Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 8th of May.
Is a Parallel Channel Indicating a Top For This Market?
One of the biggest enemies of investors is being too complacent. I feel that this malady is very much the case in today's market. I believe investors should be concerned and should be using money management stops on all of their long positions. We have not seen any type of significant pullback since the recent low on April 18th. In today's daily update, we are going to be looking at a parallel channel, which could be marking a new term top for this market. The parallel channel started in mid November of last year and has remarkably contained most of the action for the past six months. I think you'll find this video to be particularly interesting today.
Watch Today's Video Update Here
Is Gold Putting In a Bottom?
It slices, it cuts, it chops, it performs all these functions and no, I'm not talking about a Veg-O-Matic! I'm talking about the gold market. Has the gold market put in a major low or are we going to see more sideways-to-choppy action? In today's video, we will be taking an in-depth look at gold.
Will Middle Eastern Concerns Push Crude Higher?
Yesterday, our Trade Triangles signaled a major buy signal for Exxon. I believe this is significant, as several other energy stocks are also acting in a positive fashion, along with the actual commodity itself. On an intermediate term basis, the Trade Triangles are now positive on crude oil and I expect to see this market improve. Only the longer term monthly Trade Triangle remains negative and that could change fairly soon. In today's video, we will be delving into the oil patch and looking at what could be an explosive market if things in the Middle East begin to fall apart.
Watch Today's Video Update Here
On Investor's Minds:
UNITED STATES - Nothing but complacency
MIDDLE EAST - Potential for a major Mideast conflict
EUROPE - All quiet for the moment
THE FED - Reality distortion
OTHER - May 19th, debt ceiling suspension expires
Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.
I don’t care which indicator you use for the market indeces (DOW, S&P, NASDAQ). The Fed Pump is powerful enough that it can overcome any and ALL of them and artificially keep increasing them to create the illusion of a recovery and having bypassed a depression. It has been doing it for months! GOLD, on the other hand, did follow the indicators and tanked. Why? Because GOLD THREATENS the Fed’s existence. If gold had reached $2000 and above, it could become a De Facto currency again and that would threaten the Fed’s existence. So, at gold $1920 the CME conveniently raised the margin requirements retroactively three times in one week (three red candle sticks on the chart), thus plunging the price of gold to $1540. Then again, when gold was going to break out to the upside from a very bullish two-year triangle, two bullion banks conveniently placed two massive (142 and 74 tonnes of gold) naked shorts [two red candle sticks on the chart] and plunged the price to $1330. It is a crooked game we play against The Fed and we can’t win!!!
But you still stayed long.
YES, OF COURSE! It is the only defense and insurance I have against The Fed. I did not cancel my car insurance because I was able to drive 1 year without an accident! And, I know that sometime in the future, The Fed sham is going to have to pay The Piper!!
But you didn't know or project a complete collapse in mining company shares, and you didn't accept that "they" could indeed collapse metals to the downside. Therefore, when you say they will have to pay the piper, proclaming that as a sure thing is suspect at best as well. You just said that "we can't win." The Fed could simply let the mortgage securities go to term, they have all kinds of tricks up their sleeve. Name on metals pundit for instance that ever saw them doing "QE" in the first place, they all across the board said that they were out of bullets and were stuck. Guess what, "they" control the game and said otherwise. Objectivity, emotions, listening to pundits with an agenda etc. etc......good luck.
In short, there are far too many variables, and we don't live to be hundreds of years old to wait the creeps out. Controlling deep losses is essential. It's been said many times before, would you rather be "RIGHT" and win a moral victory, or would you rather make money to fight another day and be stronger than ever?
I was not able to expand today's video to full screen. Is this a permanent change? Full screen has been a big help to these old tired eyes. I hope it isn't permanently gone.
If you click on the upper right corner of the video it will expand. There's a set of arrows up there that expand the video, although they are black in color. We'll look at changing the arrows to white.
Best,
Jeremy
Thanks, Jeremy.