Based on the OX charts, the DOW and S&P 500 indeed formed a hammer candlestick with a long shadow yesterday. Almost a similar formation as Aug 2007 Low. It makes things more difficult to short at the moment. I do expect the bulls will try to take advantage of the situation and try to create a rally (however short-lived it may be) just like in Aug 2007. However, the overall trend is still down. Sell on rally is still the current mantra. I would still short the banks, mortgages, housing and retails at the right time. I mentioned energy and commodities as a possible play for shorting. Have to look into it in more detail.
However, I would refrain from shorting gold and precious metals. With the recession looming, gold and precious metals could be the few sectors that appreciates in price while the rest are just sliding down.
- PersianCat (Millionaire-in-progress)
1 comment:
Just curious if Copper can be excluded from precious metal...read from news that south american countries are increasing copper volume.. and PCU look weak after hitting 90 on earning news. your input would be appreciated
Post a Comment