Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 13th of March.
It's a drug we all use, and it just got a little more expensive today. I am, of course, referring to crude oil and our nation's addiction to this core energy source.
Plus, an important Trade Triangle triggered today.
Today's Winning and Losing SECTORS:
CONSUMER GOODS: +0.31%
SERVICES: +0.36%
HEALTHCARE: +0.49%
ENERGY: -0.25%
TECHNOLOGY: +0.66%
FINANCIAL: +0.83%
INDUSTRIAL GOODS: +0.62%
MATERIALS: +0.64%
UTILITIES: +0.31%
3 Stocks on the move today:
United States Steel Corp (X), Masco Corp (MAS), and Cummins Inc (CMI).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
-----------------------------------------------------------------------------------------
S&P 500 INDEX
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
Today our weekly Trade Triangle changed to green in this index. With a Score of +100 this index is in a strong upward trend. Long-term and intermediate term traders should remain positive on this index. Longer-term we expect this market to move up to the $1,550 to $1,600 level by late May, early June based on our cyclic work. With all of our Trade Triangles green, we are in full bullish mode.
-----------------------------
See suggested S&P 500 trading instruments HERE.
-----------------------------------------------------------------------------------------
ONLY 14 Days to go! You can NOT afford to miss this!
-----------------------------------------------------------------------------------------
SILVER (SPOT)
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bullish
The defensive market action in silver continues, and it didn't seem to find support at the $33.20 level early today. A 61.8% correction takes this market back down to the $30.40 area on the spot market. We continue to think this market can and will move lower until the end of the month. With a Score of +55, the silver market is in a broad trading range. Only our monthly and daily Trade Triangles remain positive on silver. Long term traders should be holding long positions in silver with appropriate money management stops.
-----------------------------
See suggested SILVER trading instruments HERE.
-----------------------------------------------------------------------------------------
GOLD (SPOT)
BIG PICTURE: Emerging Trend -75
TRADE TRIANGLES: Monthly = Bearish | Weekly = Bearish | Daily = Bullish
With a Score of -75, this market continues to be on the defensive. This market seems destined to move down to test the $1,620 area, which is close to the Fibonacci retracement level of $1,617.34. We are expecting gold to be on defensive for the balance of March. Presently we are negative on gold and we expect it to trade down to lower levels. We would not rule out a pullback in gold to the $1,650 level, which represents a 50% Fibonacci retracement. With two of our Trade Triangles negative, we expect this market to move lower. Long-term and intermediate term traders should be in short positions in gold with appropriate money management.
-----------------------------
See suggested GOLD trading instruments HERE.
-----------------------------------------------------------------------------------------
COPPER (MAY 2012)
BIG PICTURE: Emerging Trend +75
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bullish
With a Score of +75, copper is in an emerging trend to the upside. We continue to view the longer-term trend in copper as positive. The market action looks as though it has created a large base to move higher in the future. Long term traders should be holding long positions in this index with appropriate money management stops.
-----------------------------
See suggested COPPER trading instruments HERE.
-----------------------------------------------------------------------------------------
CRUDE OIL (APRIL 2012)
BIG PICTURE: Strong Trend +85
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
This market has a strong support area around the $104-$105 level. We continue to favor the long side of this market and expect it will improve into early April. See our special report on crude oil HERE . We are looking for crude oil to make its highs probably somewhere in the April, May period. With a Score of +85, we believe this market is regrouping to move higher later in the month. With our monthly and weekly Trade Triangles in a positive mode, we expect to see further gains in crude oil. All traders should be long this market with appropriate money management stops.
-----------------------------
See suggested CRUDE OIL trading instruments HERE.
-----------------------------------------------------------------------------------------
ONLY 14 Days to go! You can NOT afford to miss this!
-----------------------------------------------------------------------------------------
DOLLAR INDEX
BIG PICTURE: Strong Trend +90
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
With a Score of +90, this market acts in a very positive fashion and we expect to see it move higher in the future. Long term and intermediate term traders using our Trade Triangles should maintain long positions with the appropriate stops in place.
