Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 2nd of November.
Tonight we broadcast our one hour show on the markets. We will take your questions and calls, so be sure to watch MarketClub TV tonight at 5 PM EDT.
Call us at 410-867-2100 extension 129 or email us at [email protected] and leave a question for the show. We will do our best to answer your questions on tonight's show.
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Greece (Grease) is on a very slippery slope.
There is no doubt in my mind that Greece is going to default. I believe they are going to revert back to the drachma, which was the currency before they joined the euro zone. Having grown up in Europe, you become aware of the different nationalities and their cultures, all of which seem to be at odds with each other. I'm sure the German mindset cannot understand the Greek mindset and vice versa.
So what is a trader to do? Simply rely on the direction of the charts, 99% of the time they get the direction right. In the last two days, we've seen very sharp down turns and so far today we have seen a short-term rally. I see trading fatigue seeping into the market, as triple digit swings in both directions are costly and based heavily on news from Europe.
Be sure to tune into our show tonight at 5 PM EDT, when we will do a complete update of today's market action. We will be covering the major stocks that were involved in today's moves, like the bank and energy stocks.
If you'd like to call in a question to the show, simply call 410-867-2100 extension 129 and leave a message and we will do our best to get it on the show tonight. If you can't make the 5 PM showtime, we will be rebroadcasting the show throughout the day.
Okay, now let's go to the charts and see how we can create and maintain your wealth in 2011.
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S&P 500 INDEX
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OUR VIEW: $1,220 is the key for this index
We still believe the $1,220 level is the key for the S&P 500. The close yesterday below that level indicated, that despite today's rally, we may be looking at further weakness ahead in this index. With a Chart Analysis Score of +55 we are in a trading range, which could be very broad at this time. Intermediate traders should be on the sidelines waiting for a new Trade Triangle short signal. Long-term traders should either be in cash or continue to hold short positions in this index.
See today's S&P 500 Video Here.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested S&P 500 Trading Instruments:
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
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OUR VIEW: Trading Range
The spot silver market remains in a broad trading range bound by $32 an ounce on the downside and $36 an ounce on the upside. With our Chart Analysis Score reading +55, we seen no clear-cut direction at the moment in this metal. We expect to see more volatility and a close below $32 would signal further weakness. Generally speaking, the major trend for this metal continue to be negative while the intermediate trend is in conflict based on our Trade Triangles. Long-term traders should continue to hold short positions in silver with appropriate stops.
See today's Silver Video Here.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested SILVER Trading Instruments:
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AGQ) (Short ZSL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
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OUR VIEW: Resistance at $1,750 basis spot
The spot gold market is the only one of seven markets we track that is not in a trading range. The Chart Analysis Score of +85 indicates that the trend remains positive for gold. The gold market appears to be telling us to be very concerned about what is happening in Europe. Key area to watch for in gold on the upside is $1,770. This level represents a 61.8% Fibonacci retracement. Long-term and intermediate term trends remain positive for this precious metal. Intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.
See today's Gold Video Here.
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Monthly trade triangles for Long-term trends = Positive
weekly trade triangles for intermediate term trends = Positive
daily trade triangles for short-term trends = Negative
Combined Strength of Trend Score = + 85
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Suggested GOLD Trading Instruments:
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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COPPER (DECEMBER)
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OUR VIEW: $3.50 now key support
The early move to the upside in copper today was largely due to the equity prices moving higher. Copper generally reflects the economic conditions and is influenced by equity prices. With a Chart Analysis Score of -55 this metal is in a trading range. Should we see this market close below the $3.50 area, we would view that close in a negative light, looking for more pressure for the next several weeks. Generally speaking, the major trend for this metal continue to be negative while the intermediate trend is in conflict. Long-term traders should continue to hold short positions in copper with appropriate stops.
