What’s Working … What’s Not

The final arbiter is price action itself.  We can analyze all we want but if the position does not cooperate, it’s time to leave.

Similar to closing nat-gas positions on November 3rd, as detailed here, it’s time to move on from Biotech; let it play out without us.

Biotech’s not working on the short side. So, we’ll come back when it is.

It’s important to note, after leaving UNG, it’s -21.2%, lower than November 3rd.

What’s working (for shorting), is gold and the miners (GDX) via DUST (not advice, not a recommendation). The GDX chart below shows the resistance level which is also the 23.6%, retrace.

A Fibonacci 23.6%, retrace is rare. 

If that level is not challenged and GDX continues lower, the shallow retrace (to the upside) indicates significant weakness.

Recap:  Markets (S&P, Dow, NASDAQ) at all time highs.  The 30-yr Bond and Dollar, at short level extremes; the most in history.

Gold and GDX appear to be out in front, leading the way lower.

Managed Accounts

Number                     Detail             Position        Stop

6XXX-XXXX            Short GDX     DUST             21.81

5XXX-XXXX            Short GDX     DUST             21.81

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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