Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Monday, the 28th of April.
The current equity markets are proving to be frustrating for many traders as there has been no clear-cut direction for some time. Many of the indices are still in a trading range and could be making major tops. Don't forget, this bull market is now in its fifth year and is getting long in the tooth.
Like many investors, I am still very much concerned about events in Europe and the Ukraine. I think this is contributing to a large part of the indecision in the markets, causing them to move up one day and down next day.
Certainly there has been positive news for stocks, with earnings for many companies looking very good. There is also some disturbing news of a potential slowdown in Europe, along with some not-so-rosy guidance by several companies.
So what's an investor to do?
The key I believe is to be conservative at the moment. Some of the market leaders like Amazon (NASDAQ:AMZN) are clearly in major downtrends. On the other hand, Apple (NASDAQ:AAPL) which is also in the NASDAQ index, is in a strong uptrend which is creating a problem for the index itself, as Apple represents as much as 8% or 9% of the NASDAQ Index.
Just as the indices are not moving in any one direction quickly, the same can be said of gold which continues to build a base, in my opinion, to move higher later in the quarter and the year. The key level I'm looking at in gold (FOREX:XAUUSDO) this week is $1,334.34. Should spot gold move over that level, it would indicate a possible buy signal. A move over $1,334.34 would turn all of the Trade Triangles green and would be very positive for gold. At the moment, the Trade Triangles are mixed, showing a -55 Score for gold indicating a trading range.
Every success with MarketClub,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.