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Strong

Amazon's Greatest Nightmare

Yesterday, Amazon.com Inc. (NASDAQ:AMZN) reported its earnings. They were a shocker and pushed the stock down over 9% overnight.

While Amazon was reporting no profits, Jack Ma, the head of Alibaba Group Holding Limited (NYSE:BABA), was in Hollywood looking to buy content and movie studios for his mammoth "find everything" website. Mr. Ma has also said publicly he wants to have US companies on his website so they can sell their products in China. Alibaba has over half a billion customers at the moment and is growing fast.

When I look at the stock of Amazon I can see that this stock hasn't gone anywhere and keeps losing money. Somewhere along the line, I think investors are going to say enough with Amazon already, it's got to start making money. Amazon has its fingers in a lot of pies including advertising, merchandising, newspapers, the cloud and probably a lot of other ventures you don't even know about.

But even if you didn't know anything about Amazon or Alibaba and you just look at the charts, you have to say that the chart on Alibaba looks a lot more positive than the one for Amazon. Now admittedly, Alibaba has not been trading in the US that long, but something seems to be right about what's going on with this company and its charismatic leader, Jack Ma.

While Amazon stock has gone up and come down, it's practically unchanged from where it was a year ago. It is down over $100 for the year, while AliBaba's stock is within 2 or 3% of its IPO high price of $99.70 on September 19th.

In today's video, I will be looking at both the stock of Amazon.com Inc. (NASDAQ:AMZN) and Alibaba Group Holding Limited (NYSE:BABA). I'll also be looking for some weekend trades of the 52-week kind and see what I can come up with. And of course, I will do a recap of the week and show you the winners and the losers.

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

What's More Volatile, Stocks Or Commodities?

If you said stocks, you'd be right. There's a big misconception that commodities or futures are more volatile and risky than stocks. The truth is, what makes commodities or futures appear risky is the leverage factor. You only have to margin up a small amount of capital, usually less than 5%, to control a large amount of capital. What that means is when the market moves even a small amount, you get a bigger return, or in some cases a bigger loss, on your money because of leverage. If you put up the whole value of a commodities or futures contract, you effectively de-leverage your investment and at the same time lower your risk and return.

For example, say you want to buy 100 ounces of gold. At the current price, you would have to pay $123,500 and you would own the gold. Instead, you could buy 1 futures contract of gold worth $123,500 and only margin up $4,400. Now let's say we have a $10 move in gold. On 100 ounces that would be worth $1000. As you can quickly see, the return on $4,400 is a heck of a lot higher than the return on $123,500 if you owned the gold outright. Which would you rather have, close to a 25% return on your margin on 1 futures contract, or have a $123,500 tied up in physical gold and see a return of less than 1%?

That, my friends, is why commodities or futures are interesting and can be very profitable when you approach the market with discipline. Naturally, leverage slices both ways and you could lose just as fast as you make money. The key here is to be diversified like our World Cup Portfolio.

Here's the 6 individual markets of the World Cup Portfolio shown quarter by quarter. As you can see, not every market made money every quarter, but combined every quarter was profitable. This underscores the power of diversification and disciplined trading. [Read more...]

2 Stocks To Buy Today

Good day traders and MarketClub members everywhere! I have found two stocks that I believe are going to move higher in the near future and I will be discussing those stocks with you today.

I'm also going to be looking at the general market and analyzing how much further this rally can go in the major indices. Also included in today's video is a look at gold (FOREX:XAUUSDO). How much further can it go on the upside? Has crude oil (NYMEX:CL.Z14.E) finally found a bottom? Lastly, a quick peek at the US Dollar Index (NYBOT:DX) and why it took a breather.

You are going to have to watch the video to find out which two stocks I really like. I think you'll find the stories behind them very compelling as one of these particular stocks takes up almost 40% of a well-known hedge fund's portfolio.

Don't miss today's video!

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

How To Beat These Billionaire Hedge Fund Managers

If beating the billionaire hedge fund mangers seems like a dream to you, then I am about to give you a reality check. Before I go there, let me share with you some of the results of these billionaire hedge fund managers this year. I'm only going to give you the top three, as they have achieved outstanding results.

Let's start off with the number one hedge fund manager of the year. I'm sure you're familiar with this name, as it seems to be in the news every week. I'm talking about Carl Icahn. Icahn has produced an incredible return of 48.96% year-to-date. That truly is an amazing return, but he's not alone. Next up is David Einhorn with a return of 41.37% YTD. Bringing up the rear with a very impressive 27.95% return YTD is Bill Ackman.

I think we can all agree that these three brilliant billionaire fund managers have all produced outstanding returns so far this year. I congratulate all three hedge fund managers. It's even more remarkable when you consider that the stock market hasn't had much sustained movement to the upside this year. In fact, just recently most of the major indices were flat to lower on the year.

This leads me to the main lesson at hand... with the right tools you can surpass the returns of these hedge fund all-stars. [Read more...]

Will The Rally End?

Will Friday's rally continue or was it just a "dead cat bounce"? There is no doubt about it, we have been seeing lots of volatility in the markets. Is it likely to continue? Like in the past, it will continue until it stops and the market settles down. Nobody can give you an exact timeline when that's going to happen, but it will happen. In the meantime, having a solid game plan, one that you know has been successful in the past, will lead you to successful trades.

You've heard me say this before, the market can only move three ways, it can go up, down and sideways, that's it! When you boil it down to those simple terms, it is easy to see how investors can create many of their own problems by over-thinking a situation. You may have been guilty of this yourself at some point in time, I know I have. It is so easy to get caught up with the hubris of the market and lose sight of your investment goals. It's also easy to fall into the trap of listening to too many talking heads. Oftentimes when this happens, it leads to confusion and will leave you in a state of paralysis. [Read more...]

Our Most Important Poll Ever - We Need Your Input

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. [Read more...]

Is This Index Predicting The Future?

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...]

Did ISIS, Ebola, And The White House Crash The Market?

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...]

When Someone Is Desperate To Sell $750 Million Of Stocks

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:

Amazon.com Inc. (NASDAQ:AMZN)
Facebook Inc. (NASDAQ:FB)
Yelp Inc. (NYSE:YELP)
Yahoo! Inc. (NASDAQ:YHOO)
Netflix Inc. (NASDAQ:NFLX)

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.

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

The One Market Truth You Need To Know

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.

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

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