer trading, where often the market tends to drift. A period of consolidation would not be out of question, though I doubt a major pullback will occur.
Gold stocks are setting up buy signals after a quick drop of the XAU once again. I’ll buy higher highs in favorites FCX, AEM, MDG, and AUY. Selling in partials will be part of the playbook, as I don’t expect a huge bounce.
A few other stocks on my radar include ILMN, GROW, MICC, and WBD. We’ve got quadruple witching this week, which should help volatility.
