S&P 500
1324.80
-5.86 -0.44%
Dow Indu
12598.55
-33.45 -0.26%
Nasdaq
2874.40
-19.36 -0.67%
Crude Oil
93.57
+0.38 +0.41%
Gold
1545.24
+12.16 +0.79%
CRB Index
289.35
+0.21 +0.06%
US Dollar
81.264
-0.078 -0.10%
Weak

Forget what the FED did today

Dear Trader,

Forget the FED and Chairman Bernanke, together they don’t
amount to a hill of beans.

The truth is, the world and hedge funds carry a bigger stick
than the FED.

Here’s how to survive financially in any scenario the markets
come up with in the next 12 to 18 months.

Now for the first time, you can watch trading seminars stream
directly to your computer screen. Only by educating yourself
will you know what to do in the future.

This is a time when fortunes are made and lost. It all
comes down to what you know, how you act, and how you
comprehend the markets direction.

All this is possible at a price that will surprise you,
and it couldn’t have arrived at a better time in financial
history.

Introducing INO TV with 11 great “Trading Channels” to
improve your trading. It’s available NOW, and it’s as close
to you as your computer.

Look at all these benefits you get with INO TV.

* Unlimited 24/7 worldwide access
* Over 150 online experts to help you
* Over 400 online ebooks to give you pointers
* Over 500 online trading seminars
* Over 1,000 hours of online trading material
* Access to everything … no restrictions

All this valuable educational content is available to you NOW
for less than the price of 6 good cups of coffee.

Tap here and see how you can benefit from INO TV.

P.S. We are not brokers nor are we affiliated with any
brokerage companies.

OK, we got it right on the stock market, crude oil and inflation … now what?

Dear Reader,

You may have missed my September 13th appearance on Bloomberg TV. If you did, you may want to watch this video and see what I was saying about stocks, crude oil ($10,000 later) and inflation.

So how did we get it right and Chairman Bernanke and the FED get it completely wrong?

By viewing this short Bloomberg TV interview, you will see first hand that we predicted problems with the US markets and the economy on major financial networks over 5 months ago. The market action on Friday was not a surprise to readers of this blog. Is there more to come?


Watch the video.


Original post.

I have said this before, we are not in buy and hold markets anymore. You need to be fluid and go with the flow. The old market adage is “Don’t fight the tape”.

Every success in the markets.


Adam Hewison

Gold recoils from record highs; consolidation seen

(Recasts, updates with closing prices, market activity, changes dateline to NEW YORK, previous LONDON) By Frank Tang
NEW YORK, Jan 17 (Reuters) – Gold slipped further away from record highs after a choppy session on Thursday, extending the previous session’s steep losses and hit by chart-based weakness and falling energy prices. The yellow metal could decline further in the near term, largely due to a possible recovery of the dollar, but losses should be limited by flight-to-quality demand amid credit worries and inflation concerns, market watchers said.
“The failure of gold to take out Monday’s high at $914 was seen as a negative by a lot of traders. I just don’t see this market turning around unless there is a news item coming out that takes people by surprise” said Adam Hewison, president of INO.com.

Spot gold fell as low as $876.90 an ounce, and was last quoted at $876.70/877.40 by New York’s close at 2:15 p.m. EST (1915 GMT), against $885.60/886.30 late in New York on Wednesday, when it dropped 2 percent. It hit a record high of $914 on Monday. The most-active gold contract for February delivery at the COMEX division of the New York Mercantile Exchange settled down $1.50 at $880.50 an ounce. “$900 level is going to be a fairly important level for the market just to digest for the moment. I think we have to get more consolidation in the market to push it to the $950, $1,000 levels,” Hewison said.

Weaker crude oil prices dented gold’s appeal as a hedge against inflation. U.S. crude futures ended 71 cents lower at $90.13 a barrel on Thursday. “Given the recent volatility, wide intra-day price swings seem set to continue,” said James Moore, precious metals analyst at TheBullionDesk.com.

The dollar slipped versus the euro on Thursday after Fed Chairman Ben Bernanke repeated in a speech to the U.S. Congress’ House Budget Committee that more easing may be necessary. Bernanke also said he will support efforts to craft a fiscal stimulus package and repeated the U.S. central bank was ready to act aggressively to counter recession risks.
Investors have priced in at least a half-percentage-point cut in the benchmark U.S. rate this month, with some saying the Federal Reserve could cut rates by three-quarters of a point. The Fed is scheduled to render its interest rate decision at the end of a two-day meeting from Jan. 29 to 30.

