S&P 500
1945.56
+4.28 +0.22%
Dow Indu
16627.89
+13.08 +0.08%
Nasdaq
4427.81
+8.33 +0.19%
Crude Oil
81.94
-0.55 -0.67%
Gold
1245.135
-3.015 -0.24%
Euro
1.267750
-0.004465 -0.35%
US Dollar
85.641
+0.244 +0.31%
Weak

One Way To Take Advantage Of This Difficult Period

For some time now, I've been talking about the volatility of the markets and for the last three days, volatility has been front and center. So, what is an investor to make of this and what opportunities are there to make money?

One way to take advantage of this difficult period is to look at our Smart Scan technology. In today's graphic, you can see that the market is beginning to tilt more and more to the bearish side of the ledger.

You can see by the Smart Scan numbers, the "Long Term Down" stocks now exceed the "Long Term Up" stocks by almost 400. When you look at "Chart +100", which means there's a strong uptrend, you see just 140 stocks trending upward. The number of stocks trending down in "Chart -100" is over 1000!

There are many stocks that are close to or have just reversed to the downside and you should be either on the sidelines in these stocks or shorting them.

With this being the last day of a tumultuous week, I expect the market to be a little exhausted and do not expect to see a big move either way today. Having just made that statement, I'm going to hedge myself and say as this is Friday, markets can and do sometimes go into turmoil.

This could be a perfect weekend for utilizing the "52-Week rules". In this case, I would favor the "52-Week rules" on the downside of the market. If you are not familiar with the rules for shorting the market, here they are again. [Read more...]

How To Trade Like A Billionaire

Wouldn't it be nice if you could look over the shoulder of a billionaire to see exactly what they are doing to make the kind of profits they make?

Well, now you can.

It’s no secret we've had some fantastic moves in 2014. The question is, are they going to continue? The short answer is, some will and some won't. Today I want to share with how five well-known billionaires traded in one particular stock. I am going to put our Trade Triangles to the ultimate test to see how they performed against these billionaire traders.

The five billionaires are Jorge Lemann, Leon Cooperman, Ray Dalio, Daniel Loeb and David Einhorn. We know, thanks to SEC filings, that these five super traders hold positions in the stock of Andarko Petroleum Corp. (NYSE:APC).

I am going to show you about where they entered the market and their average price. I'm also going to show you where our Trade Triangles entered and exited the market. I believe the trend has changed for APC and while these billionaires are holding on, MarketClub's Trade Triangles are signaling a sidelines position.

Based on what we are seeing it is going to be an interesting fourth quarter.

This is where our five Billionaires are positioned right now: [Read more...]

Ouch, Yesterday Was An Expensive Day For Many Investors

Has the market topped out?

For the last couple weeks, I have been somewhat skeptical of this market and whether it could keep on moving higher. Yesterday, we witnessed a collapse of several major stocks that were pushing this market higher particularly in the NASDAQ sector.

According to our Trade Triangles, you should get out of the NASDAQ and S&P 500 as they both are showing weekly intermediate-term trends that have turned negative. The DOW is the only index that is holding up so far. The red line for the DOW this week is 16,937 and should the DOW break below that area, it would put all three major indices in an intermediate downtrend.

The following stocks show intermediate downtrends (red weekly Trade Triangles) and unless you are a long-term investor, you should be on the sidelines in these stocks.

Apple Inc. (NASDAQ:AAPL)
Amazon.com Inc. (NASDAQ:AMZN)
eBay Inc. (NASDAQ:EBAY)
Yelp Inc. (NYSE:YELP)
Tesla Motors Inc. (NASDAQ:TSLA)
Netflix Inc. (NASDAQ:NFLX)

To find out if your stock is in trouble, check out the talking chart symbol on the top of every chart. Learn more here.

Now is the time for caution and not bold moves, in my opinion.

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

Who Will Win The Next Big Financial Frontier?

There's something coming that is going to be very big and all the major companies, from Amazon (NASDAQ:AMZN) to Google (NASDAQ:GOOG) to Apple (NASDAQ:AAPL), are all vying to control and own this new frontier. This could be as big and as ubiquitous as the Internet.

Who among these three players is going to win?

