Weekly Trade Triangle Indicates Exit All Long SP 500 Positions
In our last video on the S&P 500 (10/27), we indicated that this market may have topped out for the year. Today’s action puts in place a weekly “Trade Triangle” which indicates that a temporary or a permanent top is now in place for this market.
In this latest video, I share with you some of the ideas that I think could potentially come into play for this market. Not only do I have some downside targets in mind, but I also see a pattern that could evolve in the next several weeks which will confirm that we’ve made a serious high in this market.
As always our videos are free to view and require no registration. I would really like to hear your thoughts on this market. Please feel free to leave your comments on the blog.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Adam,
I am curious - have you ever examined buying when the daily triangle goes red and the Mon & Wkly are green - for a possible better entry or mean reversion system? I enjoy the concepts and your updates.
Jeff,
No I have not. That would be trading against the major trend which is not a long-term successful solution for traders. That is my opinion.
All the best,
Adam
I may not have been clear, Adam. I was suggesting when the Green Monthly and Green Weekly triangles are present (Major Trend being favorable) - perhaps making a entry or adding to your position on a Daily red would enhance your returns or create a swing trade system. Have I clarified my statement?
Jeff,
Thanks, I understand what you are saying. Interesting, it may work. What in fact you are doing is buying into a counter trend pullback in the short-term looking for the major and intermediate trends to continue.
There are pros and cons, the main one in my mind would be money management.
Thanks for getting back to me.
Adam
Sorry my email was inaccurate on the previous comment.
I never really fully understood how trend lines are drawn (support/ resistance)levels. Are they drawn at a 45% angle or is it something else?
I would appreciate how indicators RSI and MACD work and what I should be looking for. I want to to use the indicators that will give me the greatest chance for success. I did not participate in the big run up of the past few months because I did not feel comfortable with my knowledge base. Investing has taken on a whole new dimension recently with the meltdown/financial corruption. I want to position myself to understand what the market (internal market) is telling me. Your comments are more than welcome.
Dave,
We offer a free traiding course which I highly recommend that you take to learn more about the market.
Just give our office a call at 1-800-538-7424 or at if you’re not in the US you can call 410-867-2100. You can also e-mail us at support@INO.com.
Just asked for a tech support and they’ll be happy to send you the link for the course.
All the best,
Adam
yours technicals graphs seem to be right.But from my view mrkt’ll go another hgh from 3rd dec to 25dec.
Thanks Adam! So, would you be looking to go into any of the Inverse ETFs now - based on this latest video? If so, which ones do you think we might want to consider and when, please?
Thank you!
Kent,
Thank you for your feedback.
I would use the ETF SH to be short the S&P 500 if and when a red triangle on the monthly trade triangles occurs.
Hope this helps.
All the best,
Adam
I am looking at a 6Mth on the S&P. Is there a Head-and-Shoulders pattern forming. Left shoulder from the first part of Sept to the first part of Oct. Then a head from first part of Oct to last part of Oct that broke the 50MA. Then a reverse and the start of a right should the first part of Nov.?
Each peak hit mid month then came down. Question… What are the possible outcomes?
a) Does not top of right shoulder and keeps going?
b) Tops for a right shoulder, then what?
a. Goes down the length of the neck?
b. Goes back up and forms some energy channel or energy triangle?
c) ??
Am I reading this right? What are you thoughts?
Thanks, TH
TH,
Thank you for your feedback.
I am looking at the same thing and believe the potential is there for this market to roll over. If it does then we will probably complete a head and shoulders top.
All the best,
Adam
Does this mean you will exit the SPY holding in the Perfect Portfolio, or is this a short-term fluctuation you will ignore for your 36-month time horizon. Thanks.
Jonathan,
Thank you for your feedback.
In the perfect portfolio we use the monthly trade triangles and not the weekly trade triangles. That being said, the perfect portfolio is still long the S&P 500. We will only go short on this market and probably use the ETF SH if and when a monthly red triangle appears.
I hope this answers your question.
All the best,
Adam
Hello Adam,
Whilst I think we have seen the end of the high
momemtum upward price moves of the last few months,
my own time and price analyis suggests the last peak will only be
a temporary one.
We should see some sort of low between the 4th and the 10th of
Nov, and thereafter the market will “struggle” up
to a new high between Jan and March 2010, to
complete the pattern and the rally.
Bernanke still buying toxic waste so I dont know if this is really top, it could be correction but I dont thinks so we will going down big time.
Thanks Adam.
Why not use the ultrashort &P 500 SDS rather than SH?
Thanks
That’s funny the last weekly red trade triangle before this one marked the bottom of a pretty decent swing trade.
Hi Mr Adam,
I am a Hong Kong index heavy trader. I would like to know if your market club could provide some good almost 90% accuracy of the next day Dow Jones,
Nasda and S & P either positive or negative movement. Asia market is heavily influence by either the positive or negative closing prices. If I am able to access to such reliable almost accurate movement prediction, I think I will subcript to your market club.
Of course I am not asking for 100% accuracy , just high percentage of accuracy will help in my asia trade.
Thanks,
Best regards,
Winstorn
Winstorn,
Our quarterly results show a 89% win rate. Having said that I suggest you try MarketClub for 30-days and see if it is right for you. I am not sure how you trade or if MarketClub will fit your trading personality.
Here is what I do know, we have thousands of traders all over the world that access and use MarketClub as their main source of information everyday.
Here is the link you need.
https://secure.ino.com/products/marketclub/
All the best,
Adam
I predict market trend as follow.ON 4TH NOV–RISE,5TH NOV–RISE,6TH NOV–DOWN,9TH NOV–RISE,10TH NOV–DOWN,11TH NOV–RISE,12TH NOV–RISE,13TH NOV–RISE.LET’SEE HOW MARKET WORKS.
Thanks Parmindersingh. Hope that you could share on how you predict the trend for so many days. Lately you can see the Dow Jone index swing wildly from big positive to next day big negative.
Looking forward to you reply.
Thanks
Best regards,
Winstorn
PARMINDERSINGH you should day trade your theory
This is a drag. You pages wont load. The video wont load.
Lars,
I think the problem may be on your end. All is working fine on the website.
Good luck,
Adam
YES,ON4TH&5TH BSE INDEX ON RISE.LETS SEE NEXT DAY &AFTER.
Another great call by MarketClub. Market up 5% since this post!!! LOL!!!
HI,WINSTORN EE & DAN DE MAN,
HOW ABOUT MY PREDICTION FROM 4TH NOV TO 11TH NOV (till date).
HI,ADAM
I CAN PREDICT WORLDS MARKET TREND AS I PREDICTED IN ‘WEEKLY TRADE TRIANGLE INDICATES EXIT ALL LONG SP 500 POSITION.