Zachary Oxman, senior trader with Wisdom Financial in Newport, California, said gold should consolidate in the near term, moving in a trading range between $870 and $900. “Any big corrections here are going to be met with some long-side accumulation buying,” Oxman said. In research news, consultancy firm GFMS said on Thursday that the price of gold is expected to correct lower in the near term, but then surge as high as $1,000 an ounce later this year, as a weak U.S. dollar and lingering credit turmoil burnish the metal’s investment appeal. Meanwhile, industry-sponsored World Gold Council (WGC) said on Thursday that higher gold prices and increased volatility hurt the consumption of gold jewelry in India, the world’s top gold buyer, in the fourth quarter of 2007. In 2006, India imported about 715 tonnes of gold.

London-based ETF securities expected to more than double the money managed in its listed exchange traded commodity funds, including precious metals, to about $7 billion by the end of 2008. In other bullion markets, the key gold futures contract for December 2008 delivery on the Tokyo Commodity Exchange (TOCOM) ended 26 yen per gram higher at 3,074 yen in a technical rebound after falling by the daily 120 yen limit on Wednesday. In industry news, Highland Gold Mining Ltd plans to raise gold output by at least 10 percent this year and is on track to hit 200,000 ounces of production by 2009, managing director Henry Horne said.

Silver rose to $15.86/15.91 an ounce, versus $15.84/15.89 late Wednesday, supported by news that BHP Billiton Ltd/Plc had stopped operations at its Cannington silver mine in Australia after a fatality earlier in the day. Platinum slipped to $1,555/1,560 from $1,559/1,564 an ounce late in New York on Wednesday, while palladium was down $5 to $366/371 an ounce. (Additional reporting by Atul Prakash, Daniel Magnowski in London)


*Reuters is a registered trademark and belongs to Reuters

30,000 feet above the markets

Hi Traders,

We are only two weeks into the new year and it’s turning out to be one heck of a ride. There have been so many opportunities to make money, I hardly know where to begin.

First off, I think you should watch this video as it applies to all the market volatility we are seeing right now. I made the video several months ago and it’s about the most important rule change I have ever seen in my 37 years of trading. Yes, I admit, I love the markets and trading in them, where else can you have this much fun?

This major Security Exchange Commission (SEC) rule change, is a shocker, and it’s having exactly the effect I thought it would on the markets. It was put in place in 1938 to protect investors and to curb volatility.

Ask yourself this, is volatility higher or lower than it was 12 months ago?

If you answered higher, you are 100% correct. Anyway, I highly recommend that you take a couple of minutes and watch the video. There’s no charge, and no need to register.

As I am writing this blog posting I am cruising at 30,000 feet thanks to Southwest Airlines on my way to San Francisco, California. The trip is partly for business, but mainly to spend some time with one of my daughters before she takes off to live in New Zealand. If you haven’t guessed it already, she met a young man from that country and has decided to move there and make New Zealand her new home.

Life presents many opportunities, and I am proud of my daughter for taking this one.

As a dad and a trader I find life’s opportunities fascinating, don’t you?

Anyhow, my daughter’s move to Kiwi Land got me thinking about a lot of things most of which are personal and I’m keeping to myself. But, it did get me thinking that I haven’t written much on this blog about currencies lately.

How many of you have ever traded in the currency markets?

Now the currency markets often refereed to as the forex markets, are huge, highly liquid and offer a totally new set of great trading opportunities.

The reason I mentioned that my daughter was moving to New Zealand is the fact that the New Zealand dollar which is referred to as the Kiwi dollar, has had a remarkable run up against the US Dollar. One of the principal reasons for this strong upward move is interest rate differentials. Here in the US, chairman Ben Bernanke seems H–L bent on lowering rates, while in New Zealand they have been on a steady course of raising them.

Take a guess which country all the money is flowing into? It’s going to the countries that have highest interest rates.

