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Strong

With All Eyes On Equities - You May Have Missed This Sleeper

Call it the Trump Rally, or any name you like, but the stock market certainly came alive when the election swung in Donald Trump's favor. While all eyes are on equities, other things are going on in other markets that you should be preparing for.

Today, I'm going to take an in-depth look at the gold market that has been out of favor the last several years. Gold (FOREX:XAUUSDO) did enjoy a strong rally in the first half of the year and was a top performer. Since moving close to $1400 in July, gold has steadily eroded down to around the $1,180. The question now is, is gold going to continue on the downside or begin to stabilize and start looking forward to what could be an inflationary future? With that in mind, I decided to look at three market keys that could unlock gold and determine its future.

Long-Term Negative Force Line

FIG 1. I have drawn a long-term down sloping trendline starting from gold's all-time high of around $1900 and connected it to several other high points over the years. To be a valid technical trendline, it must touch three points. When that happens, it confirms the validity of the line. The long-term negative force line seen in FIG 1 is the dominant and number one element that will determine which way gold is headed in the future. I would consider a move over the $1375 - $1400 (3) levels on spot gold as a major signal that gold has changed direction to the upside. When this happens, and it will happen sometime in the future, gold will enter into a multiyear bull market. FIG 1 is the number one technical aspect for gold and should be watched closely in 2017.

Gold (FOREX:XAUUSDO) Trendline

[Read more...]

Ford To Stay In America, Two Trump Thumbs Up On This One

Hello MarketClub members everywhere. You've probably heard by now that the Ford Motor Company (NYSE:F) is not going to be moving one of its plants to Mexico. Finally, the U.S. is waking up and realizing that it cannot be a superpower while having a service economy. Whether you voted for Trump or not, I think we have to give him credit for this save. Hopefully, some of the other promises he made will also help the U.S. economy like lowering taxes and nixing some of the onerous regulations that are handicapping businesses in the U.S.

MarketClub's Mid-day Market Report

So far the markets seem to like what they see with all of the indexes higher for the week. The big winner this week was the NASDAQ (NASDAQ:COMP) which jumped +1.84%.

However, the biggest winner for the week is Crude Oil (NYMEX:CL.Z16.E) which is up +5.32% for the week. The big loser is gold (NYMEX:GC.Z16.E) which is down -0.87%. Let’s examine how the Trade Triangles are positioned in both of these markets. [Read more...]

It's A New Trading Week And A New President-Elect

Hello MarketClub members everywhere. The Chinese have a saying that goes like this; "May you live in interesting times" well these certainly are interesting times in America.

It doesn't matter if you are on the right side of the ledger or the left side of the ledger change is coming. Just like the how the markets change the political climate also changes every so often and we are in one of those times right now.

MarketClub's Mid-day Market Report

So what's ahead for President-elect Trump? Well, I think it's fair to say that most all the pundits got this one wrong and to guess what's ahead would be in my humble opinion a mistake as no one knows at this time. What we do know is what the market are telling us and that is something we should all listen to and put aside any political differences.

Technically with the Trade Triangles, I see that the gold market is in a strong downtrend, crude oil is presenting a mixed picture and the major indices also in a quandary at the moment. [Read more...]

How The Mighty Have Fallen

Today I want to start off by thanking the brave men and women who have and continue to serve and protect our country. Thank you for all that you do!

Let's look at two very well-known and some would say mighty stocks. Both of these stocks are households names and have proven to be safe investments over time. The question now is, is that dynamic changing or has it changed already? Let's get started by looking the first stock.

MarketClub's Mid-day Market Report

Alphabet Inc. (NASDAQ:GOOG): For the first time in a long time Alphabet triggered a major sell signal which pushed all of the Trade Triangles into a negative mode. The first indication that there was trouble afoot for GOOG came on November 2 when the weekly Trade Triangle gave a red exit signal at $773. Is GOOG a buy here or is this once mighty stock headed lower? [Read more...]

Just Take A Deep Breath And Relax

Hello MarketClub members everywhere. If you live in the United States or you've been following this year's presidential election maybe it's time just to take a deep breath, let it out and relax. Just when you thought things could not get any crazier, they get crazier.

When FBI Director James Comey came out on a Sunday with no less than two days before the election to say that his original decision not to prosecute Hillary Clinton still stands the market went wild moving up almost 1 1/2% overnight. The question is, is this a significant turnaround for the market or just a dead cat bounce?

MarketClub's Mid-day Market Report

On the other side of the coin, gold has taken a hit this morning down about 1.4%, close to its original breakout point of $1284.03. It also brings gold back to its RSI support line at 50. While the very short term daily Trade Triangle is negative indicating near-term weakness, the weekly Trade Triangle remains green and will only turn red if the $1250 level is broken. I continue to remain longer-term positive on gold. [Read more...]

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