Market Oversold, SDS Profits, Gold Takes a Breather

Still no quality buy candidates beyond the setups I featured last night. One other stock you can keep a close eye on though is CSTR which has held up nicely during the market turbulence.

Gold and Gold Miner stocks broke down today as I warned about earlier this week. Any positions should have been knocked out via stop loss this morning to lock in profits from the original buy points. Gold now needs some time to work itself out and set up some fresh buying opportunities.

Lastly, my SDS Trade worked out great and was exited today for a 10%+ return in only 5 trading sessions. Charts featured below. This play was simply taking advantage of the 50 and 200 day moving averages on the S&P 500 and was relatively low risk if you placed your stops correctly.

Where the market goes from here is anyone's guess. Technically speaking though it is oversold at this time although as we've seen in the recent past oversold and overbought conditions can easily be thrown out the window.

View all GLD Charts.

View all GDX Charts.

View all GG Charts.

View all SDS Charts.

View all S&P 500 Charts.

With my short position exited and my gold profits locked in I am now back in 100% cash. Let's see what the market does and if it does decide to break higher we will be ready to capitalize. Stay frosty out there .