Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 21st of February.
Global jitters send crude oil higher!
Today we will use our Trade Triangle technology to figure out oil's next big target.
# 1 Trading Tip: DON'T FIGHT THE MARKET … MOVE WITH THE MARKET
3 Stocks on the move today:
CF INDUSTRIES HOLDINGS (CF), WYNN RESORTS (WYNN), and WAL-MART STORES INC (WMT).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
Now, let's analyze the markets using MarketClub's Trade Triangle technology.
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S&P 500 INDEX
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
New highs for the move continue to propel the S&P500 index and we remain longer-term bullish on this market. Longer-term we expect this market to move up to the $1550 to $1600 level by late May, early June based on our cyclic work. With all three of our Trade Triangles green, a bull market is underway. Long and Intermediate term traders should now be holding long positions in this index with appropriate money management stops.
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Watch today’s S&P 500 Video Here.
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Suggested S&P 500 Trading Instruments:
Non Leveraged ETF’s: (Long SPY) (Short SH)
2 x Leveraged ETF’s: (Long SSO)(Short SDS)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
We think this market is at the top of a trading cycle and remains below a ten month downtrend line. At this time, silver has not provided conclusive proof that the cycle has topped out. A close below $33 is needed in this market and will, in our opinion, confirm a top and a possible Fibonacci retracement back to $30.00. Our long-term monthly Trade Triangle remains negative on silver. This particular indicator has done extremely well in the past. Long-term term traders should be in short positions in silver with appropriate money management stops. Intermediate term traders should be on the sidelines.
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Watch today’s Silver Video Here.
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Suggested SILVER Trading Instruments:
Non Leveraged ETF’s: (Long SLV) (Short the ETF SLV)
Leveraged ETF’s: (Long AGQ) (Short ZSL)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
With a Score of +70, the gold market is in the early stages of an emerging trend. The market does have resistance starting at the $1760 level and going all the way up to $1800. We would not be surprised to see gold move sideways to lower and be on the defensive until the middle of May. With our long-term monthly Trade Triangle still in a negative red mode, we cannot get to excited about this market at the moment. We are not super bearish on this metal, we just need further confirmation with the tools we know are successful in trading gold. Long-term term traders should be in short positions in gold with appropriate money management stops. Intermediate term traders should be on the sidelines.
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Watch today’s Gold Video Here.
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Suggested GOLD Trading Instruments:
Non Leveraged ETF’s: (Long GLD) (Short the ETF GLD)
Leveraged ETF’s:(Long UGL) (Short GLL)
Futures & Options: Are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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COPPER (MAY)
BIG PICTURE: Trading Range -60
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bearish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
With a Score of -60, the copper market is recuperating from its recent sell-off and is now in a trading range. We continue to view the longer-term trend in copper as positive. Look for support at the $3.77 level. The market action looks as though it has created a large base to move higher in the future. Long term traders should now be holding long positions in this index with appropriate money management stops.
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Watch today’s Copper Video Here.
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Suggested Copper Trading Instruments:
Non Leveraged ETF’s: (Long JJC)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (APRIL)
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
We were looking for a close in the April contract over the $103.38 level, and that took place last Friday. Today's action we consider positive. See our special report on crude oil. We are looking for crude oil to make it's highs probably somewhere in the May period. With a Score of +100, this market is in a strong trend to the upside. We remain longer term positive on this market. With our monthly, weekly and daily Trade Triangles in a positive mode, we expect we will see further gains in crude oil. Traders should be long this market with appropriate money management stops.
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Watch today’s Crude Oil Video Here.
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Suggested Crude Oil Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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Give us a call at: 1-877-219-1482
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DOLLAR INDEX
BIG PICTURE: Trading Range -70
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bearish | Short-Term = Bearish
MARKETCLUB SCORING SYSTEM: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
With a Score of -70, this market is once again in a emerging trend. Long term traders using our monthly Trade Triangles should maintain long positions with the appropriate stops in place.
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Watch today’s Dollar Index Video Here.
