Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 22nd of April.
After Last Week's Fall, The Markets Take A Breather
The DOW continues to remain positive, while the NASDAQ and the S&P 500 are in a neutral state at the moment. Our Trade Triangles have signaled that if you are an intermediate-term trader, you should be on the sidelines for both of these markets.
The DOW is another picture, where a clear line in the sand has been drawn. Should the DOW move below 14,434 this week, it will be a major exit signal to all intermediate-term traders to move to the sidelines.
This has not been a particularly good earnings season, as many corporations have missed on the top line. Caterpillar (NYSE:CAT) also scaled back their projections for the coming year, which is another troubling sign. We will be looking at this stock today using our Trade Triangle technology.
Is This Just A Dead Cat Bounce In Gold?
The dramatic recovery from last week's lows in gold does not change the longer-term prospects for this metal. The trend continues to be negative and I still have downside objectives for gold around the 1,200 level. I expect the current recovery in gold to run out of steam and to slow down, as the market becomes more of a two-way trading range.
The slight upward pop in crude oil did nothing to change the overall trend of this market. I'm looking for crude oil to find resistance around the $90 a barrel level on the upside. I am still expecting this market to come under pressure and move lower. I am expecting to see this market trade down to its long-term major support zone which comes in right around the $80 a barrel mark.
Japan, The Gift That Keeps On Giving
Thank you, thank you, thank you. You may recall that some time ago the Bank of Japan and Mr. Kuroda gave us a license to print money. That certainly has been the case since we made that statement as the Nikkei moved up 2% yesterday (remember, they are ahead of us time wise) and the Dollar/Yen relationship inched closer to ¥100 to the Dollar. I'm looking for both trends to continue.
On Investor's Minds:
Japan - Kuroda will do whatever it takes ...
Black Swan - the Boston Marathon
North Korea - On Hold ...
Europe - Cyprus, Portugal and Ireland - economic risk
The FED - Hints QE is coming to an end
May 19th – Debt ceiling suspension expire
Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.