|MARKETS WITH STRONG TRENDS:||MARKETS WITH MIXED TRENDS:|
|COPPER (Dec): Higher for the week.
CLOSED LAST FRIDAY AT $3.6230
|S&P 500: Lower for the week.
CLOSED LAST FRIDAY AT $1,416.18
|EURO (Spot): Higher for the week.
CLOSED LAST FRIDAY AT 1.2985
|CRUDE OIL (Jan): Lower for the week.
CLOSED LAST FRIDAY AT $88.94
|GOLD (Spot): Lower for the week.
CLOSED LAST FRIDAY AT $1,714.19
|SILVER (Spot): Lower for the week.
CLOSED LAST FRIDAY AT $33.36
SCORE ONE FOR THE TRADE TRIANGLES
The Euro against the Dollar is one market which has been moving steadily higher. This upward trend has been to the chagrin of many hedge funds who have been forced to cover their short Euro positions. The thinking among many hedge funds was with all the problems in Europe, the Euro was going to drop much lower against the Dollar. The reality of the market place had a very different idea as the Euro has moved to its best levels since the middle of October.
That is the principal danger of listening and relying on the fundamentals to justify your position. When you listen to the market with the help of our Trade Triangle technology, you get a very different story for the Euro/Dollar relationship. The Trade Triangles rely on market action, which in the case of this cross-rate, the trend was clearly in favor of the Euro. The bottom line and the lesson to learn here is that the market is the ultimate arbitrator of its own trends. It is of our opinion that it is best to trade with market action and leave the fundamentals to others.
GOLD BREAKS $1,700!
The gold market crashed through the support level today as it moved to its lowest levels in over three weeks and produced a negative red weekly Trade Triangle. While the longer-term trend remains positive for gold, the short-term and intermediate-term trends remain negative. While the market is heavily oversold, it is not to say it won't go lower.
FISCAL CLIFF, FISCAL CLIFF, FISCAL CLIFF
That's all we are going to hear about for the next several weeks. Right now, the market is telling you that there is still major uncertainty in investors' eyes. Technically the market is leaning more to the negative side than the positive side.
Have a great trading day,
Founder & President INO.com and co-founder of MarketClub.com.