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF’s: (Long UUP) (Short UDN)
Leveraged ETF’s: (Long) (Short)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) | Emerging Trend (70 to 80) | Strong Trend (85 to 100)
Presently, this index is trapped in a broad trading range bound by $320 on the upside and $310 on the downside. A close over $325 should be viewed as very bullish. With a Score of +70, this market could be moving into an emerging trend to the upside. Our longer-term Trade Triangle remains red and negative on this market. Long-term traders should hold short positions in this index with appropriate money management stops.
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Watch today’s REUTERS/JEFFERIES CRB COMMODITY INDEX Video Here.
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Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF’s: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF’s: (Long) (Short CMD)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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This is Adam Hewison for MarketClub and I'll see you tomorrow with my mid-day update. Have a profitable trading day.
Take care everyone,
Adam Hewison
President INO.com and co-founder of MarketClub.com
I do my own TA then i go to the
market club charts for confirmation.This oil
trade has been extremely profitable looking to
go much higher.
Thanks Adam, i check your comments for
guidance daily on my trades
Hi, Adam,
In today's update, you mention that if the CRB goes above 325, it's headed a lot higher. For those of us not trading futures and just stocks / ETF's, do you know of a way to play the move higher on the CRB? Thanks!
Christine,
Here's the info from today's posting. It gives you the best ETF to use.
Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF’s: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF’s: (Long) (Short CMD)
Best,
Jeremy
I purchased 1000 shares of what was AFLB (A5 Labs) at .40c share. It was touted to be a buy and hold since the bio tech co had a unique product. The company later moved to Canada, and the stock name has changed twice, it is now AFLB.PK - don't know what PK means, and the stock is worth nothing at .1c share. The company's website still says its product "Interferon" is promising. It is costing me $100 annually to hold the stock since it was bought over the counter. Should I dump or hold? Thank you.
Hi Adam: yes I agree with you totally. I know exactly what you mean. I am a very small investor I learned the hard way. I have about five penny stocks that have a value of about $20 each. But there is no trading on them so I am stuck with them. Just yesterday I checked out one that I believe is a pump and dump. I googled it and there was a letter from someone saying it was a scam. He checked and they only had one employee and the stock was moving up and down wildly. I feel sorry for the guy that invested hundred $190,000 I hope he can get some of it back????????
Can you give me any thoughts on CMXX? I have over 1 M shares and due to the size of my holdings am in th loop with mgt. They are doing very well, having paid off debt and bought notes back early. Stock does nothing. ...Thanks, ..norm
Norm,
My first question has to be why are you holding a million shares of a penny stock that trades on average 8000 shares a day. This looks like one of those stocks that people get sucked into buying because it is cheap and once in you can't get out of it.
If I'm looking at this correctly you have $190,000 invested in a company that I would never ever invest in. Plus, the trend is down plus, this goes against everything I know about trading. My last guess is you didn't buy this stock, a broker sold it to you and probably told you you could double your money overnight. Well when something sounds too good to be true it usually is. My advice, stay away from penny stocks, they are a losers game except for the promoters.
Good luck
Adam
Adam is 100% right on this one. Unless your total portfolio is equivalent to the GNP of a small nation, you are not using good money management, i.e., you are risking too much on a single investment!
Because I know the people in management well, i know the integrity of management, the quality of the people, and the background and history of the company. If you research the company (quality of people/board of directors) I think you will understand. I normally do not get involved with penny stocks but there is an opportunity here that is ripe for picking. CMXX has their product imbeded in nearly every large Semi company in the world. The balance sheet is now pristine and they follow Sarbane Oxly rules. How many penny stocks do we see touted every day selling for two to three times more per share then CMXX that have no financials at all? The fundamentals for CMXX and the impending rise prdicted for the Semi Industry is why I have a 190K invesred here.
Not to mention nine consecutive quarters of profit.
Niche call on oil last week in your special presentation by the way...
Peter
Peter,
Always nice to hear positive feedback.
Thanks,
Adam