S&P 500
+23.71 +1.22%
Dow Indu
+216.58 +1.30%
+70.20 +1.58%
Crude Oil
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+1.56 +0.13%
-0.001375 -0.11%
US Dollar
+0.013 +0.02%

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...]

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...]

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

How An Egg Timer Could Improve Your Trading

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?

Was it because ...

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[Read more...]

Will Ebola Have A Lasting Effect On The Markets?

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...]

How To Be Positioned In A Volatile Market

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...]

Poll: Even Ben Bernanke Cannot Get A Loan

Former Federal Reserve Chairman, Ben Bernanke, was addressing the National Investment Center for Seniors Housing and Care conference in Chicago on Thursday and said that, "I recently tried to refinance my mortgage and I was unsuccessful in doing so." He went on to explain that lenders "may have gone a little bit too far on mortgage credit conditions" according to the Bloomberg report.

I thought I would ask you the same question today....

Do you think lenders have gone to far on mortgage credit conditions?

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As always, I would love to hear you thoughts on the subject. Please take a moment to vote and leave a comment.

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Fill In The Caption - Eric Holder & Al Sharpton

What do you think would be the "perfect caption" for this photograph of Attorney General, Eric Holder and Al Sharpton?

Here's my caption:
"Eric, you don’t get it. I want your job!"

Leave a comment with your caption and have the opportunity to win a three month MarketClub subscription. Enter as many captions as you wish and have fun! Team MarketClub will pick out the top three captions for the prizes. Good luck!

For a good chuckle, be sure to read some of the captions from previous Fill In The Caption pictures.

Poll: Will you buy Alibaba stock?

IPO day has finally arrived for the Chinese e-commerce giant Alibaba Group Holding. Alibaba Group Holding will trade on the NYSE using the symbol BABA. Alibaba's IPO debut has become a hot debate for the market. The demand for its shares has risen so much so that the bankers had to stop taking orders in some places recently.

That leads us to our poll question today....

Will you buy Alibaba stock?

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As always, we would love to hear what you thing about Alibaba Group Holding (NYSE:BABA).

Every Success,

Fed Signals It Plans To Keep Key Interest Rate At Record Low

The Federal Reserve signaled Wednesday that it plans to keep a key interest rate at a record low for a considerable period because a broad range of U.S. economic measures remain subpar.

The Fed said it planned to keep its benchmark rate near zero as long as inflation remains under control, until it sees consistent gains in wage growth, long-term unemployment and other gauges of the job market.

The central bank retained language signaling its plans to keep short-term rates low "for a considerable time" after it ends its monthly bond purchases after its next meeting in October.

Stock prices rose after the Fed issued its statement at 2 p.m. Eastern time. Traders appeared pleased that the Fed seems in no hurry to raise rates. [Read more...]

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