Tune in tonight for the video presentation on MarketClub TV.
Hello MarketClub members everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 1st of August.
Happy first of August. We start off the new month with a potential game changer and a potential bang from the Fed today at 2:15. By the time you're reading this report, news will probably be out. I am not sure much is going to happen as the markets are fairly high considering what's going on in the rest of the world.
Pandemonium hit the floor the New York Stock Exchange first thing this morning as it would appear as though volume just jumped off the charts. For example, Molycorp was shown trading more than 5.7 million shares in the first 45 minutes of trading. That stock usually averages about 2.6 million shares daily. Did someone press the wrong button at Knight Capital?
Don't forget to watch MarketClub TV today at 4 PM. We will digest today's FED announcement and dissect the market's reaction. If you would like to ask us a question, email us at [email protected] and we'll do our best to get your question answered on-air.
DAILY PERCENTAGE CHANGES BY SECTOR:
| CONSUMER GOODS: -0.69% | Biggest Loser PEP -0.77% |
| SERVICES: -0.48% | Biggest Loser SBUX -2.05% |
| HEALTHCARE: +0.26% | Biggest Winner AGN +6.07% |
| ENERGY: +0.07% | Biggest Winner NOV +1.42% |
| TECHNOLOGY: -0.40% | Biggest Loser VMW -2.30% |
| FINANCIAL: +0.09% | Biggest Winner WFC +1.74% |
| INDUSTRIAL GOODS: -0.69% | Biggest Loser CMI -2.32% |
| BASIC MATERIALS: -0.44% | Biggest Loser FMC -3.00% |
| UTILITIES: +0.128% | Biggest Winner OKE +1.02% |
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
Watch MarketClub TV tonight at 4pm ET for a live update.
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S&P 500 INDEX
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bullish
No change from our comments from 7/31/12. This market, like everyone else, is waiting for news to come out of either the ECB or the FED and the employment numbers on Friday. Technically this index is right at the top of its Donchian Trading Channel. Normally when we have seen this in the past, we see a pullback in prices at least to the midpoint of that channel. Currently our Trade Triangles are in a mixed mode with the intermediate-term trend up, and the long-term trend down. This index has resistance at the $1390 to $1400 levels. Look for support to come in right around $1360 on the downside. With a Score of +70, this index is in a trading range. Our long-term monthly Trade Triangle is red and we remain firmly on the bearish side of this index.
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See suggested S&P 500 trading instruments HERE.
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CRUDE OIL (September 2012)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bearish
No change from our comments from 7/31/12. We view the market action in crude oil to be negative and would not be surprised to see this market move down to the lower levels of its Donchian Trading Channel. That level comes in at $84.00. Resistance for crude oil starts at $90.00 and moves all way up to $94.00. With a Score of +55, this index is in a trading range. Long-term traders should remain short this market with appropriate money management stops.
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See suggested CRUDE OIL trading instruments HERE.
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EURO vs USD (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate Term Trend = Bearish
Daily Short-Term Trend = Bullish
No change from our comments from 7/31/12. Despite today's market action, we still believe that this market is in the throes of a longer term bearish trend and we expect to see it move lower in the weeks ahead. We remain negative and are still targeting the $1.2000 to $1.1700 level in the Euro against the US Dollar. With a Score of -65, the Euro is in a trading range. Long-term traders using our Trade Triangle Technology should maintain short Euro positions with the appropriate stops in place.
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See suggested EURUSD trading instruments HERE.
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GOLD (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bearish
No change from our comments from 7/31/12. The top of the Donchian Trading Channel offered sufficient resistance to reverse this market to the downside. The market action is similar to the action we witnessed in June. If this pattern repeats we will see gold retreat from its present levels and test the $1580 to $1590 levels. With a Score of +55, gold is in a trading range. Long-term term traders should remain in short positions or be on the sidelines.
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See suggested GOLD trading instruments HERE.
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PERSONAL MARKETCLUB COACHING
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Give us a call at: 1-877-219-1482
International: 1-801-341-3981
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COPPER (September 2012)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bearish
Daily Short-Term Trend = Bearish
No Change from our comments from 7/31/12. The daily copper chart is looking more and more negative to us in the short term. A move today below $3.3889 sets this market up to test the recent lows around $3.30. As we pointed out last week, our long-term Trade Triangles which have being very good indicators for copper trends in the past, continue to remain in the negative column. With a Score of -100, copper remains in a bear market. Long-term traders should be holding short positions with appropriate money management stops.
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See suggested COPPER trading instruments HERE.
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SILVER (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bearish
No Change from our comments from 7/31/12. The top of its Donchian Trading Channel and resistance at $28.50 and $29.50, offered enough resistance to turn this market back downside. Two key support areas we are looking at in silver are the $26.80 level and the $26.70 level. If these levels give way on a close-only basis, we can see the market making new lows for the move. With a Score of +55, silver is in a trading range. Long-term traders should be holding short positions in silver with appropriate money management stops.
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See suggested SILVER trading instruments HERE.
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PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Long-Term Trend = Bearish
Weekly Intermediate Term Trend = Bullish
Daily Short-Term Trend = Bullish
No Change from our comments from 7/31/12. It would appear as though this index is putting in an important reversal. Should we close where we are now, just below the $300 level, it would create a potential negative engulfing line. Should that occur, and if we close lower tomorrow it will confirm that we have a top place. Resistance on the upside remains at the $302 to $305 level. With a Score of +60, this index is in a trading range. Long-term traders should hold short positions in this index with appropriate money management stops.
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See suggested REUTERS/JEFFERIES CRB COMMODITY INDEX trading instruments HERE.
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This is Adam Hewison for MarketClub, wishing you every success in trading! Be sure to post on the Members Blog.
Adam Hewison
President INO.com and co-founder of MarketClub.com
