Panic Selling in the Overheated Markets (ETFs: EEM, DBC, GLD, IEF, TRF)

Eventually the selling will end. But, like we’ve been saying for some weeks, “panic selling has the potential to occur.” And it is happening in the previously most overheated markets—gold, commodities, emerging markets, overseas and so forth.

Nothing except bonds look good; and they only look good comparatively as a safe haven play. No doubt, there’s plenty of nervousness and a lack of conviction in the bond pits.

Comments

[Geoff Consi...:]

Hi David:

I am not a follower of technical analysis and I do not really understand your point(s) from the charts here. Volatility is up and people are jumpy so things will go through larger swings than we have seen for a while. What do the charts show?

2006 Jun 14 10:55 AM

[neil hartner:]

Geoff's question is a good one. What good are charts without some detailed analysis? And by analysis I don't mean comments like "No mercy!" I am not really a chart man, but to me I see a lot of oversold markets. Just look at TRF. It finished today up 11.7%

2006 Jun 14 08:12 PM