Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 26th of November.
EQUITIES EXPLODE TO THE UPSIDE, BUT IS THE MOVE FOR REAL?
Last Friday the equity markets jumped dramatically to the upside. Is this a turnaround reversal, or is just a dead cat bounce in a longer-term bear market? At the present time our Trade Triangles are in a negative mode indicating that it was a short covering rally in a bear market.
YES! GOLD EXPLODES TO THE UPSIDE
The Wednesday before Thanksgiving we said to watch gold, as a move over the $1,738 level basis spot gold would indicate that all is not well fiscally in the world. This level was breached last Friday in a shortened trading week. With all of our Trade Triangles in a positive mode, you should now be fully long gold to protect your purchasing power.
IS OIL NEXT?
Last Monday, January crude oil flashed a buy signal at $89.69. This signal was generated using our successful weekly Trade Triangle strategy. This signal is still valid providing the $86.00 level is not breached on the downside.
Now, let's go to the markets and see what our Trade Triangles are indicating.
Have a great trading day,
Adam Hewison
Founder & President INO.com and co-founder of MarketClub.com.
Since the Fed is speaking this week, I believe traders will turn to gold due to the decline in stock prices and to protect against the uncertainty the U.S. government will deliver. Everyone should be watching gold right now.
I agree completely about being long gold right now.