Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 11/25/11.
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Nobody knows what to do ... except the markets and our Trade Triangle Technology!
It's just that simple.
Okay, now let's go to the charts and prove how our Trade Triangle approach successfully works no matter what takes place in Europe and the rest of the world.
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S&P500 INDEX
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CHANGE FOR THE WEEK: - 4.68%
CLOSE LAST FRIDAY: 1158.67
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = -100
TREND: Bearish
OUTLOOK FOR THE COMING TRADING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Negative
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Trading Instruments for this INDEX
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
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CHANGE FOR THE WEEK: - 3.79%
CLOSE LAST FRIDAY: 31.08
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = -90
TREND: Bearish
OUTLOOK FOR THE COMING TRADING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: - 50 - 65 Trading Range
Score: - 70 - 80 Emerging Trend
Score: - 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Negative
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Trading Instruments for SILVER
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AQG) (Short ZSL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
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CHANGE FOR THE WEEK: - 2.41%
CLOSE LAST FRIDAY: 1680.20
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = - 60
TREND: Trading Range
OUTLOOK FOR THE COMING WEEK: MIXED
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Trading Instruments for GOLD
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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COPPER (MARCH)
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CHANGE FOR THE WEEK: - 2.06%
CLOSE LAST FRIDAY: 3.2800
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = - 100
TREND: Bearish
OUTLOOK FOR THE COMING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Copper Trading Instruments:
Non Leveraged ETF's: (Long JJC)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (JANUARY)
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CHANGE FOR THE WEEK: - 1.04%
CLOSE LAST FRIDAY: 96.77
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = + 65
TREND: Trading Range
OUTLOOK FOR THE COMING WEEK: MIXED
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Trading Instruments for CRUDE OIL
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Call your broker
Options: Call your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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US DOLLAR INDEX (SPOT)
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CHANGE FOR THE WEEK: + 2.74%
CLOSE LAST FRIDAY: 79.59
MKT CLOSED HIGHER FOR THE WEEK
MARKETCLUB Trend Score = + 90
OUTLOOK FOR THE COMING WEEK: HIGHER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Positive
Weekly Trade Triangle for Intermediate Term Trend = Positive
Daily Trade Triangle for Short-Term Trend = Positive
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Suggested Trading Instruments for the US DOLLAR INDEX
Non Leveraged ETF's: (Long UUP) (Short UDN)
Non Available Leveraged ETF's: (Long -) (Short -)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFRIES CRB COMMODITY INDEX (SPOT)
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CHANGE FOR THE WEEK: - 2.14%
CLOSE LAST FRIDAY: 305.52
MKT CLOSED LOWER FOR THE WEEK
MARKETCLUB Trend Score = - 100
TREND: Bearish
OUTLOOK FOR THE COMING WEEK: LOWER
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HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 - 65 Trading Range
Score: 70 - 80 Emerging Trend
Score: 85 - 100 Strong Trend
Monthly Trade Triangle for Long-Term Trend = Negative
Weekly Trade Triangle for Intermediate Term Trend = Negative
Daily Trade Triangle for Short-Term Trend = Negative
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Suggested Trading Instruments for the REUTER/JEFFRIES CRB COMMODITY INDEX
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long UCO) (Short CMD)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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This is Adam Hewison for MarketClub, I'll see you Monday, have a great weekend.
@Christina - Keep in mind that leverage funds, especially Direxion, are going to do that with the triangles. This is not a market club glitch. SDS and SKF, check out the prospectus. They say in bold letters that these ETFs are NOT for holding long term, they are trying to achieve the 2x leverage short performance for ONE day only.
Therefore, you want to use the Proshares 2x, and Direxion 3x leveraged ETFs as scalp to day trades only, not for longer term Trend Following which is what the Trade Triangle technology is based on.
You can google and find some articles on how these leveraged ETFs make DAILY resets and just how bad it is to hold these ETFs long term.
Good luck.
@WAT and @Arlene
Thanks guys. Yeah, the ERX trade was epic: 11% gain in 1 day and I'm out.
ADAM,
WOULD YOU LOOK AT SP500 WEEKLY AND MONTHLY CHART? IT SEEMS THEY ARE DEVELOPING HEAD SHOULDER? IF YOU LOOK AT CBOE VIX INDEX DAILY CHART, IT SEEMS IT IS DEVELOPING INVERSE HEAD SHOULDER. IT SEEMS SP500 WILL HIT RESISTANCE 1220 AND GO DOWN AGAIN.
LET ME KNOW YOUR THOUGHTS
THANKS A LOT
GEORGE
George,
See today's 1 P.M. update.
Thanks,
Adam
Lance J
I absolutely agree with "PRICE REMEMBERS" those previous support areas has the potential to reverse a stock. Good call on ERX. Nice profits!
Lance J
I absolutely agree that "PRICE REMEMBERS" those revious support areas have the potential for a reversal. Nice profits on ERX!
We're buying MZZ on a dip to 4400. We like QID, UDN, CYB. Buy SDS, SH. We publish the etf report.
Adam, Jeremy,
There appears to be a disconnect in some of the Trade Triangles. SDS is not the only one showing a 100 score whilst one of the triangles is still Red. Another case in point is SKF; I didn't act on the +100 because the Monthly was still showing a Red triangle?! What's the story guys - glitch and if so, when/has it been corrected?
Thanks and regards.
I suggest that you have confidence in your own decisions.we all in this together.
Thomas,
I have total confidence in our Trade Triangle technology to get it right and in my own decision making process.
Cheers,
Adam
I did not see the xrx before my last comment but I have the same instincts and have done that also,plus check out pbkef and don't worry about there debt look who the debt goes to, buy it and take there monthly dividen and wait,they are sitting on a real black gold mine,and they know when to take it out of the ground,don't listen to the talkers its cheap now,but it will be different next turkey day,gobble gobble.
Time to buy alot and wait and buy some more.
Strong downtrend on all the major indices; however, we are coming up on key congestion/support zones established the last time we were in this trading range.
The price action has fallen back into the previous trading range. What you need to get yourself mentally prepared for is a reversal at previous supports.
Price remembers. Past battles between bulls and bears leave their mark long after the fight ends. As stocks pass through old price levels, they must continually navigate the trading debris generated by these prior events.
Use trend mirrors (TMs) to interpret these volatile chart zones. Look horizontally at past action to predict where price bars should bounce or fail. Current movement will often mimic the angle and extent of past patterns. TMs locate support and resistance hotspots just as clear air targets bar expansion. When price action swings repeatedly off either side of a mirror, odds increase that price will act the same way during the next pass. These chart memory levels can act as classic support and resistance or mark a swing axis for price to shift back and forth.
After playing the short side of the S&P 500 the last week for some great profit, I just went long ERX before market close on Friday. It may be a little earlier with the strong downtrend ratings, but that's okay.
Good luck and happy trading!
Personally, I'm encouraging people to preserve capital, minimize risk, and maximize their returns right now... and to consider using inverse stocks or ETFs. My favourites to consider are: PSQ, SH, DOG, HSD.TO, HXD.TO, TZA, and a few others.
I'm confused. Am I missing something? You indicate a bearish daily, weekly, and monthly trend for the SPY yet you recommend shorting SDS and long SPY. What am I missing?
Arden,
We are bearish equities, based on our Trade Triangles. You should be Long SDS and short the SP500 at this point in the cycle.
All the best,
Adam
Hi Adam,
Beginner Trader here .
What do you see for the GOld in Future? will it go back to 1800-2000 ever again and if yes then when ?
Your charts say Long terms positive but what does that long term mean.
Ahsan