Dear Trader,

It’s no secret markets go up and they go down. If you weren’t trading many of the stocks on the short side in ’07 you missed out on some stellar trades.

Here’s where Goldman Sachs (NYSE:GS) made a ton of money.

“Goldman, which reaped a third-quarter profit by taking a “short” position on mortgages” This according to Bloomberg.

One thing that help Goldman was the removal of the “uptick rule”.

Shorting stocks is a valuable tool you need to put in your arsenal of trading for ’08. We expect to see a great deal more “Shorting” opportunities in the new year.

Adam Hewison

Riverbed Tech Inc on the NASDAQ

The stock we are discussing today is Riverbed Tech Inc, trading under the symbol RVBD on the NASDAQ Exchange. We have been negative on this stock for sometime and feel it still has further to go on the downside.

The market action on Monday the 17th of December can only be described as extremely negative.

Unlike most recommendation that always seem to want to buy stocks we want to short this stock looking for it to still move lower in the future.

With the removal of the uptick rule on July 6th of 2007 it now allows traders to short a stock without having to wait for an “uptick”. This is great for traders as it evens the playing field between buying and shorting securities.

Here’s a trading idea for Riverbed:

* Short Riverbed over $25.00.
* Use a stop at 28.12 to protect capital or a stop that fits your trading.
* First target zone 19.05.
* Take half of your profits at 19.05 and let the balance ride.
* Longer term target zone is in the single digits.

Every success if you take this trade.

Adam Hewison
is President of INO.com

We cannot endorse or guarantee any trade. This trade is for educationa purposes only and shows how professional traders view the markets.

is done or at least 50% done!

Here’s your seventh lesson in “The Secrets Of
Professional Floor Traders” mini email course.

Lesson 7 – “The Relative Strength Index”
by Adam Hewison
===============================================

One of the most useful tools employed by many technical
traders is a momentum oscillator which measures the
velocity of directional price movement.

One of the biggest advantages of using this indicator
is spotting divergences.

A divergence between price action and the RSI is a very
strong indicator of a market turning point and is the
single most indicative characteristic of the Relative
Strength Index.

Because this lesson contains charts, it has been posted
here.

“The Relative Strength Index”

Have a great trading week and…

MERRY CHRISTMAS!

P.S. Look out for the next lesson – “Stochastics”.
Even if you have never heard that word before don’t
miss this lesson.

There a just a few more shopping days left before Christmas, but the silly season for trading is happening right now!

Last week we talked about the silly season for trading, and what it’s indications are for the trader. We do not recommend serious traders taking positions in the last two weeks of the year. These are thin, illiquid markets, that are going to have large swings on very little volume. We recommend using the balance of the year to reflect on this past years trading and prepare oneself for the new trading year.

There will be some amazing trading opportunities in ’08, both on the long side, and on the short side of the market. We expect energy prices to play a dominant role in the new year. This is a market you should get to know and be very conversant with. We expect oil prices will offer up some big profits in 2008. If you have not seen our new 90 second crude oil video, I highly recommend that you take a minute and a half of your time to watch this online video. You will see just how we look at crude oil, and how you can capture some big profits in ’08 using our trade “triangle technology”.

So what do we do with the markets for a balance of the year? The smart thing to do is to sit on the sidelines and do nothing. Most traders have made their money earlier in the year and have taken their profits. This is not the time to be looking to make fast money in the last two weeks all the year.

So how do we see the U.S.economy in 2008? Is it a time of inflation or a time recession? We still feel like this Sub-Prime mess with the CDO (collateralized debt obligations) and SIVs (structured investment vehicles) along with the soft housing market, is going to create problems for the economy in 2008.

We also see the FED and Ben Bernanke as impotent and pretty powerless in making any lasting change.We are all paying the price of interest rates that were artificially too low for too long in the 2002-2003 period.

So lets look at the markets (remember this is like flipping a coin for the next two weeks)

Gold remains the trading range and choppy.

Stocks look toppy and choppy and stuck in a broad trading range.

Crude Oil looks to be in the trading range.

The market in general are best left alone for the balance of the year. Enjoy the holidays forget the markets for two weeks.

Speaking of the markets …

———————-
LEARN HOW TO TRADE CRUDE OIL IN 90 SECONDS

Is it possible to learn how to trade Crude Oil in just 90 seconds???

