These are gloomy times for the markets and investors but not so for traders as good money is being made as the markets appeared to be trending lower. Rallies to resistance were pounced on by new short-sellers and desperate investors wanting to dump their stock holdings. Many stocks from different sectors are already at favourable level to initiate low risk shorts. I have an earlier post here last week (click to read) whereby i had discussed on the failing energy sector as oil prices look like they are ready to drop as dark clouds loomed over the weak economy. This is a 'short the rally' market. Any bounce in prices are good opportunities to offload your holdings if you are still not in cash position. Do not fight the downtrend.
ERY Drexion Daily Energy Bear 3X
LVS - Las Vegas Sands
APKT - Acme Packet Inc.
CAT - Caterpillar
GE - General Electric; widely know as the bellwether stock of the economy was seen leading the charge down through the 200day MA. Definitely a sign of bad times to come.
Prices for precious metals are also breaking down as the Greece fiasco played out in the media. The markets are forward looking and I believe they are already pricing in for a higher US dollar environment. I have no idea what it will mean for Greece though but the markets apparently doesn't think its good !
Gold
Silver
The financial sector looks beaten down. However i wouldn't touch them yet. I am keeping a close watch on the financial stocks for any signs of life as they should be the sector that will lead the economy out of this bearish market.
Good weekend to all.
ERY Drexion Daily Energy Bear 3X
LVS - Las Vegas Sands
APKT - Acme Packet Inc.
CAT - Caterpillar
GE - General Electric; widely know as the bellwether stock of the economy was seen leading the charge down through the 200day MA. Definitely a sign of bad times to come.
Prices for precious metals are also breaking down as the Greece fiasco played out in the media. The markets are forward looking and I believe they are already pricing in for a higher US dollar environment. I have no idea what it will mean for Greece though but the markets apparently doesn't think its good !
Gold
Silver
The financial sector looks beaten down. However i wouldn't touch them yet. I am keeping a close watch on the financial stocks for any signs of life as they should be the sector that will lead the economy out of this bearish market.
Good weekend to all.
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