Adam Hewison: What A Difference A Day Makes

The song goes like this; “What a difference a day makes....” Gold, sharply lower on heavy profit taking and liquidation. Equities, sharply higher as all the problems in the world are solved. The U.S. dollar has a hiccup. Crude oil up on new demand? All this while the world waits for President Obama’s speech tomorrow evening. Here’s a rhetorical question for you, how many cans can you kick down the road at the same time? Well, if you’re a politician you become pretty adept at kicking as many cans as you want down the road.

The S&P 500 continues to claw its way back from the lows yesterday around the 1140 area. However, the pattern in this market is not a positive one in my estimation. The Trade Triangles are in a longer term negative mode. We have to believe that this market is going to resume its downward trend. Today’s reading of +55 indicate a sideways trading range.

We would use the Williams %R indicator to establish new short positions. Long term traders should continue to maintain short positions or be out of the market completely 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.

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

Unlimited access to this and other trading videos FREE! Click Here!