Hello fellow traders everywhere! Adam Hewison here, co-founder of
MarketClub with your mid-day market update for Friday, the 10th of
February.
The Bear Bites Back!
After six weeks of uninterrupted weekly gains in the equity markets, the bear bites back.
Is demand for gold on the wane, as sentiment towards stocks comes alive?
With Valentine's Day just around the corner, has the demand for gold
diminished? We will take an in-depth look at the gold market today.
3 Stocks on the move today:
NOBLE (NE), XL GROUP PLC (XL), and FIRST SOLAR (FSLR).
Did MarketClub's Trade Triangle technology get it right on these three stocks?
Trading Tip:
DON'T FIGHT THE MARKET … MOVE WITH THE MARKET
Now, let's analyze the charts with MarketClub's Trade Triangle Technology.
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S&P 500 INDEX
BIG PICTURE: Strong Trend +90
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
The S&P 500 index should begin to find support beginning at $1330
and extending down to the $1320 area. Our next target zone for this
index is $1360 and we would not be surprised to see this level reached
early next week. Longer-term we expect this market to move up to the
$1550 to $1600 level by late May or early June based on our cyclic work.
With all three of our Trade Triangles green, a bull market is
underway. Long and Intermediate term traders should now be holding long
positions in this index with appropriate money management stops.
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Suggested S&P 500 Trading Instruments:
Non Leveraged ETF's: (Long SPY) (Short SH)
2 x Leveraged ETF's: (Long SSO)(Short SDS)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
BIG PICTURE: Emerging Trend +70
TRADE TRIANGLES: Long-Term = Bearish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING SYSTEM: Trading Range 50 – 65 | Emerging Trend 70 – 80 | Strong Trend 85 – 100
A close in the silver market at $33.65 would create a Doji line on
the weekly chart. This would be further evidence that this market is
meeting resistance and topping out. The silver market continues to
oscillate between support at $33 an ounce and resistance at just over
the $34.50 level. We think this market is at the top of a trading cycle,
but has not provided conclusive proof that the cycle has topped out.
With our long-term monthly Trade Triangle in a red negative mode, we
expect to see this market run out of steam around current levels. This
particular indicator has done extremely well in the past. Long-term term
traders should be in short positions in silver with appropriate money
management stops. Intermediate term traders should be on the sidelines.
Suggested SILVER Trading Instruments:
Non Leveraged ETF's: (Long SLV) (Short the ETF SLV)
Leveraged ETF's: (Long AGQ) (Short ZSL)
Futures & Options: Contracts are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin.