After Friday’s break below the ascending channel, the market remained weak Monday as the S&P shed 0.3%. A downside break of an uptrend can often lead to lower prices before the next leg higher, so traders will likely be cautious and patient over the next few days before jumping back into longs with conviction. It would certainly be possible and healthy for the market to trade lower into the 21- and 50-day moving averages before finding footing and turning higher.
From the Morning Call, Scott Redler’s silver short turned out well. After a parabolic move saw the iShares Silver Trust ETF (SLV) open once again at all-time highs, silver filled the gap and erased all of Friday’s intraday gains. Chasers were punished and those who got cheeky with shorts were able to generate some cash flow. Another play from the Morning Call, Apple Inc. (AAPL) short, worked out well, trading down into support at $330. Major support for Apple is at $326.26.
For more market and stock commentary, watch the T3Live.com Daily Recap with Scott Redler (below).
*DISCLOSURE: Scott Redler is long POT, GLD, JPM, BAC, AUY, RBY
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