So What About The Next Two Months?

Posted on by The INO.com Team

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Thursday, the 1st of September.

The old Wall Street adage is, "sell in May and go away."  Well, that proved to be very true this year.  So what about the next two months?

September and October are perhaps the two most treacherous and difficult months of the year in the stock market.  Stocks generally do not do well during these two months.

We are confident our Trade Triangles will tell us what to do, no matter what happens to the economy.  It doesn't matter how many jobs are lost or created.

Knowing what to do in the market because of our Trade Triangle signals can make a huge difference to you.  It will relieve your stress level, and will most likely add to your bottom line.

So let's look at the markets and see what's happening today.

 

S&P 500
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

The S&P 500 index challenged the 1230 area again today, which is a 50% Fibonacci retracement zone, but failed.  We still believe that the longer-term trend for the S&P 500 is negative and we expect this market to resume its downward trend in the weeks ahead.  The monthly loss on the S&P 500 was substantial, and we do not expect to see this loss made back anytime soon.  Our Trade Triangles remain longer-term negative for this index.  Intermediate term traders should be on the sidelines waiting for either a buy or sell signal based on our Trade Triangle technology.

--------
SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trend = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 100

The silver market continues to move sideways, still trapped below the $42 an ounce level.  For the past 8 trading days, this market has really gone nowhere to speak of.  However, all of our Trade Triangles are green and we have a +100 Chart Analysis Score for this market.  We could be in a very similar situation like we were in early August, as silver built a mini energy base to go higher.  Short term, intermediate and longer term traders should all be long this market at the moment with appropriate stops.

-------------
GOLD (SPOT)
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

The gold market continues to chug along as it has for the past 8 days. This market appears to be building some support for a move to go higher.  All of our Trade Triangles are in a positive mode. With a +90 Chart Analysis Score it would appear that this market remains in a strong upward trend.  Short term, intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.

-------------
CRUDE OIL (OCTOBER)
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 = + 70

Crude oil is at the top of the Donchian Trading Channel and is heavily overbought.  We would not be surprised to see a pullback from current levels.  At the present time our long-term monthly Trade Triangle is negative, while our short term daily and weekly Trade Triangles are positive.  This is creating a mixed picture for crude oil.  However, the longer-term monthly Trade Triangle must be given more weight than either the daily or weekly Trade Triangles.  We expect this market to pull back from current levels and from the top of its Donchian Trading Channel.

DOLLAR INDEX
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 = + 75

The 73.50 support area was once again enough to turn this market back to the upside with a rally of over $1, in the past 3 days.  This index is now quickly reaching the upper levels of the top of its Donchian Trading Channel.  We expect that this level will be enough to halt the current rally.  At the moment our Trade Triangles are presenting a mixed picture for this index.  The Chart Analysis Score has been moved up to a + 75 reading and the Williams % R indicator is now in an overbought condition.  We believe that this market is still in a broad trading range with resistance coming in around the $75.00 mark.  The index remains below its 200 day moving average while our longer-term Trade Triangle remain positive.

-------------
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

This index is at the upper ranges of the Donchian Trading Channel.  The index is heavily overbought at these levels.  We would not be surprised to see some profit-taking coming in to this market and a pullback from current levels.  Our bias is towards inflation in the future, but we are expecting to see more of a two-way market in this index in the next several days.  Intermediate and short term traders should be out of the market and on the sidelines at the present time.
---------------
As always, we rely on our market proven Trade Triangle technology for catching the big moves.
---------------
IS PERSONAL COACHING RIGHT FOR YOU?

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

But first, watch my personal message to you about one-on-one coaching:

http://www.marketclubcoaching.com/now/

This is Adam Hewison for MarketClub and I'll see you tomorrow, right here, at 1pm.  Have a great trading day.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

6 thoughts on “So What About The Next Two Months?”

  1. Friends,

    Not only this Sept. Oct. next entire two quarters are quite hard to manage.and even not only in stocks, even for Gold and Silver too, this is dificult time to sustaine at this level.

    RASESH SHUKLA - INDIA

  2. I took my own research into considering a couple of trades last week when I bough TZA, FAZ and SDS. I watched as the share prices varied up and down a little from my entry point but held on in anticipation of September events. The weekly triangles were red just a day or two ago and this morning these etfs are all up from 4-8% pre-market due to NFP numbers which are abysmal.
    The triangles are reliable in confirming major trends but in some instances, when you have done your homework and can see the likely outcome of important news, you can get positioned just prior to the reversal which then will bring the triangles around.
    Should be a wild ride today - good luck all!

  3. Agree with Mike long-term,
    short-term, SPY has to rally soon in order to make a ''W-V'' pattern off the double bottom (Bulls score),
    or I think it will get a triple bottom, which, if it doesn't hold will give the major downside (Bears score).

  4. Hey,
    My question is that when I look at the basic charts on etrade, I am seeing a likely inverse head and shoulders pattern developing. How do we know if the inverse head and shoulders is telling us that the market will go higher, versus the other possibility of the market rolling over and heading to the downside?
    Any ideas???
    Bob

Comments are closed.