S&P 500
1972.18
-16.69 -0.85%
Dow Indu
16528.03
-114.98 -0.70%
Nasdaq
4776.33
-51.99 -1.09%
Crude Oil
47.76
-1.44 -2.99%
Gold
1142.45
+2.60 +0.23%
Euro
1.127365
+0.002215 +0.20%
US Dollar
95.560
-0.366 -0.47%
Weak

Three Reasons For The Collapse Of Gold Prices

Many of the gold bugs cannot understand why gold prices keep falling. One would think with all the strife around the world, the financial crisis in Greece, plus the stress and conflict in the Middle East and various other countries that it would be an ideal time for gold prices to go higher. That, my friend, was the old way of thinking, that is not the way the markets really work.

Let's take a look at what's really happening and the three main reasons for the collapse in the price of gold.

(1) We had seen very strong equity markets around the world which gave an opportunity to investors to make money. Remember, gold pays no interest and in fact, you have to pay money to store gold. So in that sense it's a little like holding insurance for a catastrophic event.

(2) Gold has failed to respond to any of the traditional triggers, such as financial unrest and uncertainty. What this signifies is that the perception of gold, at least for the moment, has changed. In any market, perception is perhaps one of the most important elements for dictating price direction. [Read more...]

The "NO" Vote Heard Around The World

I am sure by now you have heard that the citizens of Greece voted no to austerity and the latest deal that was presented to their country.

Here's a question for you, how is it that a small country like Greece with only 6.6 million people can suck in so much money from the international banking community?

It may be just a normal part of the Greek culture that they use deception to get what they want. Look back in history it started with the Trojan horse that the Greeks used to enter the city of Troy and win that war.

More recently in order to gain entry and acceptance into the European Union in 1981 and to later adopt the euro as its official currency in 2001. This was all done with deception, as the Greeks stated that their debt to GDP was 5% when in reality it was 15% and on an unsustainable track. I am sure that the Greeks looked upon it as another Trojan horse and they got what they wanted.

To put this perspective, the Greek economy only accounts for 2/10 of one percent of the world economy. In other words, it's not an economic powerhouse by anyone's imagination.

The question now is with the contentious Greek finance minister Yanis Varoufakis resigning shortly after the 61.3% NO vote, can Greece make a deal. His departure/removal was a clear gesture by Prime Minister Alexis Tsipras that he wants to begin fresh debt renegotiation.

The vote is indicating that Greek people did not want, nor would accept more austerity for their poor beleaguered country. Who in their right mind would vote to hurt and punish themselves? It was a brilliant political move by Prime Minister Alexis Tsipras to call the referendum when he did.

Okay, now for the big question, what's this No vote going to do to the markets? [Read more...]

Did You Catch The Netflix Move Like The Trade Triangles Did?

By now you have probably seen the extraordinary move that Netflix Inc. (NASDAQ:NFLX) has made this year. But did you see how well the Trade Triangles captured the timing on these moves?

Netflix announced after the close yesterday that it is creating a seven for one stock split. This is a good move for Netflix as it was the fourth highest priced stock in the Standard & Poor's index.

Based on yesterday's close of $681.19, it would drop the share price down to $97.31. For the average investor, this makes Netflix shares a lot more palatable as it will probably generate a lot more activity in this stock.

Today, I would like to share with you how you would have fared using the Trade Triangle technology to time your moves in and out of Netflix.

The first chart shows the results using the monthly/weekly Trade Triangle strategy. This strategy produced a robust 32% return as of June 23rd.

NASDAQ:NFLX

The second chart shows how you would have fared using only the monthly Trade Triangles. This strategy produced a return of 49% as of June 23rd. [Read more...]

Continuation Patterns Work – And Here's Why

I learned about continuation patterns many years ago and it was an expensive lesson. Before I share that with you, let me explain to you what a continuation pattern is and what it does.

A continuation pattern is one where you have a move out of the base, which is called a breakout, and the market moves up rather sharply and then stops and move sideways. The reverse is true when a market breaks down from a top and then forms a continuation pattern to the downside. Traders in a bear market will either sell short or buy puts looking for the market to move lower.

Well, many years ago I was one of those rookie traders and it was a lesson that I've never forgotten to this day - don't try to pick tops or bottoms on continuation patterns.

Talking about a classic continuation pattern, the stock of Under Armour Inc. (NYSE:UA) broke out of a continuation pattern today. UA now looks poised to move much higher. I've talked about this stock before and pointed out that it was a continuation pattern to the upside in several of my previous videos, I hope you were able to catch the move. Certainly, the Trade Triangle technology did not miss this move and is sitting with some nice profits at the moment.

What has your experience been with continuation patterns? Do you trade them, or were you unaware of this recurring phenomenon? Either way, I would like to hear what you think. Leave your comments below this post.

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

Is This The End Of The Bull Market?

Today I'm going to be analyzing charts of the DOW, NASDAQ and the S&P500 and the potential divergence I see in those markets.

It's too early to tell if these markets are going to reverse down and calling tops is never easy, nor am I trying to do that in this particular posting. What I am doing, however, is bringing to your attention a potential problem and a potential opportunity.