Here’s a chart of the Kiwi dollar against the US dollar for the past few years. Doesn’t it make sense that you would want to have you money in currency that is paying one of the highest rates of return on capital in the world and is appreciating? Of course it does, and that my friend is perhaps the most important fundamental reasons why trading in the forex markets make sense.

Did you know that MarketClub has real-time currency quotes on all the major currencies, including the Kiwi dollar? If you are already a member of MarketClub you might want to run our “Trade Triangle Technology” against the Kiwi dollar and some of the other major currencies. I think you’ll be impressed at the numbers and sweet returns you’ll find there.

If you are not a MarketClub member check out this forex video … it’s free and there is no need for registration. The video will give you a glimpse into MarketClub’s “Trade Triangle” approach to the forex markets.

Right now I’ve got to wrap up this blog posting as the captain of flight 810 to San Francisco is informing us to switch off all electronic devices for landing.

So until next time, every success in life and in trading.

Cheers,

Adam Hewison

If you lost the shirt off your back… maybe a MarketClub member will lend you theirs


The 4th quarter was just another nail bitting chapter in the story of “battered U.S. Financial institutions.” Although now international investors are helping to bail the water out of sinking companies like Citigroup and Merill Lynch, many investors lost their shirts with the dive that these companies took through Q4. With NYSE_MER falling 17.32% and NYSE_C dropping 36.1%, MarketClub members managed to profit with possible gains of 12.48% and 24.83% respectively.



World Rides to Wall Street’s Rescue

By David Enrich , Robin Sidel and Susanne Craig of the Wall Street Journal

In the latest sign of America’s sinking financial fortunes, investors from as far afield as Japan, Korea, Singapore, Saudi Arabia and Kuwait have come to the rescue of Wall Street.

The list of players that agreed yesterday to pump a combined $19.1 billion of capital into Citigroup Inc. and Merrill Lynch & Co. spotlights a dramatic shift in power. After flooding the world with capital that fed both economic growth and excess, battered U.S. financial institutions now are turning to countries and companies that not so long ago were suffering through their own disasters.

Yesterday’s infusions follow earlier investments into … Read the rest of the article here



Q4 MarketClub Member Results


Monthly triangle has been red since July 2007

Entry on weekly corresponding red – 10/15/07 @ 45.86
Exit on weekly green – 12/10/07 @34.65

Enter weekly corresponding red – 12/20/07 @ 29.5
Exit close of 4Q – 12-31-07 @ 29.32

2 Trades Up $11.39 /share

*Q4 per share dropped 36%, however MarketClub members used the triangles for a 24% gain

Monthly triangle has been red since February 2007


Entry on weekly corresponding red – 10/17/07 @ 69.91
Exit on weekly green – 11/30/07 @ 61.18

1 Trade Up $ 8.93 /share

*Q4 per share dropped 17.32%, however MarketClub members used the triangles for a 12% gain


These results were generated by using MarketClub’s suggested method for reading the “Trade Triangles” for equities. Please see a video on the suggested method here.

Some traders are calling it a miracle …

Some traders are calling it a miracle …

… others are calling it the “Holy Grail” of trading.

and some traders, are just saying “thank you for making this
available to investors everywhere”.

So what exactly is creating all this buzz and excitement in
the trading world?

In a nutshell, it’s INO TV.


For the first time INO.com is making its huge digital
library of newly remastered trading media available to the
general public through INO TV.

Now you can have complete 24/7 access to over a 1,000 hours
of streaming trading media, with over 150 world class
trading experts. And get this, over 500 trading seminars
complete with the original materials digitized into Adobe
PDF format.

Investors and traders who have attended these seminars in
the past, have paid thousands and thousands of dollars, to
hear the INO TV experts share their trading tips,
techniques, and yes, secrets.

Now it’s your turn.

The good news is, you don’t have to spend thousands or even
hundreds of dollars to watch,listen and learn from these
same experts.

All its going to cost you is just $49.95 for three full
months of total access to INO TVs streaming digital media
library. Double that amount and you’ll have complete and
full access for one full year. There are no restrictions,
now that’s what I call real value.

Now do you see what all the excitement is about?

Imagine having unlimited access to all these experts and their
original seminar material for three whole months for just
the cost of a dozen cups of good coffee.

Here’s what you get with INO TV.

Multiple INO TV trading channels.

