Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 7th of March.
We moved to the sidelines with yesterday's fall in the S&P 500.
Did our Trade Triangle technology get this one right?
3 Stocks on the move today:
VALERO ENERGY CORP (VLO), TESORO (TSO), and FIRST SOLAR INC (FSLR).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
SECTORS on the move today:
CONSUMER GOODS: +0.46%
SERVICES: +0.81%
HEALTHCARE: +0.57%
ENERGY: +1.31
TECHNOLOGY: +1.02%
FINANCIAL: +0.75%
INDUSTRIAL GOODS: +1.23%
MATERIALS: +1.00%
UTILITIES: +0.02%
Now, let's analyze the markets using MarketClub's Trade Triangle Technology.
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S&P 500 INDEX
BIG PICTURE: Trading Range -60
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
Don't be fooled by today's rally, yesterday's market action did some serious damage to this index. We expect it's going to take a while for the market to recover and we would not be surprised to see this market move lower still. This index has fallen back into a trading range based on a Score of -60. We expect to see some excellent support come in around $1,340 area, which I think will be enough to support this market in the near term. 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 only one of our Trade Triangles green, a caution is warranted in the near term. Long term traders should remain long in this index with appropriate money management stops.
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See suggested S&P 500 trading instruments HERE.
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SILVER (SPOT)
BIG PICTURE: Trading Range -60
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
We still expect this market to remain on the defensive and expect to see lower levels prevail in intermediate term. A 61.8% correction takes this month 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 -60, the silver market is in a broad trading range. 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
We view today's rally as a short-term rally in a market that is in a negative mode. This market seems destined to move down to test the $1,620 area, which is close to the 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 much lower levels. We would not rule out a pullback in gold to the $1,650 level, which represents a 50% Fibonacci retracement. With all 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
The key area to watch this week will be the $3.70 level. A move below this area will cause this market serious damage which will take a long time to repair. 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 +65
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
Today's market action is a little more pleasant for the bulls, as it found support around the $104-$105 level. 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 +65, we believe this market is regrouping to move higher later in the month. We remain longer term positive on this market. 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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You don't want to miss this opportunity!
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DOLLAR INDEX
BIG PICTURE: Strong Trend +90
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bullish
The weekly Trade Triangle turned green today, indicating a strong uptrend is now in place for this index. The next major level of resistance for the dollar index is $80.00. With a Score of +90, this market is once again in a strong upward trend. 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: Trading Range +65
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
Despite today's pullback, we remain positive on this index. With a Score of +65, this index is stuck in a trading range in the near term. We are surprised that this market pulled back as much as it has, but we still think it is probably a buy at this point in time. Look for any further pullbacks to be met by good support. 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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This is Adam Hewison for MarketClub, and don't miss MarketClub TV at 4 P.M. today! Have a profitable trading day.
Take care,
Adam Hewison
President INO.com and co-founder of MarketClub.com
"$1,550 to $1,600 level by late May, early June"
Eh?! 200 spx points / 2000 dow points in less than three months?
200/1360 = 15%. In less than three months?
So end of year target is what? 2000?!!!!
Hi Adam, I think this is very likely the resumption of the major downtrend anticipated by E W I for some months and mentioned by me recently. Your triangles may be on red for a very long time.
Commodity Bull is at odds with your Dollar Bull ?