Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 8/26/11.
The major spin last week was the fact that Warren Buffett lent Bank of America $5 billion. But Warren is no fool, who wouldn't want to get 11% on their investment guaranteed. Well, that's pretty much what Warren got with Bank of America.
So what does that tell us, (1) that Warren is a very shrewd and hard nosed investor, and (2) Bank of America is in serious trouble, and is willing to pay that kind of interest for new funds. Just think about it, you only get 2% on a 10 year treasury.
It remains to be seen whether or not Bank of America is a good stock. Right now our Trade Triangle technology still indicates that the trend is down and has been for quite some time. If you are a member of MarketClub you can clearly see this on the charts where our Trade Triangles indicate exits or short sales. Sorry Warren, as we do not yet have 5 billion dollars to invest, we are sticking with our tried and true Trade Triangle approach to the markets
So let's look at the markets and see what happened last week:
The 4 week losing streak in equities came to an end last week with a positive bounce of 4.74% for the S&P500. With a positive bounce for equities, investors decided gold and silver had rallied high enough and decided to take some money off the table. That action created heavy selling and profit taking in both metals. By weeks end, gold had managed to recover much of its losses and closed out the week with a loss of 1.34%.
Crude oil and the CRB index both rose 2.99% and 1.84% respectively. The dollar index lost ground for the second week in a row, but remains above key support at 73.50.
Now let's go to the weekly charts and see what happened last week in the major markets according to our Trade Triangle technology.
S&P500: Change for the week: + 4.74%
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: = - 75
Silver: Change for the week: - 3.68%
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
Gold: Change for the week: - 1.34%
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
Oil: Change for the week: + 2.99%
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: = - 70
$ Index: Change for the week: - .76%
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
CRB Index: Change for the week: + 1.84%
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: = - 70
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
A PERSONAL NOTE
This weekend, our thoughts are not so much about the markets, but rather about the destructive power of mother nature. Soon hurricane Irene will be bearing down on the Mid-Atlantic and North East states. Our thoughts and prayers are for everyone who is going to be affected by this monster storm, ourselves included. May we all make it through and have safe passage this weekend.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
FRIENDS,
OUR INDIAN TRADITIONAL BUSINESS COMMUNITY STRONGLY BELIVED THAT " NEVER LEND MONEY, WHEN YOU OFFERED UNUSEVAL INTEREST "
THIS IS SIMPLY BECAUSE WHEN OFFERED RATE OF INTEREST IS HIGH, PROBABILITY OF RETURN OF PRINCIPAL IS LOW.
AT PRESENT, ONE MAY THINK, WARREN AS A SMART OR SHWERED PLAYER,BUT THIS CAN BE, AND WILL BE ESTABLISHED, ONLY AFTER HE WILL FOUND HIS INVESTMENTS RETURNED BY BOA.
RASESH SHUKLA
From South Africa we have been watching CNN and holding thumbs for all of you on the East Coast and may you all be safe and we are sure you will see this through with the courage that you have all displayed in the past (thinking of 9/11 especially).
Hope everyone is safe from harms way,and at the present time everything is calm here
in the N.E. states, being Sat @ 10 P.M.
I hope that every one is safe
I hope you all get through the storm. Our prayers are with you all.
Daniel T
Daniel,
Thank you, everyone is safe so far. We'll keep everyone updated as we go.
Cheers,
Jeremy