Into Thin Air...

Into Thin Air is a best-selling non-fiction book of the 1996 Mt. Everest Disaster written by Jon Krakauer. His book was later made into a movie called Everest which gives a chilling visual account of events that took place on the world's tallest mountain. The phrase "into thin air" refers to the altitude and the lack of oxygen at the summit of Mount Everest. Humans can only stay at the summit of Mount Everest for a brief amount of time before the lack of oxygen will cause them to die.

That is sort of how I feel about the markets right now and this particular rally. The major indices without oxygen (in this case, super bullish news) are going to fail. That is how I feel now, but overriding any emotional feeling I have will be the non-emotional Trade Triangles. At the moment, both the Dow and the S&P 500 are indicating a sidelines position. Only the NASDAQ has both the weekly and monthly Trade Triangles indicating a downtrend.

The reason I say that we are getting "into thin air" is the fact that we are now well into Fibonacci retracement levels which historically tend to offer resistance zones in a bear market.

In the near-term I expect the major indices to remain choppy, volatile and remain in a broad trading range.

Today I will be covering levels of resistance for the major indices and what you should be looking for.

Gold (FOREX:XAUUSDO) has pulled back from its best levels and is now lower for the week. This is a reaction to what is going on in the equity markets. You still want to be longer-term bullish on gold. However, I still expect a further pullback from current levels. If you did not see my in-depth report on the gold, you can see it here.

A word of caution - the first two months of this year have been very volatile, perhaps the most volatile beginning of any year in market history. The key in my mind is to remain patient, calm and wait for good trading opportunities to arise as they always do.

Stay focused and disciplined.

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

3 thoughts on “Into Thin Air...

  1. Buddy if you're trying to watch your money, why are you shorting? Unlimited exposure is foolish. There are other ways. Most importantly, these trade triangles, etc are nothing more than gimmicks. All of these guys claim to use 'statistics' to generate their 'signals', while out of the other side of their face talking about how the markets are rigged. They're giving investment advice without a license, but do it through loopholes. Or maybe your 'post' was just a publicity plant like most of these guys like to do. INO is a great information service in terms of finding data, but as soon as you put money in the markets, you're gambling and you'd do just as well walking into the local casino and play the slots. At least there, the machine is programmed to pay out a certain amount. There are no such 'guarantees' with the stock market.

    1. I know I am trading against algos.
      I have made more money, than lost money with these triangles. (again algos.).
      I only short when a lot of things line up. I like shorting earnings announcements.I like Adams commentary. It is one of the tools I use and respect his opinion. And I'm not a plant. Just ask Melissa, the girl who I try to be getting deals from all the time! Lighten up.

  2. Adam, I've been on and off your service for a little while. Yes I was cheap, and tried a few free trials, mainly because I had been loosing bits of green here and there. I really have to watch my money as I was recently paralyzed, and am now on disability. Your trade triangles are a big help, and now that you do a daily commentary, this is where I see the value of your company. I do have a question. I shorted yelp about 2 weeks ago. I don't put physical stops on my trades due the fear of commercial trading programs. I finally got rid of that stinker yesterday am. At the end of the day yesterday, the daily went green. I'm trying to figure out why it took so long to switch. All all the algorithms the same for different valued stocks, or am I missing something here. I love shorting, but until HR tanked overnight last week, I was bleeding. Perhaps you could do a shorting video using Trade Triangles and the other feature I look at which is smart scan. Ino and you have made me a lot of money last week for me. Thank you. Yes I will be keeping my subscription, and trying to switch to a yearly agreement from the monthly

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