Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 23rd of January.
No sunshine for Research in Motion.
Today we revisit Research in Motion (RIMM) and see what our Trade Triangles are saying after the announcement that Thorsten Heins is the new head of this beleaguered tech stock.
We put these 3 stocks under the microscope today:
Research In Motion (RIMM), Southwestern Energy Co (SWN), and Cabot Oil and Gas Corp (COG),
Let's see what our Trade Triangles are saying about these three stocks.
Always remember …
DON'T FIGHT THE MARKET … MOVE WITH THE MARKET
Now, let's go to the charts and MarketClub's Trade Triangle Technology.
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S&P 500 INDEX
BIG PICTURE: Strong Trend +90
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
We expected this market to consolidate over the $1300 level. We now have an upside target in the next two or three months between $1380 and $1400 for this market. That is not to say it will be straight up from here, we would expect to see pullbacks and expect the $1290 to $1300 levels to now act as support. All three of our Trade Triangles are now green, signaling that a bull market is underway. Long and Intermediate term traders should now be holding long positions in this index with appropriate money management stops.
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Watch today’s S&P 500 Video Here.
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Suggested S&P 500 Trading Instruments:
Non Leveraged ETF’s: (Long SPY) (Short SH)
2 x Leveraged ETF’s: (Long SSO)(Short SDS)
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 in some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
BIG PICTURE: Trading Range +60
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
We are going to wait until all of our Trade Triangles are green to get long this market. A +60 Chart Analysis Score for silver indicates a trading range. We think this market is at the top of its trading range. Only our long-term monthly Trade Triangle remains negative on silver. This particular indicator has done extremely well in the past. Long-term term traders should be in short positions in silver with appropriate money management stops. Intermediate term traders should be on the sidelines.
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Watch today’s Silver Video Here.
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Suggested SILVER Trading Instruments:
Non Leveraged ETF’s: (Long SLV) (Short the ETF SLV)
Leveraged ETF’s: (Long AGQ) (Short ZSL)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
We believe that gold is at the top of a trading range and we are reluctant to chase it at these current levels. That factor along with our negative monthly Trade Triangle continues to act as an inhibitor for this market on the upside. With a Chart Analysis Score of +70, this market is in an emerging trend. With our monthly Trade Triangle in a negative position we are no longer quite as bullish on this metal. Long-term term traders should be in short positions in gold with appropriate money management stops. Intermediate term traders should be on the sidelines.
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Watch today’s Gold Video Here.
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Suggested GOLD Trading Instruments:
Non Leveraged ETF’s: (Long GLD) (Short the ETF GLD)
Leveraged ETF’s:(Long UGL) (Short GLL)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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COPPER (MARCH)
BIG PICTURE: Emerging Trend +75
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bearish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
Two of our three Trade Triangles are positive, indicating that copper has bottomed out and perhaps the economic cycle is now on an upswing. As stated numerous times, copper generally reflects economic conditions, and as such is influenced by equity prices. Look for support at the $3.70 level. The market action looks as though it has created a large base to move higher in the future. Upside target zone for copper is $4.00. With a Score of +75, we are in an emerging trend for this commodity. Long and Intermediate term traders should now be holding long positions in this index with appropriate money management stops.
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Watch today’s Copper Video Here.
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Suggested Copper Trading Instruments:
Non Leveraged ETF’s: (Long JJC)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (MARCH)
BIG PICTURE: Emerging Trend -60
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bearish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
A possible bullish divergence in the March contract shown on both the Williams% R indicator and the MACD, give rise for hope on the upside in this commodity. We are longer term positive on this market, however it must move over resistance at $104 to get upside momentum into high gear. With a Chart Analysis Score of -60 today, this market is in a trading range. With only our monthly Trade Triangle in a positive mode, we expect we will see further market consolidation in crude oil. Long traders should be long this market with appropriate money management stops.
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Watch today’s Crude Oil Video Here.
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Suggested Crude Oil Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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DOLLAR INDEX
BIG PICTURE: Trading Range +65
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bearish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
The support we have been discussing was broken last Thursday, as the long-term support trend line, which began on October 26, 2011 was broken to the downside. Another key area of support for this index will be the lower levels of the Donchian trading channel. Our Trade Triangle technology has been long this index for quite sometime and remains in a bullish mode. Long and intermediate term traders should maintain long positions with the appropriate stops in place.
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Watch today’s Dollar Index Video Here.
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF’s: (Long UUP) (Short UDN)
Leveraged ETF’s: (Long) (Short)
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 in some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
BIG PICTURE: Trading Range +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: 50 – 65 Trading Range | 70 – 80 Emerging Trend | 85 – 100 Strong Trend
Our comments are unchanged on this market today. With a Chart Analysis Score of +70, this index is in an emerging trend. We suspect that the $306-$307 levels are going to lend more support to this market on any further weakness. For this market to get going on the upside it must move over the $316 level. Our long term Trade Triangle remains negative for this index, while our intermediate signal is green and calling for higher prices. Long-term traders should hold short positions in this index with appropriate money management stops.
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Watch today’s REUTERS/JEFFERIES CRB COMMODITY INDEX Video Here.
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Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF’s: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF’s: (Long) (Short CMD)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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This is Adam Hewison for MarketClub and I'll see you tomorrow, right here with my mid-day update. Have a profitable trading day.
Take care everyone,
Adam Hewison
President INO.com and co-founder of MarketClub.com
joeldee i really don't understand your comment. can you explain.
I very much agree with Wayne Barry, that your suggeted money management stops would be most helpful.
Thank You
Those who are members know that the stops are generated as they happen so as not to have traders second guess and stick to one's knitting.
I appreciate your daily updates. You talk often about appropriate money management stops. Have you considered adding a suggested/appropriate money management stops as an additional column.
It would be immensely helpful to receive your perspective on placing stops and trailing stops (% or $ amounts). Appreciate your thoughts on this.