Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Friday, the 26th of August.
It has been quite a week here in the Northeast, where MarketClub and INO.com are located. We had an earthquake on Tuesday measuring 5.8, which by our standards is huge! And if that were not enough, we are batting down the hatches as it looks like we are going to get slammed by hurricane Irene.
It makes the volatility in the markets look like a cake walk.
Let's see how the markets are playing out and go to the 6 major markets we track every day.
--------
S&P 500
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = - 75
This market has been going sideways for the past two weeks and we would expect this impasse to be resolved in early September. We are still viewing this market in a longer-term bear trend.
--------
SILVER (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
With a +55 Chart Analysis Score it would appear that the silver market is trying to regroup after its sharp fall. We expect to see more sideways action in the short term. Overall it would appear as though the silver market has for the time being, topped out.
-------------
GOLD (SPOT)
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 75
We are looking for the gold market to regroup after it sharp fall. Long Term, intermediate term traders should stay disciplined and hold onto long positions and protect profits with money management stops. Short-term traders should now be on the sidelines and waiting for a new long entry point.
-------------
CRUDE OIL (OCTOBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 90
Please note that our comments are based on the October contract. The crude oil market is now back in an area that should provide resistance. This is based on the 61.8% Fibonacci retracement level of 85.30. Long term and intermediate term traders should hang on to short positions and protect profits with money management stops. Short-term traders should be short this market today at 83.01. The longer term trend for crude oil is down based on our Trade Triangle technology.
-------------
DOLLAR INDEX
Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 55
With a Chart Analysis Score of + 55 we would want to trade this market using our Donchian Trading Channels and our Williams %R indicator. The index remains below its 200 day moving average while our longer-term Trade Triangle remains positive.
-------------
REUTERS/JEFFERIES CRB COMMODITY INDEX
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = - 55
While our bias is towards inflation, the index is currently indicating that we are in more of a deflationary scenario. We are now in overbought territory. Stay patient and wait for a Triangle to signal when this market has made a trend change to the upside. Long Term and intermediate term traders hold short positions with money management stops.
---------------
As always, we rely on our market proven Trade Triangle technology for catching the big moves.
---------------
As we go into this weekend, our thoughts are not so much about the markets but rather the destructive power of mother nature. Soon hurricane Irene will be bearing down on the Carolinas, the Mid-Atlantic and North East states. Our thoughts and prayers are for everyone who is going to be affected by this monster storm, ourselves included. May we all make it through and have safe passage this weekend.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Hi Jeremy:
I am taking avantage of your 30 day trial. Thank You! I have viewed the tutorial videos. I do view charts and understand some TA. Also, I do stalk my stocks! lol But do you purchase at +75 or at +100. And that is with tight stops. There is a delay of the triangles.
Thank Again
Arlene,
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry points and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
As a intermediate-term trader you want to pay particular attention to the fourth Triangle. This is the fourth Triangle from the top that will generate positive or negative intermediate-term signals for you. If the forth Triangle is GREEN, you should then confirm the signals viability status with the color of the fifth Triangle. If both Triangles are GREEN, then a positive movement is likely. However, if the Weekly and the Monthly Triangles are RED, then a negative movement is likely. If the Triangles differ in color then you should consider keeping a sidelines position.
How It Works
The direction of the forth Triangle is marketed whenever a market moves over the previous three week high and remains above the previous three week low. The reverse is true when the low of the previous three weeks is broken to the downside, it creates a RED Triangle . This is an automatic stop-out of a long position if the fifth Triangle is GREEN. If the fifth Triangle is RED, it signals that a short sale is in order. If you are not familiar with short positions please consult your broker, or learn more from the experts in our INO TV online seminar service.
5 Successful Intermediate-term Trading Rules
(1) The odds are in your favor when you trade with the major trends.
(2) Always trade using stops. Never Cancel A Stop.
(3) Plan your trade and trade your plan.
(4) Never assume a market is too high or too low.
(5) Go with the flow. Don’t over think your position.
Best,
Jeremy
Thanks Jeremy. Now you guys take care of yourselves.
Hello,
I am new to Market Club. I would like to know how come Market Club does not have real time.
Thoughts and prayers to all on the East Coast.
Arlene,
First let me welcome you to MarketClub! We are presently working on adding real-time to MC, but we need to finish our ASX feed first. Once this is done we will be bringing the real-time online for our members.
Best,
Jeremy
What does MarketClub regard as short-, intermediate-, and long-term traders? Approx. what timeframes? Thanks
Thoughts to all on the eastern seaboard. Hope that storm damage not as big as feared. Volatility abounds!!
MS,
We follow the basic guide lines as follows, I've also posted all of the rules for the TT's.
Short-term = A few days up to 2-3 weeks
Intermediate - term = 3 weeks to 3 months
Long-term = 2 months and longer
Equities
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry points and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
—
Futures
Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
—
Forex
Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
—
ETFs
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry point and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
—
Mutual Funds
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a longer term trader, it is possible to use just the monthly triangles to determine position direction.
—
Indices
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your monthly and weekly triangles correspond in direction.
—
Options
We do not offer a suggested method for trading options. We have many traders that use MarketClub’s tools to make decisions regarding position direction and trend strength, however we do not have a suggested methodology to pass to our users.
Best,
Jeremy
You are very kind! My son, Colin, was at sea nearby on the US carrier STENNIS when it hit....even "old sea dogs" lost their lunch THAT day! Cheers, Brian
Earlier this year parts of North Queensland (Australia) was hit by a monster category 5 cyclone (hurricane) and caused untold damage. Some of the tourist islands were so badly hit that they may never reopen. I hope and prey that you are all spared from any loss of life and damage from Irene and my thoughts will be with all of you.