Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Friday, the 15th of July.
The beat goes on and on and on. I am of course talking about the debt ceiling talks which are absolutely imperative to the U.S. I think that most Americans are just getting disgusted with both parties and I think come election time we will see some major changes.
This should be a very interesting Friday with Gold at or close to its highs and Silver higher for the day so far. The equity markets just seem to be hanging on by their fingernails now and I expect we will see further pressure on the markets as the day wears on. Unless there's some major news that comes out I can't imagine these markets rallying from their current levels.
The opportunities to make money right now are huge. We've outlined clearly in our past reports the line in the sand for the S&P 500 and of course we remain positive on the precious metals. One trade you might want to consider this weekend is Gold. If Gold closes at or close to its highs for the day we want to go home with an additional trading unit. If this happens it will qualify as a 52 week high trade rule which means you go home long Gold and take profits on Monday or Tuesday. Use tight money management stops on this position.
Now, let's go to the markets and see how we can protect and make your money grow.
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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 = Negative
Combined Strength of Trend Score = + 75
It looks like this market is just teetering on the edge of a precipice. The symmetry of the S&P500 is striking and should not be ignored as we could be making a right shoulder of a much larger head and shoulders formation. The Trade Triangles remain in a positive mode and we are expecting resistance around the 1333 to 1338 levels. Look for support to come into this market around the 1300 level. The 200-day moving average comes in at 1276, as does a long-term trend line from the lows set in March of 2009.
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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 = Positive
Combined Strength of Trend Score = + 90
A close today over 39.50 will be viewed as extremely bullish for this market. Traders should be long this market as all of our Trade Triangles are in a positive mode indicating higher prices ahead. As we have been indicating, we are expecting this market to reach highs towards the latter part of Q3 and early Q4. Look for support for this market at 36.00.
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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
The current market action in gold is very positive and this market is more than likely going to qualify for a 52 week high rule. Any market that is making all time highs must be considered bullish. All of our Trade Triangles are green indicating that a strong trend is in place. We expect to see this market move over $1,600 an ounce in the near future. Longer-term, we are looking for a move higher until the end of Q3 and possibly into Q4.
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CRUDE OIL
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = - 55
The -55 score indicates that this market remains in a trading range. At the present time, the crude oil market continues to have problems just over the $99 a barrel price point. Both are indicators long-term and intermediate term remain negative for this market. Support comes in around $94 a barrel and resistance coming in just over $99.
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DOLLAR INDEX
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
For the past two months, this index has been trapped in a broad trading range. The Dollar index remains below its 200 day moving average. The longer term trend for the Dollar index is positive based on our Trade Triangle technology. Resistance remains between 76.00 and 77.00. 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 = Positive
Combined Strength of Trend Score = + 60
Since May of this year this index has moved in a broad trading range. Our Trade Triangle technology is mixed on this market at the present time. Resistance is now at 350 and support looks to be at 340.
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If you haven't watched our earlier 1 PM updates, check them out on this blog.
Don't forget to tune in every Wednesday, at 5 PM Eastern Time for the MarketClub TV show.
We want you to be part of the MarketClub TV show this Wednesday and here's an easy way to do that. Now you can call 410-867-2100 extension 129 and (1) leave 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. When you call you will be automatically entered to win a one-year membership to MarketClub. So don't miss out! Be a part of the show that everyone is talking about, plus get a chance to win a free membership.
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
So Krugman the blue-sky neo-Keynsian is somehow a "Malthusian" because he agrees with the scientific consensus that anthropogenic climate-change is happening, and Obama is a "socialist" whose allies are crony-capitalists. I can't say that I'm terribly impressed with the command of elementary logic of these shoutycrackers all-caps Tea-Party types. But considering the cliff off of which they're preparing to run the country and the global economy, that really shouldn't come as a surprise. And as for Peak Oil, we'll just let the unfolding of events over the next decade determine who's right about that one.
pAUL kRUGMAN is a neo-Malthusian,climate change zealot with no credibility. Pay no attention to him. We are not running out of resources. We are running into them. Peak oil is a fraud. The most important resouce,human ingenuity is inexhaustible. The political problem is creating an environment where that ingenuity can be put to work. Getting rid of OBAMA WOULD BE A GOOD START.SERIOUS DAMAGE HAS BEEN DONE TO THE US ECONOMY BY THIS SOCIALIST AND HIS CRONY CAPITALIST FRIENDS. IT MAY BE TOO LATE.
I need some money, Be a pal and send me some, I'll pay you back, just 1 million will due. I'll pay you back a million 5 in one yr ok...
These markets have been interesting to say the least. Fortunately, when you trade major trends, it is possible to make money even in these mixed conditions. I sold GMCR yesterday for a 19% profit. I agree that we will likely see fold prices climb I'd this nonsense continues.
While I don't always agree with Paul Krugman's "blue-skies" neo-Keynesianism (I am what is known on teh Internetz as a "doomer", IOW, I recognize that the era of growth is over forever because of resource-scarcity and ecological constraints), I think he's right on the money politically in his most recent column. And not just about the debt-ceiling, but also about the political climate of the past thirty years.
http://www.nytimes.com/2011/07/15/opinion/15krugman.html?_r=2&hp