Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 6th of March.
Has GOLD lost its luster and appeal?
Did our Trade Triangle technology get this one right?
Is crude oil a great buy or a great sell?
We review this global commodity and our results may surprise you.
3 Stocks on the move today:
SUPERVALU INC (SVU), MORGAN STANLEY (MS), and J.C.PENNEY CO INC (JCP).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
SECTORS on the move today:
CONSUMER GOODS: -1.68%
SERVICES: -1.35%
HEALTHCARE: -1.81%
ENERGY: -2.11%
TECHNOLOGY: -1.61%
FINANCIAL: -1.68%
INDUSTRIAL GOODS: -2.31%
MATERIALS: -2.41%
UTILITIES: -0.76%
Now, let's analyze the markets using MarketClub's Trade Triangle Technology.
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S&P 500 INDEX
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
This index has fallen back into a trading range, based on a Score of +55. 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. Overall trend continues to be very positive, however we suspect we will see more consolidation in this index before it moves higher. 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 two of our Trade Triangles green, a bull market is underway. Long and Intermediate term traders should be holding long positions 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: Emerging Trend -70
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bearish
The market action in silver can only be construed as negative at the moment. A 61.8% correction takes this month back down to the $30.40 area in 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, the silver market is now in an emerging trend to the downside. 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 -100
TRADE TRIANGLES: Monthly = Bearish | Weekly = Bearish | Daily = Bearish
Like silver, this market put in a terrible performance today and seems destined to move down to test the $1,620 area. This 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 stops.
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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 copper market came under a great deal of pressure today. 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 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 (APRIL 2012)
BIG PICTURE: Trading Range +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
It was a disappointing day for the bulls in crude oil, as this market pulled back to an area where it should begin to find support around the $105 level.See our special report on crude oil. We continue to favor the long side of this market and expect it will improve into early April. 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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PERSONAL MARKETCLUB COACHING
Free consultation, Free call.
Give us a call at: 1-877-219-1482
International: 1-801-341-3981
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DOLLAR INDEX
BIG PICTURE: Trading Range +75
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bearish | Daily = Bullish
The next major level of resistance for the dollar index is $80.00. With a Score of +75, this market is once again in an emerging trend. Long term traders using our monthly 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 +55
TRADE TRIANGLES: Monthly = Bullish | Weekly = Bullish | Daily = Bearish
Despite today's pullback, we remain positive on this index. With a Score of +55, this index has once again moved back into a trading range. We are somewhat surprised that this market has pulled back as much as it has, back to the $315 area, 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, don't miss Wednesday MarketClub TV at 4 P.M. tomorrow! Have a profitable trading day.
Take care,
Adam Hewison
President INO.com and co-founder of MarketClub.com
Yesterday, the Indices lost their embedded stochastic readings (using the 14, 3, 5 setting) for essentially the first time this year. Previous down days when they lost their embedded status, they came back the next day, but not yesterday. I was lucky as I bought SPY put options at 1:30-2:00 pm yesterday for a day trade, and as I was 10 tics behind on the trade at the close and because of the loss of the embedded status, I decided to carry it overnight resulting in a nice profit today.
So, what I find myself wondering about is Klombie's article yesterday in Trader Planet where he demonstrates the Japanese Yen is at multi-year trend line support. A break of this trend line in prior years is associated with a very bullish US stock market whereas the Yen rallying from it is associated with financial crisis, a significant rally in gold, and financial stocks going down big time. Today the Yen rallied, but its stochastics did not lose their embedded bearish status, so subsequent action this week will tell the tale about the Yen and his suggested correlation.
Hi Adam
Just joined your subscription list yesterday. Did I cause this bear trend???
I have a bit of a cushion as had just sold Hewlett-Packard 10 mins before their results came out. Am really enjoying your system
Regards
Geoff
Think to buying at TVIX / TZA / VXX its Right or wrong ?
When you say, " Our red triangle flashed a signal to get out at ______price.", how do you know ahead of time where that point will be?
Otherwise, it seems that you may not get out when it flashes red. Is there someplace on the website that tells you that info?
I have been wondering the same thing. I am thinking that if one were in a stock, or whatever, and not knowing the proprietary algorithm indicator, one would need to keep a close eye on the stock via market club charting software. However, if one were in several positions, it would be easy to lose focus. I wonder if there is some kind of alert I am not aware of. If so, maybe I could get a day job instead of constantly monitoring these trades.
Michael,
We have built our alert system to notify you when a Trade Triangle is issued.
This is a link that further explains the Trade Triangles.
Best,
Jeremy
thanks, very helpful
You say "We got out of this, at ____ price when our weekly triangle flashed a red signal." Do you know before hand, at what point that triangle will flash red, so as to put a stop in? Otherwise, is seems you may miss it and have a bigger loss. Does Marketclub tell you were that point will be somewhere on the website?
Adam, I know you are aware of Elliott Wave Theory but have you checked the latest updates from EWI? They declare we are in a Grand Super Cycle Wave (circle) IV, a massive correction to the Wave (circle)III that ended in year 2000.
Today's action looks like we are now entering Primary wave (circle) 3 of Cycle Wave c of Super Cycle Wave(a). The bottom of Cycle Wave c is targeted on the DOW at JUST 400 points, subject to the usual corrections(up)before that is reached.
Do you not think we are back in the Long Term Bear market again? All the best "Geordie".
Terry: Unfortunately, their (EIW's) timing has been simply horrendous in the past few years (not to mention years previous to THAT). But who knows? They could be on the nose here. I have long expected a big move down, below previous lows (666 S&P) even. Drop me a line, I'd like to discuss if you would:
mi**********@ho*****.com
You did not ask me, but I have heard that all gaps are filled. There is a gap in the Dow Jones from about 1025 to 1075 that occurred when the secular bull market took off in 1982.
called a breakaway gap, i'm sure some 80 centuries from now it will be filled but not in your or my life
One more trip to THE CLEANERS, sponsored by the Big Time Gamblers in The Great Wall Street Casino for hapless would be investors and small-time-Piggy-Bank would be traders.