Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 24th of October.
For the first time in five months the market is lower for the month by almost 2%. October can be a very cruel month for stocks. Some of the biggest stock plunges in financial history have all occurred, coincidentally, in October.
THE BIG THREE PLUNGES
Oct. 29, 1929, the Dow plunged a substantial 12.8 percent. However, it didn’t stop there.
Oct. 19, 1987, the stock market lost $1 trillion in value in the next few weeks.
Oct. 2008, saw a start of a market melt down. The problems began months before, but October was the worst month.
So, what is this October going to bring? We will be relying on Trade Triangle technology to guide and safe guard us. Right now, we are out of the market based on our monthly and weekly Trade Triangles that we use for trend and timing.
It's not too late to get my latest e-book! It's free, so what are you waiting for?
QUICK TAKE ON THE MARKETS:
S&P 500: Trading range. The major trend remains positive according to our Trade Triangle technology for the S∓P 500. Psychological support at $1,400, but remember this is October.
CLOSED LAST FRIDAY AT: $1,433.19
CRUDE OIL (Dec): Trading range. The long-term trend is positive. Intermediate-term trend based on our Trade Triangle technology remains negative. Major support at $84 a barrel on the December contract.
CLOSED LAST FRIDAY AT: $90.60
EURO (Spot): Positive trend for the Euro. Two of our Trade Triangles are green and are bullish for the Euro. Concerned that we're putting in a potential twin peak in to the Euro. Pay close attention to the weekly Trade Triangle.
CLOSED LAST FRIDAY AT: 1.3023
GOLD (Spot): Long-term monthly Trade Triangle positive. Look for support around the $1,700 level. A move over the $1,730 level turns the momentum back to the upside. Intermediate traders are now short gold from $1,738.58. Only our long-term monthly Trade Triangle is green and bullish on gold.
CLOSED LAST FRIDAY AT: $1,718.00
COPPER (Dec): Only our long-term monthly Trade Triangle is green and bullish on copper. Support at $3.5500 which is the mid point of the Donchian Channel.
CLOSED LAST FRIDAY AT: $3.6320
SILVER (Spot): Support at $31.30. Only our long-term monthly Trade Triangle is green and bullish on silver. Silver is oversold, but shows no sign of reversing. Watch the $32.50 level. A move over that level signifies a rally.
CLOSED LAST FRIDAY AT: $32.04
WILD CARDS: Donald Trump, US Election, Terrorism, Libya, Syria, Turkey, Israel, the Fiscal Cliff, Greece and Europe.
Every success in trading and have a great day.
Adam Hewison
Founder & President INO.com and co-founder of MarketClub.com.
