The market’s getting the pullback it needs to head higher. Futures dropped afterhours on ORCL earnings news. I’m watching stocks that have been strong, to see how they handle the drop. I held some QID overnight.
Gold and silver stocks have been bouncing after the XAU dropped violently from 209 to 168 in just five days. That’s almost 20%. This bounce is heading into moving averages that are now pointing down on the daily chart.
V-type bottoms usually don’t hold. PAAS – Pan American Silver Corp. is setting up with that type of pattern. I started a short position in the stock at 40.25 with a new technique I’m playing with. Stop is one point. It’s best to wait for these to put in sell signals with lower highs before getting too aggressive. They may just drift fom here a while too.
