Due to technical difficulties we will not be posting a video today.
Hello MarketClub members everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market report for Friday, the 17th of August.
Yesterday the markets shrugged off negative news and focused on the comments from German Chancellor, Angela Merkel. Ms. Merkel, who just returned from vacation, has somehow miraculously endorsed the European Central Bank’s conditional support for Spain and Italy. On the other side of the coin, a Finnish official has suggested that Euro zone leaders are preparing for the worst, including a possible breakup of the currency bloc.
Upon further inspection, Ms. Merkel's statements of support leave room for a great deal of interpretation. We see it quite simply as delay, delay, delay, and yet another way for politicians to kick the can down the road.
S&P 500 INDEX
Monthly Long-Term Trend = Bullish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bullish
Close Last Friday: $1,405.87
Yesterday we had a buy signal in the S&P 500 index. The signal, which came late in the day, is somewhat suspect as the NASDAQ and DOW did not confirm the S&P 500 signal. Major resistance for this market is at the $1,420 to $1,422 area. Look for support to come in right around $1,400 to $1,405 on the downside. With a Score of +90, this index is in an uptrend. Our long-term monthly Trade Triangle is now positive on this index.
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See suggested S&P 500 trading instruments HERE.
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CRUDE OIL (October 2012)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bullish
Close Last Friday: $93.19
Crude oil is higher for the week and is once again over the upper band of its Donchian Trading Channel. When this has happened in the past, we have seen a pullback to the mid point of the channel. If we repeat this pattern we could see a pullback to the $91.00 area. With our Trade Triangles in a trading range, a pullback in the October contract to the $88.00 level around the lower band of the Donchian Trade channel is not out of the question. With a Score of +60, crude oil is in a broad trading range. Long-term traders should remain short this market with appropriate money management stops.
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See suggested CRUDE OIL trading instruments HERE.
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EURO vs USD (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate Term Trend = Bullish
Daily Short-Term Trend = Bearish
Close Last Friday: $1.2286
Last Friday the Euro closed at $1.2286 and is barely changed for the week. A close today below $1.2286 would be viewed as a very negative indication for this currency. The resistance we outlined yesterday at $1.2385 was sufficient to stop this market on the upside today. We remain long-term negative on the Euro with downside targets of $1.2000 to $1.1700. With a Score of -55 the Euro is in a trading range. Long-term traders using our Trade Triangle Technology should maintain short Euro positions with the appropriate stops in place.
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See suggested EURUSD trading instruments HERE.
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GOLD (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bullish
Close Last Friday: $1,618.94
Currently the gold market is slightly lower for the week, trading at $1,616.00 as of this writing. Gold has major resistance starting at $1,625 up to $1,630, with good support coming in at the $1,590 to $1,580 levels. Until we see a major breakout we see little to get excited about in this market. With a Score of +60, gold remains stuck in a broad trading range. Long-term term traders should remain in short positions or be on the sidelines.
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See suggested GOLD trading instruments HERE.
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Give us a call at: 1-877-219-1482
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COPPER (December 2012)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bearish
Daily Short-Term Trend = Bullish
Close Last Friday: $3.4050
The copper market appears to be flattening out for the last two months and has established itself as a sideways market. The major trend however continues to be bearish, and we expect that this market will eventually test major support. Look for support to come into this market this week starting around $3.35 and extending down to $3.30. With a Score of -65, copper is in a trading range. Long-term traders should be holding short positions with appropriate money management stops.
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See suggested COPPER trading instruments HERE.
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SILVER (SPOT)
Monthly Long-Term Trend = Bearish
Weekly Intermediate-Term Trend = Bullish
Daily Short-Term Trend = Bullish
Close Last Friday: $28.08
The silver market is virtually unchanged for the week trading at $28.12. Since May 16th, this market has literally gone nowhere and is stuck in a broad trading range with resistance at the $28.50 area and support coming in at the $27.00 level. Times like these can be very frustrating for traders, however we still believe that our long-term monthly Trade Triangle will point the way. With a Score of +60, silver is in a trading range. Long-term traders should be holding short positions in silver with appropriate money management stops.
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See suggested SILVER 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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REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Long-Term Trend = Bearish
Weekly Intermediate Term Trend = Bullish
Daily Short-Term Trend = Bullish
Close Last Friday: $301.81
The CRB Commodity Index is trading slightly higher for the week, with a gain of approximately 0.53%. Presently this index is stuck between resistance at the $305 level on the upside and support at $295 on the downside. Unless we seen this index move out of this range quickly, we expect to see more choppy action. We would not rule out a pullback to the $295 level, which represents the lows seen on August 2nd. With a Score of +70, this index is in a trading range. Long-term traders should hold short 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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Adam Hewison
President INO.com and co-founder of MarketClub.com
re: Green Monthly Trade Triangle on the SPX.
According to Elliott Wave Count, the market is putting in its final Major 5th Wave Top
from the market bottom way back in March of 2009.
The market manipulators/makers, high speed analog computers, day traders, and hedge funds
will use every trick in the book to make hay while this 5th Wave Top is being formed.
The major Gann Cycles call for a major trend reversal sometime during the time frame
from now until the end of October, with a correction of 20+ percent.
Naturally, when that happens, the central banksters will turn on the printing presses full speed.
Then we get another bull run.
So if you want to play for the Top of this 5th Wave,
be sure to use a tight stop -- perhaps a weekly reversal candle,
rather than a New 3-Week Low which will trigger a Market Club Red Weekly Triangle.
So the monthly trade triangle turned green yesterday but you say it is suspect because the Dow or Nasdaq did nt confirm.. I don't understand that statement. When everyday you sing the praises of the trade triangles you have never said check other markets to get a confirmation. Either you follow your system or you don't..... or maybe?? Sounds like you have faith in the trade triangles when you are selling Market Club and back trading but not so sure now.
I agree completely with Mikes thoughts and interpretations.
I, as well, agree with Mike. Last year, you did the same thing, saying the market was ready for a correction, every day we heard the same thing. As a result of the trade triangles and your analysis, I was short the market when it went very bullish. And now you are having doubts about your own trading system. I really was disappointed with the one-on-one personal training. I definitely didn't get my money's worth I am very sorry to say. If anyone decides he/she wants personal training, make sure your trainer lays out a structured training schedule. Our time to meet with our personal trainer were continually changing, even our personal trainer was taken and scheduled else where to leave us starting with a new personal trainer. I did learn a few things about options, but, personally, for me, I learned more buy attending free seminars provided on the web, and studying all the free information on trading provided on the internet. I am sorry to say I was very disappointed. I was waiting for Adam to back track again this year as he has told us repeated how the market was going to correct to determine whether I would post my opinion. Ask many questions about structure and scheduling before you make any decisions.
Voltaire once said. "The art of government consists of taking as much money as possible from one party of the citizens to give to the other."
The apparently strange, but surprisingly logical, behavior of Angela Merkel (consistently threaten Greece etc. and then consistently give in) was explained in large part by a Stratfor article that appeared in a John Mauldin's guest article. Well worth reading.
http://ce.investorsinsight.com/CT00458903MTE4NDUzODAA.html
I would not rule out a short squeeze on sunday night or monday if no bad news gets announced this weekend.
QUESTION above: How many ways can Europe kick the can down the road?
ANSWER: The same number of ways the U. S. has managed to do it!!!
No, the European have been playing soccer much longer.
True. But, the Europeans don't have the luxury of owning the Reserve Currency of the world, so they can not spread their currency debasement and their debt to the rest of the world, so that probably evens it out.