Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Yesterday was clearly the worst session since the late June lows. Breadth was terrible and key support lines were broken. At the close of the day the S&P 500 fell to just above the 50 day moving average and really there was no place to hide… except precious metals. This niche has been hated all year, but appears to have turned the corner the past week or so. A bit strange considering the worry yesterday was a reduction in QE which is the main reason people have been leaving gold. Silver we can attribute perhaps to the “China trade” which has seen metal and mining stocks to outperform for about a week and a half. Either way it will be interesting to see if these metals can continue as there are many buyers who having bought at higher prices this year would like to liquidate at small(er) losses or break even.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/index.php/the-fund/holdings
