Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 8th of March.
Do you want fries with that? McDonald's misses and drops sharply.
Did our Trade Triangle technology get this one wrong?
Is $1,700 the new resistance for Gold?
We review today's market action with a very objective eye.
3 Stocks on the move today:
Sprint Nextel Corp (S), Coach (COH), and Lennar Corp (LEN).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
SECTORS on the move today:
CONSUMER GOODS: +1.23%
SERVICES: +1.03%
HEALTHCARE: +1.65%
ENERGY: +0.90%
TECHNOLOGY: +1.39%
FINANCIAL: +0.56%
INDUSTRIAL GOODS: +1.63%
MATERIALS: +1.31%
UTILITIES: +0.21%
Now, let's analyze the markets using MarketClub's Trade Triangle Technology.
-----------------------------------------------------------------------------------------
S&P 500 INDEX
BIG PICTURE: Trading Range +60
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
With a Score of +60, this Index continues to be in a trading range. The market has rallied back approximately 61.8% and we expect it will run into some form of selling pressure at that level. The index is still lower for the week. We expect to see some excellent support come in around $1,340 area, which I think will be enough to support this market in the near term. Longer-term we expect this market to move up to the $1,550 to $1,600 level by late May, early June based on our cyclic work. With only one of our Trade Triangles green, a caution is warranted in the near term. Long term traders should remain long in this index with appropriate money management stops.
-----------------------------
See suggested S&P 500 trading instruments HERE.
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
SILVER (SPOT)
BIG PICTURE: Trading Range -60
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
We view today's rally in the silver market and selling pressure that came in just over $34 as a reflex rally. A 61.8% correction takes this month back down to the $30.40 area on the spot market. We continue to think this market can and will move lower until the end of the month. With a Score of -60, the silver market is in a broad trading range. Our long-term monthly Trade Triangle remains positive on silver. This particular indicator has done extremely well in the past. Long term traders should be holding long positions in silver with appropriate money management stops.
-----------------------------
See suggested SILVER trading instruments HERE.
-----------------------------------------------------------------------------------------
GOLD (SPOT)
BIG PICTURE: Strong Trend -90
TRADE TRIANGLES: Monthly = Bearish | Weekly = Bearish | Daily = Bearish
We view today's rally as a short-term rally in a market that is in a negative mode. The $1,703 level will more than likely hold off any further rallies. This market seems destined to move down to test the $1,620 area which is close to the Fibonacci retracement level of $1,617.34. We are expecting gold to be on defensive for the balance of March. Presently we are negative on gold and we expect it to trade down to much lower levels. We would not rule out a pullback in gold to the $1,650 level, which represents a 50% Fibonacci retracement. With all our Trade Triangles negative, we expect this market to move lower. Long-term and intermediate term traders should be in short positions in gold with appropriate money management stops.
-----------------------------
See suggested GOLD trading instruments HERE.
-----------------------------------------------------------------------------------------
COPPER (MAY 2012)
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
The key area to watch today and tomorrow will be the $3.70 level. A move below this area will cause this market serious damage which will take a long time to repair. We continue to view the longer-term trend in copper as positive. The market action looks as though it has created a large base to move higher in the future. Long term traders should be holding long positions in this index with appropriate money management stops.
-----------------------------
See suggested COPPER trading instruments HERE.
-----------------------------------------------------------------------------------------
CRUDE OIL (APRIL 2012)
BIG PICTURE: Strong Trend +85
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
The crude oil market continues to regroup and gather energy to move to new highs, in our opinion. This market has a strong support area around the $104-$105 level. We continue to favor the long side of this market and expect it will improve into early April. See our special report on crude oil HERE. We are looking for crude oil to make its highs probably somewhere in the April, May period. With a Score of +85, we believe this market is regrouping to move higher later in the month. We remain longer term positive on this market. With our monthly and weekly Trade Triangles in a positive mode, we expect to see further gains in crude oil. All traders should be long this market with appropriate money management stops.
-----------------------------
See suggested CRUDE OIL trading instruments HERE.
-----------------------------------------------------------------------------------------
ONLY 19 Days to go! You can NOT afford to miss this!
-----------------------------------------------------------------------------------------
DOLLAR INDEX
BIG PICTURE: Trading Range -50
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
Today's strong down move from the resistance level of $80 indicates just how powerful this area is for this index. With a Score of -50, this market is once again in a trading range. Long term traders using our monthly Trade Triangles should maintain long positions with the appropriate stops in place.
-----------------------------
See suggested DOLLAR INDEX trading instruments HERE.
-----------------------------------------------------------------------------------------
REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
Despite today's pullback, we remain positive on this index. With a Score of +55, this index is in a near term trading range. We were somewhat surprised that this market pulled back as much as it has around the $314-$315 area, but we still think it is probably a buy at this point in time. Look for any further pullbacks to be met by good support. Long-term and intermediate term traders should hold long positions in this index with appropriate money management stops.
-----------------------------
See suggested REUTERS/JEFFERIES CRB COMMODITY INDEX trading instruments HERE.
-----------------------------------------------------------------------------------------
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 mid-day update. Have a profitable trading day.
Take care,
Adam Hewison
President INO.com and co-founder of MarketClub.com
To the guy who thought EURO/Dollar is making an inverse Head and Shoulder on the daily chart:
I think if you reduce your time to the 15 min chart you will see that what is forming is 2 back to back triangles...the previous one broke to the upside, but 64% of the time the break is to the downside ( Bullkowski). This descending triangle is interesting in that is has pretty much obeyed all the rules ie, Price should touch each trendline at least twice as distinct peaks or valleys, Price must cross the pattern from trendline to trendline, nearly filling the available space ( check, it did do this) but without volume it is a little harder to predict. MACD Histogram shows the Bears are in control on 15 min chart. I guess short term, I would be prone to be cautious.
I was curious about COH. It has monthly and daily TT up, and weekly TT down, yet a score of +100. I was under the impression that all 3 TT's needed to be up for a score of +100. Can someone reconcile that for me? Thanks
Dennis,
COH triggered a red weekly Triangle on 3/06 signaling an exit from the trade. The next day it hit a new weekly high which changed the score to a +100. The system will only place one Trade Triangle a week on a chart, yet the score will update. At this point I would sit on the sidelines and wait for a confirmation of the resumed uptrend by seeing a green weekly Trade Triangle next week.
Best,
Jeremy