Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Thursday, the 10th of October.
Yes, I believe that the current correction has come to an end with yesterday's market action. Markets are heavily oversold at this point and I expect to see a relief rally starting today.
Several of our MarketClub members stated that they expect to see some sort of agreement out of Washington in the next few days. I happen to agree with their thoughts and if that happens, it could instantly repair the downside pressure on the markets.
Apple (NASDAQ:AAPL) is looking more and more interesting, particularly if it closes today over the $491.10 level. Should this happen, it will have created a mini base in which to propel Apple to my "line-in-the-sand" level at $497. Apple could go into overdrive if this level is broken on the upside any time this week.
Apple will be unveiling a new iPad on the 22nd of this month and may have a few surprises in store for the market. Apple will also introduce the final version of its new Maverick operating system.
The recent downside pressure in the markets has pulled the stock of Amazon (NASDAQ:AMZN) back 61.8% from its recent high, which represents a perfect Fibonacci retracement. The retracement also dovetails very well with our last Trade Triangle buy signal at $298.88. With our Trade Triangles remaining positive on this stock, I believe we could be at a low-risk buying point in this market.
Like Amazon, Facebook (NASDAQ:FB) has also seen a 61.8% Fibonacci retracement from its recent highs. With all of our Trade Triangles positive, I continue to like this stock from the long side.
I also like the stock of Talisman Energy (NYSE:TLM). With all of our Trade Triangles green, combined with the fact that this market has pulled back from its recent high, I think it's a good time to be a buyer of this stock if you are not already long based on our Trade Triangle technology. Going into this winter, I believe that energy is going to be a valued commodity. With any position you take in the market, please use money management stops to protect your capital.
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.