Real traders give their feedback on INO TV

THERE’S ONLY ONE CAVEAT

I want to be right up front with you, the digital material
you are going to have complete access to is valuable. There
is no doubt in my mind that INO TV can help you become a
smarter trader.

With that in mind, there is no money back guarantee. So if
you are concerned about spending $49.95 to learn valuable
trading knowledge from many of the worlds top trading
coaches then INO TV is not for you.

But if you want to get better, and who doesn’t, then INO TV
will work for you.

You can get instant access to INO TV right now. There’s no
waiting, it’s easy, it’s right here, and you can be watching
in minutes.

Subscribe today at our introductory subscription rates of
just $49.95 for three months service. Or take advantage of
this special offer and lock in a twelve month subscription
for $99.95. Sign up right now and we will include two free
valuable bonuses worth $30.00. (this offer is only valid for
the first 500 subscribers).

So join today and experience an Ivy league trading
education, for just the cost of a dozen cups of good coffee.

Now that’s what I call a heck of a trade.

See you on the web.

Cheers,

Adam Hewison
President, INO.com

Here’s your ninth lesson

Good Monday Morning to everyone!

Sorry this post is a bit late, but I’ve been playing
with the new INO TV Premium…WOW. Hundreds
of experts, hundreds of topics…you’ve got to check
it out today!

Anyway, here’s your ninth lesson in “The Secrets Of
Professional Floor Traders” mini email course.

Lesson 9 – “Average Directional Movement Index”
by Adam Hewison

================================================================

In this lesson we are going to use the ADX indicator to
filter out some of those pesky losing trades. Many
traders know how to get into a position but are often
uncertain as to how long they should stay with a trade.
This indicator provides excellent guidance for knowing
when to hold and when to fold.

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

Average Directional Movement Index

All my best this week!

P.S. Look out for the next lesson – This is going to be
a cracker and a technique I know will help you master
the markets.

Can copper move higher in this economy?

Our friends over at Dow Jones Newswires were gracious enough to include us in a recent article they wrote on copper. I thought you might find it interesting.

Cheers,

Adam


FOCUS:

Area Around $3.40 Next Key On Charts For Comex Copper

By Allen Sykora
Of DOW JONES NEWSWIRES

Technicians say the area around $3.40 and above is the next
key upside chart point for March copper futures on the Comex
division of the New York Mercantile Exchange.

Already, the futures have retraced roughly 50% of the
sell-off from the Oct. 3 contract high of $3.75 a pound to
the Dec. 17 low of $2.8530. They hit a two-month high of
$3.3785 on Wednesday, before consolidating lower.

The area around $3.40 represents resistance based on a
number of technical indicators, chartists said. At the
moment, the futures appear to be range-bound and moving
sideways, said Larry Young, senior trader with Infinity
Futures.

“We really need to break out. Obviously, $3.40 right now is
major resistance,” he said. “We need to build momentum to
get through that so we can start chipping away at the highs
again.”

Many pre-placed buy orders lie around the $3.40 area, Young
said. Some traders who went short during the late-2007
decline placed stops here, he said. “Others look at that as
a point to get long again,” he said.

The 50% Fibonacci retracement of the October-December
decline lies slightly above $3.30, a level the market has
been on both sides of in each of the last four trading
sessions. The 61.8% Fib retracement is just above $3.40.

“A lot of traders focus on those,” Young said.

The high this week of $3.3785 potentially could be the
market’s test of this 61.8% Fib level, particularly amid
concerns about possible economic slowing, said Darin Newsom,
senior analyst with DTN.

Otherwise, Newsome explained, he watches what is termed a
“five-point top” based on prior major higher highs and major
lower lows. Based on this, he said, the recent rally may
continue but run into speculative selling somewhere between
the $3.41 to $3.46 area. He said the fact that futures are
in contango rather than backwardation, as they were for
months, indicates less tightness than at one time when they
were in backwardation. The latter is where the nearby
futures are more expensive than deferred contracts and is
seen as a sign of supply tightness.

“If we get back into the $3.41 to $3.46 area, it could be a
selling opportunity,” Newsom said. “But if we get through
that, it might start to trigger some renewed buying
interest.”

Adam Hewison, president and chief strategist with INO.com,
expectsthe March futures to rally possibly to the $3.50
area, a target zone based on recently making a
head-and-shoulders bottom.

“Certainly (a rally is possible) to the $3.40 level, which
represents the 62% Fibonacci retracement,” he said.
“Potentially, somewhere between $3.40 and $3.50 would be a
reasonably good target zone.

“We closed last week (around) $3.15. We’re up for the week.
We’re up for the month. I think the market looks very, very
good.”

He listed a longer-term target of $4 to $4.16 a pound.

The area around $3.40 is also around the market’s strongest
level of the last two months or so – $3.42 on Nov. 7.

Copper has recouped much of the October-December weakness
even though concerns have surfaced lately about the health
of the U.S. economy. Nevertheless, analysts said, this could
be offset by strong demand from China, now the world’s No. 1
consumer of the red metal. Demand is also growing in the
Middle East region, Young said.

“Any slowdown in the U.S. is going to hurt copper, but the
U.S. was supplanted by China in terms of gross usage of
copper,” Young said.

“We’re not in a domestic market any more,” Hewison said.
“We’re in more of a global market. It may be bad here but
still great overseas. That’s what’s going to drive the
market.

Hewison said “it definitely looks to me like the market has
put in a bottom.”

Technicians List Key Downside Chart Points

Traders and analysts listed several downside levels that
will be important for March copper to hold on any pullback,
in order to avoid acceleration on downward moves.

“If we get below $3.1050, we’re going to push this market
lower. That’s a key level on the downside,” Young said. The
market stopped around here twice early in the month – right
at $3.1050 on Jan. 4 and at $3.1060 the next trading day,
Jan. 7.

Young said he anticipates a pullback in copper prices in the
short term but remains bullish over the longer term, based
on the technical picture.

“It looks like right now the Dec. 17 (low of $2.8530) is
potentially going to hold as a bottom,” he said. “If we can
stay above these levels, we could try to move this market
higher.”

Technically, Hewison explained that a buy signal occurred in
copper futures late last month, based on the pattern on a
chart for open-outcry-only trading in the March futures.

“We believe the market made a head-and-shoulders bottom,”
he said. “The first shoulder was made on 11/21 at $2.92. The
head was created on Dec. 18 at $2.87. The right shoulder was
(around) $3.02 on Dec. 31. And neckline for the
head-and-shoulders was $3.20.”

He listed key support around $3.20 in the near term and $3
in the long term. “If we were to take out the right shoulder
around $3.02, I would consider the pattern to be broken,”
Hewison said.

Newsom said the market’s recent rally occurred after a
pullback to support to prior retracement levels around $2.88
to $2.95 last month. The market dipped briefly a few cents
below this last month, but did not close below it. The next
major support is around these lows, he said.

Dow Jones Newswires is a trademark of Dow Jones & Company, Inc.

Is gold cheap or overpriced?


It’s almost 28 years ago to the day, that gold traded up to $878 on an intra-day basis.

I know as I was there trading on the floor of the exchange. At the time inflation was running high as was the excitement of the “GOLD BUGS” and all the pundits who were all predicting that gold would hit $1,000, no make that $2,000 an ounce by the end of 1980.

Well guess what, gold never did make it up to $1,000. As a matter of fact, shortly afterwards gold began to lose value, This came as a big shock to the goldies who could not, would not, and did not believe that their precious metal could go down and lose purchasing power.

So what happend almost a generation ago? What caused gold to evapoate and lose value for the next 28 years?

The main reason was that inflation began to come under control and there was little reason to own gold. The bigger reason in my mind, was that the perception of the market had changed.

So where does that leave us?

Here we are 28 years later and gold is trading at new all time highs of close to $900 an ounce. Can you imagine holding onto an investment for 28 years just to get even!!!


I know that generally gold has not been a good investment over the years. It may not have been a good investment, but it has proven to be a great trading market.

The talk now is that gold should be in inflation adjusted dollars trading at $2,100. Well it’s not, it’s trading just below $900.

Will it go over $900 and hit $1,000 … who knows?

Is the trend in gold up? Yes, it is.

Is the trend likely to continue … who knows.

What I do know is that gold is a great trading vehicle, and you can do very well trading in and out of this metal.

It all comes down to this, it doesn’t matter which way the market is headed, what matters is you get the direction right.

