I feel this is the most important poll that we have ever taken on our website. The reason I say that is that we have never faced uncertain times quite like this. Some of you are going to say, "Adam this is a political posting and not market related." I'm going to respectfully disagree with you as it has everything to do with the markets. What is affecting the minds of investors and the market has, in a large degree, everything to do with Ebola and ISIS. You only have to look at what has happened to the markets in the past two or three weeks. There is not a person I've spoken with in the past two weeks who isn’t concerned about Ebola and what's going on in this country. Forget politics, Ebola doesn’t care if you are a Republican, a Democrat, or an independent. Ebola has no political agenda.
Today I'm going to be looking into the Dow 30 Index. This index is home to some of the biggest and most valuable companies in the world.
Using our Trade Triangle technology, you can quickly see that out of the 30 stocks that make up this index, just three stocks remain in a bullish trend. Out of the remaining 27 stocks, 6 are in a trading range and 21 stocks are in downtrends.
With two-thirds of the stocks in this important index in downtrends, this index is casting a shadow over the general economy.
The 3 stocks that remain in uptrends are rather mundane companies that have been around a long time.
Here are the 3 stocks that are still bullish and I will be looking at in today's video: [Read more...]
Exactly 19 days ago, the Dow was trading at a new all-time high. So how did everything become unraveled in less than three weeks?
In my humble opinion, the complacency that was in most investors' minds was overcome with uncertainty and distrust.
It arrived in the form of three waves.
The first wave was ISIS and their rapid takeover of key areas in the Middle East. This uncertainty was exacerbated and emboldened ISIS further when the president of the United States stated on national TV that "we have no strategy" to deal with ISIS. It doesn't matter if you are a Democrat or a Republican - you do not expect to hear the president make a statement like that.
The second wave came with the news that Ebola had reached across West Africa to the shores of the United States. This scary news should not have been a problem, however it became a major problem with the conflicting stories about how a nurse who was in fully dressed in protected clothing contracted this deadly disease. To make matters worse, this morning we hear of another nurse who was diagnosed with Ebola. The Centers for Disease Control (CDC) so far seem ill-prepared. Not leveling with the American people about what is going on just adds another layer of uncertainty and distrust in government. [Read more...]
There was a rumor yesterday that one fund or individual decided to dump three-quarters of a billion dollars of U.S. equity market exposure in 1 second. This action created a complete collapse of all liquidity in the S&P 500 e-mini futures contract - the world's most liquid equity exposure vehicle.
That was yesterday's news ….
That negative action in all the equity markets pushed the Dow down 252 points for the year with the S&P 500 and NASDAQ barely changed since last December.
As many of you know who read this blog, we have been on the sidelines for quite some time in most of the markets. And this stems from having a game plan and a sound winning approach to the markets.
So many investors trade based on emotion. Emotional trading is the fastest account killer I know, yet it still reeks havoc on investor's portfolios every year.
One of the easiest ways to avoid emotional trading is to use a well designed and tested portfolio approach. Now, just to be clear, we are not swinging for the fences with some get-rich-quick scheme. No, what I am referring to is MarketClub's Internet portfolio which produced gains in 2013 of 65%.
So far through the third quarter of 2014, this portfolio is in the positive column with a return of 14.6%. This puts MarketClub's Internet portfolio returns for the year ahead of the likes of Carl Icahn, with 10.98%. Warren Buffet with 10.43% and Julian Robertson with a 10.13% return and a host of other well-known billionaire money managers including Edward Lampert whose fund is down -37.5% for the year.
When you compare the returns of our Internet portfolio, to the market and the Billionaire fund managers I think you would agree that our returns have been excellent.
Our Internet portfolio is very easy to track and implement into your trading as there are only five stocks to follow. We share with you the key levels that will make any of the five stocks we track reverse … it's better than real-time! We also share with you sound money management stops we use to protect capital.
Here are those five stocks in our Internet portfolio:
The great part about this approach is that you can place the orders yourself with a broker and then go about whatever you enjoy doing most. Whether it is playing golf, tennis, cycling or going to work, you now are afforded the time to do what ever you want. You do not have to watch the market every second of the day and become emotionally invested.
If you'd like to learn more about our Internet portfolio just click here. Here you'll find all the rules you will ever need to be successful using this portfolio.
Q4 promises to be a very interesting quarter lots of opportunities. I sincerely hope that you can take advantage of MarketClub's Internet portfolio signals and see just how it relieves stress of trading from your mind and body.
There's no question about it, the markets are a little jittery right now. With the S&P down almost 6% from its September highs, people are beginning to ask themselves, "is this the big one?"
Here is the one market truth you need to know:
No one knows for sure what's going to happen, except the market itself.
The market determines prices and when you are investing, how the market closes directly effects your bottom line. Whether you are in business or in the business of investing, the bottom line is what everyone looks at. You invest or trade to make money and how a market closes determines how much money you're making or losing at that particular point in time.
You can watch all the economists, all the talking heads, read all the blogs you want and you'll come away with 100 different views about what's going to happen to the market.
