Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 14th of March.
Gold follows the Trade Triangles and sinks to its lowest levels in eight weeks.
Plus, an important engulfing line is forming on a major commodity today.
Today's Winning and Losing SECTORS:
CONSUMER GOODS: -0.28%
SERVICES: -0.46%
HEALTHCARE: -0.07%
ENERGY: -0.46%
TECHNOLOGY: -0.19%
FINANCIAL: -0.54%
INDUSTRIAL GOODS: -0.53%
MATERIALS: -0.92%
UTILITIES: -1.05%
3 Stocks on the move today:
Zions Bancorporation (ZION), Cliffs Natural Resources Inc (CLF), and LSI Corp (LSI).
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: Strong Trend +90
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
With a Score of +90, this index is in a strong upward trend. 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 all of our Trade Triangles green, we are in full bullish mode.
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See suggested S&P 500 trading instruments HERE.
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ONLY 13 Days to go! You can NOT afford to miss this!
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SILVER (SPOT)
BIG PICTURE: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
A 61.8% correction takes this market back down to the $ 30.40 area on the spot market. We continue to think this market can and will move lower until the end of the month. With a Score of -70, could be entering 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
With a Score of -90 this market is in a strong downward trend. This market seems destined to move down to test the $1,620 area, which is close to the 61.8% Fibonacci retracement level of $1,617.34. We are expecting gold to be on defensive for the balance of March. Presently, we are negative on gold and we expect it to trade down to lower levels. 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: Trading Range +65
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bullish
With a Score of +65 and a possible negative engulfing line forming, copper has once again moved into a trading range. 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 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 (APRIL 2012)
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
This market has a strong support area around the $104-$105 level. We also like the chart formation, which we believe will eventually push this market higher. We continue to favor the long side of this market and expect it will improve into early April. See our special report on crude oil HERE . We are looking for crude oil to make its highs probably somewhere in the April, May period. With a Score of +55, we believe this market is regrouping to move higher later in the month. With our monthly and weekly Trade Triangles in a positive mode, we expect to see further gains in crude oil. All 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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ONLY 13 Days to go! You can NOT afford to miss this!
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DOLLAR INDEX
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
With a Score of +100, the dollar is king again as this market acts in a very positive fashion. We expect to see it move higher in the future. 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 = Bullish | Daily = Bullish
This index continues to regroup and looks as though it wants to go higher. The +70 Score indicates that this market is in an emerging trend. As we mentioned last week, the $314-$315 area is probably a buy at this point in time. Look for pullbacks to be met by good support at that level. Long-term and intermediate 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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ONLY 13 Days to go! You can NOT afford to miss this!
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This is Adam Hewison for MarketClub and don't miss tonight's MarketClub TV show! Have a profitable trading day.
Take care,
Adam Hewison
President INO.com and co-founder of MarketClub.com
Tons of money came out of gold 2 weeks ago, and lots of money came out of bonds today.
Are stocks next? Or... will that money find its way into the stock market?
Either way, this Friday (March 16th) is a MAJOR Bradley turn date... and the market is likely to put in a major pivot point. (Will it be a low for gold, and a high for stocks?)
You have to give credit to Marketclub, they did call it.
Precious metals have been highly manipulated for years. The big banks use naked shorts to hold the price down; they have a couple years of global gold and silver production shorted without any physical metal to cover. And guess what, that is not a problem for those supposedly in charge of enforcing the laws.
On Feb 29, 22 million paper gold ounces were dumped on the market, according to Jim Willie. Probably more than that today. Again, I am not surprised, it is nothing new. This is all part of supporting the US dollar. The interesting thing is that the Chinese et al are using these drops to take delivery, thus depleting the stocks of COMEX and LBMA. In reality, this is leading to a day of absolute reckoning when phony electronic US dollars will no longer function as the global currency reserve, when dollars may not be accepted for cheap consumer goods or oil.
Our US Federal government, whose leaders apparently are no longer bound by the law, has crafted its own virtual economic and political realities, which are presented as fact by the official, corporate media. Who needs to worry about the deficit when the Fed buys all our Treasury notes? Who needs industry when we can print money and put it into the pockets of consumers? Who needs real elections when votes are electronically counted and manipulated? Who needs the truth when no one wants to hear it?
Only problem is that virtual money is not exactly satisfactory to those outsiders holding sizable quantities of US debt/dollars. Americans may discover their economic matrix when the cheap consumer goods stop coming in and oil is no longer available for virtual money.
GREAT POST STEVE!
"Precious metals have been highly manipulated for years."
Yes, of course. GATA (John Murphy) has been saying and fighting this for years, with the usual namby pambi "supply and demand" type denials by the establishmentarians. However, now we have graphic proof of manipulation: If you look at daily candlestick charts of gold and silver, you can see four large (shadow) DOWN candle sticks following each other in each chart, following their respective exponential spikes. The four down candle sticks correspond to four consecutive DAILY increases of MARGIN requirements of 4.25% for silver and 5.5% for gold each day, applied RETROACTIVELY TO EXISTING CONTRACTS as well(!!!) by the CME Group (NYMEX). This was reported by Debbie Carlson of KITCO in her Friday Roundup for those weeks. This blatant unabashed interference with supposedly "free" markets should, of course, be ILLEGAL but, obviously it is not. At least, I am not aware of any legal action initiated against the CME Group over this. Later, someone wrote (I believe Jim Willie) in a Kitco article that J. P. Morgan (of course) had some very large short futures contracts on gold and silver and their spiking was causing large margin calls and potentially heavy losses!!!!
People trust their governments
way too much.
The banks run the government yes and it's all going to end badly in fiat $$ land IMO
Sorry, correction:
Have you ever watched America’s Funniest Videos-AFV- on television?
so true tell it like it is!
Gold follows the Trade Triangles
YES, OF COURSE!
Have you ever watched Merica's Funniest Videos-AFV- on television?
Well now, the PROBLEM with gold is NOT gold, it’s MENTALITY, i.e. "Buffett says last week", ”Bernanky says” yesterday. Gold does NOT care about those things. It knows it is FOOLISH people floundering, or doing stupid things. Gold knows very well where it belongs. It knows very well its place of GLOBAL value relative to the debased paper currencies of the world. PEOPLE, by contrast, DO NOT! So, they spike it up and they spike down relative to its ABSOLUTE VALUE. Sooner or later though, it adjusts itself to the MEAN, which ALWAYS increases, as my simpleton chart shows me for my life time line. It only has TWO points: YEAR 1927, $20.36 and YEAR 2012, $1647.31.(Now, today). So, let them do whatever, IT DOES NOT MATTER!