Just a quick update here: Precisely as expected and as noted in yesterday’s issue, the stock market tried to rally early yesterday morning, but then failed miserably.
This morning there is a sea of red around the globe, with every stock market but one, South Korea, slumping.
This should be the beginning of the next leg down. Don’t expect a freefall. The market is far more likely to zig zag lower.
Hold all bearish and volatility plays on the stock market with your protective stops in place.
Gold, meanwhile, remains weak. Not surprising, on the one hand, since it is still in a major bear market. Nevertheless, on the other hand, many of the very short-term cycles and indicators I use still point to a possible sharp rally unfolding at any time.
Therefore, hold your bullish gold ETF, UGLD – and be certain to maintain your protective sell stop, good till cancelled at $8.22.
Also hold your shares in United States Natural Gas Fund (UNG) with a protective sell stop, good till cancelled at $11.64.
If you do not yet own UNG, please wait for my next signals in natural gas.
I am getting initial signals to short the euro currency with an inverse ETF. Ditto for crude oil. Those signals can come any moment, so stay tuned.
Best wishes,
Larry
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