Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 9/30/11.
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What a week! What a month! What a quarter!
Major market trends prevailed through out the third quarter, as market after market succumbed to our Trade Triangle signals. For most market's, the tone was a negative for the month and quarter. One shining star, was the dollar index, which was one of the very few markets that trended higher during this time frame.
As we start the final quarter of 2011, we still have that pesky little contagion problem in Europe that has never really gone away. How much that has to weigh on the markets remains to be seen.
I believe that Q4 is going to offer some exceptional trading opportunities, but these opportunities will only be available to those traders who do their homework. Before we get into looking at the markets, I wanted to share this personal note with you, here it is. On the cover of my workbook, where I write down all my various game-plans for the markets I trade, it says this. "Some people dream of success while others wake up and work hard at it". It sums up as to how I look at the markets. No successful trader I know, wings it, they all work hard and do their homework, and work hard at staying successful.
My wish for you in Q4 and 2012, is that you too will work hard at trading success. I am here to help you along in your journey.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011.
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S&P500 INDEX
Change for the week: -0.44%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
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Suggested Trading Instruments for this INDEX
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
Change for the week: -1.19
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = -100
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Suggested Trading Instruments for SILVER
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AQG) (Short ZSL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
Change for the week: -1.97%
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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 = - .60
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Suggested Trading Instruments for GOLD
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (November)
Change for the week: -1.52%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
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Suggested Trading Instruments for CRUDE OIL
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Call your broker
Options: Call your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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US DOLLAR INDEX (SPOT)
Change for the week: +0.62%
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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
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Suggested Trading Instruments for the US DOLLAR INDEX
Non Leveraged ETF's: (Long UUP) (Short UDN)
Non Available Leveraged ETF's: (Long -) (Short -)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTER/JEFFRIES CRB COMMODITY INDEX (SPOT)
Change for the week: -1.26%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
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Suggested Trading Instruments for the REUTER/JEFFRIES CRB COMMODITY INDEX
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long UCO) (Short CMD)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
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MARKETCLUB ONE-ON-ONE PERSONAL COACHING
This weekend, I would like you to ask yourself this question, IS PERSONAL COACHING RIGHT FOR ME?
Watch Adam and Ross's intro video to personal coaching here.
Give us a call at 877–219–1482 for a free consultation and find out if personal coaching is right for you.
This is Adam Hewison for MarketClub, I'll see you Monday, have a great weekend.
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Mike,
I have no idea and that's the truth. All I do as a trader is listen to what our Trade Triangles are saying and go with the trend. Right now the trend is down in the equity markets and probably will be for the balance of the year.
All the best,
Adam
Tristan ,
You are correct. Thin means low volume and wide spreads between bids and offers.
You might want to check out our two model ETF portfolios in MarkClub. The Perfect Portfolio and our Global Strategy Portfolio. Both have done a good job of making and preserving capital in the past several years.
All the best,
Adam
Adam,
Where do you think we will find the equity markets on December 31, 2011 and why?
Mike
The issue with USO is that they hold current month futures and roll them each month shortly before expiry (sell current month and buy following month). They do this over a four day period, which they pre-advise on their website. So they tell the market exactly when they are going to make massive sales and purchases. Crude oil futures are almost exclusively held by very sophisticated players, such as Goldman Sachs. So it's blindingly obvious that USO will be screwed over every month. And if you hold USO over the roll period (near the beginning of each month) you will be similarly screwed.
Hi Adam,
Does "thin liquidity@ of ETF's bascially equate to low volume? Or is it more complex than that? I am keen to heed you advice when trading ETF's but just want to be sure of what you mean.
thanks
Tristan
IM ALL IN
I like that you are listing suggested trading instruments now. I didn't know about CRBQ so it is always nice to learn something new.
USO, however, I've traded a lot in the past and it didn't work as much as I had hoped when oil prices were going up. USO never seemed to go up as much as oil, but when oil went down, USO went down and then some! Plus I realized that there are some serious contango issues at the end of every month if next month's oil futures are higher priced.
So I started trading USL instead. It is less volatile because it tracks 12 months worth of oil futures, so I think it is easier to trade the intermediate and long-term oil trends with USL.