These areas should continue to be avoided!

2 Fridays ago, we told you we thought that bonds and the interest rate sensitive areas as well as gold and gold stocks should be avoided for now. We simply saw high volume drops from the highs or near the highs. Since, we have seen nothing but downside. At this juncture, bonds, utilities, reits and the gold complex are now oversold so a bounce is due…but the trend, at least for now, looks to be down.

Of course, those monies have moved into the major indices…which are now overbought near term. But the technicals have improved. As long as pullbacks remain controlled and rotational, the majors should be ok.