“OH YES” and here’s why.

There are three key factors that drive crude oil prices.

1. SUPPLY

2. DEMAND

3. PERCEPTION

Now you can stack the deck in your favor and trade like a pro. All you need to do is watch my NEW 90 second video.

No registration required … Find out how you can become a winner in crude oil in just 90 seconds.

http://broadcast.ino.com/videos/90secondcrude/?blog

———————-
SOMETHING TO REMEMBER
If Santa Claus Should Fail to Call, Bears May Come to Broad & Wall. [Trader's myth that if we don't see a "Santa Claus rally" in December, the market will decline in the coming year.]
———————-
NEW POLL “DO YOU SUPPORT THE GOVERNMENT’S NEW SUBPRIME BAILOUT
———————-
Sorry, we didn’t mean for it to sound like a bailout. But hey, you know what, if it walks like a duck, and quacks like a duck, then it is a duck, right?

Nows your chance to be heard. Vote in our new poll and lets see how the duck quacks.
———————-
ARE THE MARKETS CONFUSING RIGHT NOW?
Now you can use this really cool analysis tool and get instant answers
to your market questions in plain English on any market.
There is no cost.
———————-
TIME TO LAUGH
A very successful stockbroker parked his brand-new Mercedes in front of his office, ready to show it off to his colleagues. As he got out, a truck passed too close and tore off the door on the driver’s side. The stockbroker immediately grabbed his cell phone, dialed 911, and within minutes a policeman pulled up. Before the officer had a chance to ask any questions, the stockbroker started screaming hysterically. His Mercedes, which he had just picked up the day before, was now completely ruined. When the stockbroker finally wound down from his ranting and raving, the officer shook his head in disgust and disbelief. “I can not believe how materialistic you stock brokers are,” the cop said. “You are so focused on your possessions that you don’t notice anything else.” “How can you say such a thing?” asked the stockbroker. The cop replied, “Don’t you know that your left arm is missing from the elbow down? It must have been torn off when the truck hit you.” “My God!” screamed the stockbroker. “My Rolex!”
———————-
BROTHER CAN YOU SPARE 90 SECONDS …
LEARN HOW TO TRADE FOREX IN 90 SECONDS.

Is it possible to learn how to trade forex in just 90 seconds???

The answer is a resounding yes.

Now you can stack the deck in your favor and trade like a
pro. All you need to do is watch our NEW 90 second FOREX
video.

No registration required … Find out how you can become a
winner in the FOREX markets in just 90 seconds. Click, load,
learn from 90 Second FOREX
———————-
LEARN & EARN
Developing a Premium Portfolio

In this video lesson series I will dive into three major topics
that will help you create a portfolio that you can be proud of,
and profitable in!

Part one covers Diversification within your portfolio. Diversity
is the one thing that ALL successful traders’ portfolios have
in common. Developing a diverse and profitable portfolio is
not as hard as it seems!

Watch the free streaming video lesson here

Symbols covered: Bear Stearns (NYSE_BSC),
Ford Motor Company (NYSE_F), Soybean Oil (BO.H08),
Crude Oil (CL.Z07).
———————-
FOUR FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here’s a small sample of what is coming up on INO TV
tv.ino.com/free/
———————-
CHECK ON THE WORLD MARKETS 24 HOURS A DAY
Don’t miss any of the global overnight action.
———————-
This is Adam Hewison,

have a great weekend and a profitable new trading week.
———————-

Yesterday… what a day! The Fed cut interest rates by one-quarter of a percentage point to 4.25 percent, and the DOW sure took a hit. A 300 point drop on Tuesday (2.22% loss) This is the third cut in three months… are we trying to fight off a recession?

Investors were split on the projected cut, but with the sharp fall maybe the Fed wasn’t as aggressive as some were expecting. It seemed as if there was a trim and not the “needed” slash in rates. The Fed has however suggested that another cut may be in the works if the housing market and the sub-prime crisis worsen. “Expectations may have been for a more meaningful move based on the swirl in the financial markets now. But the Fed is acknowledging that maybe things on Main Street aren’t as bad as they are on Wall Street,” said Bill Knapp, economist and chief investment strategist for MainStay Investments.

