Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 9th of November.
Suprise, suprise the "Fiscal Cliff" is almost upon us. Is it just me or is the world just bouncing from one crisis to another crisis where nothing gets done?
We have been discussing the "Fiscal Cliff" for well over a year that I can recall, and nothing has been accomplished. Over the pond in Europe, Greece, Spain, Italy and France all have major problems yet not one of these countries has addressed their problems. Politicians first and foremost want to keep their own jobs and are loath to make hard decisions.
I am not sure if the art of kicking the can down the road was perfected here in the US or in Europe, but we certainly now have a bunch of global politicians who are very adept at kicking the can down the road.
In the US, every economist and politician has been keenly aware for some time that we are facing a fiscal cliff at the end of the year. They all say the "we must do something about this", but not one of them seems to have the political courage or guts to make the hard decisions and get the job done.
Now more than ever, politics and policies are driving the markets.
Today's Trade Triangle Signals
DOW - New Red Monthly Trade Triangle at 12,778.90
NASDAQ - New Red Monthly Trade Triangle at 2,890.85
Don't forget about your "Obama Insurance"! Yesterday we talked about it and here is how it works. Let's begin by looking at where we closed last Friday in the major markets and where we are trading today one week later and after the elections.
|S&P 500||Closed Last Friday at: 1,414.20||Trading Today at: 1,381.00|
|CRUDE OIL||Closed Last Friday at: 84.85||Trading Today at: 85.20|
|EURO||Closed Last Friday at: 1.2836||Trading Today at: 1.2716|
|GOLD||Closed Last Friday at: 1,677.63||Trading Today at: 1,732.00|
|COPPER||Closed Last Friday at: 3.4775||Trading Today at: 3.4325|
|SILVER||Closed Last Friday at: 30.85||Trading Today at: 32.50|
"Obama Insurance": Look at the gold and silver charts which are currently in long-term monthly uptrends. The intermediate-term trend for both metals is negative. Our GamePlan: Wait for the intermediate-term weekly Trade Triangle to turn green and then get some "Obama Insurance" because you are going to need it!!
Now, let's go to the markets and see what our Trade Triangles are indicating.
Have a great trading day,
Founder & President INO.com and co-founder of MarketClub.com.