Good traders listen to what the market is saying and not what the pundits are pushing.

It all has to do with distortion of the reality field and traders perception. I always take the safe bet and listen to what the markets are saying and doing.

If you haven’t watched my video on gold or looked at our Q3 results on gold (we are updating Q4 results now and they are positive) then you may be missing out on some great trading opportunities in ’08.

Every success trading the yellow metal.

Adam Hewison.

The Crude Oil Red Flag Is Up – (I will proceed with caution)

It sure is hard to ignore the news. Although one of Adam’s “Golden Trading Rules” is… “Don’t listen to the news, listen to the markets,” it is hard to cut yourself off from reading headlines. Use news as a red flag, but not a panic button… let the market do its thing before you react in response to an article, TV story, etc. Keeping that in mind I thought the article below was interesting read and was a story that threw up a red flag for me when looking at the Crude Oil market.

Enjoy and happy trading. Oh and I think I am the only staff member that forgot to send Happy New Year greetings, if that is the case… HAPPY NEW YEAR – I hope this is your most prosperous new year yet!


Oil prices up slightly ahead of inventory report

Associated Press

VIENNA, Austria — Oil prices rose Wednesday amid expectations a U.S. government report will show crude oil stockpiles fell last week.

Prices were also supported by fears of further violence in Nigeria, the world’s eighth-largest oil producer.

Analysts surveyed by Dow Jones Newswires predict crude inventories likely fell 800,000 barrels last week, while supplies of distillates, which include heating oil, likely fell 300,000 barrels. The U.S. Energy Department’s Energy Information Administration will release the report later Wednesday.

“That would be the eighth consecutive week of crude oil stock draws and U.S. crude oil inventories are already below the five year average for this time of the year,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Light, sweet crude for February delivery added 24 cents to $96.57 a barrel by afternoon in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $1.24 to settle at $96.33 a barrel on Tuesday. Oil was also being supported by a surge in the price of gold, analysts said. Gold futures surged above $880 an ounce Tuesday to their highest level ever, not accounting for inflation.

“Part of the recovery of oil yesterday and this morning is due to fresh investor funds coming into oil and commodities,” Shum said.

Reports that Nigerian militants are planning attacks on the nation’s oil facilities were also sending prices higher. In a research note, Vienna’s PVM Oil Associates noted that the country had “already lost some 15 percent of crude output capacity” due to violence. Still it forecast increased production of around 2.35 million barrels a day for this year, up from last month’s 2.22-million barrel daily output.

A monthly EIA report Tuesday predicted oil supplies will be tight this year but ease in 2009. The EIA slightly raised global oil consumption growth forecasts, and said the Organization of Petroleum Exporting Countries will likely supply nearly a million more barrels of oil per day this year than previously expected.

The EIA predicted oil prices will average $87 a barrel this year, up from a previous estimate of $85. The average price will then fall to $82 a barrel in 2009, it said.

In London, February Brent crude rose by 35 cents to $95.91 a barrel on the ICE Futures exchange.

Heating oil futures rose by less then a penny to $2.6424 a gallon (3.8 liters) while gasoline prices slipped marginally to fetch $2.4703 a gallon. Natural gas prices jumped by more than 18 cents, selling at $8.151 per 1,000 cubic feet.

Longer term projections for the direction of oil prices remain bearish, however. On Wednesday, the World Bank became the latest institution to predict that prices will likely decline gradually this year and next as crude demand weakens in the face of record prices.

“If you look at the fundamentals, there is scope for lower oil prices,” said Hans Timmer, co-author of the bank’s annual “Global Economic Prospects” report, at its launch in Singapore. “We forecast more or less a sustained, gradual decline.”

A barrel of light, sweet crude surpassed $100 a barrel on the New York Mercantile Exchange for the first time last week.

The World Bank’s report predicts that a barrel of crude oil will cost $84.10 on average this year and fall by 6.8 percent to $78.40 a barrel in 2009. It estimates that the average price of crude oil last year was $71.20 a barrel.

The forecasts are based an average of three benchmark oil prices: Dubai, Brent and West Texas Intermediate.

As demand wanes, OPEC countries have had to reduce their production by a million barrels over the last three quarters to a year to keep prices high, the economist said.

© Copyright INO.com, Inc. All Rights Reserved.