Is it a correction or a major turn in the S&P 500? (New Video)

16 thoughts on “Is it a correction or a major turn in the S&P 500? (New Video)”

1. MELTDOWN______SEE $DJW !!!! use 20 day EMA

2. Nice video. We should also consider the fundamental picture. The treasury has a lot of debt to shift. With the current high yields that's no doubt made the fed uncomfortable - a move down in the equity markets will be supportative to treasuries and the dollar. Much to the joy of the treasury which can then shift debt more cheaply (in addition to getting mortgage rates down to try to support that market).

   I believe the Fed additionally failed to roll over circa $50b of TAF funds today, in addition to the recent TARP repayments. I.e the fed is pulling liquidity.

   Therefore the short side of the market imho is the most compelling way to play this going forward. 🙂

3. Alan,

   Thanks for the info re: chart printing.

   - J

4. I enjoy your videos, Adam, and have learned a lot. Would you please explain MACD? I understand the basics of moving averages but don't understand the MACD so would appreciate your help.
   Thanks

   1. Dear Susanne,

      I dug up a few older blog posts about the MACD to give you more information and better enhance your understanding. There are two links below; one is a post about the MACD, but other is a link to a PDF workbook and audio seminar on the MACD. The audio quality for the seminar isn't awesome, but I think the PDF workbook will get you going.

      http://club.ino.com:80/trading/2008/10/traders-toolbox-moving-average-convergence-divergence-macd/

      http://club.ino.com:80/trading/2007/06/construction-application-of-the-macd-indicator/

      Give us a call at the office if you have any further questions.

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

      1. Thanks so much. I really appreciate your suggestions. Susanne

5. At Stockcharts.com "The NYSE Bullish Percent Index" just turned to a Bear Alert on the P&F chart. This is a fairly accurate indicator for market trend changes.
   When the volume on the video display is turned all the way up the volume sounds OK to me.
   For Jesse or any others wanting to print out charts. I found a program that I use that you can save or print or both for any part of your web page that is displayed. Just crop it and save or print. It's free and no advertising or nuisance emails. I've been using it for several years and have had no problems. Here's the link. http://www.mirekw.com/winfreeware/mwsnap.html

6. I see a major correction. The DOW industrial average will hit 7500.

7. Hi Adam,
   I'm sorry for posting here. I've send a number of support requests and I've gotten the sparsest of replies. I am re-sending them here. If you want to delete this and reply privately I wouldn't mind. Up to you.

   The following is regarding 100+ trend stocks so I can't figure out what I'm doing wrong. I'm looking for trades. I'm going through the equity weekly up triangles from the last 3 days. I keep finding that the weekly triangles signal bad trades. I wonder if I"m doing something wrong?

   For instance recent S weekly trades would be:
   buy 2.85
   sell 1.76 loss $1.09
   buy 2.10 loss $0.34
   sell 4.89 gain $2.79
   buy 5.44 loss $0.55

   LH
   buy 63.64
   sell 58.44 loss $5.20
   buy 64.96 loss $6.52
   sell 60.72 loss $4.24
   buy 61.98 loss $1.26
   sell 58.33 loss $3.65
   buy 59.10 loss $0.77
   sell 60.56 gain $1.46
   buy 62.60 loss $2.04

   23.68 in losses
   1.46 in gains

   WOW.

   GCA
   buy 3.56
   sell 2.46 loss
   buy 2.42 gain
   sell 2.38 loss
   buy 2.86 loss
   sell 6.61 gain
   buy 7.46 loss

   KTC
   buy 12.70
   sell 13.92 gain
   buy 13.21 gain
   sell 13.13 loss
   buy 14.83 loss
   sell 14.01 loss
   buy 14.79 loss

   Do you see anything trade-able here? I can't figure this out. Any ideas?

   1. Caroline,

      After researching the trades that you have listed I noticed that you are only using the weekly Trade Triangle to trade. This is the wrong way to use the Trade Triangles and will produce some serious losses as you have seen. When trading Equities we want to use the our monthly/weekly method. See below.

