I used the morning weakness in the metals to trim a significant amount of my miners and I’m left with 20% exposure in this sector. Until the CRX makes a new low (chart below) and the EWC closes below the area I’ve indicated as support, there is a good chance we could see a bounce in this sector. I’m not bullish on the miners at all. I’m just slightly less bearish and wanted to protect my profits after having to sit through the upswing last week.
My outlook remains the same on the general markets and I added to my market shorts on Wednesday, when we sent out an alert for Astrology Traders subscribers to short the markets after hours. Karen saw significant weakness in the markets Thur-Fri and my charts were suggesting the same.
I advise adding a short position at these levels. There is odd behavior in the markets (moves up and down on indexes, and TBT/TLT) at the end of the time frame of 6/11-6/20 where I projected a move up in the markets. Mars is conjoin the U.S. Neptune, which can exaggerate the attempt to manipulate the markets, but the Saturn square Jupiter in the Fed chart is a block to unethical political motives and additional QE. ~Karen Starich 6.20
The markets can only remain manipulated for so long and once we got the Fed non-news out of the way the markets made up their mind that it wasn’t enough.
Looking to the coming weeks I do see a few glimmers of hope in the telecom and multi-utility sectors, but these are hardly the names that lead a new bull market. We need to see new bullish setups popping up on my bullish scans (which we have zero right now) before I can seriously entertain the idea that the markets have the ability to move higher.
I was long the US dollar via UUP and decided to close that position as well today. It really wasn’t doing anything and sometimes that’s all the reason a trader needs to close the position. It could have more consolidating in that down-trending channel before any significant move to the upside.