S&P 500
+1.21 +0.06%
Dow Indu
-11.76 -0.07%
+15.83 +0.33%
Crude Oil
-0.88 -1.94%
-0.235 -0.02%
+0.00148 +0.13%
US Dollar
-0.064 -0.08%

Choppy Action and a Dead Cat Bounce

This week has been one for the history books and it's not over with yet, we still have today's action to contemplate. So what has the market really accomplished this week? Well, it has frustrated both the bulls and the bears, that's for sure. It's hard to believe that after all of this chop that the Dow is only up 1.18% for the week if it closes where it is currently trading (and less than that on the S&P 500).

What does all of this choppy action mean? Has the market topped out? Is this a "dead cat bounce"?

Let's just let all the dust settle and see what is going on in the major indices for the week and the month.

Last week the major indices closed at: [Read more...]

Beware Of Dead Cats

Whether we like it or not, the markets made history with yesterday's 1000+ point swing in the Dow. We've also never seen three days in a row where this index has lost 300 points each and every day. So what does all this mean? What it underscores is just how fragile the world markets are at the moment and the general uncertainty and concern that investors have in the U.S., Europe and Asia.

At the moment, China is writing the script and with today's announcement of yet another cut in interest rates I don't see how China can win no matter what it does. It is very hard to bring back investor confidence and trust to the markets once it has gone. I think the loss of confidence has already happened in China and no matter what the government does, it is not going to be enough to bring it back any time soon.

The fact is, the government of China is in a lose-lose position no matter what they do and they have just brought this upon themselves. I do not expect the Shanghai index to rebound in a sustained manner anytime soon.

I'm not sure who created the phrase "dead cat bounce" and how it relates to the market, but it goes like this. When a market has had a pronounced move down like we've just seen in all the major indices and in many stocks, it's not unusual for the market to rebound. Professionals call this a "dead cat bounce" and it is not to be trusted as it does not change the previous negative direction of the market. It is simply a rebound, possibly caused by news or a short covering rally. [Read more...]

It's Over!

Monday, August 24th will long be remembered by investors as the day the world turned red. Every exchange in the world is showing big losses. It all started in China when the Shanghai index closed down 8% for the day, its biggest daily loss since 2007. The drop in China quickly moved over to Europe where the FTSE 100 and other major indices all lost upwards of 4%.

What happened?

The experts and pundits will all point to different reasons why this happened, but the reality is, the market has been having problems for some time and those problems have manifested themselves in the minds of investors who suddenly perceive things as being not so rosy.

I have said many times before that markets tend to slide faster than they glide. Simply translated, that means they go down a lot faster than they go up and we have certainly seen that in the last week or so.

One of the strongest market movers for any market is perception. Perception suddenly took a very negative turn this past week for most of the major indices. We have a lot to be thankful for as the Trade Triangle technology warned us on 6/30/15 that the markets were beginning to change direction. I pointed this out on Friday in my video and showed the long-term trend line that goes all the way back to 2009 when the lows were seen in the market. At the time of my video, the Dow was down around 160 points and was very close to breaking the below this long-term trend line. As the day progressed, that support line was clearly broken with the Dow closing down over 500 points for the day. The breaking of this long-term trend line is a big deal, in my opinion, and it represents more than just a correction in a bull market. [Read more...]

Three Ways To Trade This Market

Hello traders and MarketClub members everywhere. Yesterday certainly was a rout to the downside, decimating many stocks across the board. The Trade Triangles gave a major trend change sell signal on the NASDAQ index. Now with all three indexes in a negative mode and confidence and perception dramatically waning, I expect to see further downside price action in the markets.

So what are those three ways to trade the market?

Well, simply put you have three options when it comes to trading (I am not talking about options trading) you can be long a stock, short a stock or out of the market, which in and of itself is a position. [Read more...]

Big Trend, Big Stock, Low Risk Trade?

Hello traders and MarketClub members everywhere. I would like to bring to your attention a stock that has been in a strong upward trend for some time that just flashed another buy signal yesterday. I consider this a sign of strength, particularly as the general market was down yesterday.

I decided just to do a short video today and focus on this one stock to show you an approach that I believe offers a very nice risk-reward ratio. I'm also going to share with you a way that you can lower the risk even further by using this one very simple technique.

