Commodity index DBC continues in a decline as expected. There isn’t important support level till the 22USD. No time to buy commodities. It is possible to find some weak commodity and short sell it. Energy commodities are weak so tickers like BNO, USO, DBE are examples of possible short sell picks.
KRE offers a short sell trade opportunity
My entry is below 38.40 with a stop loss above 39.13. The target area is above the 35 USD (35.30)
KBE, the ETF representing banking sector, paints bearish chart pattern – head and shoulders on its weekly chart. This ETF broke also below the 200-day moving average recently and it is an additional negative signal.
These signals could indicate a bearish turn in the broad market. This ETF is a bearish opportunity for the coming days.
SOHU is a weak stock. It could move down soon. This is a high risk trade as it is against main trend, but I see that the weakness of this stock is huge.
My entry is below 54.88, stop-loss above 56.70 and a target is above 45 (46.20)
CME is a weak stock. I think it could go down anytime. I prepared short sell trade setup. But it is high risk so I place only half position size into this trade.
My entry is below 69.63, stop-loss above 70.66 and target is above 60 (61.40)
Indonesia ETF, IDX, shows signs of weakness. It has pulled back from resistance area and now looks like it wants to go down.
I like this chart for bearish swing or position trade .
This is also supported by my Global Macro story based on weakness of several emerging markets. EM is not united group anymore. Indonesia and others (like Brazil ) have their economic weak points and so are vulnerable to a decline.
I plan to enter short sell below yesterdays low with a stop above 25.50. Possible target is in 22 USD area.