Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 10/21/11. This week we have two parts to our weekend update. Watch them both here.
Equities mixed as metals fade …
In Europe it's getting personal.
A poll that we conducted on Friday shows that 75% of all traders are closely watching events in Europe. Here's the reason why.
Here we have Chancellor Merkel of Germany, telling Berlusconi the Prime Minister of Italy, who just happens to be a billionaire, a proud Italian male what to do. For sure there is no love lost between these two, but I'm not sure talking that way to an Italian billionaire, is going to result, in any kind of positive vote. That's why, I have always thought that the European union between different sovereignties, with different values and social structures, was an accident just waiting to happen.
Daily rumors from Europe continue to weigh heavily on the markets around the world. Everyone's euphoric one moment, thinking that a possible agreement is at hand only to find out hours later that everything is in complete disarray. It's just a question of how many lifeboats are available, when the boat sinks?
The equity markets last week gave a mixed picture, with the DOW being the big winner with a gain of 1.4%. The S&P 500 was close behind that, with a gain of 1.1%. On the other side of the coin, the NASDAQ was down 1.1%. Was this because of our comments on the negative chart formation on Apple, (AAPL) earlier in the week?
The metals market put in a negative week with gold dropping 3.6% and that was closely followed by silver which lost approximately 2.6%.
Crude oil, which has been closely tracking the equity markets managed to eke out a modest gain of .36% for the week. However, this was not enough to support the CRB index which managed to lose 1.93%, and appears to have topped out.
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The US dollar index which was under severe pressure 2 weeks ago lost another .41% this past week, but it appears as though the downward momentum for this index may be coming to an end.
This coming trading week could be one of the most important ones in Q4, as many of the equity markets are close to reaching crucial Fibonacci retracement levels. The recovery we have seen in the past 3 to 4 weeks in many of the markets may be ending, and this week could be setting up as a potential reversal week.
So stay tuned.
Now let's go to the major markets we track and update every trading day and see how we can create and maintain your wealth in 2011.
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S&P500 INDEX
Change for the week: + 1.11%
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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
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Suggested Trading Instruments for this INDEX
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
Change for the week: - 2.57%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 70
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Suggested Trading Instruments for SILVER
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AQG) (Short ZSL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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As it is the weekend, ask yourself this question. CAN PERSONAL COACHING HELP MY TRADING?
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GOLD (SPOT)
Change for the week: - 3.60%
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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
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Suggested Trading Instruments for GOLD
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (DECEMBER)
Change for the week: - .36%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 55
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Suggested Trading Instruments for CRUDE OIL
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Call your broker
Options: Call your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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US DOLLAR INDEX (SPOT)
Change for the week: - 2.72%
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Monthly Trade Triangles for Long-Term Trends = Positive
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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Suggested Trading Instruments for the US DOLLAR INDEX
Non Leveraged ETF's: (Long UUP) (Short UDN)
Non Available Leveraged ETF's: (Long -) (Short -)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFRIES CRB COMMODITY INDEX (SPOT)
Change for the week: - 1.93%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 55
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Suggested Trading Instruments for the REUTER/JEFFRIES CRB COMMODITY INDEX
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long UCO) (Short CMD)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
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This is Adam Hewison for MarketClub, I'll see you Monday, have a great weekend.
Is S&P monthly trade triangle changed into positive? I think that would be ideal position to building short position?
I find it a bit rich when Americans poke fun at Europeans saying-set your house in order..try to get 17 different nations agree etc... Wasn't this whole downmarket triggered because the democrats and the republicans could not agree on a program of deficit reduction and S&P DOWNGRADED the US ?? People of the same country could not agree and brought the world to the abyss and now they lecture and expect 17 different countries to agree in the matter of days??? you people need to live in the real world!!!
Valtinho, you have a point and there is also the negativity bias of coverage .
Warnings of Slovakia saying no........
No mention when it said yes!!
at what point(nyfed.org) does marketclub trade triangle realize this is deja vu sept 2010 pomo rally part deux
I think it is extremely dangerous to watch the news closely because you unconsciously develop biases about what the market "should" do. This blinds you and makes you get married to one side (usually the wrong side!).
Right now, while 75% of people are busy listening to doomsday commentaries on CNBC, they missed a huge rally on the S&P and didn't even notice that last Friday's prices closed ABOVE the range!
This rally looks alot like the january 2009 one where many people got sucked back in just in time to fall off the next cliff .... listen to adam folks,be careful here!
Look for the market to collapse this week.
I'm not surprised that so many people are watching European events so closely. Is there any other single factor out there that is having such an impact on markets as this issue? In fact, that is why so many daily (active) traders are struggling... as one piece of news comes out and jolts the markets in one direction only to have the same thing happen, but jolting the markets the opposite direction.
It's a good time to be a watchful investor... not buying until the rise is in place. Just some thoughts... I wish everyone well in the coming week!