With Osama Bin Laden dead the market jumped at the open but could not keep momentum going as it faded throughout the afternoon and finished in the red. Time will tell if this marks a short term top for the market. Regardless some horizontal action wouldn’t be a bad thing.
Silver marked the end of its massive 9 month move into the stratosphere after shedding 8.6%. Parabolic moves like this are rare now a days and Silver enjoyed quite a run. Expect further price consolidation with time. Reader Michele wrote in asking about shorting Silver. The easiest way is to simply short shares of SLV or GDX. Alternatively, you could simply buy some ZSL which is a 2x Short ETF of Silver. Note though holding double and triple ETFs long term is not recommended. They should only be used for day trading. If anyone knows of any other short Silver ETFs please email me.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
