Barrel of Monkeys?

Posted on by The INO.com Team

Hello traders everywhere. Adam Hewison here, co-founder of MarketClub, with your 1 p.m. market update for Thursday the 23rd of June.

Choppy, choppy, markets. Today's action should be viewed as a test of the lower range in the S&P 500. This market is very close to breaking the 200 day moving average. Many traders consider this to be one of the most important long-term technical indicators for the equity markets. The exception to this is the NASDAQ that is already below the 200 day moving average and looks like we're going to see further downside action. The other big news was the sharp drop in precious metals. We were warning about this in our commentary yesterday as gold was grudgingly going up and up, popping above the upper levels of the Donchian channel. The release of 30 million barrels of crude oil will last about a day and a half in the US. This action can only be viewed in my mind as a desperate measure to win popularity for the current administration. I have seen many times in the past that when governments get involved in the markets, they never come out ahead. As we said in yesterday's video, a low risk entry point for short term traders should be around $90.07 at the bottom end of the Donchian channel.

 

Now let's take a look at the markets...

S&P 500: -70. The market action continues to reflect a trading range. Major downside support is at $1,250. Upside resistance begins at $1,300.

Silver: -70. This market is heading for a test of the lower levels of the Donchian trading channel.

Gold: +55 and exit signal at $1,532.73 was given today for short term traders only. For intermediate term traders gold is still in a bull market. Major support at $1,513.

Crude Oil: -100 with the announcement of the release of 30 million barrels of crude oil this market promptly fell to the lower levels of support and where we wanted to buy for a trading turn around the $90.07 level which represents a 61.8% Fibonacci retracement.

The Dollar Index: -65. Our indicators are still negative longer-term for this index. Minor support at $74.50. Resistance at $76.00. Look for a possible test of the upper line of the Donchian channel.

The Thomson Reuters/Jefferies CRB Commodity Index: -100. We are at the lower range of the Donchian channel and the market is oversold. We would not rule out some sort of bounce from current levels. Market is in a downtrend and moved out of the Donchian Channel on the surprise crude oil announcement out of the White House.

Every success,
Adam Hewison
President of INO.com
Co-founder of MarketClub

12 thoughts on “Barrel of Monkeys?”

  1. The Bilderberg Group and their government
    puppets in action IMO
    Thanks Adam for speaking up about
    govt manipulation of the markets

  2. Adam, you are not the only one left scratching their head about the Oil reserve release by Govt: The National Petrochemical and Refiner’s Association criticized the decision to tap the strategic reserve as a political move that “makes no sense” and “will do nothing to benefit consumers.”

  3. Mike, re Gold...as perceived risk falls away and there are profits to be taken, physical gold will sell. With the Greek bailout ( tongue in cheek) some perceived risk has come out of market....gold's in long term secular bull market. That is all Central Bankers have left in their tool box of monetary nightmares. When perception fails, so will Central Banks. All the more reason to trade technically as it takes emotion out of markets, IMO! Check out kitco.com for gold and silver essays if you are interested in fundamentals, but stick with trade triangles for buy and sell IMO as fundamentals are largely priced in to a stock, ESP.

  4. i trade of global forex and option and futures and share index, i think of oil, maybe began price action will downs.

  5. hallo!
    please let me know, what is the problem? i trade of global forex and option and futures and share index.
    best
    zachanry

  6. Hi Adam
    can you help me i am notable where to log onto your thur.5.00pm Webinair
    thank you
    Bali

    1. Bali,

      We had some Technical issues with the recording of the live show. We are working to correct this and hope to have a version posted soon.

      Thank you for your patience.

      Best,
      Jeremy

  7. So yesterday Gold was +100 if I recall correctly, now it's +55. Thsi I can unhderstand after last night fall, Waht I would be looking for is a comment on a "fundamental" to cause such a sudden drop

    1. Mike,

      There is no fundamental reason foe gold to drop so sharply today. What everyone was trading today was money not gold.

      All the best,
      Adam

  8. Your comment: Crude Oil: -100 with the announcement of the release of 30 million barrels of crude oil this market promptly fell to the lower levels of support and where we wanted to buy for a trading turn around the $90.07 level which represents a 61.8% Fibonacci retracement.

    I understand support and Fibonacci retracement levels. I don't understand a 'buy' at -100. Shouldn't a clear uptrend move be in place first?

    1. JackD,

      It was for very short-term traders only. Not for longer term traders. You are correct the Trade Triangles a -100 %. What I was pointing out is that there is a high probability that the oil market could bounce from the Donchian Channel and the Fib retracement.

      We shall see.

      All the best,
      Adam

Comments are closed.