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Due to Technical issues with the video we will be updating this post with the video later this afternoon. You can still read Adam's thoughts on the markets below.<\/span><\/p>\n Hello traders everywhere!\u00a0 Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 14th of October. Is this rally for real?<\/p>\n What is behind this market's rally?\u00a0 The market has been going higher on light volume and admittedly to an area that has presented problems for the S&P 500 in the past - the 1220 area.<\/p>\n It is an important policy to respect market action, as we believe that trumps everything in the long run.\u00a0 The market is at some very crucial levels. \u00a0 Looking back at the past two months, you can see we have just been in a very broad trading range.\u00a0 I believe that professional traders will be shorting the S&P 500 against the highs that were seen just recently.\u00a0 The risk is maybe 10 or 15 points and the downside is maybe 200 points.\u00a0 So the risk-reward ratio is really quite attractive from a trading standpoint.<\/p>\n There are \"two flies in the ointment\" we see right now. \u00a0 First, the S&P 500 is heavily overbought on the Williams% R indicator and at resistance.\u00a0 Secondly, our monthly Trade Triangle continues to be negative for this market.\u00a0 I believe that this combination will begin to put this market on the defensive, perhaps even later today and next week.<\/p>\n It has been an interesting week and it would appear that all of the markets we track are closing against the major trends.\u00a0 This is not to say the markets have reversed course, rather we are seeing a counter trend rally against the bigger trends.<\/p>\n 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. ------------- -------------<\/p>\n HERE'S THE FASTEST, EASIEST WAY FOR YOU TO IMPROVE YOUR TRADING<\/p>\n I would like you to ask yourself this question, AM I Ready FOR A PERSONAL COACH<\/strong><\/span>?<\/p>\n Give us a call today at 877\u2013219\u20131482<\/span><\/strong> for a free consultation and see if personal coaching is right for you.<\/p>\n LEARN MORE HERE: http:\/\/www.marketclubcoaching.com\/now\/<\/a><\/p>\n ------------- ------------- ------------- DOLLAR INDEX ------------- BE PART OF NEXT WEEK'S SHOW BY CALLING 410-867-2100<\/span><\/strong> extension 129<\/strong><\/span>.<\/p>\n * Give us your feedback. Call 410-867-210<\/strong>0<\/span> extension 129<\/span><\/strong> today.<\/p>\n ---------------<\/p>\n This is Adam Hewison for MarketClub and I\u2019ll see you tomorrow with my mid-day market update. Don\u2019t forget to enter for a free 1 year subscription to MarketClub on a HP WiFi Tablet<\/a>.<\/p>\n
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\nS&P 500 INDEX
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\nOne of the key things to watch today in the S&P 500 index is where we close.\u00a0 If we see this market close unchanged or lower for the day, I think that's a very good chance that one can short this market against the 1220 resistance area.\u00a0 There are a number of ETFs that you can use to accomplish this and we have listed those below.\u00a0 The long-term trend for the equity markets and the S&P 500 index is still on the downside.\u00a0 While this market his higher for the week, last week we closed at 1155, we still expect to see this market move down and test the recent lows.\u00a0 Long-term traders should continue to hold short positions in this index.
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\nMonthly Trade Triangles for Long-Term Trends = Negative
\nWeekly Trade Triangles for Intermediate Term Trends = Positive
\nDaily Trade Triangles for Short-Term Trends = Positive
\nCombined Strength of Trend Score = + 75
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\nSuggested S&P 500 Trading Instruments:
\nNon Leveraged ETF's: (Long SPY) (Short SH)
\n2 x Leveraged ETF's: (Long SSO)(Short SDS)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.<\/p>\n
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\nSILVER (SPOT)
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\nLast week, the spot silver market closed at $31.12 and currently we are just a few cents above that level in what has become a mainly sideways market.\u00a0 We feel that this impasse is going to change fairly soon.\u00a0 With all of our Trade Triangles negative, we expect we will see further downside pressure in this metal.\u00a0 We believe that the markets are looking at silver as an industrial metal and if we are correct on the trend in the world equity markets, then silver should fall to around $20 an ounce.\u00a0 Our Chart Analysis Score just moved to a - 85, indicating that momentum is picking up to the downside. Intermediate and Long-term traders should continue to hold short positions in silver with appropriate stops.
