The Beat Goes On And On And On…

The beat goes on and on and on. I am of course talking about the debt ceiling talks which are absolutely imperative to the U.S. I think that most Americans are just getting disgusted with both parties and I think come election time we will see some major changes.

This should be a very interesting Friday with Gold at or close to its highs and Silver higher for the day so far. The equity markets just seem to be hanging on by their fingernails now and I expect we will see further pressure on the markets as the day wears on. Unless there’s some major news that comes out I can’t imagine these markets rallying from their current levels.

The opportunities to make money right now are huge. We’ve outlined clearly in our past reports the line in the sand for the S&P 500 and of course we remain positive on the precious metals. One trade you might want to consider this weekend is Gold. If Gold closes at or close to its highs for the day we want to go home with an additional trading unit. If this happens it will qualify as a 52 week high trade rule which means you go home long Gold and take profits on Monday or Tuesday. Use tight money management stops on this position.

Now, let’s go to the markets and see how we can protect and make your money grow.

S&P 500

Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 75
It looks like this market is just teetering on the edge of a precipice. The symmetry of the S&P500 is striking and should not be ignored as we could be making a right shoulder of a much larger head and shoulders formation. The Trade Triangles remain in a positive mode and we are expecting resistance around the 1333 to 1338 levels. Look for support to come into this market around the 1300 level. The 200-day moving average comes in at 1276, as does a long-term trend line from the lows set in March of 2009.

SILVER

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
A close today over 39.50 will be viewed as extremely bullish for this market. Traders should be long this market as all of our Trade Triangles are in a positive mode indicating higher prices ahead. As we have been indicating, we are expecting this market to reach highs towards the latter part of Q3 and early Q4. Look for support for this market at 36.00.

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 = + 100
The current market action in gold is very positive and this market is more than likely going to qualify for a 52 week high rule. Any market that is making all time highs must be considered bullish. All of our Trade Triangles are green indicating that a strong trend is in place. We expect to see this market move over $1,600 an ounce in the near future. Longer term, we are looking for a move higher until the end of Q3 and possibly into Q4.

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 = – 55
The -55 score indicates that this market remains in a trading range. At the present time, the crude oil market continues to have problems just over the $99 a barrel price point. Both are indicators long-term and intermediate term remain negative for this market. Support comes in around $94 a barrel and resistance coming in just over $99.

DOLLAR INDEX

Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 75
For the past two months, this index has been trapped in a broad trading range. The Dollar index remains below its 200 day moving average. The longer term trend for the Dollar index is positive based on our Trade Triangle technology. Resistance remains between 76.00 and 77.00. Support comes in today at 74.00.

REUTERS/JEFFERIES CRB COMMODITY INDEX

Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = + 60
Since May of this year this index has moved in a broad trading range. Our Trade Triangle technology is mixed on this market at the present time. Resistance is now at 350 and support looks to be at 340.

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

Share

Pivot, Support and Resistance Numbers For Monday Morning

The S&P 500 was higher due to short covering overnight as it consolidates some of last Thursday's decline. Stochastics and the RSI are turning bearish hinting that a short term top might be in or is near.

However, closes below the 20 day moving average crossing at 1107.19 are needed to confirm that a short term top has been posted. If March extends last year's rally, the 62% retracement level of the 2007-2008 decline crossing at 1155.15 is the next upside target.

Monday's pivot point, our line in the sand is 1119.18

First resistance is last Tuesday's high crossing at 1128.20
Second resistance is the 62% retracement level of the 2007-2008 decline crossing at 1155.15

First support is last Thursday's low crossing at 1110.00
Second support is the 20 day moving average crossing at 1107.19

Check out the new "Trend TV"

The NASDAQ 100 was higher overnight as it extends last week's trading range. Stochastics and the RSI are overbought but are neutral signaling that sideways to higher prices are possible near term. If March extends last year's rally, the 75% retracement level of the 2007-2008 decline on the weekly continuation chart crossing at 1947.00 is the next upside target. Closes below the 20 day moving average crossing at 1823.27 would confirm that a short term top has been posted.

First resistance is last Thursday's high crossing at 1882.00
Second resistance is the 75% retracement level of the 2007-2008 decline on the weekly continuation chart crossing at 1947.00

First support is the 10 day moving average crossing at 1855.62
Second support is the 20 day moving average crossing at 1823.27

Get 10 Trading Lessons FREE

The U.S. Dollar was lower overnight and is trading below initial support marked by the 10 day moving average crossing at 78.21. Stochastics and the RSI have turned bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 77.52 are needed to confirm that a short term top has been posted. If March renews last month's rally, the 38% retracement level of the 2008-2009 decline crossing at 79.72 is the next upside target.

First resistance is the reaction high crossing at 78.77
Second resistance is the 38% retracement level of the 2008-2009 decline crossing at 79.72

First support is last Tuesday's low crossing at 77.67
Second support is the 20 day moving average crossing at 77.52

Just click here for your FREE trend analysis of UUP

Share

Gold Weekly Technical Outlook

Gold's recovery was limited at 1142.9 after hitting 4 hours 55 EMA and fall from 1227.5 resumed and reached as low as 1097.4. Initial bias remains on the downside this week and further fall should be seen to 50% retracement of 931.3 to 1227.5 at 1079.4 next. On the upside, above 1142.9 resistance will argue that a short term bottom is formed and bring stronger recovery. But after all, upside should be limited below 1227.5 and bring another fall to continue the correction.

In the bigger picture, rise from 681 is expected to develop into a set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is treated as the third wave and has possibly completed at 1227.5 after missing 100% projection of 681 to 1007.7 from 931.3 at 1258. Deeper pull back could now be seen to 1026.9/1072 support zone, or even further to retest 1000 psychological level. But downside should be contained well above 931.3 support and bring up trend resumption to another high above 1227.5.

In the long term picture, rise form 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. Next long term target is 100% projection of 253 to 1033.9 from 681 at 1460 level. We'll hold on to the bullish view as long as 931.3 structural support holds.....Comex Gold Continuous Contract 4 Hours Chart.


What are you waiting for....Get 10 Trading Lessons FREE


Share