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Futures point to selloff tomorrow

The market finished up today, however, as of this writing the U.S. futures point to heavy selling tomorrow morning. S&P 500 is down -23.90 / 1.66%, Nasdaq -40.00 / 1.49% and Dow -211.00 / 1.50%.

So be ready for bumpy ride tomorrow.

Another investment I am closely watching is Gold GLD. Today we experienced another sell off which could have been related to forced John Paulson’s funds selling after Morgan Stanley and Citigroup recommended its clients to sell their stake in Paulson’s funds due to bad performance in 2011 and 2012.

If this sell off continues I would follow my strategy of sequential buying into the gold position. Recently GLD reached my first buy point at $161 a share at 200 day MA. Today it progressed even lower and almost touched my other buy point at $158. My next buy point would be at $151.5 level. These levels were determined based on long term major supports.

Gold (GLD) 3 year chart

1 response to “Futures point to selloff tomorrow”

  1. Maybe this is the drop that we were expecting a couple weeks ago.

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