GDX - a very bearish weekly close

With the precious metals leaning significantly weak, the related gold miners are continuing to be dragged lower. The ETF of GDX settled the day on a bearish note  -1.3% at $21.21, which made for a net weekly decline of -3.9%. The weekly close under core rising trend/support is very bearish indeed.


GDX, daily

GDX weekly

Summary

Frankly... this is one seriously bearish weekly close, arguably, the worse since the key low in Jan'2016.

I recognise some might still call price structure - from early February, a large bull flag, but GDX is decisively under core rising trend that stretches back 1.5yrs. This can't be lightly dismissed.

Near term outlook: bearish. First soft target is the Dec'2016 low of $18.58. If that is broken under, then a full retrace to the Jan'2015 low of $12.36 will be on the menu.

Keep in mind, Silver has already broken below core rising trend, and that sure doesn't bode well for Gold... or the related mining stocks.
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*see my related post for Gold and Silver!

GE - its a problem

Whilst the main market settled broadly lower, there was very significant downside in General Electric (GE), which settled -3.8% at $26.31. The sustained price action under the $27.00 threshold is a serious problem for the industrial bulls, but arguably... also for the main equity market.


GE, daily

GE, monthly

Summary

GE saw a very mixed June, rallying on news that CEO Immelt was planning to step down, but those gains quickly faded, and the stock closed net lower for a fourth consecutive month.

Today's price action is merely cementing the serious technical problem that should be clear via the giant monthly chart. We have a sustained break under rising trend/support that began in March 2009. Such a break can't be dismissed lightly, even as the main market remains close to historic highs.


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Meanwhile...



... the downgrade by JPM to $22 sure didn't help today.
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I will end by noting, near term is clearly bearish, but ongoing price action is especially weighed down by the long term bearish break.

To many, GE is a boring stock... but even if you never trade it, GE is important to track, and consider in any assessment of the broader equity market.

TSLA - decisive break of trend

Tesla (TSLA) saw a decisive break of rising trend/support - that stretches back to Dec'2nd 2016, settling -7.2% at $327.35. With the infamous squid - Goldman Sachs, downgrading the stock from $190 to $180, the stock is set to remain under downward pressure.


TSLA, daily

TSLA, monthly

Summary

Technically, today's break is a decisive one.

Its somewhat ironic to see GS only downgrade Tesla by $10, but the renewed sell rating of $180 has certainly spooked some within the mainstream.

Daily: a clear break of the upward trend that stretches back to early Dec'2016. Next soft support is the psy' level of $300, and then the $280/270 zone. The 200dma is currently at $258, and should be near $270 by late July/early August.

Monthly: a rollover is underway, note the key 10MA, currently at $272. Considering the underlying strength within the broader equity market, Tesla should be able to find a floor around the 280/270s this summer.
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I'll close on this twisted, but valid thought....

If you were a Tesla stockholder, it is a sad FACT that if your company sold ZERO vehicles, its balance sheet and financial longevity would be in a far better state.

Selling every vehicle at a loss is not sustainable for the mid/long term. The only reason Tesla has got away with it for some years is because the CEO Musk has been given 'a pass' on just about everything. What happens when the next recession hits, and the capital markets refuse to throw another billion dollars to cover increasing losses?

To be clear, I like the product, the CEO is inspirational (especially for SpaceX and his new Tunnel boring venture), but selling vehicles at a perpetual loss is just plain crazy.

Yours truly remains (disturbingly) in the same bearish bed as GS.