Hello MarketClub members everywhere. I thought this would be a good time to review the events of the last seven trading days. First, we had Great Britain’s historic exit from the EU on July 23rd which immediately sent the markets of the world into a chaotic downward spiral with the DOW (INDEX:DJI) losing over 5% in just over 48 hours! After hitting a low of 17,063, the DOW abruptly reversed course in what I mistakenly labeled a “Dead cat bounce”. It was more like “Who let the cat out of the bag” as the markets proceeded to go up just as fast as they went down catching many traders on the wrong side of the market.
If you follow the Trade Triangles and I hope you do, you know that they were on the sidelines during this epic battle between the bulls and the bears where both sides were badly mauled and bruised. Having a position on the sidelines is a position - make no mistake about it. It's just as important as being long or short the market. If the market is undecided as to which direction it is headed why take a position in the market. Isn't it best just to stay on the sidelines until a trend develops that you can latch onto and make some big profits? Continue reading "This Is A Short But Important Trading Week"
Hello MarketClub members everywhere. The question today is, are you one board the gold train?
According to the Trade Triangle technology the gold train left the station on January 5th of this year at $1081.55. Since that time the gold market has steadily moved higher reaching its highest levels this past weekend as America celebrated its birthday.
The next question is, how many stops is the train going to make before it gets to its ultimate destination?
That's a tricky one to answer. However, I strongly believe that gold (NYMEX:GC.Q16.E) is going to continue higher for the better part of the year.
In today's video I will be looking at some specific target zones I have for this precious metal. In addition to looking at the gold market, I'll analyze the volatile nature of the major indices last week. I'm going to see if we can make some sense of the dramatic reversal both on the downside and upside.
Crude oil (NYMEX:CL.Q16.E) is under pressure this morning falling about 3%. I'll discuss the next support area for this market and share with you what I see in the future for this market.
Stay focused and disciplined.
Every success with MarketClub,
Hello MarketClub members everywhere. It has been quite a week so far, but before I get to that, let's take a look at what happened in the markets in June and how the markets closed out the month.
The big winner for the month was gold (FOREX:XAUUSDO). This precious metal was indeed precious to investors last month as it closed out June with a 9.39% gain, far exceeding any other major market.
Crude oil (NYMEX:CL.Q16.E), on the other hand, lost almost 2% in fairly choppy trading conditions. Continue reading "Welcome To The Second Half Of The Trading Year"
Hello MarketClub members everywhere. I am sticking out my neck today and calling today's overnight rally a "dead cat bounce." This type of rally is not a reversal, it is more of a correction for a very oversold condition in the equity markets.
If we have any cat lovers out there my apologies go to you, but I have to admit I do love the expression "dead cat bounce." I'm not sure where the expression came from, but it seems to fit the markets perfectly.
Indices & Stocks: Make no mistake about it, the dramatic Brexit slide in the markets worldwide has had a profound effect both technically and psychologically on the markets. The major indices and many stocks appear to have put in tops that are capable of moving to some of the Fibonacci levels I outlined in yesterday's video. Continue reading "Dead Cat Bounce"
Hello MarketClub members everywhere. Well, we had the weekend to ponder and recalibrate our thinking towards Great Britain's historic exit from the EU and its effect on world markets.
Personally, I congratulate the British for having the chutzpah to go against conventional thinking. It is not like England is some third world power, they have the 5th largest economy in the world and provide 50% of the EU's military power. History will prove whether or not the Brits got it right by exiting the EU. My gut feeling is any time you can do without faceless bureaucrats running things, you are better off. I'm hard-pressed to point out any outstanding achievements generated by any bureaucracy. Nor can I point to any example of when a bureaucracy has admitted or taken responsibility for major screw-ups. So, I think Great Britain is better off without Brussels and their faceless bureaucracy.
Where does that leave the markets?
Here is what I am thinking and it is based purely on market reaction. After Friday's 610.4 drop in the DOW, I would not be in a rush to buy stocks. Make no mistake about it, the 3.39% drop was and is a big deal. Continue reading "The Big Reset"