Barbie Shows Her Age

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 22nd of July.

Has Barbie reached the age of retirement yet? Today we received a major cell signal in Mattel (NASDAQ:MAT), the makers of the Barbie doll. I will be analyzing this stock today and sharing with you just how low I think this stock can go. In addition to Mattel, I will also be analyzing the share price of Teva Pharmaceuticals (NYSE:TEVA) and Hess (NYSE:HES).

For the past 12 months, the trend in gold has been to the downside. Today's question is, has gold's downtrend come to an end? There is evidence to suggest that it has, and I am basing this premise on the Fibonacci correction of 61.8% from the September 2011 highs around 1,900 and the lows seen in November 2008 that called for a correction in gold back to the 1,160 -1,170 area. The lowest level we have traded this year was 1,183, before reversing to the upside. It is not a perfect correction, but it is pretty close, given the almost five year time frame. Another important element to look at is on the weekly charts and for the first time in over a year we now have our parabolic indicators below the price action. I feel that's a significant step and one that should be noted. What I will be looking for now is should the MACD turn positive, it will be another sign that the reversal in gold is getting stronger.

While it is still too early to get enthusiastically bullish on gold, our intermediate-term weekly Trade Triangle turned positive on the 21st at 1296.67, basis the spot market. This could be our first clue that gold is making a turn back to the upside. The gold market is beginning to show signs of life that maybe the worst is over for this once glittering icon of wealth.