The stock I'm going to be looking at is a big, well-known, high volume stock that offers lots of liquidity.

Check out today's video and see what you think of this stock and this one very simple technique to lower risk and enhance profits.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Are You Looking For A Winning Portfolio?

Hello MarketClub members and traders everywhere. It's the start of another trading week and I would like to share with you one of the model portfolios that is available to you as a valued member of MarketClub.

The portfolio I will be looking at is the Internet portfolio. This portfolio performed extremely well in 2013 with a 65% return and had a more conservative return of 16% in 2014. This year, the Internet portfolio has seen some tremendous profits in just two of the five stocks are tracked in this portfolio.

Every day the Internet portfolio is updated showing you the most current position and possible next move. The five stocks that are tracked are all well-known stocks that are traded heavily and offer great liquidity.

Both Netflix and Amazon have proven to be big winners. Yelp is also looking good and is currently short from $41.25.

Here are the current positions and open profits as of 8/14/2015: [Read more...]

What A Week And It's Not Over Yet

Make no mistake about it, this past week has been very volatile with 200 point swings in the DOW becoming almost a daily occurrence.

But, guess what?

The markets are practically unchanged from last Friday's close. In fact, the the DOW and S&P 500 are up 0.20% and 0.26% respectively as of the close of business Thursday. Only the NASDAQ is down for the week with a very minor loss of 0.13%. All that could change today as traders are faced with the decision of what to with their stocks. Fridays tend to be decision day for many traders when they ask themselves, "Do I want to be short this market for the weekend, or should I be on the sidelines"?

Do you remember those 3 stocks that I highlighted on Monday? Well, I'm happy to report that all 3 stocks are positive for the week. [Read more...]

One Amazing Stock and the "Death Cross"

Last week I talked about the "death cross". This ominous sounding indicator is watched by many long-term investors. A "death cross" occurs when the 50-day moving average moves below the 200-day moving average. It sounds a little morbid, but this indicator has been useful in the past.

Let me give you some examples of the "death cross" during the past 8 years. Since 2007, there have been four times when the "death cross" has come into play. On January 14, 2008, a "death cross" was signaled and that was the start of the big downturn that lasted until July 8, 2009, when the 50-day moving average moved back over the 200-day moving average.

On July 7, 2010, the 50-day moving average once again dipped below the 200-day moving average signaling a bear trend. That signal came to an end on October 4, 2010, and proved to be more of a consolidation than a bear market.

We had to wait until August 25, 2011 for the next "death cross". This again proved to be short lived, only about four months and in retrospect, looked more like a consolidation that a bear market. That signal ended on January 4, 2012.

So what are we to make of this last "death cross", the one that occurred yesterday? [Read more...]

3 Energy Stocks Set To Soar

It is no secret that energy has been a big disappointment to many investors in 2015. I do not believe anyone predicted that crude oil would be so low during the month of August which is the peak travel month here in the US. That's all the more reason to see why these 3 energy-related stocks are doing what they're doing right now.

In today's video, I'm going to be analyzing each of these stocks and projecting what I think the upside targets will be in the near-term and longer-term.

The first stock I'm taking a look at is Xcel Energy Inc. (NYSE:XEL)
Xcel Energy Inc., through its subsidiaries, engages primarily in the generation, purchase, transmission, distribution, and sale of electricity in the United States. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity using coal, nuclear, natural gas, hydro, solar, biomass, oil and refuse, and wind energy sources.

Last Friday, this stock signaled a major trend change at $35.15. The market closed on Friday at $35.24. [Read more...]

3 Stocks That Avoided Yesterday's Downturn And Deserve Your Attention

Certainly this first trading week in August has been none too kind to the markets. In fact, every major index is lower for the week, along with crude oil, gold and the euro! Not a particularly good start to August as the "death cross" creeps closer to execution. More on that next week.

The good news is there's always markets that are bucking the trend and today I'm going to be looking at three stocks that gave buy signals yesterday despite the drubbing that stocks took.

The first stock that I'm going to be looking at is American Tower Corporation (NYSE:AMT). American Tower Corporation is a real estate investment trust. It invests in real estate markets across the globe. The firm engages in leasing of space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies and municipalities and tenants in a number of other industries. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.

The next stock is [Read more...]

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