Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 8th of August.
Call it a gut feeling, an intuition, or whatever, but I'm getting a little uneasy with the equity markets, and here's the reason why: Our Trade Triangles are sending out mixed signals and have been for sometime. The market has been unable to push into a +100 Score, and so far has failed to move into a -100 reading. Only our long-term Monthly Trade Triangle has consistently stayed on the negative side of the markets, despite the recent short-term rally.
Long-term indicators are important, as they tend to be correct more often than not and the markets have other major problems that are being swept under the rug at the moment. Europe is still a disaster, cities in America are going bankrupt, and huge amounts of debt have not even been addressed by either political party.
With all this as a back drop, tread carefully in the markets. We are not out of the woods yet and we may still have another reason to yell "TIMBER".
3 Monthly Trade Triangle Alerts today:
Bristol Myers-Squibb (BMY), XL Group (XL), and Lamar Advertising (LAMR)
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
Click Here to view today's video
I have been selectively accumulating stocks since the beginning of the year..... including a couple of medical techs which are long shots, but if successful could result in huge returns. (I am quite aware of the pitfalls). The gambler instinct in me also hope that an Obama defeat in November, and removal of his anti business policies, will give the economy another chance to grow again. Lot to hope for, but hey.....no pain-no gain. I believe in the greatness of our system.
I am feeling very nervous about the market. I trade almost exclusively on the TSX, but what happens in the US has a direct affect on the TSX, and Europe affects us all.
I bailed about a week ago except for a couple of stocks scoring 90 or 100. Missed some of the run up but no regrets.