Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 3rd of February.
How do you find winning trades on Friday?
Use "The 52-week new highs on Friday rule"! Here are the three rules you need to trade:
Rule # 1: When a market closes at or close to a new 52-week high on a Friday, buy and go home long for the weekend.
Rule # 2: Exit the long position on the opening the following Tuesday.
Rule # 3: If the market opens sharply lower on Monday, exit the position immediately.
"The 52-week new highs on Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on Friday rule" if you are so inclined to trade the short side of the market. MarketClub members can easily find new 52 week highs using our SmartScan tool.
3 Stocks on the move today:
GENWORTH FINANCIAL (GNW), GILEAD SCIENCES INC (GILD), and TENET HEALTHCARE (THC).
How did MarketClub's Trade Triangle technology do against these three stocks?
Remember …
DON'T FIGHT THE MARKET … MOVE WITH THE MARKET
Now, let's go to the charts and MarketClub's Trade Triangle Technology.
-----------------------------------------------------------------------------------------
S&P 500 INDEX
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
With this index making new highs today, we are clearly on to the next leg of this bull market. Our next immediate target zone is $1360 on the upside. With a Score of +100, this market is very strong hands and in a strong upward trend. Longer-term we expect this market to move up to the $1370 to $1380 level as early as May based on cyclic work. With all of our Trade Triangles green, a bull market is underway. Long and Intermediate term traders should now be holding long positions in this index with appropriate money management stops.
-----------------------------
Watch today’s S&P 500 Video Here.
-----------------------------
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 in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
-----------------------------------------------------------------------------------------
SILVER (SPOT)
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
The support level at $33 is key, in our opinion. Should this level give way, we can see a fast move down to the $31 to $32 area. We think this market is at the top of a trading range cycle, but has not provided conclusive proof that the cycle has indeed topped out. With our long-term monthly Trade Triangle still red, we expect to see this market run out of steam around current levels. This particular indicator has done extremely well in the past. Long-term term traders should be in short positions in silver with appropriate money management stops. Intermediate term traders should be on the sidelines.
-----------------------------
Watch today’s Silver Video Here.
-----------------------------
Suggested SILVER Trading Instruments:
Non Leveraged ETF’s: (Long SLV) (Short the ETF SLV)
Leveraged ETF’s: (Long AGQ) (Short ZSL)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
GOLD (SPOT)
BIG PICTURE: Trading Range +60
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
The gold market has major resistance between the $1760 and $1800 levels. With our long-term monthly Trade Triangle still in a negative mode, we cannot get excited about this market at the moment. We are not super bearish on this metal, however we just need further confirmation with the tools we know are successful in trading gold. Long-term term traders should be in short positions in gold with appropriate money management stops. Intermediate term traders should be on the sidelines.
-----------------------------
Watch today’s Gold Video Here.
-----------------------------
Suggested GOLD Trading Instruments:
Non Leveraged ETF’s: (Long GLD) (Short the ETF GLD)
Leveraged ETF’s:(Long UGL) (Short GLL)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
COPPER (MARCH)
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
We continue to be positive on this market. As we have said in the past, copper generally reflects economic conditions, and as such is influenced by equity prices. Look for support at the $3.70 level. The market action looks as though it has created a large base to move higher in the future. Upside target zone for copper is $4.00. With a Score of +100, we are in a strong trend for this commodity. Long and Intermediate term traders should now be holding long positions in copper with appropriate money management stops.
-----------------------------
Watch today’s Copper Video Here.
-----------------------------
Suggested Copper Trading Instruments:
Non Leveraged ETF’s: (Long JJC)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
CRUDE OIL (MARCH)
BIG PICTURE: Trading Range -60
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bearish | Short-Term = Bearish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
This market has moved into a trading range with a -60 Score. It would appear for the short term we have support around the $95.50 a barrel area. A close below the $93.50 level seen on December 18th would confirm a double top, pivot point formation, which would measure down to the $84 a barrel level. We do remain longer term positive on this market, however it needs to move and close over resistance at $100 to get its upside momentum into high gear. With only our monthly Trade Triangle in positive mode, we expect we will see further market consolidation in crude oil. Long-term traders should be long this market with appropriate money management stops.
-----------------------------
Watch today’s Crude Oil Video Here.
-----------------------------
Suggested Crude Oil Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
-----------------------------------------------------------------------------------------
DOLLAR INDEX
BIG PICTURE: Trading Range -55
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bearish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
For the past seven days, this index has been moving between the $79.5 area on the upside and $78.5 area on the downside. The intermediate term trend is down for this market, however the longer term the trend is still positive. We expect to see some of the Fibonacci retracement levels that we discussed come into play in the days and weeks ahead. With a Score of -55, this market is in a broad trading range. The mixed picture could also mean we will see a pullback to the $78.26 level and the $77.43 level. Both of these levels represent Fibonacci retracement points of 50% and 61.8%. Long term traders should maintain long positions with the appropriate stops in place.
-----------------------------
Watch today’s Dollar Index Video Here.
-----------------------------
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 in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bearish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
With a Score of +55, this market continues to be in a trading range bound by the $320 area on the upside and the $310 level on the downside. Our short term daily Trade Triangle moved in to the red, indicating short term weakness, also confirming the longer-term negative monthly Trade Triangle. Only our weekly Trade Triangle is in conflict at the moment. Long-term traders should hold short positions in this index with appropriate money management stops.
-----------------------------
Watch today’s REUTERS/JEFFERIES CRB COMMODITY INDEX Video Here.
-----------------------------
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 & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
-----------------------------------------------------------------------------------------
PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
-----------------------------------------------------------------------
This is Adam Hewison for MarketClub and I'll see you tomorrow, with my weekend update. Have a profitable trading day.
Take care everyone,
Adam Hewison
President INO.com and co-founder of MarketClub.com
Hello
I daytrade the SP, NQ, Russ 2000, DOW
I use intramarket divergence for entry, but sometimes can get 2 signals BUY and SELL at the same time, or an opposite signal 30-60Mins later so what do you do stay with current or reverse ? Do you have a trend filter based on market internals or volume
thanks!
Hi Adam,
I am still far behind . A year or two ago,RIMM &
AAPL WERE TRADING about the same price . If I remember correctly
that this is a nice example to trade in pair.
You suggsted that using the TRADE TRIANGLE METHOD,we should trade AAPL LONG AND SHORT RIMM,which turned out to be the case. Unfortunely I cannot find your one o'clock daily article on this subject.
I wish I followed your advice.
Thanks and best regards.
Netty
Hi Adam,
I am still far behind . A year or two ago,RIMM &
AAPL WERE TRADING about the same price . If I remember correctly
that this is a nice example to trade in pair.
You suggsted that using the TRADE TRIANGLE METHOD,we should trade AAPL LONG AND SHORT RIMM,whic Unfortunely I cannot find your one o'clock daily article on this subject.
Hi Adam,
I am still far behind . A year or 2 ago, when RIMM &
AAPL WERE TRADING about the same price . If I remember correctly
that this is a nice example to trade in pair.
You suggsted that using the TRADE TRIANGLE METHOD,we should trade AAPL LONG AND SHORT RIMM. UI cannot find the article to pointed out
that how we can
Adam or Jeremy,
REGN is outside the donchian channel but making a 52 week high, does the Friday 52 week rule still apply, or should price be inside the channel...
Jeremey , the charts are so much easier and clearer to read, esp on a lap with small screen real estate. The MA lines are better too..BUT...may I humbly suggest that the MA lines have more contrast ie, BLUE, RED, GREEN in very stark contrast. But that said, it is much improved! Really enjoying!