Tag: CRB

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 17th of October.
-------------
WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A HP WiFi TABLET
------------

Was last week's market rally a head fake?

Last week, the equity markets rallied along with many other markets. We felt at the time this was a counter trend rally and with today's action we have probably put in an interim top. We also expressed the feeling that professional traders would be selling against the recent highs around 1220 to 1230 basis the S&P 500 index.

The rally was pretty unusual in the fact that it was on very light volume and it took off to the upside very quickly without any kind of market consolidation.

This is going to be a big week! Are we going to continue going up? Or are we going to see the longer term downtrend kick in? A downside reversal could be quite dramatic. This also holds true for the crude oil market, which has been mirroring the US equity markets.

The problems in Europe remain and we see little reason to celebrate any victories on that front. Greece will eventually default, and it remains to be seen if Ireland, Spain and Italy will dodge a bullet.

Every week it seems we go from "the world is coming to an end" to euphoria. Eventually the markets will sort out this conundrum. Our view longer-term remains with our Trade Triangle technology which remains negative on the equity markets indicating long-term weakness.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "Was Last Week's Market Rally a Head Fake?" →

Due to Technical issues with the video we will be updating this post with the video later this afternoon. You can still read Adam's thoughts on the markets below.

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 14th of October.
-------------
WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A HP WiFi TABLET
------------

Is this rally for real?

What is behind this market's rally?  The market has been going higher on light volume and admittedly to an area that has presented problems for the S&P 500 in the past - the 1220 area.

It is an important policy to respect market action, as we believe that trumps everything in the long run.  The market is at some very crucial levels.   Looking back at the past two months, you can see we have just been in a very broad trading range.  I believe that professional traders will be shorting the S&P 500 against the highs that were seen just recently.  The risk is maybe 10 or 15 points and the downside is maybe 200 points.  So the risk-reward ratio is really quite attractive from a trading standpoint.

There are "two flies in the ointment" we see right now.   First, the S&P 500 is heavily overbought on the Williams% R indicator and at resistance.  Secondly, our monthly Trade Triangle continues to be negative for this market.  I believe that this combination will begin to put this market on the defensive, perhaps even later today and next week.

It has been an interesting week and it would appear that all of the markets we track are closing against the major trends.  This is not to say the markets have reversed course, rather we are seeing a counter trend rally against the bigger trends.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "Is This Rally For Real?" →

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 13th of October.
-------------
WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A HP WiFi TABLET
-------------

The light volume rally that exceeded everyone's expectations in the equity markets has finally come to an end. We were surprised, like many traders, just how far this rally extended. The major trends always win out in the end, and the major trend for the equity markets, the oil market, the silver market, and the Reuters Jefferies CRB index are all still negative longer-term. The long term trends came into play and proved how important they are in the scope of trading.

This morning I saw that Wall Street insider Raj Rayaratnam was sentenced to 11 years in prison for his insider trading. I'm all for putting people behind bars that break the security laws of the United States. The security markets have no place for individuals like this.

I'm also for putting incompetent politicians who waste our money behind bars. There should be consequences for their actions. When you have Senator Dick Durbin go on the Senate floor and say to everybody to pull their money out of Bank of America, it is an irresponsible statement and very dangerous for our fragile economy.

The reason Senator Durbin said what he did on the Senate floor, is because he cannot be prosecuted. Had he made that statement in a town hall meeting or any kind of public meeting, Bank of America could and should sue him. You can't have politicians denigrating businesses who are elected officials. Unfortunately, most of these officials have zero shame and certainly would not resign over something like this.

I hope you were able to catch our shows yesterday, at 1 PM and again at 5 PM, when we discussed how many markets could be under pressure today.

Here's the bottom line, nothing has really changed, the country and the world is in a heap of trouble and that just can't be swept under the rug and forgotten about.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "Here's the Bottom Line, Nothing Has Really Changed" →

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 12th of October.
-------------
WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A HP WiFi TABLET
-------------
HARRISBURG, PA — SEEKS BANKRUPTCY! Is America Next in Line?

It's not difficult to believe that Harrisburg Pennsylvania is filing for bankruptcy with overwhelming debt of almost half $1 billion. It shows once again that politicians have no clue when it comes to spending money, particularly when it's someone else's money.

The question we must all ask ourselves is what's next? In our home state of Maryland we have $20 billion unfunded liability for entitlements. I'm sure it's the same across the country. We have had reckless politicians spending too much money and not being held responsible for when things go wrong. It was interesting to see what was happening in the Ukraine, where they're jailing their former prime minister, Yulia Tymoshenko, to a seven year jail term for abuse of power during term as prime minister.

Just imagine how that would play out in other countries, including the United States. It certainly would make politicians think before committing and spending money that we don't have. At the moment, no one is held responsible.

It also looks like the politicians in the Euro Zone have kicked the can down the road. This just moves the financial disaster to future generations. No one politician wants to assume responsibility for the incredible amount of future debt they are creating.

What does this all have to do with the markets?

We will rely on our Trade Triangle technology to keep us in the loop and in the markets at the right time.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "HARRISBURG, PA — SEEKS BANKRUPTCY! Is America Next in Line?" →

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 11th of October.
-------------
WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A HP WiFi TABLET
-------------
Slovakia, Slovakia, Slovakia

It would appear that this little country in Europe holds the key to either economic disaster or economic enslavement. The entire country of Slovakia has a population of a little over four million people and a workforce of maybe two million people. These two million people are now being asked to shoulder the debt burden of $5 billion as their share of the European recovery program. That does not seem fair to me.

This tiny country has a better GDP growth rate than the United States. It also has a population that is 99% literate. And I heard this morning, their tax rate is 19% for individuals and 19% for corporations, and the country is thriving in relative terms. Maybe we can all learn something from how this country is run.

GDP (2010 est.): $88.4 billion.
GDP growth rate (2010): 4.0%.
Nominal GDP per capita (2010): $16,288 (ING Bank).
Unemployment (2010): 13.5%.
Consumer price inflation (2010): 1% (Ministry of Finance).
Public deficit (2010): 7.8% GDP.

Now let's go to the markets we track every day and follow with our Trade Triangle technology. Continue reading "Slovakia, Slovakia, Slovakia" →