Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 24th of January.
The news after the bell yesterday was not so good for Apple. In after hours trading, Apple plunged down over 10%, losing over $40 billion its value in a little less than 90 minutes! To put that in perspective, Apple's loss of $40 billion in shareholders' value was greater than the total value of Wells Fargo Bank! Our Trade Triangle technology nailed Apple stock months ago and signaled its move to the downside.
Our technical indicators have been bullish on the stock market for some time now. That posture is paying some nice dividends today as we witnessed the S&P 500 climb above the 1,500 level for the first time in 5 years. We believe that this market still has further to go on the upside and can move up to the 1,550 to 1,600 levels in the not too distant future.
This morning, NetFlix exploded to the upside, making one billionaire investor, Carl Ichan, very happy. Carl just made a quarter of a billion dollars this morning when NetFlix opened for business. We will give NetFlix the Trade Triangle test today.
We will be covering Apple, NetFlix, S&P 500 and the forex markets. Don't forget to watch and and share your comments with us on our blog.
Have a great trading day,
Adam Hewison
President INO.com and co-founder of MarketClub
I want to buy euro dallar in forex
is that right or not
thank you
For short term trading use the strategy below.
Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry points and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
As a short-term trader, you want to pay particular attention to the second Triangle (New 3 Day High/Low). This is the one second from the top that will generate a positive or negative short-term signal for you. If the Triangle is GREEN, you should then confirm the signals viability status with the fourth Triangle (New 3 Week High/Low). The odds are in your favor that the trend will continue if both the Daily and Weekly light are both corresponding in color. If both Triangles are GREEN, then a positive movement is likely. However, if the Daily and Weekly Triangles are RED, then a negative movement is likely. If the Triangles differ in color then you should consider keeping a sidelines position.
How It Works
The Daily triangle is created whenever a market moves over the previous three day high and remains above the previous three day low. The reverse is true when the low of the previous three days is broken to the downside, it creates a RED Triangle. This is an automatic stop-out of a long position if the Weekly Triangle (4th signal from top) is GREEN. If the Weekly Triangle is RED, it signals a short sale is in order. If you are not familiar with short positions please consult your broker, or learn more from the experts in our INO TV online seminar service.
5 Successful Short-Term Trading Rules
1) The odds are in your favor when you trade with the major trend.
2) Always trade using stops. Never cancel a stop.
3) Plan your trade and trade your plan.
4) Never try to pick tops or bottoms, the market may surprise you.
5) Go with the flow. Don't fight the markets.
Best,
Jeremy