Two interesting developments yesterday. First, a bounce in the price of crude oil – due to a larger-than-expected drawdown of oil inventories – which naturally depressed the price of your shares in ProShares Ultrashort Bloomberg Crude Oil ETF, symbol SCO – to hit my recommended protective sell stop at $111.54.
You should be out of that position now with a gain of as much as 9.85%. Not bad for a short-term trade. If not out of SCO, for whatever reason, please exit now at the market.
I expect another leg down soon in crude oil, so don’t be surprised if I recommend you soon get back into SCO, but wait for my signals.
Most interesting to me was the action in gold and silver. After lingering all day at the top of their technical resistance levels, they started to sell off, ending the day in negative territory. Gold, especially fell back below to a weekly sell signal at $1,363.50.
The chart patterns for gold and silver are starting to look bearish again. Meanwhile, the euro tried to rally over the last couple days, but its rally is also failing … while the U.S. dollar is starting to rally again.
At the same time, U.S. Treasury bonds continue to decline, especially in the longer part of the yield curve, the 20 and 30 year bonds. This is, of course, helping to firm up your position in TMV.
Overall better news for the portfolio. Hold all positions and related stops.
Best wishes,
Larry
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