Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Friday, the 29th of July.
Just four more days to the debt deadline. I'm guessing that it is an artificial deadline made up for political reasons. I am positive that this is just an arbitrary date that some policy wonk came up with to get everyone up in arms about doing something with the debt.
I believe Warren Buffett had the best idea on how to end our debt problems. Here is what Warren had to say:
"I could end the deficit in five minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election."
Way to go Warren!!!
Well, we have made it to the last day of the trading week and the last day of the trading month. The equity markets are, as of this writing, sharply lower for the week and also the month. Gold and Silver on the other hand, are sharply higher for the week and the month.
As we have been indicating, we felt the equity markets were rolling over to the downside. Technically we are getting closer to pulling the trigger on our major monthly Trade Triangle which sets the trend for the equity markets.
Now let's take a look at what the markets are telling us and the direction they're taking on this last trading day of the month.
S&P 500
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 70
Looking at the monthly S&P 500 index chart, a close around current levels would be the lowest close we've seen in this index for the past 6 months. The monthly PSAR comes in at 1256. As we have stated many times before, this is a line-in-the-sand level that if broken would indicate further downside action.
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SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 85
Silver is closing out the month with a gain of over 15%. The action continues to be positive and we expect this market to trade to the $43 level basis the spot market.
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GOLD (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100
In July, gold moved up over 8% and in doing so hit new all-time highs against the US dollar. The trend remains positive with all of our Trade Triangles positive and we have an intermediate target zone between $1640 and $1650.
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CRUDE OIL (SEPTEMBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 75
For the month of July, crude oil closed essentially unchanged. We still feel that this market is building an energy field to move higher. We want to closely watch this market in the coming days and weeks and look for a turn to the upside.
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DOLLAR INDEX
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = - 55
The dollar index was essentially flat during the month of July with a loss of 0.62%. For the last four months, this index has been moving sideways unable to break out of its trading range. Eventually you will see this change and a stronger trend developing.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 75
One of the reasons we eye this particular index so carefully and closely is because it is the indicator of inflation and deflation. In the month of July, this index closed up over 1%. The 350 level is the key level down to watch on the upside.Thank you so much for all of your feedback for our MarketClub TV show on Wednesdays. We really appreciate it!
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
Every success,
Adam Hewison
President of INO.com
Co-founder of MarketClub.com
Yes, I agree the deadline is artificial but the problem is NOT!
I am not sure if the author appreciates the definition of deficit. Cutting deficit means cutting spending which means weaker U.S. economy. Not cutting the deficit could mean higher borrowing costs for all Americans at some point.
So in either case, this is no good for the poor U.S. economy.
1. Buffet seems to be gunning for Obama.
2. It serves you Yanks write pick on poor helpless Greece now you are in deeper water than Greece ever was.
Greece is like the Phoenix it will rise like hit always does over all it oppresses.
There are many investors who feel like 2008 was only yesterday !
Vote em out. The upcoming elections are the last chance to stop the creeping socialism in America.
All the incumbents seem to put their self interests above the overall needs of America. Even the
new freshmen in congress seem to want to sell their votes or cut a deal for their votes.
We need to apply the 10% rule. Cut spending 10% increase taxes 10%. The screams will die down in a few
days and then sanity will prevail and America will come to its senses . WE ARE AT A CRITICAL POINT AND MUST
DO THE RIGHT THINGS FOR THE GOOD OF ALL AMERICANS NOW!!!!!!
Only the vote casting in WH should get the majority, then all other things will get a normal. Other wise all thimgs will be abnormal
We can only hope that our elected representatives (Congress and the President) recall that election imposes the responsibility of leadership. So far there has been none! The era of Bread and Circuses is over. We need some fiscal sanity or the Greek problems will look like a walk in the park.
Who would be responsible for passing such a bill...hmmm...let's see. Oh, now I see the problem with this idea?
Warren Buffet - a fabulous thinker as always. But, of course, if we implement his marvelous suggestion, won't our public servants discover that even today's GDP-to-debt ratio is far below 3% when once they have "optimized" the calculation process?