Positive fundamentals are exactly what we need before we sell short. Case in point: copper.
Everyone loves a good story. If we get a whiff of a technical corrective bounce (which I would argue we are getting today), a turn towards the fundamentals might be the added fuel needed for a correction to fully materialize before investors get spooked again and new global macro fears retake control.
On Tuesday I recommended placing some stop-in orders to add DTO and ZSL.
I recommend you CANCEL the order to buy DTO; details below.
DTO (Last Price: $68.56)
CANCEL your order to buy shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, on a stop at $80.70. (Also be sure to cancel the associated stop-loss order on this position should you have entered it.)
As for ZSL, it is possible, if you acted immediately, that you were filled on ZSL since the price did trade briefly through my recommend stop price only a few minutes after the alert was sent.
If you were filled on ZSL, then you would have been subsequently stopped out with a loss yesterday after a sharp swing in the price of silver. I will track this as a loss in the closed positions portfolio.
But if you were NOT filled on ZSL, I recommend you cancel that open order as well.
So, only for those who were NOT filled on ZSL …
ZSL (Last Price: $14.15)
CANCEL your order to buy shares of PowerShares DB Silver Double Short ETN, symbol ZSL, on a stop at $18.09. (Also be sure to cancel the associated stop-loss order on this position should you have entered it.)
I expect crude oil and silver to roll over again soon - so I will be revisiting these two ideas. Stay tuned.