Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 15th of May.
Word on the street is that Google (NASDAQ:GOOG) is set to announce today a new streaming music service, one that will compete against Pandora and Spotify. Once again, it seems as though Google wants to be everything to everybody, and whether Google can compete in the music business and be successful remains to be seen. Should you buy or sell Google? If you haven't watched my Google trading video on how to trade Google successfully, you can watch it here.
The Beat Goes On
Stock prices hit a high yesterday as more and more disenfranchised short sellers are covering their shorts and exiting this market. So far, this market has not yielded to any downside pressure or correction to the surprise of many professional traders. What I do know, is that trends tend to persist longer than expected, and that they don't ring a bell at the top of any market. In a recent blog poll, we asked readers what they thought of the market:
I see it going up from here (39%)
I think we are due for a major correction (38%)
The votes are almost equally split which reflects the sentiment of the overall market itself. This is when our Trade Triangle technology really shines as it takes an unbiased view of the market and what is actually happening. I have found over the years that the general market never gets it wrong, if you just listen to what it is saying.
King Dollar - Can The Trend Continue?
With the rest of the world taking its cue from the US and going into a QE type mode, the Dollar continues to do well against the Japanese Yen, Aussie Dollar and to a lesser extent, the Euro. I am puzzled by the fact that the Euro has held up as well as it has. The news out of Europe today indicates that Europe's GDP is going to be less than was forecast.
The Big Gold Meltdown?
With all of our Trade Triangles in a negative mode, I see nothing but further downside pressure for this market. The next big psychological level for gold to test is the $1,400 area. Traders will want to watch this level very closely at the end of the week. A close below $1,398.39 will represent a new weekly low closing for the year and will be very bearish for this market. Technically we cannot rule out a test of the $1300 level.
Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.