Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 1st of November.
Now more than ever you may need PERSONAL COACHING!
The call is free and the consultation is free.
Call us today at 877–219–1482 and watch my personal invitation to you about one-on-one coaching right here.
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Can the Greek government survive? We doubt it...
The Greek Socialist party, led by Prime Minister George Papandreou, once again threw the world of finance and trading into turmoil. The news that Greece was going to hold a referendum in January, to vote whether or not to stay in the euro or face chaos, was for sure a political move.
Here's the question I'm asking today: If you're a Greek citizen and the government wants to take all your benefits away, which way would you vote? My guess is they just say to heck with it, and say they are not paying back the money they owe.
I think that Greece has already psychologically defaulted and that will lead to further contagion. Italy is the next one in line, which presents a much bigger problem for the world.
We had the month of October producing one of the biggest monthly gains ever in the equity markets for that time frame. And we start out on November 1st getting beaten over the head by this little country in Europe.
I'm concerned if you have a company like MF Global declares bankruptcy based on sovereign debt, how many other players are there hanging on by their fingernails? In the scope of things, MF Global was not a huge player, yet no one knew about their exposure. How many other players are out there that have sovereign debt problem that no one knows about?
As stated for the past week or so, the longer-term trends in the equity markets are still negative based on our monthly Trade Triangles. Same trends hold true for crude oil and the CRB commodity index. The only markets that we see in positive modes at the moment, are gold and the dollar index.
Okay, now let's go to the charts and see how we can create and maintain your wealth in 2011.
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S&P 500 INDEX
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OUR VIEW: Close below 1220 negative
The action in the S&P 500 turned our daily Trade Triangle negative. We would view a close today below the 1220 area as a very negative sign and an indication of further weakness to come. Intermediate traders should be on the sidelines waiting for a new Trade Triangle short signal. Long-term traders should either be in cash or continue to hold short positions in this index.
See today's S&P 500 Video Here.
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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 S&P 500 Trading Instruments:
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
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OUR VIEW: Trading Range
The low that was seen early today in spot silver around $32 an ounce coincides with trend line support which was drawn from late September. This is a key area of support in our opinion. With a +55 Chart Analysis Score, this market is largely in a trading range. We expect to see more volatility, and a close below $32 would be seen as a sign of further weakness. Generally speaking, the major trend for this metal continue to be negative while the intermediate trend is in conflict based on our Trade Triangles. Long-term traders should continue to hold short positions in silver with appropriate stops.
See today's Silver Video Here.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested SILVER Trading Instruments:
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AGQ) (Short ZSL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
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OUR VIEW: Pullback in a bull market?
Like most of the other markets, the gold market was thrown into a selling mode early today which was enough to turn our daily Trade Triangle negative. The gold market appears to be telling us to be very concerned about what is happening in Europe. Key area to watch for on gold on the upside is $1,770. This level represents a 61.8% Fibonacci retracement. Long-term and intermediate-term trends remain positive for this precious metal. Intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.
See today's Gold Video Here.
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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 = + 85
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Suggested GOLD Trading Instruments:
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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COPPER (DECEMBER)
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OUR VIEW: Trading range for now
Like the silver and gold markets, the action today in copper triggered our daily Trade Triangle indicating that this market is now in a trading range with a +55 Chart Analysis Score. Should we see this market close below the 3.50 area, we would view it in a negative light looking for more pressure for the next several weeks. Generally speaking, the major trend for this metal continue to be negative while the intermediate trend is in conflict. Long-term traders should continue to hold short positions in silver with appropriate stops.
See today's Copper Video Here.
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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 Copper Trading Instruments:
Non Leveraged ETF's: (Long JJC)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (DECEMBER)
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OUR VIEW: Trading Range for now
The action today triggered a red daily Trade Triangle, indicating further weakness. On the downside, we would need a close below $90 to see some further downside momentum. The potential exists for this market to pull back based on what happens in both Europe, and the United States. If economic indicators continue to come in negative indicating a further slowing or sluggishness in the economy, we expect that the longer-term trade triangle will begin to exert more downside pressure. Intermediate term traders should be on the sidelines and long-term traders should continue to be short the crude oil market.
