Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 10/07/11.
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I wanted to start this weeks market wrap with something I believe in. Here it is, this past week the technology world lost a true titan. I am of course referring to Steve Jobs who was a genius in his own right, who created communication tools that are used around the planet. Steve, really did change the world.
This brings me to something I mentioned a week or two ago and that is this:"Some people dream of success while others wake up and work hard at it"
I don't think Steve Jobs ever dreamed of success in the traditional way, he was more interested in creating great products, and worked hard at it every day. Great success in life doesn't just happen by showing up, it happen's to folks who work hard at being successful.
There is not one single successful trader I know that doesn't work hard. Nobody who wants to be successful in trading and investing world, wings it! Some would say, you almost have to be obsessive to be successful in trading, I don't disagree with that statement.
I believe Steve Jobs was obsessed with creating truly amazing products. For Steve, it was all about creating great products. For a trader, it's all about doing the homework, being right, and making money. There is nothing wrong about making money, in fact it is downright healthy.
Does making money help the economy? Yes, it does, as investors assume risk in areas that other people would not venture. I started my career in the commodity pits in Chicago, which is a marketplace for transferring risk. This is something that most ordinary people don't even think about, but it has a huge benefit to the economy.
So Steve, this is for you, we will miss you. Thank you for all the amazing products and joy you brought to millions of people all over the world.
Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011.
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S&P500 INDEX
Change for the week: + 2.12%
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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 = - 85
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Suggested Trading Instruments for this INDEX
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
Change for the week: + 4.09%
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = - 85
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Suggested Trading Instruments for SILVER
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AQG) (Short ZSL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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GOLD (SPOT)
Change for the week: + .87%
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Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 55
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Suggested Trading Instruments for GOLD
Non Leveraged ETF's: (Long GLD) (Short the ETF GLD)
Leveraged ETF's:(Long UGL) (Short GLL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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CRUDE OIL (November)
Change for the week: + 5.06%
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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 = - 55
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Suggested Trading Instruments for CRUDE OIL
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Call your broker
Options: Call your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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US DOLLAR INDEX (SPOT)
Change for the week: + 0.04%
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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
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Suggested Trading Instruments for the US DOLLAR INDEX
Non Leveraged ETF's: (Long UUP) (Short UDN)
Non Available Leveraged ETF's: (Long -) (Short -)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFRIES CRB COMMODITY INDEX (SPOT)
Change for the week: - 5.67%
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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 = - 100
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Suggested Trading Instruments for the REUTER/JEFFRIES CRB COMMODITY INDEX
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long UCO) (Short CMD)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
MARKETCLUB ONE-ON-ONE PERSONAL COACHING
This weekend, I would like you to ask yourself this question, IS PERSONAL COACHING RIGHT FOR ME?
Give us a call at 877–219–1482 for a free consultation and find out if personal coaching is right for you.
This is Adam Hewison for MarketClub, I'll see you Monday, have a great weekend.
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Hi Adam,
It would be great help if you can post 1 pm video update today.. Thanks
Hello Adam,
S&P cash hit 1190. At this junction, how are you favoring your bearish count for short and intermediate term?
If S&P cash make 1195 then it will make higher high so intermediate term trend will change to upward. I think weekly trade triangle will be positive in that case..
Hi Adams,
Here a comment by John Thomas, the Mad Hedge Fund Trader, on the Tax rate fallacy in US. Evereabody should read it if we want to solve the US deficit.
The Tax Rate Fallacy.
When anyone starts lecturing you that the US has the highest tax rate in the industrialized world, just turn around, walk away, and pretend you never heard them. This person is either ignorant about this country’s taxation system, or is deliberately trying to deceive or mislead you.
According to a report released by the Internal Revenue Service, America’s tax collection agency, the top 400 individual tax returns filed in 2009 reported an average gross income of $358 million each. The average amount of tax paid by these individuals came to under 17%, less than half the maximum Federal rate of 35%, which kicks in on annual income over $372,950 (click here for the 2009 tax tables). This explains why Warren Buffet pays a much lower tax rate than his secretary. It really is true that in America, only the poor people pay taxes.
Look at any international comparison of taxes to GDP, and one can always find the United States at the bottom of the table. Low American taxes are one of the main reasons why I moved my company here from England 15 years ago, fleeing their hellacious then 15% VAT tax. Take a look at the Fortune 500, where one third of the largest companies pay no tax at all, and many that dominate the top of the list, like the oil majors, pay only token amounts. In 2010, General Electric (GE), one of the most profitable companies in the world, paid a 3% tax rate. However, if any politician wants to pander to voters during election time on a tax cutting platform he will only bluster on about “tax rates”, not actual taxes paid.
What the US has that other countries lack is the 100,000 pages of the Internal Revenue Code. It is a 98 year accumulation of deductions, accelerated depreciation rates, tax credits, and other tax breaks that are the end product of intensive lobbying efforts and bribes by special interest groups, corporations, unions, and even religious groups. Take a look at the oil industry again. The oil depletion allowance permits drillers to deduct a substantial portion of the cost of a new well in the first year (click here for its fascinating history), while spreading the income over the extended life of the well. When I first got into the oil and gas business a decade ago, after reading the relevant sections of the tax code, I couldn’t understand why everyone wasn’t drilling for Texas tea.
I have a very simple solution to the country’s budget deficit problem. Hit the reset button. Eliminate the Internal Revenue Code. Just set it on fire. Keep the existing progressive, hockey stick tax rates on income, but eliminate all deductions. And I mean everything; deductions for dependents, home mortgage interest, medical expenses, charitable contributions, the works. There are no sacred cows. My revised Form 1040 would have only three lines on it:
Income
Tax Rate
Tax Due
The budget deficit would disappear overnight. Government spending would shrink dramatically, because you could ditch most of the 100,000 who work for the IRS. Some 1.3 million auditors and CPA’s would have to hit the road in search of new work too. The amount of money that is wasted on tax collection in this country is truly staggering. This is not some pie in the sky concept. This is how taxation already works in most countries, and they seem to get along just fine.
In fact, the whole scheme might even pay for itself.
I think you may be correct in forecasting a market low in Oct. of 2012.
Eventually, the Wall St & global Banks will have to get rid of their toxic assets
and some of those European countries will have to default.
Hopefully, the governments will stop using taxpayer money to bail out the banks and foreign countries.
Those who hold stocks of the default banks and bonds of the default countries should take a haircut,
otherwise, once again, the taxpayer gets shafted.