Mover Mike

The battle between the bulls and the bears continues in the S&P 500 with neither side able to gain the upper hand. This choppy trading action will eventually lead to a large move one way or the other. The bulls are betting that we are headed higher and the bears are betting that the economy is going to tank.

In Adam Hewison’s latest video, he shares with you some of the key technical points that are still in play and where the market needs to go in order to break out of the current logjam that it’s in.

As always the MarketClub videos are free to watch and there is no need for registration.

Please let us know your thoughts.

All the best,

Tags: trading by MoverMike
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Just after I posted about the Yen, I found that MarketClub’s Adam Hewison made a short video where he takes an in-depth look at the euro and its relationship to the US dollar. The recent sharp rally in the euro, up from the 1.19 level, may be coming to an end.

He looks at several indicators that are close to confirming that this market may be set to head lower.

As always our videos are free to watch and there is no need for registration.

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BTW, our no obligation, free trial to MarketClub is still available for this week.

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All the best,

MarketClub Euro Yen

Tags: USD, trading by MoverMike
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I posted earlier today about the surge in Corn prices.  This evening I came across a June article in Business Insider titled How Goldman’s Control of Market Structure Might Literally Starve Us

In 2008, before the financial system almost melted down and threatened an economic collapse of biblical proportions, some very odd events occurred in the market for commodities derivatives. It is now clear that financial institutions and investors already understood that the mortgage market was teetering and that severe problems for the financial firms were on the horizon. Stress was building, but how did this relate to the commodities markets? We still do not know for certain, but we do know that it coincided with peak investment levels of $317 billion in several investment vehicles known as commodity index funds.

Goldman in 1991 set up a commodity index fund (GSCI) that would take in funds from clients and invest the proceeds in futures contracts, a portfolio of energy, agricultural, minerals and financial contracts. The fund would only be long the commodities and would roll over. This rolling over into the next contract month ” he fund became infinite, a rolling investment in an index of prices for commodities that never had an end date. Goldman made lots of money from fees and float, with a side benefit of increased volatility in commodities. Traders love volatility!

The big reason investors wanted into an indexed commodity fund is the inverse relationship between the equity markets and commodities.

If you believed that equity prices were going to go down (or if you wanted to hedge exposure to the stock market), you could make money by buying the index.

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see Goldman Sachs Index (GI, CME) chart

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The chart of the GSCI, IMO, looks like a head and shoulder bottom and the neckline comes through at about 515.  This an index to watch for a clue to the equity markets’ behavior.

Tags: Goldman Sachs commodity index funds Business Insider Hunger In America

Tags: Hunger In America, trading by MoverMike
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I want to make sure you are aware of the 2 week Trial to Adam Hewisons MarketClub and that you all had a chance to check out this great charting and indicator service that makes finding the trend as easy as possible. If you haven’t had a chance to take advantage of this special offer I encourage you to check it out now:

Also don’t miss tomorrows Webinar, spots are filling up quickly. The webinar will go over exactly how MarketClub uses the service and will cover the important features:

* How to use the ‘Smart Scan’ feature to help you find your next trade

* How the ‘Trade Triangles’ will tell you when to pull the trigger on a trade

* How “Instant Alerts’ will keep you ahead of any unexpected moves (and send you an email if your ticker crosses over certain ‘parameters’ as well)

* How to access their dedicated customer support team (they can explain all of the features of the system and walk you through it online OR on the phone).

If you have already signed up for the trial but not the webinar here’s your link:

All the best

Tags: MarketClub webinar

Tags: trading by MoverMike
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On January 3, 2010 I made what some may say is an outrageous, or maybe, dumb prediction in Outlook For Gold And Silver In 2010. Here’s what I posted:

Gold broke out in 2009, vaulting through $1,000 reaching a high of $1,218 in the first week of December of 2009. For the year Gold was up about 26%. What lies ahead for 2010? I think the period we’ve gone sideways under $1,000 is similar to the final run to $850 in 1980. From 1975 to 1979 Gold traded sideways under $180 then took of to $260. It had a nasty little pullback to $200 than when it broke the high of $260, it ran to $850 in a year. I think we are in the same spot now as then. That means that the most explosive part lies just ahead. By the end of the year, we trade at $6,500.