See today's Crude Oil Video Here.
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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:
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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ENTER HERE TO WIN A FREE 1 YR SUBSCRIPTION TO MARKETCLUB ON A WiFi TABLET
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DOLLAR INDEX
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OUR VIEW: Fib Resistance at 77.82
With the news of the Greek referendum and MF Global declaring bankruptcy yesterday, there was a rush back into the dollar and the dollar index. The 77.82 level represents a 61.8% corrective rally and that should be the next target zone. While our longer-term monthly Trade Triangle remains positive, our intermediate term weekly Trade Triangle remains in conflict. Long-Term traders should maintain long positions with the appropriate stops in place.
See today's Dollar Index Video Here.
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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 = Positive
Combined Strength of Trend Score = + 65
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF's: (Long UUP) (Short UDN)
Leveraged ETF's: (Long) (Short)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
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OUR VIEW: Trading Range
A close today below the 311 area breaks a trendline from early October and also triggers a parabolic indicator to the downside. The daily Trade Triangle has already registered a negative, indicating that further downside weakness can be seen in this index. The 324.97 level, which is a key Fibonacci level, was enough to make this index stop and reverse to the downside. As indicated, the move outside of the Donchian trading channel was a little bit suspect given that our longer-term Trade Triangle remains negative. Intermediate-term traders should be on the sidelines. Long-Term traders should maintain short positions with the appropriate money management stops in place.
See today's REUTERS/JEFFERIES CRB COMMODITY INDEX Video Here.
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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 REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long) (Short CMD)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.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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Ask yourself this question, IS PERSONAL COACHING RIGHT FOR ME?
The call is free and the consultation is free.
Call us today at 877–219–1482 and watch my personal invitation to you about one-on-one coaching right here.
--------------
This is Adam Hewison for MarketClub and I'll see you tomorrow with my mid-day update. Have a great trading day.
All the best,
Adam Hewison
President INO.com and co-founder of MarketClub.com
The vote will basically be government leeches versus actual working people. The leeches include government employees and government retirees of every size, shape, color, and flavor. And trust me, there are a lot of them. Unfortunately pensioners are also lumped in with the leeches. All of these depend on government wealth confiscation schemes (inflation, taxes, and other forms of theft) for their livelihoods. They will all vote to stay with the Euro, continue paying on the bonds, and keeping the game going. The working folks will vote "no, hell no", dump the Euro, default on the bonds, and tell those who aren't working to get a job. I vote with the working folks. It is most unfortunate for the private sector pensioners who were taxed their whole lives to pay for their pensions. They are the big losers. Of course, I don't feel sorry for the government pensioners, only the private sector pensioners who actually worked for a living.
I hope real workers outnumber government leeches.
This is a great string of very perceptive comments.
I would add that we see every nation attempting to devalue their fiat currencies, it is (as described by Jim Willie) a reverse beauty contest. Of course, the US far surpasses all other contestants, creating trillions upon trillions of new, freshly devalued US dollars. This extreme behavior is going to end in the termination of the US$$ as the global reserve currency, with profound ramifications for the USEconomy.
Since 1971, when we made the deal with OPEC to only accept US$$ for oil, we have been able to get away with printing as many US$$ as we wished (an oil-backed currency), as all other nations have been obligated to maintain large pools of US$$ in order to buy oil at the two authorized oil bourses in NYC and London. However, those who have now found themselves with trillions of US$$ in cash and Treasury notes/bonds are not exactly happy about the current state of affairs, with the obvious choice in the US to monetize its incredible, unquenchable debt. Hence Saudia Arabia has been making some arrangements with China and Russia about military protection (which of course was the linchpin of the 1971 OPEC arrangement, i.e., you take our dollars and we guarantee you stay in power). And by the way, Iran has also opened its own oil bourse, and guess what, they are taking other currencies . . . the last guy who tried that was Saddam Hussein (the real reason for the Gulf War).