See today's Copper Video Here.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested Copper Trading Instruments:
Non Leveraged ETF's: (Long JJC)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (DECEMBER)
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OUR VIEW: Trading Range
The December contract for crude oil remains in a trading range bound by $90 a barrel support on the downside and $95 a barrel resistance on the upside. With a Chart Analysis Score of +55 this market is firmly entrenched in a broad trading range. Depending on what happens to the equity markets and the global economy, it will likely be reflected in this commodity. Intermediate term traders should be on the sidelines and long-term traders should continue to be short the crude oil market.
See today's Crude Oil Video Here.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested Trading Instruments:
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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ENTER HERE TO WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A WiFi TABLET
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DOLLAR INDEX
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OUR VIEW: Resistance at $77.50
We expect to see the dollar index trade between the $77.5 area and the $76.00 - $76.50 support level. With a Chart Analysis Score of +65, it indicates that this market is in a trading range. The events in Europe have a major impact on this particular index. We still feel that is going to be resolved in a negative way for the euro and expect this index to continue higher in the long-term. While our longer-term monthly Trade Triangle remains positive, our intermediate term weekly Trade Triangle remains in conflict. Long-Term traders should maintain long positions with the appropriate stops in place.
See today's Dollar Index Video Here.
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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 = + 65
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF's: (Long UUP) (Short UDN)
Leveraged ETF's: (Long) (Short)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
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OUR VIEW: Trading Range
Like many of the other markets where tracking right now, the CRB index is in a trading range with a Chart Analysis Score of +55. Resistance is evident at the 325 level and support should be yesterday's low around the 315 area. Look for these levels to contain the market for the next few days. As indicated a few days ago, the move outside of the Donchian trading channel was a little bit suspect given that our longer-term Trade Triangles remain negative. Intermediate term traders should be on the sidelines. Long-Term traders should maintain short positions with the appropriate money management stops in place.
See today's REUTERS/JEFFERIES CRB COMMODITY INDEX Video Here.
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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 = + 55
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Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long) (Short CMD)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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Market proven, market tough, Trade Triangles catch the big moves.
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Be sure to tune into our show tonight at 5 PM EDT, when we will do a complete update of today's market action. We will be covering the major stocks that were involved in today's moves, like the bank and energy stocks.
If you'd like to call in a question to the show, simply call 410-867-2100 extension 129 and leave a message and we will do our best to get it on the show tonight. If you can't make the 5 PM showtime, we will be rebroadcasting the show throughout the day.
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This is Adam Hewison for MarketClub and I'll see you tonight at 5 PM EDT. Have a productive and profitable trading day.
All the best,
Adam Hewison
President INO.com and co-founder of MarketClub.com
Except for gold, other markets are a bit erratic.Of course gold is trending up.
OK Sarkozy and Merkel have demanded an umbilical connection between default and Eurozone.
This can was kicked as far as Cannes and no further.
The analysis given for big 7 markets with their trend strength is really appreciable.I will be more happy to see it along with trade setup.What i mean is that if gold is pretty good to go long then stop loss level and appropriate profits targets should be given along with market clubs view.Then traders like us will be highly benefited.Hoping for the positive response.Thank you
Sudarshan Dhakal
I even think that Yunani is better default so we will in the bottom of the bearish soon and then, ready to go to bearish in full speed.
Trader be nimble... trader be quick... trader watch out for the candlestick. It's incredibly important that we buy the rise... so we don't end up on a slide down.
Yup. Too many traders to starboard.
It's a tough call but here is the main thing. Greece is going to default but it might take more time than you (or myself) might think. Do I think Greece and basically all other sovereign's are going to default? Yes, but now is not likely the time. For now, you stick with what you have. The U.S. stock market it red hot... the dollar, so-so.
I'm not betting against a stock market crash right now. We just ended last month with the biggest monthly gain as far as my charts go back. It's long stocks for now.
I know many people are chomping at the bit to have a short position for the mother of all stock crashes but they're only going to get slaughtered. Once the last bear throws in the towel then maybe we can think about it. Until then, stay tuned. There are way too many 'nay sayers' out there for me to believe the top is in. Once you see things look like everything is fine and taken care of then sudden destruction comes.