Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 11/18/11.
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SUPERCOMMITTEE, EUROPE, and other big problems for the markets
This week I want to give credit where credit is due. One thing that Washington does really well, is they know how to name things, have you noticed that? Remember these names? The American Recovery and Reinvestment Act of 2009, Shovel Ready Jobs, or my favorite, "Cash for Clunkers" remember that one?
Now comes the SUPERCOMMITTEE, it's not just a committee, it's a SUPERCOMMITTEE with no space. I keep thinking to myself, what is a SUPERCOMMITTEE, how is it different from a committee? In fact, I was so intrigued that I looked up SUPERCOMMITTEE in the dictionary, the word doesn't even exist. Like a lot of things in Washington these days, it's all about smoke and mirrors, followed by no substance.
On the 23rd of this month, just before Thanksgiving, the so-called SUPERCOMMITTEE is going to come out with their recommendations, it's not going to happen. Chances are, the report/recommendations will be delayed until the following week. If anyone's good at kicking the can down the road, it's Washington.
Another fly in the ointment for the markets this coming week, is the report by Reuters, that Standard & Poor's may be downgrading more major banks. This would not be a good sign for the economy or the equity markets, which last week turned our Trade Triangles to a -100, indicating that the bear is back.
Over in Europe, David Cameron and Angela Merkel continue to spar, (now there's two professional can kickers) Here is a direct quote from Merkel, "You have to be careful not to pretend to have powers that you do not," she said, following remarks she made this past week that the ECB would not have the right to be the lender of last resort under existing rules. "The markets will catch on quickly that that will not work."
Angela, you got that one, right.
Has anything really changed in Europe? YES, it's gotten worse.
In fact, it's gotten so bad, that I'm thinking of starting a collection fund to buy violins, to send over to European politicians. I want them to have a musical instrument to learn how to play, as they may soon be out of work and need to make a living.
Okay, now let's go to the charts and the video and see how we can create and maintain your wealth in 2011.
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S&P500 INDEX
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CHANGE FOR THE WEEK: - 3.81%
CLOSE LAST FRIDAY: 1215.65
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = -100
TREND: Bearish
OUTLOOK FOR THE COMING TRADING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Negative
Daily Trade Triangle for Short-Term Trend = Negative
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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)
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CHANGE FOR THE WEEK: - 6.83%
CLOSE LAST FRIDAY: 32.30
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = -100
TREND: Bearish
OUTLOOK FOR THE COMING TRADING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: - 50 - 65 Trading Range
Score: - 70 - 80 Emerging Trend
Score: - 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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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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GOLD (SPOT)
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CHANGE FOR THE WEEK: - 3.69%
CLOSE LAST FRIDAY: 1,721.80
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = + 55
TREND: Trading Range
OUTLOOK FOR THE COMING WEEK: MIXED
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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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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COPPER (DECEMBER)
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CHANGE FOR THE WEEK: - 1.81%
CLOSE LAST FRIDAY: 3.4020
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = - 75
TREND: Emerging Bear
OUTLOOK FOR THE COMING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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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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CHANGE FOR THE WEEK: - 1.59%
CLOSE LAST FRIDAY: 97.41
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = + 70
TREND: Emerging Bull
OUTLOOK FOR THE COMING WEEK: MIXED
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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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)
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CHANGE FOR THE WEEK: + 1.47%
CLOSE LAST FRIDAY: 78.04
MKT CLOSED HIGHER FOR THE WEEK
MARKETCLUB Trend Score = + 90
OUTLOOK FOR THE COMING WEEK: HIGHER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Positive
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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)
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CHANGE FOR THE WEEK: - 2.56%
CLOSE LAST FRIDAY: 312.232
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = - 100
TREND: Bearish
OUTLOOK FOR THE COMING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Negative
Daily Trade Triangle for Short-Term Trend = Negative
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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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This is Adam Hewison for MarketClub, I'll see you Monday, have a great weekend.
No need for violins as they already all have fiddles that they've been playing as Europe "burns"...
You think those Washington names were interesting, how about these whoppers from George W. Bush:
USA PATRIOT Act = As if the suspension of habeas corpus and wire tapping innocent Americans phones were somehow synonymous with being a patriot.
American Dream Downpayment Initiative = As if helping banks collect on downpayments and closing costs was synonymous with the American Dream.
Secure Fence Act of 2006 = As if building a fence was somehow going to curb illegal immmigration. A 2009 study by the Congressional Research Service found a "strong indication" that illegal crossers had simply found new routes. There's another $2 billion dollars of tax payers money wasted.
Another definition of super committee: A group of people who can do nothing individually so they all come together and decide that nothing can be done.
Get this Merkel you woman! One who has powers seldom exercises it. Those who appear to be exercising powers are truly powerless.
I wish it was that easy to get rid of the politicians... it seems we continue to struggle with European Fattened PIIGS. I still think there should be a simpler process than many countries have to kick out leaders who are wasting our dollars. Downgrading the banks further should have happened a long time ago... it's time we let them fail. They continue to make more than they should... while so many people are out of work. How sad!