Hello traders everywhere! Adam Hewison here co-founder of MarketClub with your 1 p.m. market update for Thursday, the 21st of July.
Stocks traded higher for the day despite the nagging unemployment problem here in the US. This week marks the 15th week in a row that jobless claims for unemployment benefits have been over the 400,000 mark. This is not exactly great news for the White House.
A second bailout for Greece seems to be finished and a done deal. Does that mean the first bailout didn't work? Does anyone in Europe really think that this second bailout is going to work? There's no way the Greeks can or will pay back these loans, of that I'm pretty certain.
Our Trade Triangle technology scores again as we have been long equities based on this technology for quite some time. It proves that you don't have to read the news, you don't have to listen to news and you don't have to catch the latest rumor to be a winner in the market. The market tells you what it wants to do, all you have to do is have a program like MarketClub's Trade Triangles to point the way!
Now, let's go to the markets and see how we can protect and grow your money in 2011.
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S&P 500
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
This market climbed up to its best levels since July 8. The PSAR is just above the high so far today, and sits at 1347.25. It has been a choppy ride in this market and is not necessarily out of the woods yet. We need to see this market make new highs before we can abandon what we think may be a significant top. The Trade Triangles have been long this index from lower levels and remain in that camp. This index is higher for the week as last week's close was 1316.14. Let's see how we close out today's trading session.
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SILVER
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 = + 75
The silver market continues to oscillate and we now have support coming in at $38 an ounce in the short term. A close in the spot market over $40.28 today will be viewed as extremely positive. For the week, silver is trading higher. We are expecting this market to reach its highs towards the latter part of Q3 and early Q4. The intermediate target for silver based on the Fibonacci count of 61.8% is $42.98.
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GOLD
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
As of this writing, gold is just below the $1,600 level, and a close over $1,603 today would be a new high close for the move. For the week, gold is higher and remains in a bullish configuration with our Trade Triangle technology. There appears to be good support coming in at the $1,580 level. We continue to like this market from the long side. We are looking for gold to move higher until the end of Q3 and possibly into Q4. Intermediate targets for gold are $1,640 and $1,650.
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CRUDE OIL
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 70
We moved to the September contract today in crude oil and we received a weekly green Trade Triangle giving a buy signal at $99.87. The September contract briefly traded over the $100 level and is presently trading just below that level now. With our Trade Triangles in a positive stance, we want to be long this market. We have been talking about an "Energy Field" for some time in crude oil and this could be the kickoff of a fairly substantial move. There is about a five dollar risk in this particular trade.
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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 = Negative
Combined Strength of Trend Score = + 70
This index got hit pretty hard today producing a red weekly Trade Triangle. At the present time, we still see this market as being in a broad trading range and lacking any real direction. The Dollar index remains below its 200 day moving average. Resistance remains at 75.50 and support comes in today at 74.00.
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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 = + 55
There is no change in this index or our analysis for this market. The +55 Chart Analysis Score indicates that this market remains in a trading range in the near term. We still believe that this index is building a powerful energy field that will be capable of propelling it to higher levels later in the year. At the present time, our Trade Triangle technology is mixed. Resistance is between 349 and 350. Support comes in at 342.
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If you haven't watched our earlier 1 PM updates, check them out on this blog.
Just in case you missed last night's MarketClub TV show, it is available on the wall right now to watch. It was a fun show with lots of participation from everyone. Thank you so much for all the questions you sent in!
Be part of our show next show by calling 410-867-2100 extension 129 and (1) leave us a message, (2) tell us how you use MarketClub, (3) ask a question about the market or (4) comment on anything to do with the markets.
Call today and be automatically entered to win a one-year membership to MarketClub. The winner will be announced on the show.
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
Please allow me to explain again with this simple equation:
Frustrated investors + desperate traders + cheap money + desperate Bernanke + desperate Plunge-Protection-Team = Unexplainable “RALLIES” based on FUNDAMENTALS!!!!!!