Triggered Alerts – 10.23.18

Marketsmith, Dightman Capital

Immediately at the open this morning I had two alerts trigger.  One alert was for stock based investment that was under selling pressure.  The volume of shares traded immediately at the open was much larger than normal.  Overall, the price was down around 2%; firmly below the 200dma (black line).  As I suggested in recent commentary related to the current selloff, the additional selling I thought had a good chance of materializing has arrived.

Marketsmith, Dightman Capital

The other alert I received this morning was related to gold.  The ETF GLD gapped up at the open and looks poised to continue climbing.  This is the type of action you look for from gold in a portfolio.  According to ETFReplay.com, the ETF GLD has a correlation to the S&P 500 ETF SPY of +0.08, which is only slightly positive.  Correlations have a tendency to change and right now gold appears to be delivering a negative correlation, which is what you what to see during a stock market selloff.

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Brian Dightman