Tuesday, October 18, 2011
Adam Hewison: Was Last Week’s Market Rally a Head Fake?
The rally was pretty unusual in the fact that it was on very light volume and it took off to the upside very quickly without any kind of market consolidation.
This is going to be a big week! Are we going to continue going up? Or are we going to see the longer term downtrend kick in? A downside reversal could be quite dramatic. This also holds true for the crude oil market, which has been mirroring the US equity markets.
The problems in Europe remain and we see little reason to celebrate any victories on that front. Greece will eventually default, and it remains to be seen if Ireland, Spain and Italy will dodge a bullet.
Every week it seems we go from “the world is coming to an end” to euphoria. Eventually the markets will sort out this conundrum. Our view longer term remains with our Trade Triangle technology which remains negative on the equity markets indicating long term weakness.
Now, let’s go to the 6 major markets we track every day. Click here for unlimited access to this and other trading videos FREE!
Take advantage of our free weekly low risk stock picks