All is not lost… it looks as if the the market has made quite a rebound today. We are up to the DOW 13700 mark, and the move today has been reassuring. What a correction!

Although investors should not let the news have a large impact on their position decisions, it is good to stay in the know. MarketClub members have a news portfolio which provides a collection of breaking news stories on symbols/markets that are of interest.

First selection the “Market Headlines” link below the “log-out” option. From there you can search general
terms or symbols for breaking news headlines from Dow Jones News and Real Time Traders news sources.

If this is a market that you follow frequently consider saving this to your news portfolio. Click the “Save this news search to my portfolio” and instantly you can search all the markets/symbols you are interested in. This is just another tool to keep you on top.

This trading year is rapidly winding down and will soon go
into the history trading books. With less than a dozen
trading days left in the year, many traders are turning
their thoughts and attention to preparing for ’08.

Are you prepared for ’08?

There are going to be some phenomenal trading opportunities
next year, and those opportunities and profits are going to
go to the well prepared trader.

What is a well prepared trader?

A well prepared trader, has a game plan. A well prepared
trader, accepts losses and knows that it is part of the
business. A well prepared trader is disciplined.

I have just finished two videos that can help you prepare
for ’08.

First video:

Second video:

The boy scout motto is “be prepared”.

It is a success motto every trader should have in their
arsenal of trading tools.

Have a great trading week, and an even better ’08.

Adam Hewison
President of INO.com

Adam Hewison is a former floor trader and past member of
several major exchanges, including the International
Monetary Market (IMM) a division of the Chicago Mercantile
Exchange in Chicago, Index and Options Market(IOM) Chicago,
New York Futures Exchange (NYFE) and The London Financial
Futures Exchange (LIFFE). Adam is the author of “Right on
the Money, The Definitive Guide to Forecasting Foreign
Exchange Rates” and numerous other financial ebooks and web
movies. His latest project, MarketClub is a new web site
dedicated to catching big moves in the markets using Adam’s
“Trade Triangle” approach.

Today‘s Top Buy
Buy CONOCOPHILLIPS (NYSE:COP) +100

Based on MarketClub’s Smart Scan Analysis (SSA) a strong uptrend is in place for CONOCO PHILLIPS. On the basis of this analysis we recommend trading CONOCO PHILLIPS from the long side on any pullbacks. As with any trade or investment, money management stops should be used at all times to protect capital. At the moment, market conditions are positive for CONOCO PHILLIPS, and the current upward trend is being supported by strong insider buying. Based on current analysis we expect to see CONOCO PHILLIPS move higher in the near future.

CONOCO PHILLIPS scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend. There is no guarantee of future performance.

Today’s Top Short
Short PROSHARES ULTRA-SHORT QQQ (AMEX: QID) -100

Based on MarketClub’s Smart Scan Analysis (SSA) a strong downtrend is in place for PROSHARES ULTRA-SHORT QQQ. On the basis of this analysis we recommend trading PROSHARES ULTRA-SHORT QQQ from the short side on any rally. As with any trade or investment, money management stops should be used at all times to protect capital. At the moment, market conditions are negative for PROSHARES ULTRA-SHORT QQQ, and the current downward trend is being driven by strong insider selling. Based on market conditions, we expect to see PROSHARES ULTRA-SHORT QQQ remain on the defensive in the future.

PROSHARES ULTRA-SHORT QQQ scored -100 on a scale from -100 (strong downtrend) to +100 (strong uptrend) There is no guarantee of future performance.

Dear Trader,

Are you prepared for the silly season?

What is the silly season you might ask, well it happens
every year in the markets. From LaSalle Street to Wall
Street, traders are winding down for the holidays.

So what is the silly season?

Well here’s how is goes, if you haven’t made your money in
the markets by now its get twice as difficult to make money
after Friday the 14th.

Now, I didn’t say you can’t or couldn’t make money but the
reality is trading volume for the markets get thinner and
thinner everyday after the 14th. This causes the markets to
be even more volatile if you can believe that.

So here’s a little holiday trading tip. This coming week is
OK to trade but the week after watch out as many market
makers and traders have already checked out for the
holidays.

Like I said, silly season is just around the corner.

So what about the markets?

