What a Week....Let’s go to the 6 Major Markets we Track Every Day

Well, I must say it has been quite a week! (And I think that’s an understatement…) It is very seldom you see 400+ swing days in the Dow in different directions four days in a row. This past week will go down in the history books as one that will be remembered for a long time.

So 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 = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = – 100

As I began mentioning on Tuesday, I felt that an interim low had been put in place with the sharp down move. This also satisfied the Fibonacci count that I discussed and showed in earlier broadcasts. So where do we go from here? I certainly would not rule out further upside action and a move to the 1220/1250 area in this index. However, it’s important to remember that the major trend remains negative. In the very near term I expect we will see the Williams%R, which has been oversold since late July, rally from its current levels of -70.71.


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SILVER 

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 = – 60

The silver market continues to move in a sideways motion. Intermediate traders should be on the sidelines and not be involved with this market at the present time. Given the tremendous strength that we have seen in the gold market, and the general lack of any strength in silver, I think it is wise to leave silver alone at this time.

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GOLD 

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 = + 90

The gold market has been a standout, trading as high as $1,814 an ounce on a intra-day basis on the 10th of August. Since that time the market has steadily come under pressure and profit taking. One key level we are looking at today is the $1,731 area. Should that area be reached, I would say we will see further profit-taking coming in to the market. For the moment, I believe that the high we saw on Wednesday is going to be an interim top. Short-term, intermediate term and long term traders should maintain long positions in this market with the appropriate money management stops.

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CRUDE OIL 

Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = – 85

Since making a low of just under $76 a barrel, the crude oil market has recovered over $10 a barrel. The weekly Japanese candlestick “Hammer” formation indicates that we have seen a low and a turning point in this market. I expect that the crude oil market basis September will run into resistance between $88 and $90 a barrel. This is where the confluence of Fibonacci counts come in, and I expect that this will offer sufficient resistance to thwart the current rally. Our Trade Triangle technology remains negative on crude oil for the long term.

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DOLLAR INDEX

Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 65

The dollar index continues to go nowhere and is trapped in a broad trading range with the 73.50 level acting as support, and resistance coming in at 75.50. Our Trade Triangle technology is indicating that this market is in a trading range and is best approached using Donchian trading channels and Williams %R indicators as trading tools.

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REUTERS/JEFFERIES CRB COMMODITY INDEX

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 = – 75

The Reuters/Jefferies CRB commodity index has put in an interim low at this point. We expect we will see further upside action, however I do believe that this action will be somewhat limited on the upside. I would not rule out a move to the 332–335 area.

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