Hello everyone! GoPro, Inc. (NASDAQ:GPRO) had a sell signal exactly a year ago today indicating that this stock was in trouble and headed lower. That signal came in at $46.50 on a monthly Trade Triangle. GoPro is currently trading below $12 a share.
Two of the major indices are now officially in bear markets based on the Trade Triangle technology. I have talked about the power of the Trade Triangles and how they can give off early warning signals of impending changes in the market. For example, if you look back last December, members received an early warning signal that all was not well in the S&P 500. That signal came in the form of a weekly Trade Triangle on December 11th at 2,019.39. As I write this commentary, the S&P 500 is currently trading at 1,880! The same warning signals occurred in both the Dow and the NASDAQ. These warning signals occur in stocks as well, take a look at Apple Inc. (NASDAQ:AAPL), Best Buy Co. Inc (NYSE:BBY), Under Armour Inc. (NYSE:UA) and a host of other stocks that were once thought to be invincible.
If you have been reading this blog for any length of time you've heard me make the statement, "they slide faster than they glide". That means that markets tend to go down much faster than they go up. Some market pundits blame it on gravity, I just say that perception may be the real culprit here. Right now confidence in the market is low and perception is high that there is more trouble ahead.
So as an investor what should you do? The key here is to stay disciplined and stick with a game plan. There is no reason to jump into these markets to try to pick a bottom as nobody knows exactly when that's going to be. Let the market tell you what it wants to do, when it does that, and it always does, the Trade Triangle technology will pick up and signal that the market is changing direction.
I have been talking for quite some time that my downside target for crude oil was between $28 and $30 a barrel and the market is coming closer everyday to those numbers. What I would like to see as it approaches those target numbers is for the market to settle down and move into a trading range. A number of analysts are calling for oil to drop down to $20 a barrel, they may be right, but I would rather let the market and the Trade Triangles tell me when oil makes a turn to the upside.
Gold continues to be choppy and appears to be putting in a base. In today's video, I will show you why I believe the market has made major strides in building a base for a turn to the upside. I will also share some upside targets for SPDR Gold Shares (PACF:GLD) and Barrick Gold Corporation (NYSE:ABX).
Stay focused and disciplined.
Every success with MarketClub,