Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Thursday, the 14th of July.
Will he or won't he implement QE3? That is the question on everyone's lips. I am of course talking about the Federal Reserve chairman, Ben Bernanke. I don't think it's going to matter too much because the market is acting exactly how we expected it to act. The market action for the past three days has very negative connotations in my opinion.
The plain truth is the market has been unable to hold or sustain any rallies after its big down day on Monday. I think tomorrow, being Friday, a lot of traders will be very nervous about holding long positions based on what may or may not happen with the debt ceiling over the weekend.
Gold and silver continue to move to the upside and are in strong hands. This weekend could be the perfect weekend trade for these two markets. Target zones are higher than current levels for both gold and silver.
Another concern we have are bank stocks, which continue to look weak. Bank of America, symbol BAC, could be a perfect candidate for a 52 week rule trade on Friday. Watch that stock carefully on Friday.
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.
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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
Silver moved to its best levels since May 11 of this year. 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 34.75.
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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 = + 90
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 the $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 = - 65
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. With a negative rating of 65, we believe that this market is trapped in a broad trading range with support coming 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 = + 85
This 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.
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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
A possible bearish divergence on the Williams % R indicator and the action today from the top of the Donchian trade channel indicates that we may be seeing further weakness in this market. This weakness would reflect the longer-term red monthly Trade Triangle that has been in place for some time. Resistance is now at 350 and support looks to be at 340. Broad trading range.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
QE3 is absolutely going to happen!!!!! QE4, 5, 6 to infinity are on the way!!!! Helicopter benny only knows one thing=print more money!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
If you look throughout history non gold and silver based currencies
always fail. Some of the earliest fiat money experiments in the 1600's
(it was either france of Germany) ended with the assination of the leader.
Enough said.
Default,lower credit rating,then who will buy our debt?Bernanke to rescue at cost worthless dollar.
Poor Ole' Uncle Bernanke got himself caught between a rock and a hard place. If he doesn't go QE3, The Economy and The Market will probably collapse. If he does go QE3, inflation will take off even more and the $ will probably collapse. HOWEVER, if you have GOLD, WHO CARES!! Bring it on Uncle Ben!!!