Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Tuesday, the 26th of July.
Just when you thought it couldn't get any more bizarre... The markets are now totally perplexed at the direction Washington has taken and the lack of any decisive action.
I'm not sure if you watched the presidential address and the Republican rebuttal last night, but what an example of two houses divided! It was painfully evident that each man was just playing to their political bases. Pure Kabuki theater.
I always enjoy a good comedy, but this D.C. comedy has gone beyond a joke and is no laughing matter. It's turning into a tragedy not just for the American economy, but also for America's mystique overseas. How these two parties can honestly look themselves in the mirror and say they're doing the right thing for the country is beyond anyone's belief.
One of my technology heroes is Steve Jobs, the leader of Apple. Steve coined the phrase "reality distortion field" (RDF). It was Steve's ability to convince himself and others to believe almost anything with a mix of superficial charm, charisma, bravado, hyperbole, marketing, appeasement, and persistence. Unfortunately, neither the President nor the speaker of the house, John Boehner could pull off a reality distortion field last night. Too bad for both of them, and too bad for the country.
So without further ado let's get off this rant and go right to the markets!
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S&P 500
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
The parabolic or PSAR is just above the highs of the day, and sits at 1346.10. We need to see this market make new highs before we can abandon what we think may be a significant top. No news out of Washington today will continue to weigh on this market.
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SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
All of our indicators remain on the positive side for silver. The 39.22 level on the PSAR is a level of support. We are somewhat concerned that this market has remained in a tight, tight trading range for the past three days. However, the odds favor being long this market. Our intermediate target zone for silver is 42.00 to 43.00.
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GOLD (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
The gold market appears to be getting used to prices north of $1,610. All of our Trade Triangles are positive and we maintain our upside targets at $1,642 to $1,650 basis the spot market.
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CRUDE OIL (SEPTEMBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = - 55
The crude oil market rallied back sharply, but was once again turned back from the $100 level. As we have said in earlier commentary, we are looking for this market to eventually break out of this current impasse. We have talked about an energy field that we believe this market is building. A close is needed over $100 to start this market on the upside. Our Trade Triangle Technology is mixed at the moment for this market.
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DOLLAR INDEX
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 70
The support we talked about for the dollar at 74.00 was broken quite decisively today. The market moved down to the 7350 area which was the low seen on June 7 of this year. Currently the market is oversold and is certainly outside of the Donchian trading channel. The Dollar index continues to trade below its 200 day moving average. Resistance remains at 74.40 and support comes in today at 73.50
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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
This particular index remains trapped in the broad trading range based on our Trade Triangle Technology. We believe this market is building a large energy field to move higher later in the year. We would not rule out another pullback to the 335 level. The PSAR comes in today at the 344 area and should this level be broken it would indicate a pullback to the center line of the Donchian trade channel. At the present time our Trade Triangle technology is neutral. Resistance is between 349 and 350. Support comes in at 344.
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Thank you so much for all of your feedback for our MarketClub TV show on Wednesdays. We really appreciate it!
I would like to invite you to be part of our next show by calling 410-867-2100 extension 129.
(1) Give us your feedback.
(2) Tell us how you use MarketClub
(3) Ask a question or comment on the market
(4) Ask us about any technical indicator
(5) Tell us how we can make the show better
By calling today, I will enter your name in a drawing to win a one-year membership to MarketClub. The winner will be announced on this week's coming show.
As always, we rely on our market proven Trade Triangle technology for catching the big moves.
Every success,
Adam Hewison
President of INO.com
Co-founder of MarketClub
I ran across this on Fibonacci sequences in nature.
It is a nice video.
http://www.wimp.com/fibonaccisequence/
Regards,
Max