S&P 500
2018.05
+23.40 +1.16%
Dow Indu
17390.52
+195.10 +1.12%
Nasdaq
4630.19
+64.05 +1.38%
Crude Oil
80.54
-0.42 -0.52%
Gold
1172.85
-28.40 -2.42%
Euro
1.25250
-0.00792 -0.63%
US Dollar
86.913
+0.748 +0.96%
Strong

Did a "bearish divergence" yesterday signal a top for the equity markets?

Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 4th of April.

Crude Oil pulls back … is this a buying opportunity?

We analyze where this energy market is headed.

Gold crashes … no surprise for MarketClub members.

We show you where we think this precious metal is headed in today's video.

TODAY'S MARKET MOVING SECTORS:
CONSUMER GOODS:  +0.10%
SERVICES:  -0.01%
HEALTHCARE:  -0.28%
ENERGY:  -0.42%
TECHNOLOGY:  -0.75%
FINANCIAL:  -0.09%
INDUSTRIAL GOODS:  -0.34%
BASIC MATERIALS:  -0.81%  Biggest Loser
UTILITIES:  +0.06%

3 Stocks on the move today:
SanDisk Corp (SNDK), Avon Products Inc (AVP), and Frontier Communications (FTR).
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.
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S&P 500 INDEX

BIG PICTURE: Trading Range  +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish

Yesterday we alerted everyone to some concerns we had for this market. The lack of follow-through to the upside after the new high was very suspicious. The other concern was a bearish divergence on the Williams %R indicator. Both of those are negative signals. With a Score of +55, this market has fallen back into a trading range. 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 our monthly and weekly Trade Triangles green, we remain positive on this market.
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See suggested S&P 500 trading instruments HERE.
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PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
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SILVER (SPOT)

BIG PICTURE: Emerging Trend  -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish

The silver market is once again testing the lows that were seen in late March around the $31.15 area. Should this level hold, we would expect to see a recovery rally. As you may remember, we were looking for a cyclic low to come in around the end of March, into early April. With a Score of -70, the silver market is in an emerging trend to the downside. Only our long-term monthly Trade Triangle remains positive on silver. This particular indicator has done extremely well in the past. Long term traders should be holding long positions in silver with appropriate money management stops.
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See suggested SILVER trading instruments HERE.
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GOLD (SPOT)

BIG PICTURE: Strong Trend  -100
TRADE TRIANGLES: Monthly = Bearish | Weekly = Bearish | Daily = Bearish

The gold market has pulled back into a perfect 61.8% Fibonacci retracement. We expect this market to begin to regroup around current levels between $1,600 and $1,620. With a Score of -100, the gold market is in a strong downward trend. Look for resistance to come in at the $1,700 level. With all three of our Trade Triangles negative, we expect this market to remain on the defensive. Long-term and intermediate term traders should be in short positions in gold with appropriate money management.
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See suggested GOLD trading instruments HERE.
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COPPER (MAY 2012)
BIG PICTURE: Trading Range  +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish

The copper market did not disappoint, as once again the $3.95 level reversed this market yesterday. With a Score of +55, this market remains in a trading range. A move and close over $3.95 is needed to develop a strong trend. A close in copper this week over the $3.95 level sets this market up to challenge the $4.25 to $4.30 areas. 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 metal with appropriate money management stops.
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See suggested COPPER trading instruments HERE.
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CRUDE OIL (MAY 2012)

BIG PICTURE: Emerging Trend  -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish

Today's move in May crude oil gives us a perfect 61.8% Fibonacci retracement for this contract. We expect this market to regroup and consolidate around current levels. Longer-term, we remain positive given the fact that our monthly Trade Triangle is still green. We are looking for crude oil to make its highs probably somewhere in the April-May period.  With a Score of -70, this commodity is currently in an emerging trend. Long term traders should remain long this market with appropriate money management stops.
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See suggested CRUDE OIL trading instruments HERE.
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DOLLAR INDEX
BIG PICTURE: Emerging Trend +75
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bullish

The positive divergence we outlined in yesterday's comments came to fruition today, as a strong upward rally took place in this index. A Score of +75 indicates that this index has once again moved into an upside emerging trend. Long term traders using our Trade Triangle technology should maintain long positions with the appropriate stops in place.
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See suggested DOLLAR INDEX trading instruments HERE.
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REUTERS/JEFFERIES CRB COMMODITY INDEX

BIG PICTURE: Emerging Trend  -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish

This market is at the lower end of its Donchian Trading Channel and this would indicate we are going to see support come in around the $306 level. We would not rule out a bounce from these levels as this market is entering into an oversold condition. A close this week over the $312 level is needed to reignite this market to the upside and would be a strong bullish signal. Long-term traders should hold long positions in this index with appropriate money management stops.
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See suggested REUTERS/JEFFERIES CRB COMMODITY INDEX trading instruments HERE.
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PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
-----------------------------------------------------------------------

This is Adam Hewison for MarketClub, wishing you every success in trading.

