Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Friday, the 19th of August.
"They slide faster than they glide"
I learned that rule more than 30 years ago when I was trading in the pits as a member of the CME. Translated it means, markets go down faster than they go up. We only have to look at the last two or three weeks to see how true that saying is.
It's Friday! It's the end of the week and investors are shell shocked and for the most part very nervous. A weekly close today in the S&P500 below 1,178.81 reinforces the bearish outlook for equities in general.
In contrast, gold is up over $100 for the week and looks like it is getting pulled closer and closer to the magical $2,000 level. If the chaos in Europe continues, gold will continue to benefit.
The trend in crude oil continues to be on a negative track and is down about $3 for the week, at the time of this writing.
Enough analysis, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.
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S&P 500
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
Remember, the major trend is down for the equity markets and strong rallies represent shorting opportunities. Looking at the weekly charts, a close below 1,178.81 would be extremely negative. The lowest close we have seen on the S&P500 this year is 1,119.46. This is another level to watch carefully. We see this market going lower.
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SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
Our Trade Triangles kicked in and flashed a buy signal at 42.20 yesterday basis spot. Based on this signal, all traders should be either long this market or looking to trade silver from the long side. We made thsi call on Twitter on 8/16 telling everyone to set their orders to Long. Be sure to follow us on Twitter.
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GOLD (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
Long Term, intermediate and short term traders should hang on for the ride and protect profits with money management stops. It looks more and more likely that we will get close to the magical $2,000 an ounce. We expect to see professional profit taking and some shorting at that level.
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CRUDE OIL (SEPTEMBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
Long Term, intermediate and short term traders should hang on for the ride and protect profits with money management stops. The longer term trend for crude oil is down based on our Trade Triangle technology.
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DOLLAR INDEX
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 60
This market has remained in a fairly well defined trading range for the last several months. With a Chart Analysis Score of -60 we would want to approach this market using our Donchian Trading Channels as well as our Williams %R indicator. The index remains below its 200 day moving average while our longer-term Trade Triangle remains positive.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 100
While our bias is towards inflation, the index is currently indicating that we are in more of a deflationary scenario. We want to remain patient and let our Trade Triangles signal when this market has made a trend change to the upside. Long Term, intermediate and short term traders should hang on for the ride and protect profits with money management stops.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
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All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
That is a Instructive item. I enjoyed it very much. Reita Briar
All of us should make $ like actual working people big companies just look to make $ at any cost to the workers sending jobs out of country cutting wages benefits pensions but pay themselves more can't u see to much $ in to little hands stops the economy pay people more and they will spend more keeping economy strong .
Ok so I'm new at this, very new. If I want to invest in the Gold (spot) or Silver (spot), what do I buy? What tickers do I look at?
Tom
Yes, thank you Mr. President. I have an interesting question for you, and was submitted to me by a very close compadre, who happens to be a judge.
He said: I will no longer fight for my country. However, I would fight to get my country back from where it used to be, (which basically is, anything than this).
Thomas
Chris
I should have stayed in Cash and am paying the price, but I do agree with the premise that stocks slide faster than they go up, and I have one in AMR I am in so cheap if they just do a decent job I will be alright.
Problem is feeling 'trapped' or even considering taking a fairly large loss.
I have decided to hang in there and get some other things done that I have procrastinated on.
Good luck to you.
Thomas
Thank you President Obama but there are too many chiefs manipulating the market. Some of us can still make money. Do ya still hate us?
What goes around will come back.But it's dangerous.
So Adam, gold up & stocks down- where does that leave gold miners?
So is this latest round of selling going to end in a capitulation?
It seems quite overdone already.
How about re-instating the uptick rule and slow down the flash trade-bots.