Sector Thoughts and the CRX

As the Platinum and Precious Metals sector makes new lows and the RSI sinks under the 30 level I'll be watching this for a potential short in this sector. The weaker the RSI gets the better this trades gets in my opinion. And when I say “better” I mean the less risk there is when the RSI bounces back to the 60 level. That will be the area I'll be looking to short the stocks I highlighted in the chart below. These are as weak or weaker when judging the price action and relative strength Indicator (RSI).

Not a whole lot happened today in the markets as this was an indecisive day when you look at the sell off we had in the overnight session and the weak rebounded that happened today. I'd still like to see a few more up days to work off some of the oversold nature of the general markets. I'll be sending out an alert to those on my free newsletter when my timing signal issues a sell signal. You can sign up on the right or click the link in the last sentence.

CRX continues to look very weak with a lot of downside to go if we break the neckline.