Due to technical issues associated with Hurricane Sandy we do not have a video today.
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 31st of October.
Well there is no question about it, the last few days have been devastating for millions of residents in the Northeast.
Sandy certainly lived up to her billing as the "Storm of the Century" as she left a path of epic destruction in the wake. Luckily our corporate headquarters, which are based in the mid-Atlantic region on the Chesapeake Bay, missed the wrath of this very serious storm.
The US stock markets re-opened today after being closed for two days. The markets needed to open today, as it is the last day of the month and many asset managers value their holdings at of the end of the month.
I expect the markets to be very quiet day and thinly traded as many traders and trading companies are still without power, internet and reliable transportation. This may be the norm for the next several days as New York City grapples with the task of putting itself back together again, six days before the election.
On the corporate front, Apple shakes up its lineup and we are seeing Tim Cook consolidate his style of management at Apple. This has been largely reflected in the stock price which has eroded dramatically. As you know, we are on the sidelines on Apple, based on our Trade Triangle technology.
Now, let's go to the market's and see what our Trade Triangles are indicating.
QUICK TAKE ON THE MARKETS:
S&P 500: Thin trading and a broad trading range for the week. The major trend remains positive according to our Trade Triangle technology for the S∓P 500. Based on our intermediate-term weekly Trade Triangle we are on the sidelines in this index. Resistance at $1,420 and psychological support at $1,400, but remember this is October and we have an election coming up.
CLOSED LAST FRIDAY AT $1,411.94
CRUDE OIL (Dec): Higher for the week, expect to see a rally. The long-term trend is positive. Intermediate-term trend based on our Trade Triangle technology remains negative. Major support at $85 and $84 a barrel on the December contract.
CLOSED LAST FRIDAY AT $86.30
EURO (Spot): Positive trend for the Euro and it is slightly higher on the week. All our Trade Triangles are green and are bullish for the Euro. We are getting a little concerned that we are putting in a potential twin peak in the Euro. Pay close attention to the daily and weekly Trade Triangles.
CLOSED LAST FRIDAY AT 1.2937
GOLD (Spot): Gold is little higher for the week. Our monthly and daily Trade Triangles are green and bullish on gold. Only our weekly Trade Triangle indicator remains red. Look for support around the $1,700 level. We are expecting a rally from current levels.
CLOSED LAST FRIDAY AT $1,711.05
COPPER (Dec): Broad trading range, lower for the week. Only our long-term monthly Trade Triangle is green and bullish on copper. Support at $3.5000.
CLOSED LAST FRIDAY AT $3.5490
SILVER (Spot): Higher for the week and expecting more of a rally. Support at $31.50. Our monthly Trade Triangle and daily Trade Triangle are both green and bullish on silver. Silver is oversold and has a positive divergence to the upside. Watch the $32.50 level, a move over this level signifies a stronger rally.
CLOSED LAST FRIDAY AT $31.95
THREE STOCKS TO AVOID:
KRAFT FOODS GROUP (KRFT), WESTERN UNION (WU), APACHE (APA)
THIS STOCK LOOKS GOOD FOR A QUICK POP!
FORD MOTOR (F)
WILD CARDS: Hurricane Sandy recovery, US Election, Terrorism, Middle East, Europe and the Fiscal Cliff.
Every success in trading and have a great day.
Founder & President INO.com and co-founder of MarketClub.com.