Stocks look higher next week.

Gold looks higher.

Crude looks to be in a trading range and on the defensive.

It’s all part of the ebb and flow of the marketplace.

Look for the Dow to run into resistance around the 14,000
area. NASDAQ has resistance at 2,740 and again at 2,800.

Gold SPOT has resistance at 830 and support at 785.

Crude Oil(Jan) resistance at 93.00 support at 86.50

Speaking of the marketplace …
———————-
LEARN HOW TO TRADE CRUDE OIL IN 90 SECONDS

Is it possible to learn how to trade Crude Oil in just 90 seconds???

“OH YES” and here’s why.

There are three key factors that drive crude oil prices.

1. SUPPLY

2. DEMAND

3. PERCEPTION

Now you can stack the deck in your favor and trade like a
pro. All you need to do is watch my NEW 90 second video.

No registration required

become a winner in crude oil in just 90 seconds.

SOMETHING TO REMEMBER
In a Bull Market investors often mistake themselves for financial geniuses.
———————-
LAST WEEKS POLL RESULTS
Thanks to all of you who voted this past week poll that
poised the question “Are you comfortable about the economy?”

72 percent of you said that you are not comfortable with the
economy.

12 percent of all poll taker were comfortable with the
economy.

16 percent of you were neutral on the economy

With over 286 votes cast we see this as a pretty strong
signal that all is not well with the US economy. Polls can
sometimes be misleading but overall they tend to get it
right.
———————-
NEW POLL “DO YOU SUPPORT THE GOVERNMENT’S
NEW SUBPRIME BAILOUT”
———————-
Sorry, we didn’t mean for it to sound like a bailout. But
hey, you know what, if it walks like a duck, and quacks like
a duck, then it is a duck, right?

Nows your chance to be heard. Vote in our new poll and lets
see how the duck quacks.
———————-
ARE THE MARKETS CONFUSING RIGHT NOW?
Now you can use this really cool analysis tool and get instant
answers to your market questions in plain English on any market.
There is no cost.
———————-
TIME TO LAUGH
At a country-club party a young stockbroker was introduced
to an attractive girl. Immediately he began paying her court
and flattering her outrageously. The girl liked the young
man, but she was taken a bit aback by his fast and ardent
pitch. She was amazed when after 30 minutes he seriously
proposed marriage. “Look,” she said. “We only met a half
hour ago. How can you be so sure? We know nothing about each
other.” “You’re wrong,” the young stockbroker declared. “For
the past 5 years I’ve been working in the brokerage firm
where your father has his account.”
———————-
MEDIA NEWS ON INO.COM

• USA Today
INO.com was used as a source on a front page story that ran
in the Money section of USA Today.

• CNBC
If you missed Adam this week on CNBC check out the
video below. Instead of blaming OPEC for rising crude oil
prices, Adam looks at three factors supply, demand and perception.
Watch the interview here.
———————-
BROTHER CAN YOU SPARE 90 SECONDS …
LEARN HOW TO TRADE FOREX IN 90 SECONDS.

Is it possible to learn how to trade forex in just 90 seconds???

The answer is a resounding yes.

Now you can stack the deck in your favor and trade like a
pro. All you need to do is watch our NEW 90 second FOREX
video.

No registration required
Find out how you can become a
winner in the FOREX markets in just 90 seconds. Click, load,
learn from 90 Second FOREX

———————-
LEARN & EARN
Developing a Premium Portfolio

In this video lesson series I will dive into three major topics
that will help you create a portfolio that you can be proud of,
and profitable in!

Part one covers Diversification within your portfolio. Diversity
is the one thing that ALL successful traders’ portfolios have
in common. Developing a diverse and profitable portfolio is
not as hard as it seems!

Watch the free streaming video lesson here

Symbols covered: Bear Stearns (NYSE_BSC),
Ford Motor Company (NYSE_F)
Soybean Oil (BO.H08),
Crude Oil (CL.Z07).

———————-
FOUR FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here’s a small sample of what is coming up on INO TV.Launching in early ’08.

———————-
CHECK ON THE WORLD MARKETS 24 HOURS A DAY
Don’t miss any of the global overnight action.
———————-
This is Adam Hewison,

have a great weekend and a profitable new trading week.