They Slide Faster Than They Glide!

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Wednesday, the 3rd of August.

As you have heard me say many times before... They slide faster than they glide! This is true in the futures markets, the metals, currency and of course, the equity markets. Yesterday we saw the S&P 500 close dramatically below its 200 day moving average. We also had a sell signal on our Monthly Trade Triangle indicator. Today we saw the S&P 500 index break below the recent lows seen in March of this year. The S&P is now lower for the year and looks like it wants to go lower.

Metals on the other hand rose dramatically as everyone jumped at the same market at the same time. Gold traded to new highs, with silver lagging behind. These are volatile times in the markets and perhaps we've seen the thrust of the first wave today.

With the apparent slowdown in the economy reflected by the equity markets, the CRB index and crude oil were pushed to the downside.

We have some very exciting markets right now. These are the type of markets you can both lose and make a lot of money in. Once again we are relying on our proven Trade Triangle Technology which always catches the big moves.

Now, let's go to the markets and see how we can protect and grow your money in 2011.

S&P 500
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100

All of our Trade Triangles turned negative for the S&P500 yesterday and we are now looking for a move down to the 1150 area. The market action today was perhaps overdone on the downside. This market needs to be sold short if you're that type of trader, or at the very least, you should be out of the market. Our Trade Triangle technology gave the signal last month to be out of this market and it's proven to be very profitable and have saved investors a lot of money and heartache.
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SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100

Unlike gold, silver did not make a move to all-time highs. However, it has moved to its best levels since May of this year. The $42.95 level represents a 61.8% Fibonacci retracement and that is our upside target for this market. We are expecting this market to reach its highs towards the latter part of Q3 and early Q4.
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GOLD (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100

Yesterday we happily accepted partial profits on our long gold position. We remain long gold and want to continue to maintain this position until we are stopped out. This is a very emotional and highly charged market and we would not be surprised to see some form of consolidation or potential pullback from current levels. We are looking for gold to move higher until the end of Q3 and possibly into Q4.

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CRUDE OIL (SEPTEMBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100

All of our Trade Triangles are red, indicating that a downward trend is firmly in place for the September crude oil contract. The key support level now for this market is $90 a barrel. Crude oil is heavily oversold on the Williams%R indicator and is also at the bottom level of the Donchian trading channel. We would not be surprised to see some sort of a dead cat bounce from this market.
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DOLLAR INDEX
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 55

Today's market action created a negative engulfing line which halted the recent rally for the dollar index. A lower close tomorrow for this index will confirm an intermediate rally top. The long-term 200 day moving average remains negative for the dollar index. Resistance remains at 75.00 and support comes in today at 74.00.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100

Today our weekly Trade Triangle moved into the red column and pushed all of our indicators into a negative mode with a Chart Analysis Score of -100. As we have been indicating for the last several days, we're looking for this market to make a low somewhere in the next week or so. The market is heavily oversold which means it can still go lower, but we are approaching a point where we could possibly see some form of recovery. This index is barely above its 200 day moving average which comes in around the 337 area.

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Don’t forget to watch our MarketClub TV show this Wednesday, at 5 PM.

More good news that you can benefit from: MarketClub has teamed up with PMI, one of largest education forces in the world, to offer personal coaching for MarketClub! It offers you an opportunity to learn many of the secrets about how the markets really work and how you can make it in current market conditions.

To learn more about our personal coaching and to help improve your trading give us a call at 877–219–1482.

This is Adam Hewison for MarketClub and I’ll see you tomorrow same place, same time, have a great day trading!

As always, we rely on our market proven Trade Triangle technology for catching the big moves.

Every success,
Adam Hewison
President of INO.com
Co-founder of MarketClub.com