-----------------------------
See suggested DOLLAR INDEX trading instruments HERE.
-----------------------------------------------------------------------------------------
REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Emerging Trend +80
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
This index continues to regroup and looks as though it wants to go higher. The +80 Score indicates that this market is at the top of its emerging trend. As we mentioned last week, the $314-$315 area is probably a buy at this point in time. Look for pullbacks to be met by good support at that level. Long-term and intermediate term traders should hold long positions in this index with appropriate money management stops.
-----------------------------
See suggested REUTERS/JEFFERIES CRB COMMODITY INDEX trading instruments HERE.
-----------------------------------------------------------------------------------------
ONLY 14 Days to go! You can NOT afford to miss this!
-----------------------------------------------------------------------
This is Adam Hewison for MarketClub and don't miss tomorrow's update! Have a profitable trading day.
Take care,
Adam Hewison
President INO.com and co-founder of MarketClub.com
It seems that the weekly trade triangles always kick in after a huge move has already taken place. Waiting for this indicator for confirmation to buy or sell can cost a lot of potential profit.
Consider the crab. The question that is really on their mind is “how do we get out of the trap we have created.” The answer is “you cannot count on the public to bail you out.” It goes back to fool me once shame on me fool me twice shame on you.
Has anyone compared the SDS with the QQQ. They are a mirror image of each other. Being new to the market club I was wondering if anyone has used the trade triangles to trade these two inverse equities. It seems to be a good way to stay on the correct side of the market?
coffee trade anaysis
Thanks Adam. Absorbing articles. Interpreting increased emphasis on sales and consumption and a better margin for production. Financials given additional credit leverage, perhaps in lieu of consumer wage increases. I'm also watching the shaping agri season, fertilization, etc.
Oil firm above 105 seems sustainable. China's demand long with Middle East volatility prompting speculative interest. Announcement of Keystone might be a consumer perk in an election year with limited affect due to refining and distribution issues. I recall GWB lifted a moratorium by fall 2008. This seems to be shaping as a similar oil chart year. Emotional influences and supply doubts?
Considering Crude Oil Tanker's comment, above, do you ever see a day when the dollar is re-valuated on estimated oil/energy reserves, leaving banks to liquidate gold holdings and end the asset class? That sounded a little too space age, I guess. I wonder if old money still keeps a large vault?
The gold bulls look to be in trouble here to me. Even if 1617 holds here 1440 is right around the corner.
YES! I agree. It “LOOKS” terrible for gold. The END of the bull market? Perhaps. We are PERMANENT bullion holders (like in “…till death does part…”). Are we worried? NOT A CHANCE! But you see, we are OLD FOOLS and do not know any better.
Now, the PROBLEM with gold is NOT gold, it’s MENTALITY. i.e. ”Bernanky says” yesterday. Gold does NOT care about those things. It knows it is FOOLISH people floundering. Gold knows very well where it belongs. It knows very well its place of GLOBAL value relative to the debased paper currencies of the world. PEOPLE, by contrast, DO NOT! So, they spike it up and they spike down relative to its ABSOLUTE VALUE. Sooner or later though, it adjusts itself to the MEAN, which ALWAYS increases, as my simpleton chart shows me for my life time line. It only has TWO points: YEAR 1927, $20.36 and YEAR 2012, $1647.31.(Now, today). So, let them do whatever, IT DOES NOT MATTER!
Lo and behold! Halleluiah! Uncle Duffus Thefed Bernanke has performed a modern Miracle of Economics. Like a modern Alchemist, he has managed to convert DEBT and CURRENCY DEBASEMENT into WEALTH and PROSPERITY!! (Ancient alchemists tried to transform LEAD into GOLD, but never succeeded). This is CONTRARY to all economic principles, therefore, quite a feat, Dr., Professor Ludwig Von Misses, the founder of the respected Austrian School of Economics must be spinning in his grave and biting his tongue! It is indeed very difficult to argue against the “salutary” slushing effects of $5.1 trillion (since Jan. 2000) pumped into the economy, albeit ALL DEBT.
Now you've done it. You will probably be marked for investigation.