      *Equities*

      Monthly Triangles determine trend and possible entry points.
      Weekly Triangles determine timing: exits, entries and re-entries.

      The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.

      Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.

      I will show you below how we would of traded NYSE_S using the monthly/weekly method.

      NYSE_S = Sprint

      We have a weekly green Triangle on 1/5 @ 2.1000 - Now we are waiting for our monthly Trade Triangle to take our long position.

      Buy - 3/12 @ 3.79 on the monthly green Triangle and hold a long position. We are now waiting to exit on the next weekly Triangle.

      Exit - 5/28 @ 4.89 Profit of 1.10 per share. Now because we still have a green monthly Triangle we are waiting for our next green weekly Triangle to get long again.

      Buy - 6/15 @ 5.44 and still holding this position. We are now waiting for either our red weekly or monthly Triangles to exit this position.

      Current price is 5.10 per share.

      NYSE_LH = Lab Corp. Holdings

      We have a weekly green Triangle on 3/26 @ 59.10- Now we are waiting for our monthly Trade Triangle to take our long position.

      Buy - 5/5 @ 64.58 on the monthly green Triangle and hold a long position. We are now waiting to exit on the next weekly Triangle.

      Sell - 5/21 @ 60.56- loss of 4.02 per share. Now because we still have a green monthly Triangle we are waiting for our next green weekly Triangle to get long again.

      Buy - 6/16 @ 62.50 and still holding this position. We are now waiting for either our red weekly or monthly Triangles to exit this position.

      Current price is 65.20 per share.

      NYSE_GCA = Global Cash Access Holding.

      We have a green weekly Triangle on 2/27 @ 2.86. Now we are waiting for our monthly Trade Triangle to take our long position.

      Buy - 3/2 @ 3.04 on the monthly green Triangle and hold a long position. We are now waiting to exit on the next weekly Triangle.

      Sell - 6/4 @ 6.610- Profit of 3.57 per share. Now because we still have a green monthly Triangle we are waiting for our next green weekly Triangle to get long again.

      Buy - 6/16 @ 7.46 and still holding this position. We are now waiting for either our red weekly or monthly Triangles to exit this position.

      Current price 6.86. per share

      NYSE_KT= KT Corp

      We have a green weekly Triangle on 5/4 @ 14.83. Now we are waiting for our monthly Trade Triangle to take our long position.

      Buy - 5/12 @ 14.98 on the monthly green Triangle and hold a long position. We are now waiting to exit on the next weekly Triangle.

      Sell - 5/26 @ 14.010- loss of .97 per share. Now because we still have a green monthly Triangle we are waiting for our next green weekly Triangle to get long again.

      Buy - 6/15 @ 14.79 and still holding this position. We are now waiting for either our red weekly or monthly Triangles to exit this position.

      Current price 14.68 per share

      Best,
      Jeremy

8. I agree that audio needs improvement as least for some sound cards. Adam sounds prety low and also some educational videos. Quality could be standardized to that in introduction videos.

   Regards

9. Hi Adam.

   Another useful video.

   The 887 downside target you highlight is also the 40 period MA on a weeklies chart, which I was able to easily locate using the market club charting tools.

   One suggestion I would make that would be helpful for me (and I am sure other market club users) would be to add the ability for members to print the charts that we generate. Any chance this functionality is in the works?

   Keep up the great work.

   -- J

   -- J

10. Hi Adam,
    Often I find the commentary so quiet that even with the volume turned fully up I can't hear you clearly. would you stand a bit closer to the microphone please.

    1. Dear Steve,

       I will check the settings of the microphone and pass this comment to Adam. We'll get the audio taken care of.

       Best,

       Lindsay Thompson
       Director of New Business Development
       INO.com & MarketClub

       1. When I turn the volume all the way up on the video platform the volume sounds OK to me. Maybe some people have a hearing problem they need to resolve. Or turn up the main volume on their computer.

11. very timely report with parabolic analysis. we see similar breakdowns in commodities, bonds, and i believe the USD. In addition, more market news and a major change to market regulation. Imho the fat lady is ready to sing.

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