Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Tuesday, the 13th of September.
Let's take a look at the big picture and what it means today. There are a number times when the markets trade erratically. When this happens, you get out of the market with some quick move either up or down against you. Then, the market immediately goes your way the next day and afterwards you say to yourself, "I should've stayed in!"
That's why it's important to look at the big picture, and the big trends. What looked like a possible reversal yesterday, did not change the big trends in the markets. It just doesn't happen in one day.
So let's look at the big trends in the various markets we cover. Equity markets, the big trend is down. Metal markets, the big trend is up. Crude oil, the big trend is down. The dollar index, the big trend is up. And lastly, the CRB index, the big trend is down.
Providing you are trading in the direction of the major trend, you have the odds in your favor. Always remember to keep your trading logs and game plan up-to-date. They will help you become a better trader.
Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.
S&P 500
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 = - 75
The two important lows that were established on August 26th and again on September 6th, around the 1140 area, are shaping up to be an important battleground for traders. The Bulls need to have this area remain intact in order for the market to go higher. The Bears must break through this area to continue the market's downward trend. Long-term traders should continue to be short or be out of the market completely, and in a cash position. Intermediate term traders should be on the sidelines waiting for either a buy or sell signal based on our Trade Triangle technology.
--------
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 = + 65
The silver market continues to remain in a long term uptrend. However, the short term daily Trade Triangle is negative. With a Chart Analysis Score of + 65 it would appear that this market is in a trading range. We want to watch this market very carefully over the next few days and are looking for an area to add to long positions. Intermediate and longer term traders should maintain long positions in this market with appropriate stops.
-------------
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 = + 55
With a Chart Analysis Score of + 55, it would appear that the gold market is in near-term trading range. Providing that our monthly and weekly Trade Triangles remain intact, we want to approach this market from the long side. The Williams % R is not yet in an oversold condition. The $1,850 to $1,900 levels are resistance for gold, at the moment. Support comes in around the $1,800 area and extends all the way down to $1750. Looking at the market, it would possibly appear as though we have put in a double top. This will only be confirmed with a close below the $1,750 level. Intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.
-------------
CRUDE OIL (OCTOBER)
Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 60
The crude oil market once again came very close to moving over the $90 a barrel level, and at the time of this report has failed. Presently the Trade Triangles are mixed, indicating that this market is in a trading range. We would use a trading range type strategy to trade this market. Those tools would consist of the Williams % R indicator, the Donchian Trading Channels, and the Parabolic SAR indicator. The big trend monthly Trade Triangle remains negative for this market. Look for crude oil to continue to move in a sideways to lower manner.
-------------
DOLLAR INDEX
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 = + 100
We are looking for this market to regroup above the 76.50 area. Longer-term, this market looks poised to move much higher and we would use pullbacks to the 76.60 level as a buying opportunity. This index is coming from a large energy field that is capable of carrying it much higher, possibly up to the 80.00 area. All of our Trade Triangles are currently positive.
-------------
REUTERS/JEFFERIES CRB COMMODITY INDEX
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
With a Chart Analysis Score of - 55, this index is trapped in a trading range. It is possibly starting to build an energy field to move higher. We would recommend trading this market using the Williams % R indicator and the Donchian Trading Channels. Intermediate and short term traders should be out of this market and on the sidelines at the present time.
---------------
As always, we rely on our market proven Trade Triangle technology for catching the big moves.
---------------
As we start the new week I would like you to ask yourself this question: IS PERSONAL COACHING RIGHT FOR ME?
Give us a call today at 877–219–1482 for a free consultation and see if personal coaching is right for you.
But first, take a few minutes and watch this short video about one-on-one coaching:
http://www.marketclubcoaching.com/now/
This is Adam Hewison for MarketClub and I'll see you tomorrow, right here at 1pm. Have a great trading day.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The Bulls should just give it up so we can go down to a real support level and finally bottom. This aint no world financial problem and I'm not so sure the defaults will be as contagious as they say, look at the dollar its poking its head up saying "I'm number one", if the euro sucks or goes down where do you think folks will go "the U.S. Dollar"
The markets exhausted, I'm exhausted. The majors are not building an energy field at these levels, the up and down moves are all over the place. I'm new and I don't know much but I think some big hedge funds and big money traders are making a bunch of money here and thats part of the problem. I don't mind the ups and downs, I love to day trade but only very few retailers could day trade this because we don't have deep enough pockets.
My take is all the retailers should sit on the side lines and wait for the mutual funders pensioners to come in with real power and in the mean time let the big money boys and the hedgers trade against eachother and take eachothers money and not the retailers.
Like I said I'm new and can be completly wrong LOL but thats why I'm ranting here to see what everyone else thinks. Comments definitly welcome. Be kind please, I'm just learning. 🙂
Me I'm still day trading cause I love it, I win here, lose there and don't make much. Just passing time.
Your bullish outlook for silver may well be wrong as my weekly indicator is declining and my daily indicator is maximum overbought with my trend forecaster indicating a sharp drop into end September...if price on the spot silver chart drops through $39.75 it would be an important trend break and allow a drop to at least +-$32 and possibly $25
Crude oil closed above $90, which I have seen from other trader blogs is what was needed to make it bullish.
It also appears to be trying to break above the 50 day.
All these markets have gotten very difficult.
"Appropriate Money Management Stops" How do you calculate this. Every time I put in stops I seams like I loose.
Anybody else notice the huge trades in the first few minutes and then the last few minutes of the day going back some 10 or more days in the SPY and .DJI? This kind of reminds me of trading after the tops in 2000 and 2008 when what we thought was the Plunge Protection Team (PPT) making weird trades to hold the market up..... If I remember right, those huge BUYS caused counter trend rallies which played out for several days or weeks before the market fell to new lows..... It didn't work then and, in my opinion, it won't work now....