Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your 1 p.m. market update for Monday the 6th of September.
It never seems to go away, does it?
What I'm referring to is the problems with the economy and the sovereign debt problems in Europe. It would appear as though no politician wants to touch these major economic problems with a ten foot pole. Of course like everyone else on the planet they are concerned about protecting their own jobs and getting reelected.
The market action in the equity markets today can only be described as negative. Gold may be having a major reversal, and the dollar is soaring to its best levels in quite some time. Like I have said before, the markets are never boring.
Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.
S&P 500
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 = - 75
The S&P 500 index came under heavy selling pressure again today and turned some intermediate technical indicators back to the downside. Long-term traders should continue to maintain short positions or be out of the market completely, and in a cash position. Intermediate term traders should be on the sidelines waiting for either a buy or sell signal based on our Trade Triangle technology.
--------
SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trend = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 75
The bulls have to be disappointed with today's market action particularly with all of the uncertainty in the world economies. As we talked before about silver it has a Jekyll and Hyde personality. Sometimes it's looked upon as a precious metal and other times it's looked upon as an industrial metal. It would appear today as though the latter has come to the forefront and that precious metal moniker has been pushed to the sidelines.Short term, intermediate and longer term traders should all be long this market at the moment with appropriate stops.
-------------
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 = + 90
The gold market reach to new high levels for the move and hit $1,920.50 an ounce. Unfortunately was not able to maintain this level and fell back dramatically creating a potential negative engulfing line similar to what happened on August 23. It is too early to say the market has topped out but certainly one should be very, very careful at these levels. As we mentioned in previous publications we have been looking for the gold market in particular to make its high in the 3rd quarter of the year. We may have seen the highs, but it is too early to tell. Short term, intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.
-------------
CRUDE OIL (OCTOBER)
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 = - 65
The pullback from the top of the Donchian Trading Channel that we have mentioned in previous publications has now taken place. The October crude oil contract has also managed to ignite an intermediate term sell signal when it moved below the parabolic SAR indicator. This should indicate that we will see more sideways to lower price action. With a score of -65 we expect we will see a broader trading range with support coming in around the $80 a barrel level. At the present time our long-term monthly Trade Triangle indicator is negative while the weekly Trade Triangles is positive which is creating a mixed picture at the moment for crude oil. However, the longer-term monthly Trade Triangle must be given more weight than either the daily or weekly Trade Triangles.
_______
DOLLAR INDEX
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
One of the big stories today has to be the move in the dollar index. This market has moved dramatically higher to its best levels since July 11. However, the index is not clear yet of some problems. The 76.00 and the 76.10 levels are certainly areas where this market should find resistance. Also you're heavily overbought on the Williams %R indicator. All that aside, our Trade Triangle technology is now + 100 meaning that the trend is clearly on the upside. As we have mentioned earlier the monthly trade triangles are perhaps the most powerful for setting the longer-term trends and we have been long the market based on our monthly trade triangles since July 12.
-------------
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 index certainly is on the defensive pulling back from the top of the Donchian Trading Channel and creating an intermediate sell signal when the market moved below the parabolic SAR indicator. We would not be surprised to see this market pullback to the 325/326 area in the near-term. With a score of -55 we recommend trading this market using the Williams % R indicator and the Donchian Trading Channels. Our bias is towards inflation in the future, but we are expecting to see more of a two-way market in this index in the next several days. Intermediate and short term traders should be out of the market and on the sidelines at the present time.
---------------
As always, we rely on our market proven Trade Triangle technology for catching the big moves.
---------------
IS PERSONAL COACHING RIGHT FOR YOU?
Give us a call today at 877–219–1482 for a free consultation and see if personal coaching is right for you. The number again is 877–219–1482.
But first, watch my personal message to you about one-on-one coaching:
http://www.marketclubcoaching.com/now/
This is Adam Hewison for MarketClub, I'll see you tomorrow, right here, same time, have a great trading day.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
It would be very useful to follow GDX daily
I agree with Mike that yesterday's action was a bullish surprise. After being way up on my MON short, I was stopped out with a tiny profit at the close. Once again, stocks are set to climb a wall of worry. Many charts were really negative (maybe TOO negative) before Tuesday and they still are overall. I will keep my shorts if they don't get stopped out.
Frankly, despite the close being down, I'd have to score it as a positive for the bulls. With the Dow down almost 300 and the S&P down more than 30 early and despite all the negative underpinnings of the US and bull markets somehow, most of the negativity was over by day's end. Short covering? Just because it was short term oversold? Or is it a short squeeze? Or because Helicopter Ben is working behind the scenes just ahead of the President's Thursday speech? We'll know more tomorrow, but (even though I'm still short), my gut is telling me we are going to get a gap higher tomorrow morning despite all the world's economic/political/war problems. Fundamentals? Gobbledygook, that's what I say.
Hello Adam
Thank you for today's market analysis and tutorial - always helpful.
I've got two questions I hope you can answer.
Do you think that the Swiss government's freeze on the exchange rate for the franc has anything to do with improved sentiment for the $US today?
When you covered the gold spot price you referred to the negative engulfing candle but made no reference to the triangles which were all positive (+90%). Can one infer that the candle signal 'dominates' over triangle cues?
best regards,
Kiwi Gary