So, stay tuned folks. All the current manipulation with sanctioned bubble in Treasuries (have you noticed the zero percent interest rate at banks for savings now also makes Treasuries the only "safe" interest paying alternative in town?) will continue until one day when the OPEC tide comes in and washes the sand out from under this monumental castle. Once the dollar is no longer needed for oil, it will devalue faster than you can "FRAUD"!!! and take the Treasuries with it.
By the way, if you buy gold and silver, make sure it is in the physical form, don't by paper . . .
This Question should not be limited for Greek government only, because same question can also be put up for many other countries, i think it is batter to say that each and every government of entire world.
We are just living in the age, where financial related problems are tried to solve only in contest of political motives, rather then considering any economical principles, no body ever bothers about future consequences, no one ready to take any harsh decisions, every one is enjoying present time with total ignorance of their Future or Fortune.
Also we just cant blame only government or politicians, because after all they are also arrived from and a part of General public or a common man or people at large, they never ready to monitor situation, before it become worst, they never ready to sacrifice, they don’t want to leave or reduce their luxury, when people are not ready to compromise on any issue how can even government can solve the situation?
Until and otherwise people will throw corrupt politicians, fight against greedy capitalists, challenges and protest the exploiting system, and finally, contribute their required sacrifice, situation will never change any where in entire world.
Freedom Rider: Shaking the System
http://www.blackagendareport.com/content/freedom-rider-shaking-system
Greek military spending criticized
http://english.aljazeera.net/news/europe/2010/05/2010513145757738686.html
Greece Inc (GI). is a subsidiary of the Paris Berlin Ponzi Corporation(PBPC). GI is the largest consumer of military hardware in the EU at 3% of GDP. Athens' military budget even eclipses Pakistan. Massive spending cuts on military hardware would not be good for the PBPC. Low yield bond rates for GI would not be good for the PBPC. Any debt forgiveness is structured to be recovered through high interest rates and the needless spending on goods produced by PBPC National Interests. GI is a massive debt bubble that was built on the sands of government corruption, and the hush money paid to GI Nationals was used to keep the bubble intact. Now that the bubble has burst, it will be up to the GI nationals to understand, face and deal with the reality of their precarious position.
As I expected that world markets would pause, starting on 1-2 November ,It seems things go as technical charts keep telling us.Now in November I expect market will fluctuate between resistance and support bands
(Hang Seng res[20000-21000] , supp[19000-18500]) for 2-3 weeks.
How fickle... I warned subscribers to my weekly newsletter to be cautious about Monday... and sure enough, the markets reacted to ongoing instability. Some times, we need politicians to remain silent... as I describe in this article: Politicians Remain Silent
If slaughterhouses had glass walls, everybody would be a vegetarian, - Paul McCartney, I think.
Well, opacity is the word that comes to mind when contemplating the markets, like cockroaches they are impervious to light. This creates uncertainty, something that markets are supposed to hate most of all. Then you have so called law enforcement in the markets, whose main purpose has been to lull investors into a sense of false sense of security, along with the corporate mass media. So, you have had very shadowy forces that fund politicians (and even man govt. and its departments) own mass media and run the markets. In our time of widespread dissemination of information outside of this system, it hasn´t really been very surprising that the stock market has collapsed by 50% twice in the last decade. The fraud during the gigantic bull market of 1982-2000 was largely unchecked, calling for huge corrections, and I believe that the bear market that started in 2001 could last until the middle of the century. It has already been very wild, as bear markets go, as evidenced by the extreme gyrations we have seen. It´s the problem of fully priced markets chasing diminishing returns. I expect major crashes in this market to increase in frequency over the next years, maybe occurring even annually as the bear market plays out.
"How many other players are out there that have [a] sovereign debt problem that no one knows about?" And the answer is (drum roll): ALL OF THEM!!!!! The amount of outstanding 3x to 10x LEVERAGED derivatives has been calculated to be around $57 TRILLION, up from about $23 TRILLION at the time of the 2008 "meltdown". This is the big-time warhead waiting to explode finally after several smaller IEDs along the road to FINAL-PLUNGE. The illogical, nonsensical rush to Government issued pieces of paper will then be replaced by a panicky stampede to own GOLD, silver and the other precious metals, with an accompanying huge spike in prices in ALL currencies!!!