Trader's Blog Contest Winner...

Congratulations to Michael P. of Ontario, Canada for winning the first ever Trader's Blog contest. You will receive your iPod touch courtesy of MarketClub.com and INO.com shortly. Thanks for everyone who participated. It was fun to read those could-a, would-a, should-a moments... now it's time to make them happen.

We asked visitors to write about a trade that they wish they would have entered. Here is what Michael wrote:

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"One of the best Canadian stocks to play the Canadian Oil Sands is Canadian Oil Sands Trust…COS.UN on the TSX. Around October 2006, rumors started swirling around in the Canadian press that the Canadian Federal government was going to tax all the Income trusts like a corporation, thus any owner of Income trusts would pay double taxes. Well on Oct 31st..Halloween..after market close, they confirmed these rumors. When the market opened on Nov. 1st, COS.UN plunged to a low of $24.32, over 20% in one day. It scared everybody including me because I owned 1300 units. I wish I had taken the contrary view that day and bought more. I would have realized a gain of over 100% in a little over a year, not to mention the 50% increase in the dividend payout since that time!!!"

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We plan to have many more contests, so stayed tuned and keep interacting with us and again congrats to Michael.

"Saturday Seminars" - Controlled Trading

Most traders react to the market, their brokers, and their emotions. When you react because the unexpected has occurred, you are out of control. When you respond as part of a pre-determined game plan, you are in control. In this workshop, Walt will share with you his 4-Step Program of Controlled Trading that will keep you in control of your trading.

Part 1 - Market Analysis. "The trend is your friend;" and not only do we want to know what the trend is, we want to anticipate when the trend will reverse. With cycle analysis, you can both define the trend (long-term, intermediate-term, short-term) and anticipate tops and bottoms (both major tops and trading tops). Part 2 - Oscillator Analysis. Both cycles and oscillators are dependent upon time and price. Quite often cycle highs and lows are accompanied by oscillator extremes. When you know these extreme levels, tops and bottoms can be identified with confidence. Walt also presents easy-to-use techniques to fine-tune the oscillators and build tradable oscillator/cycle combinations to buy bottoms and sell tops. The amazing 3-10 oscillator is a simple and powerful indicator of tops and bottoms. Part 3 - Market Entry and Exit. To be in control, we must first determine the time frame for which we are trading. All too often we use a short-term entry technique and a short-term stop while planning a long-term trade. By defining the time frames before we enter the market, we can apply the correct market entry and exit techniques using weekly, daily, and intra-day techniques to buy on weakness and strength, and to sell on strength and weakness. Part 4 - Controlled Risk Money Management. Walt's "controlled risk" money management will show you how to stay in control of the trade at all times, from planning the trade to market exit.

Walter BressertWalter Bressert has been using market cycles to trade stocks and commodities since the 1970s when his HAL Commodity Cycles was one of the most widely known advisory services focusing on cycles.

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Saturday Seminars are just a taste of the power of INO TV. The web's only online video and audio library for trading education. So watch four videos in our free version of INO TV click here.

INO TV

"Saturday Seminar" - A Game Plan For Investing In The 21st Century

The financial landscape has been changed forever by the widespread acceptance of the Internet. Understanding the driving principles for this new economy of the twenty-first century is a must. The invention and subsequent development of the Internet has brought new companies to trade, extended trading hours, introduced trading online, and made worldwide information instantly available. The one thing that hasn't changed is supply and demand. The same concepts that have affected the prices of produce in the supermarket for decades affect the change of stock prices on Wall Street as well.

Tom will help you develop a game plan for understanding the imbalances between supply and demand in stock prices. Tom will discuss market risk, sector rotation and individual stock selection, all using Point & Figure methodology. His straightforward, enthusiastic and always entertaining presentation will leave you with strategies for successfully managing risk in the stock market for the twenty-first century.

Tom DorseyTom Dorsey is well known in the financial community. Representing the major stock exchanges in the United States, conducting Risk Management seminars across the country for industry professionals as well as individual investors

Author of numerous articles on equity market and options analysis for such publications as; The Wall Street Journal, Barron's, Technical Analysis of Stocks and Commodities Magazine, and Futures Magazine.

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Saturday Seminars are just a taste of the power of INO TV. The web's only online video and audio library for trading education. So watch four videos in our free version of INO TV click here.

INO TV

Traders Toolbox: Elliott Wave Theory

MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

Elliott Wave Theory categorizes price movement in terms of predictable waves. Beginning in the late 1980s, R.N. Elliott developed his own concept of price waves and their predictive qualities. In Elliott theory, waves moving with the trend are called impulse waves, while waves moving against it are called corrective waves.

Impulse waves are broken down into five primary price movements, while correction waves are broken down into three. An impulse wave is always followed by a correction wave, so any complete wave cycle will contain either distinct price movements. Breaking down the primary waves of the impulse, correction wave cycle into sub-waves produces a wave count of 34 (21 from the impulse wave plus 13 from the correction wave), producing more Fibonacci numbers. Elliott analysis can be applied to time frames as short as 15 minutes or as long as decades, with smaller waves functioning as subwaves of larger waves, which are in turn sub-waves of still larger formations. By analyzing price charts and maintaining wave counts, you can determine price objectives and reversal points.

A key element of Elliott analysis is defining the wave context you are in: Are you presently in an impulse wave uptrend, or is it just he correction wave of a larger downtrend? The larger the time frame you analyze, the larger the trend or wave you find yourself in. Because waves are almost never straightforward, but are instead composed of numerous sub-waves and minor aberrations, clearly defining waves (especially correction wave) is as much an art as any other kind of chart analysis.

Fibonacci ratios play a conspicuous role in establishing price objectives in Elliott theory. In an impulse wave, the three principal waves moving in the direction of the trend are separated by two smaller waves moving against the trend. Elliotticians often forecast the tops or bottoms of upcoming waves by multiplying precious waves by a Fibonacci ratio. For example, to estimate a price objective for wave III, multiply wave I by the Fibonacci ratio of 1.618 and add it to the bottom of wave II for a price target. Fibonacci numbers also are evident in the time it takes for price patterns to develop and cycles to complete.

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You can learn more about the Elliott Wave Theory by visiting INO TV.

Report Calendar for September 9th, 2008

As I was walking out of the office today, I noticed on my calendar that tomorrow is the day for a few major reports to be issued in the housing and retail sectors. Just something to keep an eye on. Have a wonderful evening.

Best,

Lindsay Thompson
Director of New Business Development
INO.com & MarketClub.com

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TRADERS CONTEST: Do you have a good trading story? First prize is an Apple iTouch! Enter your story here. There is no entry fee.

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