Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your 1 p.m. market update for Friday the 9th of September
It would appear that President Obama's speech last night was not well received looking at the financial markets this morning.
Readers of this report know that we rely on our Trade Triangle technology for trends, and not what a government official has to say and this includes the president of the United States.
I learned over the years that the markets generally tell you what they're going to do. Price action alone is the greatest truth you can see in the marketplace. Price action is what determines trends, price action is what determines traders actions.
Many newbie traders think there must be some mystical power that drives the markets. The truth is, the market is driven by people who believe prices are you going to go higher or go lower. It is that simple, however, most investors tend to over think the market.
Now I understand that there are folks out there that would disagree with that statement and say that the fundamentals, i.e. supply and demand, earnings etc. etc. is what drives the markets. Yes, there is a certain truth to that, but the other part of the equation is the psychology of the market. Market sentiment or psyche can really play havoc on the fundamentals and that is why price action alone is the best market analyst in the world.
As we go into this weekend with the 10th anniversary of 9/11 looming over everyone's head It's important to look at how the markets are closing for the week.
We consider how a market closes for the week to be very important. Did the market make or lose ground for the week? Which way is the monthly Trade Triangles? Did the market close in the direction of the major trend? All of these thoughts are reflected for the most part in the weekly closing price of any market. That's why we concentrate and bring to you our weekend updates, which allows you to see the big picture and not the minutia of every tick.
Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "The Markets Voted: No Confidence In Obama"