Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 8/19/11.
The tail that wags the dog
Once again, the problems with sovereign debt in Europe spilled over into the global equity markets, and in particular the bank stocks. Europe is "the tail that wags the dog", and in this case, it's the world.
For the 4th straight week, US equities closed lower and under heavy selling pressure. Gold on the other hand soared to new highs, on fears that the sovereign debt crisis is escalating and getting totally out of hand. (It's already out of hand).
With world equities coming under pressure crude oil was not immune to the potential of less demand for this commodity. With that in mind crude oil slipped 3.6% for the week.
So there you have it, the trends continue, and these trends are likely to continue in the near future.
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: - 4.68%
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: + 9.76%
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
Gold: change for the week: + 6.02%
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: - 3.65%
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: - .77%
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: + 2.97%
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
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
This is Adam Hewison for MarketClub, don't forget to tune in every day at 1 PM oh my daily updates. Have a great weekend everyone.
Hey Adam,
Your thoughts on gold according to this:
If you look back on a Daily, Weekly, or Monthly chart to Sept 07 you will notice gold broke out from 700ish and ran to a high of 1033ish by March 08 never having tested the breakout at 700. That is about a 32% rise. (This can be clearly seen on all three charts) I remember the sentiment was that we would never see 700 again. Well in Nov of 08 we tested that break out and retraced to 700.
Look at today. Starting around Sept 2010 gold broke out of 1260ish. When I look at the charts there does not appear to be a retest of 1260 at all. We are now at 1855 on Aug 2011 and no retest to date of 1260, 1450, or 1580ish. The percentage increase from Sept 2010 to Aug 2011 is 32% just like in 07/08. So, could we be near the turning point and have a pullback in gold starting within the next few weeks.
I am in no way calling a top, but this might be something to consider since we should consider all aspects of the market. I would really appreciate your thoughts and input on this. If you can do a video and share with all that would be great!
Thank you.
Ray,
Calling tops in any market is an impossible task. It is best to just go with the flow and take a good chunk of profits out of the middle.
Thanks,
Adam
gold on friday was on 52week high ,i have buyed gold on basis of 52 week high rule,is it right because u have not mentioned it on your daily and weekend update.
The video cuts out just before you get to the charts. Halfway through the word "extension" on the video tv phone number. Oh well, maybe next time.
If someone thought we do not exist within a global economy, they sure better be convinced now. Europe was sending signals well over 8 months ago... that they were not experiencing the so-called "recovery" seen in the US. Now, it seems, people are realizing Europe is in trouble as a whole.
Nevertheless, there are still plenty of opportunities... but investors better protect their capital. Nothing scares me more than to hear people say they are buying at a discount... when there's so much more to be discounted yet.
the gold holding banks ,5 world wide are buying huge chunks of gold to have on hand for delivery. They currently do not hold the amount they are suppose to apparently and word is they are beefing up supplies to be able to make good on physical delivery demanded by holders. If this is true things are in a dire dire circumstance and gold is going way beyond anyones expectations
In the famous words of Archie Bunker "WE ARE IN THE TERLET"!!!
Hey Adam,
Your thoughts on gold according to what I see.
If you look back on a Daily, Weekly, or Monthly chart to Sept 07 you will notice gold broke out from 700ish and ran to a high of 1033ish by March 08 never having tested the breakout at 700. That is about a 32% rise. (This can be clearly seen on all three charts) I remember the sentiment was that we would never see 700 again. Well in Nov of 08 we tested that break out and retraced to 700.
Look at today. Starting around Sept 2010 gold broke out of 1260ish. When I look at the charts there does not appear to be a retest of 1260 at all. We are now at 1855 on Aug 2011 and no retest to date of 1260, 1450, or 1580ish. The percentage increase from Sept 2010 to Aug 2011 is 32% just like in 07/08. So, could we be near the turning point and have a pullback in gold starting within the next few weeks.
I am in no way calling a top, but this might be something to consider since we should consider all aspects of the market. I would really appreciate your thoughts and input on this. If you can do a video and share with all that would be great!
Thank you.