Measuring How High The Indices Can Go

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 18th of November.

Over the weekend I took some time and looked at the DOW, NASDAQ, and the S&P 500 indices. I wanted to measure just how high these indices could potentially go. All three indices have been on a tear this year, with the DOW making 57 new highs this year alone. On average, that is a new high every four days, which is pretty remarkable.

Now please remember that these are estimates based on technical analysis, they are not written guarantees carved in stone. As with any trade or investment strategy, you need to have an exit plan (money management) in case events change, whether over time or abruptly.

Just like any analyst, unforeseen events can change my analysis on the market. However, if my predictions remain correct, please do congratulate me and tell all of your friends (just joking on this one!).

Let's get started looking at the three indices and measuring the potential up-moves in all three major markets.

I would love to hear what your take is on the major indices and what you think can happen to the markets. How high, how low, agree, or disagree, let us hear your voice. It is always great to chat with other traders and hear their thoughts even, if they differ from my own.

Every Success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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9 thoughts on “Measuring How High The Indices Can Go

  1. Your analysis is very helpful and appreciated with all the noise in the market. Use your triangles and system to assist in keeping my portfolio building. Thanks

  2. Hi Adam, I have to agree with your analysis. With Yellen probably becoming the Federal Reserve Chairman shortly and the concern to keep the market elevated until at least after the 2014 elections, the market will go much higher. My question is: Will gold reconnect with the market and after basing for so long begin to take off? With all the money printing, shouldn't the dollar go down and value of precious metals go up or is there just too much money to be made in equities?

    1. My humble opinion is that everyone will ride the equity bus while it is running on free gas. Once the gas gets a price the equation will change.
      As soon as interest rates tick up, the rug will fall out from underneath, and the rush to safe (metal) investments will be on.

    2. Ginny,

      For every market there is a season. Right now, it's not the season for gold but 2014 in my opinion it will be the year of gold. As always, we will rely on our trade triangles to show us the way.

      All the best,
      Adam

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

      1. Thank you, Adam. Did some more reading about gold today. In the article, it spoke of supposed over supply of gold to demand which the author did not believe was true, but also said gold would go up in 2014. Didn't realize until I read this article that banks can lease gold. Germany has requested the gold it has leased to the U.S. Treasury to be sent back. Germany was told, "No." Then an agreement was reached that the US would send back gold to Germany over a 7 year period. If there were more of a supply than demand, why couldn't the US send it right back? All sounds intriguing to me.

        Thank you again.

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