Frankly, I was tired of so many bozo’s in the financial world make lousy gold and silver predictions in publications and on the air. Lousy because they were never even close to the new highs we’ve seen for nine years running. You might think some would become bulls on the metal, but many keep waiting for a pullback and never get their followers on board. If their predictions don’t work out, so what, no one remembers and they can keep on making more.

That’s my big gripe. Few outside the GATA camp saw 2001 as the bottom for Gold (at $250 an ounce) and stayed with the metal (to $1.250) and their advice all along would have kept you out as a long termer. My little gripe? I was dissed in the today’s article, Silver’s Historical Correlation with Gold Suggests A Parabolic Top As High As $714 per Ounce! by Lorimer Wilson. She lists 23 people who are calling for a Gold high between $5,000 and $10,000. Twenty three, for crying out loud, and Mover Mike is not there.

There are also some predictions about the eventual high for Silver and some are saying the high for Silver could be over $700; $714 to be exact. With Silver at $18.19, that would be a 3,925% increase!

Gold has traditionally traded on average about 14 times Silver. However, on this bull run the ratio has gotten way out of whack. Many believe that soon we will see Silver again revert to the average and are watching intently the trend line of the Gold:Silver relationship.

The chart comes from the latest Midas du Metropole written by Bill Murphy at Le Metropole Cafe.  A break of the trend line would be very bullish for Silver!

Tags” Gold Silver Gold:Silver Ratio

Tags: Gold, Precious Metals, trading by MoverMike
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Downside targets for the S&P 500

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In this short video focusing on the S&P 500, Adam Hewison shares with you the downside targets that he has independently arrived at for this index. This video is short and to the point, but you will see exactly what he’s looking at. The chart pattern and downside counts are similar for all of the equity markets and I believe that this Friday we will see exactly what’s going to happen.

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Gold closes out Q2 on the plus side

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The gold market has had a lot of publicity and been under intense scrutiny lately as investors, both conservative (Glenn Beck) and liberal (George Soros), are weighing in and recommending a position in Gold.

Certainly the trend in gold remains positive, however there are some possible early chinks in the gold armor that Adam Hewision wants to bring to your attention in this short Gold video. I invite you to watch this video on Gold with no strings attached and to leave us a comment on this popular market.

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The Euro makes a stand

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After dipping just below the 1.20 level, the euro had a brief rally that pushed this currency back up to the 1.24/1.25 area. This corrective rally did not change the longer-term outlook for this market.

In this new short Euro video (less than two minutes in length), you’ll see our updated thinking on this currency.

As always our videos are free to watch and there is no need to register. All we ask is that you make a comment and let us know your views on this market.

All the best,

Tags: Investing, trading by MoverMike
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I posted at FocalEquity that, IMO, We are Right On The Edge of a big decline in our markets. I see today that Planet Yelnick is seeing much the same, in Death Cross Approacheth, illustrating his opinions with some great charts.

Tags: Investing, trading by MoverMike
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Make no mistake about it, last week was a very important week for the stock market. Looking on the weekly equity charts, you will see one of the most powerful Japanese candlestick lines. This one line on the chart indicates that there could be some major problems ahead for the stock market.

In Adam Hewison’s new video on negative engulfing lines, he explains what this line is and how it can play out in the short and longer-term time frames.

As always the videos are free to watch and there is no need for registration. I would really like to get your feedback on this powerful formation and what you see for the markets ahead.

Watch for the free offer of an Japanese candlestick eBook.

All the best,

Tags: trading by MoverMike
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Jesse’s Café Américain has the best looking charts of Gold (going up?), Silver (the elevator door is closing) and the S&P (bargain basement anyone?).

Tags: Investing, trading by MoverMike
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It’s the biggest market in the world and is traded 24 hours a day, 6 days a week, and therefore one that is impossible to ignore. I’m speaking, of course, about the forex market.

The question is, is this the tail that’s wagging the dog? Meaning, is the forex market, mainly the euro, dictating the trend in American and European equity markets.

The answer is yes, for the moment it is. Now, if you’re not familiar with the forex markets and the euro, you should look at the ETF FXE, the spot euro, and also the euro futures market at the Chicago Mercantile Exchange (CME), as they are all tradable.

In today’s short forex video we show you exactly how we think this currency will play out in the future.

As always, our videos are free to watch and there is no need for registration. Please comment on your thoughts on this market.

Thank you,

Tags: trading by MoverMike
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