Adam Hewison: How To Avoid Slice-O-Matic Markets

One of the biggest challenges many traders face is avoiding “Slice-O-Matic” markets. What is a “Slice-O-Matic” market? Well, it’s a market that lacks any real direction. We can call these markets “Slice-O-Matic” markets as they cut trader’s equity into ever smaller pieces. For the past seven days, the S&P 500 has not closed in any one direction from more than one day. This is the choppy scenario that many traders would like to avoid.

So how is that done?

One of the simplest ways that I know is to use our Trade Triangle technology. The major Trade Triangle to watch trading stocks is the monthly Trade Triangle, as this determines the trend. We use the weekly Trade Triangles for timing purposes. Let me give you an example, if the last monthly Trade Triangle is green, this indicates the major trend is up for that stock.

You would then use the initial monthly Trade Triangle as an entry point and the weekly red Trade Triangle as an exit point. You would only reenter a long position if and when a green weekly Trade Triangle reappeared, providing the monthly green Triangle is still in place. You would again use the next weekly red Trade Triangle as an exit point.

The reverse is true if a red monthly Trade Triangle shows that the trend is down. You would then use the weekly green Trade Triangles for covering short positions and the weekly red Trade Triangles for reentering short positions.

When you have two opposing Trade Triangles, like the red monthly Triangle and green weekly Triangle in the S&P 500, it indicates that you should be on the sidelines and in cash. You would be amazed at just how well this simple formula works in the stock market.

So there you have it, a simple, easy way to protect your equity and avoid "Slice-O-Matic" markets.

Let's check the trend analysis for the S&P 500 INDEX

The market action in the S&P 500 index continues to be very choppy and we expect that to continue in the near term. The long term monthly Trade Triangle is negative on this market and yesterday’s action did not alter that. With a Chart Analysis Score of + 70, we are stuck in a trading range waiting for some news to shake us out of the doldrums. Intermediate traders should be on the sidelines waiting for a new Trade Triangle signal. Long term traders should either be in cash or continue to hold short positions in this 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 = + 70

Just click here to see my weekend update video on the 6 major markets we track every day.

Helpful Analysis for Stocks, Futures, and Forex pairs

With all the movements in the market recently, traders and investors are focusing more and more on protecting capital. I’ve found that by properly knowing the trend of the symbols in my portfolio and keeping on top of those moves, I’m able to protect capital and pull profits out of the market when I can.

But staying on top of the changes and momentum shifts often becomes overwhelming, especially if you’re watching a large number of symbols and open positions, like me. One free tool that I utilize to help me keep on top of my portfolio is called Trend Analysis, from the team that runs MarketClub. Trend Analysis is a daily email analysis tool that gives me insight into exactly what my portfolio is doing.

Follow This Link to get your first symbol analyzed and from there you can easily add more symbols to get a daily update, which I find very helpful.

Again thanks go to the MarketClub team for making Trend Analysis available for no cost to us. Just click here to learn more about MarketClub.

Welcome Our New Contributor Chris Cooper

The Stock market Club would like to welcome Chris Cooper as our newest contributor. Chris is an experienced stock market technician that specializes in combining a unique key channel analysis along with technical analysis.

What Are The Five Hot Trending Markets? Check Out This Great New Video

In this great five minute video, we analyze the major trends in what we call the big five. We’ll be looking at the DOW (INDEX_DJI), the Dollar index (NYBOT_DX), crude oil (NYMEX_CL.J09.E), gold (FOREX_XAUUSDO), and the CRB index (NYBOT_CR).

We will show you step-by-step how to analyze each of these markets quickly to get the trend.

Once you discover this simple approach, you’ll be amazed at just how accurate it is over time.

This is one of our most important videos and we want you to be able to see it without having to register or pay a fee to watch it. We honestly believe that our new video can make a world of difference to how you approach the markets in the future.

Just Click Here To Watch Video

In times like this the trend is your friend!

How To Find Winning Trades In Any Market

One of the really great benefits of MarketClub is the ability to find markets that are headed higher and those headed lower.

We do this through the use of our Smart Scan technology that spots markets that are trending either on the upside or downside. This technology also helps identify markets that are moving sideways and may be candidates to watch for breakout price action.

Now imagine having a tool that can do this for stocks, futures, precious metals, ETFs and foreign exchange. You can see the scope and the power that this tool has to spot winning trades in any market.

In this short video, we will show you how to utilize this powerful tool and just how easy it is to filter and find trades that meet criteria that you set. The video is available at no charge and there is no registration requirements.

Just Click Here To Watch Video

I hope you enjoy the video and I hope that you take away some of the valuable tips that you can implement in your trading plan for 2009.

Complimentary Trend Analysis For Stock, Futures, And Forex

The markets have been crazy lately. It’s hard to believe the DOW was over 14,000 at one point, but now it’s dropping hard and fast! But how are we able to tell which direction the market is going?

Just Click Here To Sign Up

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

- Have we seen the Indexes bottom or top?
- Is a reversal in the near future?
- Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email inbox. Analyze ANY Stock, Futures, or Forex symbol.

Just Click Here To Sign Up