What I mean by that somewhat contradictory statement is that these markets could go either way. However, the odds would still favor trading with the trend and the major trend in both the DOW, NASDAQ and the S&P500 continues to be to the upside.

INDEX:DJI

In the three charts I have laid out today you can see the #1 and #2 quite clearly. #1 indicates that prices are going higher and #2 indicates that momentum is not following prices. This could be an early warning sign that things aren't quite up to par and as strong as I would like to see. [Read more...]

How To Trade Like A Hedge Fund

Today, I would like to show you how to create your own private hedge fund for your own account. It's not that difficult and it can make a huge difference to your bottom-line. Let me explain what I mean by that.

What Is A Hedge?

A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment. In simple language, a hedge is used to reduce any substantial losses/gains suffered by an individual or an organization.

A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of over-the-counter and derivative products, and futures contracts.

Public futures markets were established in the 19th century to allow transparent, standardized, and efficient hedging of agricultural commodity prices; they have since expanded to include futures contracts for hedging the values of energy, precious metals, foreign currency, and interest rate fluctuations.[1]
Source: Wikipedia.org.

For our purposes today I'm going to be looking at hedging stocks. I'm going to give you specific examples of what you can do today. One stock you're going to buy and go long, the other stock you're going sell and go short.

In order to make this work, you need to have the same amount of invested capital in each stock. The two stocks I'm looking at today are traded on the New York Stock Exchange (NYSE). The first stock is ONEOK Inc. (NYSE:OKE), the second stock is Basic Sanitation Co. (NYSE:SBS).

For discussion's sake, let's say you have $10,000 to invest. Divide the money up into two buckets of $5,000 each. You would then look at what price each stock was trading at. OKE is currently trading around $43 a share and SBS is trading around $6 a share. Then divide the value of 1 OKE share (presently at $43) into $5,000. This gives you 116.27 shares that you can buy or short with your $5,000. To make things easier, I would round this down to either 110 or 115 shares.

NYSE:OKE

ONEOK, Inc. engages in the gathering, processing, storage, and transportation of natural gas in the United States. It operates in Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. [Read more...]

I Like The Chart Formation On This Stock

Today I will be looking at the stock chart of Cadence Design Systems Inc. (NASDAQ:CDNS). This stock just broke out to the upside from a four-month base and looks as though it wants to continue going higher. All of the Trade Triangles are green and pointing higher for Cadence Design Systems. My upside target for this stock is $22.40, CDNS is currently trading around $19.50.

Looking at the chart you can see that this stock has a very well-defined four-month base and has cleared resistance with today's breakout. If you measure from the lows of $16.52 to the resistance level which is at $19.53 it gives us a measurement of $3.01. You then add that number to the resistance level of $19.53 and this gives you a target of $22.54. I would then round that number down to approximately $22.40, which is now the upside target zone for this stock.

So what does Cadence Design Systems do?

[Read more...]

6 Lessons To Conquer Any Market

Hello traders and MarketClub members everywhere. Today, I would like to do something a little bit different and welcome all of our new members. We have had a tremendous influx in the last few months and we want to get you started on the right foot with these 6 lessons.

So on behalf of our company INO.com, the parent of MarketClub, welcome. We want you to get the very most out of MarketClub in the future. Our mission is to help coach, guide and share with you a successful pathway to profits. With that goal in mind, we have 6 lessons for you that will help you conquer any market.

The lessons are the real deal and they were learned the hard way in the trading pits of Chicago, many years ago when I was a floor trader. These are the universal truths of the marketplace and have not changed, nor will they change, as they reflect human nature and how we act as individuals. So let's get started, our first lesson has to do with drawing a simple, straight line.

LESSON 1: Trend Lines
In this lesson, I will show you the correct way to draw trend lines and how to use them successfully in any market.

[Read more...]

Here's A Stock That Technically Taxes The Mind And Looks Great

I found this stock using the Smart Scan technology and wanted to share it with you today. The stock is Apache Corp. (NYSE:APA).

I'm looking at this market on a technical basis as all of Trade Triangles are now positive and showing an upward trend.

As you can see on the chart, I have labeled numbers 1 through 7 so you can better understand exactly what you're looking at.

[Read more...]

A Trading Tool That Never Goes Out Of Style

Hello traders and MarketClub members everywhere, today I want to share with you a trading tool that never goes out of style. I learned about the power of this trading tool a long time ago when I was a member of the exchange and trading in the pits of Chicago.

It was there amongst all the hustle and bustle, standing shoulder-to-shoulder with some of the most successful traders in the world that I learned one of the most important tools in trading. I have never forgotten this tool and in fact, I still use this tool every day when I'm researching a potential trade.

As computers get more and more sophisticated and can spit out trading algorithms faster than you can blink an eye, this simple tool continues to stand alone as a universal market truth. Little did I realize that this simple tool would prove to be so valuable.

So let's get started with this same tool that I have been using now for the past 30 years. I will also share with you one of the core secrets that most traders miss when they use this powerful trading tool.

It's a short lesson that visually illustrates when and how you should use this successful trading tool.

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

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