VHI daily June 18th
As mentioned last week, the VHI (Valhi Inc) long trade had fallen below the previous reaction lows and would be considered stopped out should it trade much lower from there. That was last Thursday & the stock has continued to move lower since & will be moved to the Completed Trades category. VHI will stay on my radar for now as the recent selling has been accompanied by a large spike in volume which could indicate a selling climax in progress at this time. Should the stock exhibit some technical signs of a bullish reversal soon, VHI may be added back as another Long Trade idea.
Personally I continue to keep my trading very light as the risk/reward for trading in general is poor as the near-term uptrend slow grind in the market is plagued by increasing bearish divergences and extreme complacency readings, not to mention that the near-term technical picture is unclear & quite “sloppy” right now.
SLV (Silver ETF) continues to build on the near-term uptrend making a new multi-week high today while also pushing up against the primary downtrend line (daily chart, as shown in the recent Gold & Silver video). GLD also continues to build on the recent gains & is currently trading slightly below its respective downtrend line.
In summary, although the near-term picture is unclear, from an intermediate-term perspective (weeks to months) I continue to remain bearish on US equities & bullish on precious metals with my usual bias towards trading the mining stocks vs. the actual metals.
All of the US & Global Indices on the Live Charts page were updated yesterday & most of major European & Asian indices, although still in confirmed uptrends, look in to be in precarious technical postures. As with the US markets, many of the major global indices continue to wedge to new highs on decelerating momentum while sitting just above key uptrend lines with bearish divergences in place.
On an administrative note, I will be leaving town Friday morning returning Sunday evening and after tomorrow, will not be posting any updates until late Sunday or early Monday morning. Feel free to contact me if you have any questions regarding any of the trade ideas.