Adam Hewison
President INO.com and co-founder of MarketClub.com

Comments

  1. Why there is no large “Trillion dollar national debt”. A casual exploration of two sections of the Constitution can quickly get us out of the so-called national debt quagmire. Article 1, section 8, is that section where we, the people, tell our elected SERVANTS what WE want them to do regarding things like borrowing, and money (we want coins for money), and article 1, section 10, the money can only be gold and silver coined money. Debts, like borrowing, can only be coined gold and silver. Now, since there is a finite amount of gold and silver available to planet earth to find, dig up, refine, send to the mint for them to coin, and lastly, for that coin to be borrowed, there is therefore a limited amount of money that can be borrowed.

    Now, we know that, at some time or other, some bright person came up with the idea of paper notes for money, so that we wouldn’t be encumbered by the old fashioned concept of dealing with coins. Coins were good insofar as they were HONEST, you could weigh them and check for their purity. Notes for money could be honest only if you could convert the notes (redeem them), but once no longer redeemable, they failed miserably as store of value money. We were at the mercy of the printer, the more they printed, the less the notes were worth (it’s called inflation). Our own Greenbacks were honest notes, it took awhile after the Civil War for all the notes to be paid off, but they were (to Mr. Lincoln’s credit). But not so with the Federal Reserve Notes issued since 1965. These notes made a claim to legitimacy, the legend on the 1965 note said “These notes are legal tender for all debts, public and private, and are redeemable in lawful money at the United States Treasury, or at any Federal Reserve bank.” So your reporter went to such, and sought to obtain his lawful money. He was rebuffed, and sent away. The lawful money was the gold and silver coin. The gold had been stolen in 1933, and the silver was stolen in 1965. Therefore, I can say with certainty, there is no money in the U.S. And because there has been no money in the U.S. for decades, there has been no legitimate borrowing for the last 45 years or so.

    Lawrence Sarsoun
    Author of “America’s Monetary Mess”
    sarsoun@hotmail.com
    321-960-9362

  2. Mark says:

    Adam, can you please add a Treasury/interest rate prouct (10 yr) to your portfolio reviews? thanks!

  3. Adelino says:

    Thanks Adam, and yes I know lots of people are learning a lot from your videos! I know I am ;-), good call on the equity markets!

  4. fnz says:

    How can we be long the sp and the dollar while still making money in thr long run?

  5. steve starr says:

    I would guess that there is another record-breaking naked short on gold (and silver) taking place today, on the same order of magnitude as on February 29th, when 22 million naked shorted gold ounces were dumped on the markets. These sorts of events have the practical effect of not only suppressing gold prices, but also of draining the LBMA and COMEX inventory.

    What is really new here is the fact that the US Treasury Dept allows and in effect sanctions this process on such a *massive* scale. Suppression of precious metal prices has been going on for decades, of course, but the scale of interventions/naked shorting has increased geometrically under the current Obama administration. Let's see, wasn't Goldman Sachs his largest corporate contributor? Who is in charge of the Treasury Dept?

    Since there is no limit to corruption, then the question in my mind is what will be the limit to this process? Jim Willie suggests that there is a battle going on between Asian buyers of gold and those producing the naked shorts, and that the objective of the Asian buyers is to remove gold from the bullion bank inventories and major bank inventories; Willie predicts that by the end of 2013, there will be zero gold left in the inventories of the big banks.

    Until that time, those purchasing the gold will sweep in on days like this, to purchase and take delivery of enormous quantities of physical gold (and silver); Willie predicts gold prices will remain between 1600 and 1800 dollars an ounce, as a see-saw battle takes place with shorts and purchases.

    The end point comes when there is no more gold left to fill the orders, about the time when gold-backed currencies appear to replace the US dollar as the global reserve currency.

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