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How This Market Selloff Is Different Than Earlier This Year – Economic Data

Cory
October 24, 2018

Raghee Horner, Futures and currency Trader at Simpler Trading joins me today to share why she thinks this selloff in the US markets is different that the selloff back in January through March. There are some diverging economic data points as well as markets in other countries that are much different.We also discuss the bullish USD.

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Discussion
16 Comments
    Oct 24, 2018 24:06 AM

    GPL continues its freefall today.

    Looks like HL is hot on its heels. HL’s chart action has been absolutely miserable for over 2 years now. It looks like it it is headed back to the 2016 low TBH.

      Oct 24, 2018 24:45 AM

      Hey, there IS a bright side: I don’t own it.
      Seriously, it is probably bottoming right now.
      http://schrts.co/3ytvfq

        Oct 24, 2018 24:24 PM

        It seems like all the silver stocks that I own are basing right now. Not much upside, but not much downside either.

          Oct 24, 2018 24:39 PM

          I’ll be very surprised if USAS holds the September 4 low at $2.05.

          Until it clears $2.60 the bias is strongly down, IMO. Obviously lots of churning can happen in that range before it makes up its mind.

        Oct 24, 2018 24:29 PM

        I think it will likely hit .60 in the next week or two, which was a support level in 2013.

        There is nothing bullish at all on the daily and weekly charts. I’ll concede that it is likely putting in a huge base that started in 2016, but that basing process looks like it will include testing the 2016 low and possibly retesting it again in 2-3 years. Before testing the 2016 low, a buy is nothing but catching a falling knife.

          Oct 24, 2018 24:37 PM

          Not quite a falling knife; it did find some fork support.

    Oct 24, 2018 24:05 PM

    The TSX looks like it is going to revisit the 2016 low in the next 3-4 months. It will likely get a significant bounce there, but I think there is a good chance it will test the lows for a third time 2-3 years later.

    Come back in 2021.

    Oct 24, 2018 24:20 PM

    Hey, just following up on the conversation yesterday on Novo Resources. I don’t know if anyone posted, but below is a good article from the Hedgeless Horsemen posted over on 321gold that is great analysis.

    http://www.thehedgelesshorseman.com/pilbara/novo-pilbara-more-than-meets-the-eye/

    Oct 24, 2018 24:43 PM

    AXU is about to break down. I would expect .90 to be the next support level (from years ago).

      Oct 24, 2018 24:49 PM

      Well now you’re being optimistic. If the recent lows break, it’s probably heading for 80 cents.

      Oct 24, 2018 24:05 PM

      It might get down to that level, but I don’t see it going down beyond that given the amount of support. Of course anything is possible. It looks like it a non-symetrical inverse head and shoulder pattern if there is such a thing. It closed today at a level that it has been at several times over the past few months so it is still possible that it reverses up tomorrow IMHO.

        Oct 24, 2018 24:23 PM

        Anything is possible in the short run, but I think you potentially have at least 2 weeks now to head lower before stabilizing, and that stability might just be for a few days.

        The last 2 months in the silver miners looks like nothing more than a sideways consolidation before the next leg down. That is not a formation that produces a bottom, IMO. Let’s face it, 99.9% of the time, major lows in the mining stocks are V bottoms visible from across the room.

        I think it is possible that we see a very large meltdown in the complex over the next 3 months, with many of the mining stocks and indexes making it down to the 2016 lows. In fact, that would fall into line of major basing patterns after similar spikes (like we had in 2016).

    Oct 24, 2018 24:00 PM

    SLV:GLD filled yesterday’s gap but will likely go lower if stocks (excluding miners) keep falling. Gold is viewed as the safe haven, not silver — at least not until late in a precious metals bull market.
    http://schrts.co/PFtHC4

    Oct 24, 2018 24:11 PM

    So both the Dow and S&P have given up all their gains for this year up to this point. I wonder if we get a rebound of somesort from here or if it follows through? The S&P is now comfortably below its 200 day moving avg. Over the last 2 years this has acted as good support. Interesting to see how the week ends for these markets

      Oct 24, 2018 24:06 PM

      I don’t see much of a bounce happening here despite the oversold daily chart. But if it does bounce, it will just be another selling opportunity.
      http://schrts.co/f8kwyJ

    Oct 25, 2018 25:53 AM

    You can add the ASX200 market here in Aus to that list of giving back all gains this year. A bloodbath across the board. We are now 10% off where we were back in August. Bit of panic spreading throughout the worlds markets at the moment.