Quick Markets Update

After 9 days of sideways chopping action, the PM complex finally showed its hand today with a breakout gap to the downside. Today’s breakout now negates the H&S bottom and puts the double top reversal pattern in play, the key word being reversal pattern. What’s important to understand is the double top formed after the several-year parabolic rally into the January/March double top.

Believe me, I don’t get any pleasure announcing the double top is now in place because I know many of you are holding for the long term. When I put the “PM Stock Trades Portfolio” back to 100% cash on February 2nd, it was the vertical nature of the rally that strongly suggested to me to lock in the profits and see what develops. I still believe the PM complex is going to form some type of large consolidation pattern, but we’re still in the early stages.

Below is the 2-hour chart we’ve been following closely, waiting to see if the neckline would hold support, which it did for nine days, forming the blue 5-point bearish rising flag on top.