America has been marked down!!

Posted on by The INO.com Team

Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 8/05/11.

What a weekend!! S&P  marks America down to to AA+. That bombshell comes on top of everything else that is happening like the markets crashing and Italy imploding. But you know what, it is also a time of great opportunity if you follow our Trade Triangle technology.

Let's see how the markets performed last week. Out of the six markets we track every trading day, four markets were in negative territory for the week. The two markets that did not end up in the minus column were gold up 2.25% and the dollar index which was up 1.06%

The percentage loser for the week was crude oil which lost a massive 9.21% and is now officially in a bear trend according to our Trade Triangle technology. The S&P500 was close behind with another negative week which saw this index shed 7.18%.

Let's take a look at the charts, because unlike politicians, pundits and gurus, they tell you what is really going on in the world.

So here's what happened last week in the major markets….

S&P500: change for the week: -7.18%
Monthly Trade Triangles for Long-Term Trends        = Negative
Weekly Trade Triangles for Intermediate Term Trends    = Negative
Daily Trade Triangles for Short-Term Trends        = Negative
Combined Strength of Trend Score            = - 100

Silver: change for the week: -3.38%
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            = + 65

Gold: change for the week: +2.25%
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

Oil: change for the week: -9.21%
Monthly Trade Triangles for Long-Term Trends        = Negative
Weekly Trade Triangles for Intermediate Term Trends    = Negative
Daily Trade Triangles for Short-Term Trends        = Negative
Combined Strength of Trend Score            = - 90

$ Index: change for the week: +1.06%
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            = + 65

CRB Index: change for the week: - 4.46%
Monthly Trade Triangles for Long-Term Trends        = Negative
Weekly Trade Triangles for Intermediate Term Trends    = Negative
Daily Trade Triangles for Short-Term Trends        = Negative
Combined Strength of Trend Score            = - 90

Here's some good news that you can benefit from today. MarketClub has teamed up with PMI a leader in education field to offer personal coaching for MarketClub. That's right, now you can have your own personal coach and learn the many market secrets of MarketClub.

Give us a call today at 877–219–1482 and see if personal coaching is right for you. The number again is 877–219–1482.

This is  Adam Hewison for MarketClub, I'll see you tomorrow right here, have a great trading day.

As always, we rely on our market proven Trade Triangle technology for catching the big moves.
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10 thoughts on “America has been marked down!!”

  1. Carlos,

    I'm a market junkie as well. Email me and let's talk more about the markets. I have followed Dorsey Wright for 13 years, but not quite as religiously as you seem to. I do have access to some other market technicians however and my "fave" thinks the value zone for the SPX is in the 950-1050 range. Yowsah! Hope to speak with you soon.

  4. Lets be specific on this ............... the whole USA is not marked down.

    It is action related to the US government system alone. Indeed Coca Cola and many private companies are very much AAA.

    Drawing directly from the S&P statement last week and over the weekend*, that part of the US that is marked down is, in the unique situation globally in which the US permits its parliament to decide whether to pay past bills:

    1) a significant number of representatives are willing to see the US default rather than compromise ,
    2) not even removal of tax concessions are to be allowed to play a role in deficit reduction and
    3) S&P now assumes the Bush tax cuts will be extended( COST $ 3 Trillion over three years).

    I am confident that if any two of these had not been the case( ie S&P did not have to assume any one of these), there would have been no chance of a downgrade and probably would not have happened even if one was not applicable.

    *' the wider issue of political dysfunction has led to the downgrade'. " The change in the political score alone would under the criteria produce the same result”.

  5. whats your take on copper? been hearing that "could" be the next metal that people might focus on since silver is a bit hi...

  6. The Market had been basking in the sun of ARTIFICIAL sunshine from The Federal Reserve for 2-1/2 years. This is usually the maximum length of time for a secondary (cyclical bullish) leg in a primary (bear) market. (The converse is true for a cyclical bearish leg in a primary bull market). Now it is time to "Pay the Piper" big time and return to the SECULAR BEAR MARKET of 2008, plain and simple. The FUNDAMENTALS do not support the market levels reached two weeks ago. The point and figure chart for the INDU in stockcharts.com today gives a BEARISH price projection of 9500.00. THAT is a much more realistic price level than 12600. THE TIME HAS COME TO FACE REALITY!!!

  7. Trading with the markets momentum is so essential and the past two weeks are prime examples. Can't wait to see whAt the week ahead holds.

  8. I think what we'll see is volatility on steroids over the next decade or so. Markets drop, followed by a wall of liquidity, followed by implosions in specific sectors (notably sovereign debt markets), followed by increased regulation, interventions, thefts, taxes you name it.

    I'm of the belief buy and hold will be poorly rewarded and we will need to trade around the volatility using it as a friend rather than becoming a victim of it. My 2c.

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