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\nMonthly Trade Triangles for Long-Term Trends = Negative
\nWeekly Trade Triangles for Intermediate Term Trend = Negative
\nDaily Trade Triangles for Short-Term Trends = Negative
\nCombined Strength of Trend Score = - 80
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\nSuggested SILVER Trading Instruments:
\nNon Leveraged ETF's: (Long SLV) (Short the ETF SLV)
\nLeveraged ETF's: (Long AGQ) (Short ZSL)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.<\/p>\n
\nGOLD (SPOT)
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\nThe spot gold market is up over $30 for the week.\u00a0 Unlike Silver, the gold market has a positive long-term Trade T<\/tt><\/big>riangle indicating that the longer-term trend is still positive.\u00a0 With a Chart Analysis Score of +65, we expect this market to continue to remain in a trading range.\u00a0 Gold has reached the midpoint of the Donchian trading channel, which will probably halt its upward momentum for the time being.\u00a0 We would not be surprised to see this sideways action continue for another week or so.\u00a0 I think most traders would be better off just watching from the sidelines until the volatility subsides.\u00a0 Only long-term traders should maintain long positions with the appropriate money management stops in place.
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\nMonthly Trade Triangles for Long-Term Trends = Positive
\nWeekly Trade Triangles for Intermediate Term Trends = Negative
\nDaily Trade Triangles for Short-Term Trends = Positive
\nCombined Strength of Trend Score = + 65
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\nSuggested GOLD Trading Instruments:
\nNon Leveraged ETF's: (Long GLD) (Short the ETF GLD)
\nLeveraged ETF's:(Long UGL) (Short GLL)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.<\/p>\n
\nCRUDE OIL (DECEMBER)
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\nIMPORTANT ALERT: Please note that we are following the December contract for crude oil.
\nThe crude oil market continues to mirror the action in the equity markets.\u00a0 Providing the equity markets keep going higher, we should see oil go higher.\u00a0 Conversely, if we see the equity markets heading lower, we will see oil heading lower.\u00a0 At the moment, we believe the latter course is going to be the direction for this market in the next few weeks.\u00a0 Both our long-term and intermediate term Trade Triangles continue to be negative and we expect they will come into play perhaps as early as later today.\u00a0 Last Friday, December crude oil closed at $82.97.\u00a0 Let's see how we close today for the week. Intermediate and Long-term traders should continue to be short the crude oil market.
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\nMonthly Trade Triangles for Long-Term Trends = Negative
\nWeekly Trade Triangles for Intermediate Term Trends = Negative
\nDaily Trade Triangles for Short-Term Trends = Positive
\nCombined Strength of Trend Score = - 55
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\nSuggested Trading Instruments:
\nNon Leveraged ETF's: (Long USO) (Short the ETF USO)
\nLeveraged ETF's: (Long UCO) (Short DTO)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.<\/p>\n
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\nThe dollar index has pulled back approximately 50% from the lows that were seen in late August.\u00a0 With that move, it changed our intermediate term weekly Trade Triangle to negative, but did nothing to change the longer term positive trend based on our monthly Trade Triangle.\u00a0 This market is heavily oversold and we expect to see more two-way action before we see a bounce back up to the 78.50 area. We continue to be friendly to this index and want to hold long positions with money management stops.\u00a0 This index is coming from a large energy field that is capable of carrying it much higher. Long-Term traders should maintain long positions with the appropriate money management stops in place.
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\nMonthly Trade Triangles for Long-Term Trends = Positive
\nWeekly Trade Triangles for Intermediate Term Trends = Negative
\nDaily Trade Triangles for Short-Term Trends = Negative
\nCombined Strength of Trend Score = - 70
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\nSuggested DOLLAR INDEX Trading Instruments:
\nNon Leveraged ETF's: (Long UUP) (Short UDN)
\nLeveraged ETF's: (Long) (Short)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.<\/p>\n
\nREUTERS\/JEFFERIES CRB COMMODITY INDEX
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\nToday's pop in the crude oil market moved this index to the key resistance level that we've been talking about, 315 to 316.\u00a0 Crude oil plays a very crucial part in the composition of this index.\u00a0 The index is now at an important level of resistance which was former support back in early August.\u00a0 With both the intermediate and longer term Trade Triangles in a negative mode, we suspected that once our short-term indicator turns red, we will see this market pullback from current levels.\u00a0 On a Fibonacci basis we have not yet retraced 50%, but we are close to that 317.49 level.\u00a0 Intermediate and Long-Term traders should maintain short positions with the appropriate money management stops in place.
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\nMonthly Trade Triangles for Long-Term Trends = Negative
\nWeekly Trade Triangles for Intermediate Term Trends = Negative
\nDaily Trade Triangles for Short-Term Trends = Positive
\nCombined Strength of Trend Score = - 55
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\nSuggested REUTERS\/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
\nNon Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
\nLeveraged ETF's: (Long) (Short CMD)
\nFutures: Contracts are available to trade this market. Contact your broker
\nOptions: Options Contracts are available to trade this market.Contact your broker
\nWARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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\nAs always, we rely on our market proven Trade Triangle technology for catching the big moves.
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