Adam Hewison: President Obama’s Job Is On The Line

Tonight at 7 PM (EST), all eyes will be focused on President Obama and his speech on creating new jobs in America. This is probably one of the most important speeches he will ever give and could mean the difference between keeping or losing his job in November.

So what will this mean to the markets?

So far, President Obama’s words have not helped the markets in the past. It remains to be seen what is going to happen to gold, the equity and futures markets after the president’s speech. We will get an early indication as to how the markets interpret President Obama’s make or break speech during after hours trading and in the futures markets. As always, we will rely on our Trade Triangle technology.

The lack of any further downside pressure today in this bull market has kept the bulls hopes alive for an eventual move to $2,000. Of concern to us is the negative engulfing line for gold which we discussed and was confirmed yesterday. With our long-term and intermediate term trade triangles the uptrend is still intact and should head higher. Certainly $1900 is the resistance level for gold at the moment. Support comes in around the $1800 area and extends all the way down to $1750. Looking at the market visually it would appear as though we have possibly put in a double top. This will only be confirmed with a close below the $1750 level. Intermediate and long-term traders should maintain long positions with the appropriate money management stops in place.

Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 85

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