By Adam Hewison

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 9th of November.

Italian bonds skyrocket as the Euro crashes. Today, we received a major sell signal on the Euro against the dollar. Today was a game changer, as we now have all our Trade Triangles in a sell mode versus the Euro. Next stop for the Euro is 1.3000 in the short term.

As discussed for quite some time, nothing has changed in Europe besides a lot of posturing and delay tactics. The bottom line is, Europe is in serious trouble and the man who got us into this mess, Jean-Claude Trichet, has retired and has hopefully left the world stage.

With soaring yields on Italian bonds, the euro crashing, it is only a matter of time before we see other fractures in the global financial system coming into focus.

For some time now, the gold market has been telling us to be very concerned about what is happening in Europe. Greece was just the first act, Italy is the main event. The final act will come next year in this three part tragedy.

One last thing… Don’t bet on Berlusconi resigning. He didn’t get to be an Italian billionaire by playing by the rules.

Now, let’s go to the charts and the video and see how we can create and maintain your wealth in 2011.

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S&P 500 INDEX
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OUR VIEW: $1275 resistance – $1240 support

A close today below the $1240 and $1237 levels will signify that a top has been put in place for this index in the short term. We still believe that the $1220 level holds the key for the S&P 500. With a Chart Analysis Score of +60, we are in a trading range which could be very broad at this time. Intermediate traders should be on the sidelines waiting for a new Trade Triangle short signal. Long-term traders should either be in cash or continue to hold short positions in this index.

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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
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Suggested S&P 500 Trading Instruments:
Non Leveraged ETF’s: (Long SPY) (Short SH)
2 x Leveraged ETF’s: (Long SSO)(Short SDS)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT)
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OUR VIEW: Trading Range

Nothing has changed from our earlier comments. The spot silver market remains in a broad trading range bound by $33.50 an ounce on the downside and $35.50 an ounce on the upside. With our Chart Analysis Score reading +70, we seen no clear-cut trend at the moment for this metal. Generally speaking, the major trend for silver continues to be negative while the intermediate trend is in conflict based on our Trade Triangles. Long-term traders should continue to hold short positions in silver with appropriate stops.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trend = Positive
Daily Trade Triangles for Short-Term Trends = Positive
Combined Strength of Trend Score = +70
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Suggested SILVER Trading Instruments:
Non Leveraged ETF’s: (Long SLV) (Short the ETF SLV)
Leveraged ETF’s: (Long AGQ) (Short ZSL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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GOLD (SPOT)
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OUR VIEW: Resistance at $1,800 basis spot

The gold market continues to grind upwards, as more and more uncertainty creeps into the worlds financial systems. Our Chart Analysis Score remains intact with a positive +100 reading indicating that this market is in strong hands. With gold moving higher, it indicates to us to be very concerned about what is happening in Europe and the financial markets. Long-term, intermediate term and short-term trends remain positive for this precious metal. Intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.
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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
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Suggested GOLD Trading Instruments:
Non Leveraged ETF’s: (Long GLD) (Short the ETF GLD)
Leveraged ETF’s:(Long UGL) (Short GLL)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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COPPER (DECEMBER)
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OUR VIEW: Copper breaks support

Yesterday, December copper closed below our key support level of $3.50 and triggered the PSAR indicator to give a sell signal. Only our weekly Trade Triangle remains positive and we expect that indicator will turn negative again. Copper generally reflects economic conditions, and as such is influenced by equity prices. With a Chart Analysis Score of -75, this metal is beginning a downward trend that will be confirmed when our weekly Trade Triangle turns red. Generally speaking, the major trend for this metal continue to be negative while the intermediate trend is in conflict. Long-term traders should continue to hold short positions in copper with appropriate stops.
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = -75
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Suggested Copper Trading Instruments:
Non Leveraged ETF’s: (Long JJC)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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CRUDE OIL (DECEMBER)
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OUR VIEW: Market getting into thin air

If the December crude oil market closes higher today, it will mark seven straight days that crude has closed higher. With a Chart Analysis Score of +70, this market might be trying to move out of its broad trading range and reach the $100 mark. That level represents a 61.8% retracement of the entire down move starting from the highs seen earlier this year in April. Intermediate term traders should be on the sidelines. Long-term traders should continue to be short the crude oil market.
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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
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Suggested Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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DOLLAR INDEX
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OUR VIEW: Dollar breaks over resistance

We believe today’s action in the dollar index pushes this market higher. With the index moving over near term resistance at $77.50 today, we expect to see further upside potential again. The log jam of the past several days has been resolved to the upside. We are now looking for a test of the $79.50 – $80.00 levels. Our longer-term monthly Trade Triangle remains in a positive mode and our intermediate term weekly Trade Triangle turned positive today. Long-Term and intermediate term traders should maintain long positions with the appropriate stops in place.
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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
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF’s: (Long UUP) (Short UDN)
Leveraged ETF’s: (Long) (Short)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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REUTERS/JEFFERIES CRB COMMODITY INDEX
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OUR VIEW: Trading Range

Our short term Trade Triangle turned negative today, indicating that this index maybe rolling over to the downside. This index may be close to a reversal and running out of steam. Like many of the other markets we are tracking right now, the CRB index is in a trading range with a Chart Analysis Score of -55. Resistance is evident at the $325 level and support comes in around the $315 area. Look for these levels to contain the market for the next few days. Our longer-term Trade Triangles remain negative for this index. Intermediate term traders should be on the sidelines. Long-Term traders should maintain short positions with the appropriate money management stops in place.
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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 = -55
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Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF’s: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF’s: (Long) (Short CMD)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.

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HOW TO USE THE MARKETCLUB SCORING SYSTEM:

Chart Analysis Score: 50 – 65 Trading Range
Chart Analysis Score: 70 – 80 Emerging Trend
Chart Analysis Score: 85 – 100 Strong Trend

[Ed. Note: Adam Hewison is the president, chief executive officer, and a founder of INO.com, Inc. He is also the author of two highly-acclaimed guides to the forex markets: International Monetary Report and Right on the Money, the Definitive Guide to Forecasting Foreign Exchange Rates. Sign up for his FREE email Trading Course by clicking here now.]