Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 22nd of March.
Gold is getting closer to our Fibonacci target.
Gold slides again as the downward trend continues on long liquidation.
China once again shakes the world markets.
For the fifth straight month, China's factory activity shrank casting a pall on a global recovery.
Crude oil tumbles on news from China.
We show you where we think this market is headed in today's video.
TODAY'S MARKET MOVING SECTORS:
CONSUMER GOODS: -0.00%
SERVICES: +0.26%
HEALTHCARE: +0.28%
ENERGY: -1.17%
TECHNOLOGY: +0.03%
FINANCIAL: -0.64%
INDUSTRIAL GOODS: -0.79%
MATERIALS: -1.42%
UTILITIES: +0.17%
3 Stocks on the move today:
WESTERN DIGITAL CORP (WDC), WATSON PHARMACEUTICALS INC (WPI), and DISCOVERY FINANCIAL SERVICES (DFS).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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S&P 500 INDEX
BIG PICTURE: Emerging Trend +75
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
The disappointing news out of China was all that was needed for profit-taking to set into this market. It's not unreasonable to expect some profit-taking from a move that went straight up from $1,340 to $1,414 without any kind of pullback. With a Score of +75, this market is in an emerging trend to the upside. Long-term and intermediate term traders should remain positive on this index. Longer-term we expect this market to move up to the $1,550 to $1,600 level by late May, early June based on our cyclic work. With both our monthly and weekly Trade Triangles green, we are in a bullish mode.
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See suggested S&P 500 trading instruments HERE.
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SILVER (SPOT)
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
Today's market action in the silver can only be viewed as negative in our opinion. We are still not ruling out a 61.8% correction back down to the $30.40 area on the spot silver market. With a Score of -70, the silver market is in an emerging trend to the downside. Only our long-term monthly Trade Triangle remains positive on silver. This particular indicator has done extremely well in the past. Long term traders should be holding long positions in silver with appropriate money management stops.
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See suggested SILVER trading instruments HERE.
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GOLD (SPOT)
BIG PICTURE: Strong Trend -90
TRADE TRIANGLES: Monthly = Bearish | Weekly = Bearish | Daily = Bearish
For the past seven days, gold has been moving sideways. We still believe that this market is headed down to test the $1,620 area, which is close to a major 61.8% Fibonacci retracement level of $1,617.34. With a Score of -90, the gold market is in a strong trend to the downside. We are expecting gold to be on defensive for the balance of March. With all three of our Trade Triangles negative, we expect this market to move lower. Long-term and intermediate term traders should be in short positions in gold with appropriate money management.
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See suggested GOLD trading instruments HERE.
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COPPER (MAY 2012)
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
Recently, the copper market has been making lows every seven or eight days, and the current pullback we believe reflects that cycle. This market is heavily oversold, similar to earlier periods in its short-term cycle. Since late January, the copper market has been moving sideways in a broad trading range defined by $3.70 on the downside and $3.95 on the upside. A move out of this range is needed to develop a strong trend. A close in copper this week over the $3.95 level sets this market up to challenge the $4.25 to $4.30 areas. We continue to view the longer-term trend in copper as positive. The market action looks as though it has created a large base to move higher in the future. Long term traders should now be holding long positions in this index with appropriate money management stops.
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See suggested COPPER trading instruments HERE.
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CRUDE OIL (MAY 2012)
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
ATTENTION: We are now following the MAY crude oil contract. We continue to like the long-term chart formation, which we believe will eventually push this market higher until early April. We are looking for crude oil to make its highs probably somewhere in the April, May period. With a Score of -70, this commodity is in an emerging trend. With our monthly Trade Triangle still in a positive mode, we expect to see further gains in crude oil. Long term traders should be long this market with appropriate money management stops.
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See suggested CRUDE OIL trading instruments HERE.
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DOLLAR INDEX
BIG PICTURE: Strong Trend +90
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
This index is beginning to find support around current levels at $79.00 to $79.50. A Score of +90 indicates that this index has once again that moved into a strong trend to the upside. Long term and intermediate term traders using our Trade Triangles should maintain long positions with the appropriate stops in place.
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See suggested DOLLAR INDEX trading instruments HERE.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
The pullback in crude oil put pressure on the CRB index today. The next level of support for this market is the $310 area. A close over the $320 level is need to reignite this market to the upside and would be a strong bullish signal for inflation. We believe the driver of this inflationary trend will be crude oil. Long-term traders should hold long positions in this index with appropriate money management stops.
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See suggested REUTERS/JEFFERIES CRB COMMODITY INDEX trading instruments HERE.
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This is Adam Hewison for MarketClub wishing you every success in trading.
Adam Hewison
President INO.com and co-founder of MarketClub.com
Again, China calls the shot.
I see you are positive in the S & P for late May & early June. I am very cautious about being long the market in general starting in May. For many years it has been "sell in May and go away" has been a prudent strategy.
To me sell in April and go away. The market could be in trouble before May.
Review past few weeks, Adam you did right call on gold (bear) but did wrong call on silver (bull). Now I guess you could wrong on CRB index, too. As those are on the same category, you can't bull one and bear another: when inflection up, they will all up, etc.