German government bunds made a bottom extension yesterday and so did one of the US real estate investment trusts that we follow:
Bunds are in the process of falling away from the bottom of a weekly-scale compression, so this new daily-scale bottom extension probably just means a pause in the on-going decline. There may be a bounce however, so medium and longer-term traders should protect any profits that you may have on the short side and aggressive traders may wish to buy here for that possible bounce. This is a high-risk trade, but there may be some profit to be made.
The REIT bottom extension serves to remind us that no market is a one-way street and so buying opportunities will continue to present during the current decline in US stocks.
There was also a top extension at a daily-scale in silver:
This may be an opportunity to take a little profit on long positions in gold that date back to the beginning of July. The ‘buy gold’ recommendation was based on a weekly-scale bottom extension, but this is now quite mature and it may be that we will see a dip from hereabouts. The gold trade has almost $200 profit, so is worth preserving.