Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 9/02/11.
Last week we saw the markets revert back to their major trends, with the reversal in the S&P 500 pushing this market down .4% from major resistance at 1230.
Gold and silver on the other hand moved higher with gold moving up over 3% for the week, and silver following suit with a gain of 4.5%. The closes this week on Friday, for both gold and silver, are all time high, week ending closes, and are very bullish.
Last week, we referred to the fact that Warren Buffett invested $5 billion into Bank of America, symbol BA. This week we saw the true colors of the banks and the fact that they are in deep trouble. For the week, Bank of America lost 6.3% and still has more to go according to our Trade Triangle Technology.
In today's weekend wrap, we are going to do something very special, and that is apply a long-term projection for the S&P 500. We will show you where we think it is headed, how long it's going to take, and where the ultimate target zone is.
Now please remember, these are projections and are based on classical technical analysis. Obviously if our Trade Triangle technology indicates otherwise we will respect that indicator as it is reflective of market conditions. We all know events can and do change and we are cognizant of that fact. I will be doing this analysis at the end of the video so please be patient.
Now let's go to the weekly charts and see what happened last week in the major markets according to our Trade Triangle technology.
S&P500: Change for the week: - .24%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = - 55
Silver: Change for the week: + 4.62%
Monthly Trade Triangles for Long-Term Trends: = Positive
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Positive
Combined Strength of Trend Score: = + 90
Gold: Change for the week: + 3.03%
Monthly Trade Triangles for Long-Term Trends: = Positive
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Positive
Combined Strength of Trend Score: = + 90
Oil: Change for the week: + 1.16%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = + 55
$ Index: Change for the week: + 1.34%
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: = + 65
CRB Index: Change for the week: + .81%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = - 55
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
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This is Adam Hewison for MarketClub, I'll see you Monday, right here, same time, have a great weekend.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Is there a screwup in the video lineup? I was expecting a rundown on the market and I got a vidoe asking me to sign up for INO.
Mixup?
Hope you can clarify.
Tango6
Hi Adam,
I found your analysis very interesting. Thank you for sharing. I have two questions though about the numbers you are using:
1) When predicting the low in Sept/Oct 2012, shouldn't you be subtracting 752 from 1345, 752 being the move down from Oct 2007 to the 2009 low, instead of the low itself of 797? 1345 - 752 would give 593, not 548
2) Regarding the values you are basing your calculation on, 1549 was the monthly close in Oct 2007 but not the high which was 1576. Similarly 797 was the monthly close in March 2009 but not the low which was 667. I think the calculation should use the highs and lows, which means the 18 month move was 1576-667 = 909 points. The high value in May 2011 was 1370 so I get 1370 - 909 = 461 for a predicted low.
I would love to know what you think about my comments if you have time. Keith
Adam,
Incredible technical review..... Could not agree with your reasons and timing more. That said, I am beginning to firmly believe that what we are also watching is an incredibly well engineered political ploy to swing the American voting public to the side of the Conservative Ultra Wealthy agenda. Before you excuse me as deeply paranoid, consider the timing of the meltdown in October 2007... Did anyone else find themselves saying, "oh crap, "they" got the timing of this meltdown off by at least six months as this, in my opinion, "manufactured" first meltdown wasn't supposed to happen until the next administration was in office. Now here we have the second leg of the meltdown occurring right as we approach the Presidential elections... Hmmm.. Just happen chance, or is there something more cynical in play here?... Keep in mind that the only economic group that is better off since 1980 are the Conservative Ultra Wealthy... We will still make money by anticipating the coming future moves, but the current situation does, possibly, deserve some consideration, aye?
Mike
Hi, Adam,
Thanks for the extended analysis of the S&P 500 with this update. One question, though, when you "do the numbers", you said that the S&P went from a high of 1549 to a low of 797 for a drop of 752 points. You then take the recent high of 1345 and subtract **797** to reach a projected Sept/Oct 2012 low of 548. Wouldn't you instead subtract the AMOUNT the market previously dropped (752 points) to calculate a projected low of 593 (instead of 548)? I'm asking because I've seen you add or subtract the "point move up or down" in previous videos versus adding/subtracting the actual low or high level, and I want to be sure I'm doing it correctly for my own learning. Thanks!