The only voice you really need to pay attention to is the voice of the market. The market itself tells you what it's going to do if you listen carefully. If you been following this blog for any length of time, you know that I have been out of market and on the sidelines since about the middle of September. If you take a look at Gold (FOREX:XAUUSDO), I have been either short or out of the market since July 13th. It is pretty much the same picture with Crude Oil (NYMEX:CL.Z14.E), where I have been either short this market on the sidelines since early July, with the exception of one fake out in late September.
Let the market tell you what it wants to do, rather than guessing or trying to pick a top or bottom.
In today's video, I will be listening to all the major markets. I am also going to share with you how the market actually talks, you won't want to miss that.
For some time now, I've been talking about the volatility of the markets and for the last three days, volatility has been front and center. So, what is an investor to make of this and what opportunities are there to make money?
One way to take advantage of this difficult period is to look at our Smart Scan technology. In today's graphic, you can see that the market is beginning to tilt more and more to the bearish side of the ledger.
You can see by the Smart Scan numbers, the "Long Term Down" stocks now exceed the "Long Term Up" stocks by almost 400. When you look at "Chart +100", which means there's a strong uptrend, you see just 140 stocks trending upward. The number of stocks trending down in "Chart -100" is over 1000!
There are many stocks that are close to or have just reversed to the downside and you should be either on the sidelines in these stocks or shorting them.
With this being the last day of a tumultuous week, I expect the market to be a little exhausted and do not expect to see a big move either way today. Having just made that statement, I'm going to hedge myself and say as this is Friday, markets can and do sometimes go into turmoil.
This could be a perfect weekend for utilizing the "52-Week rules". In this case, I would favor the "52-Week rules" on the downside of the market. If you are not familiar with the rules for shorting the market, here they are again. [Read more...]
When I started my trading career in the early seventies, I worked under a guy named Gary, who was somewhat of a mentor to me.
Gary was an interesting guy and his trading style was just as interesting. Every time he made a trade, he would flip a large egg timer over and the sand would start running. The first time I saw him do this I asked myself, "what is he doing?"
Now you have to remember, I was new to trading back then and had never seen someone with Gary's unique approach and trading style. For all that I knew, having an egg timer on your desk and flipping it over every time you made a trade was a normal part of trading.
The idea is not as crazy as you may think.
Have you figured out why Gary was using an egg timer?
Everywhere you turn, you see stories and videos about another Ebola outbreak. Major epidemics like the Ebola virus often create trends in healthcare, which can lead to major opportunities for investors.
Here is one stock that has been off the radar for most Wall Street firms, but is my favorite Ebola-related stock right now.
On July 30th of this year, this stock flashed a buy signal based on our Trade Triangle Technology - that was two and a half months ago! Do you remember seeing or reading about Ebola two and a half months ago? I expect not, as the Ebola virus was not front page news like it is now.
Chimerix To The Rescue
The chart below perfectly illustrates the upward trend of this stock. The green monthly Trade Triangle on the chart is where we were first alerted to the beginning of a bull trend for Chimerix, Inc. (NASDAQ:CMRX) on July 30th at $27.32.
Chimerix, Inc. (NASDAQ:CMRX) could have a great deal more room to go on the upside as a result of the Ebola pandemic. I do expect to see volatility in CMRX increase as it climbs a "wall of worry" from current levels. The more news that comes out about the spread or containment of the Ebola virus, the more volatility we could see. Overall, I do believe the trend for CMRX is on the upside and will remain that way for quite sometime. Always protect your capital with solid money management stops. [Read more...]
The last few weeks have been very volatile in the markets, with triple digit swings seeming to be the norm in the Dow. The question is, how can you position your portfolio and reduce your risk in a market like this?
Well in some ways, it's easier than you can imagine. Here at MarketClub, we always advocate diversification and spreading the risk. An example of that would be MarketClub's Internet portfolio that we make available to all members on a daily basis.
Presently, this portfolio has only a one position in the market. This means that we have 80% of our capital safely on the sidelines. With 20% of our capital working in the marketplace, it is easy to sleep at night and not have to worry about these giant up and down swings. Using the Trade Triangles, much of the guess work is taken out of the equation.
Here are the 5 stocks in the Internet portfolio: [Read more...]
Wouldn't it be nice if you could look over the shoulder of a billionaire to see exactly what they are doing to make the kind of profits they make?
Well, now you can.
It’s no secret we've had some fantastic moves in 2014. The question is, are they going to continue? The short answer is, some will and some won't. Today I want to share with how five well-known billionaires traded in one particular stock. I am going to put our Trade Triangles to the ultimate test to see how they performed against these billionaire traders.
The five billionaires are Jorge Lemann, Leon Cooperman, Ray Dalio, Daniel Loeb and David Einhorn. We know, thanks to SEC filings, that these five super traders hold positions in the stock of Andarko Petroleum Corp. (NYSE:APC).
I am going to show you about where they entered the market and their average price. I'm also going to show you where our Trade Triangles entered and exited the market. I believe the trend has changed for APC and while these billionaires are holding on, MarketClub's Trade Triangles are signaling a sidelines position.
Based on what we are seeing it is going to be an interesting fourth quarter.
This is where our five Billionaires are positioned right now: [Read more...]