Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 2nd of November.
This past week has been one of the most extraordinary weeks that I can remember. The markets were closed for two days and we had a historic storm cause significant destruction in New Jersey, New York, and much of the east coast. Today, BLS released the unemployment numbers showing that unemployment stands at 7.9%, which begs the question is the glass half full or half empty? You could argue both ways... Is employment improving? Or has it not improved in 4 years?
This is the last weekend that both Pres. Obama and Gov. Romney have to convince an already exhausted population to buy into their vision of the future for America. I think we are all exhausted by both candidates and the endless bickering, which is not helping the economy or the jobs picture.
Personally, I think campaigning for office should be no longer than 3 to 6 months and not several years. These two gentlemen have spent a billion dollars each on their campaigns, what a waste of money and resources.
Now, let's go to the markets and see what our Trade Triangles are indicating.
QUICK TAKE ON THE MARKETS:
S&P 500: Higher for the week. The major trend for the S&P 500 remains positive according to our Trade Triangle technology. Based on our intermediate-term weekly Trade Triangle, we are on the sidelines in this index. Resistance at $1,436 and psychological support at $1,410 - $1,400.
CLOSED LAST FRIDAY AT $1,411.94
CRUDE OIL (Dec): Lower for the week. The long-term trend is positive. Our weekly Trade Triangle and daily Trade Triangle remain negative. Major support at $85.00 and $84.55 a barrel on the December contract.
CLOSED LAST FRIDAY AT $86.30
EURO (Spot): Positive trend for the Euro, which is flat on the week. Two of our Trade Triangles are green and bullish for the Euro. We are getting a little concerned that we are putting in a potential twin peak in the Euro. Pay close attention to the daily and weekly Trade Triangles and to the 1.2800 level.
CLOSED LAST FRIDAY AT 1.2937
GOLD (Spot): Gold is lower for the week. Our long-term monthly Trade Triangle is green and bullish on gold. Our daily and weekly Trade Triangles remains red. Look for support around the $1,670 level.
CLOSED LAST FRIDAY AT $1,711.05
COPPER (Dec): Lower for the week. Only our long-term Trade Triangle is green and bullish on copper. Support at $3.4800.
CLOSED LAST FRIDAY AT $3.5490
SILVER (Spot): Lower for the week. Support at $31.50. Our long-term monthly Trade Triangle remains positive on silver. Silver is oversold and has a positive divergence to the upside. Support at the $30.00 level.
CLOSED LAST FRIDAY AT $31.95
Have a great weekend everyone and don't forget to vote!
Adam Hewison
Founder & President INO.com and co-founder of MarketClub.com.
Presidential Candidates spent 1 billion each on the campaign??
Of course it isn't their money, but the people's whose money it is, want a substantial return on their investment.
I said it on Facebook last week and will repeat it; Gold and Silver are both making huge rounding tops. These formations are rare and don't usually come so tight in sequence. Since inflation, dollar depreciation and commodity price explosions have all been the topic, a Contrarian might also agree with me. But it is a tough call either way.
I guess the monthly TT will turn red on the SPY around 135.50, strong dollar, bear market action with gold and silver at weekly support. See if it holds for awhile.
It still feels like a recession!!!! I agree with the above comments. I am most disturbed that the unemployment numbers don't reflect the reality in the market, i.e. how many people have quit looking and how many are underemployed (isn't that the U6 number?) That may give a totally different perspective. Meanwhile the last couple of days in the market have been a wild ride particularly for darlings like ALXN and AAPL. Adam: Just a thought>>>it would be interesting to get your take on the former high flyers and where they might go.
Happy trading.
The infamous glass is cracked and needs to be replaced.
Labor participation rate is at 63.9%, after dropping from 66% in 2008. In 1984 the labor part.. rate was 63.8%, but rose to 66.5% 4 years later. That is what a recovery is supposed to look like, not BS floating unemployment numbers that are juggled around to benefit the current waste of a President.