On Tuesday, Apple rolled out its new iPhone, along with the new Apple Watch, and something that didn't get a lot of attention called Apple Pay. Now all of these same technologies exist with other companies in one form or another, but what I see as the next big thing for all of the above-mentioned companies is going to be mobile payments.

But what if none of these companies are successful on the upcoming financial frontier, who will take the prize? [Read more...]

What Is The Greatest Market Indicator In The World?

Now some would argue that fundamentals are the most important element in trading, others might argue that technicals are the most important. It might also be argued that perception is the key to trading.

I would have to say there's a certain element of truth in the fundamentals, the technicals, and perception. But to me, the greatest market indicator in the world is the market itself. You can't argue with the market and win.

In today's example, I'm going to look at crude oil futures (NYMEX:CL.V14.E). I think this is an excellent example of how potential fundamental elements did not play out. When crude oil was trading over $100 a barrel, many were calling for it to go significantly higher based on the turmoil in the Middle East and also what was happening in the Ukraine.

Well, the exact opposite occurred as oil tumbled lower month after month. Now you could stick to your guns and say to yourself that fundamentally I think crude oil is going higher. If you had adopted that strategy no matter how logical it may seem to you at the time, you'd be sitting on a tremendous loss at this present time.

Holding onto losses is not the way to trade in any market, whether it's stocks, futures, foreign exchange, ETFs or precious metals. The name of the game is making money - less we all forget.

The market may fool you every once in a while, but what program or approach doesn't do that? But overall, the market gets it right every time as it is a total of everyone's knowledge. When you have so many brains working for you around the world, how could you not pay attention to what the market is actually doing?

So let's take a look at the October crude oil contract (NYMEX:CL.V14.E) to see how MarketClub's Trade Triangle technology handled the 10% drop over the last few months.

CHART LEGEND
1. All Trade Triangles are red and negative and show a -100 Score.
2. On 7/7/14 the Weekly Trade Triangle indicates a short position at $102.40.
3. RSI moves below the 50 line.
4. RSI now acts as resistance at the 50 line.
5. RSI now acts as resistance at the 50 line.

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

Have You Tried Using Donchian Channels?

Donchian Channels can be useful in visualizing the volatility of a market's price action. If the price is stable, the Donchian Channel will be relatively narrow. If the price has large fluctuations, the Donchian Channel will be wider.

Using the 20 day default period, a move above the channel signals a new 20 day high. Similarly, using a 20 week period, a move above the channel would signal a new 20 week high. Markets that continuously touch or exceed the upper channel line show strength, while conversely markets that continuously touch or break below the lower channel line show weakness.

Learn how Donchian Channels can improve your trading here.

Three Reasons You Should Buy Amazon.com Inc. (NASDAQ:AMZN)

Today I'll be looking at Amazon.com Inc. (NASDAQ:AMZN). At this point in time, the name Amazon is synonymous with online shopping, but Amazon does quite a bit more than just that. Amazon also runs a huge cloud infrastructure hosting service that has revenues in the billions of dollars. Amazon is constantly rolling out new services that are all designed to help sell more products. They are even coming out with a payment service for merchants that can be used on a smart phone.

Jeff Bezos, the genius behind Amazon, recently purchased the Washington Post. I'm not sure that this paper is going to make Jeff any money, but it is going to win him a lot of friends in Washington DC. Why would Bezos care about a newspaper? I don't think he cares about the newspaper itself, but rather the power the Washington Post has with politicians. What he cares about most is not having regulators come in and create problems by making more regulations than are necessary.

All that aside, here are three good reasons why I believe Amazon is going to have a very good fourth quarter.

1. Technically the stock looks good after pulling back from recent highs it made in July around the $360 area. The stock found support right around $280 and an important Fibonacci retracement level at $310.

2. Yesterday, Monday the 18th, the stock of Amazon flashed a weekly Trade Triangle. This action reaffirmed that the longer-term trend has resumed and should now be moving higher.

3. The stock is now in very strong hands with all the Trade Triangles green, indicating a strong upward trend.

CHART LEGEND
1. Monthly red Trade Triangle indicates the upward trend had reversed.
2. All Trade Triangles are now green indicating a strong upward trend.
3. Green weekly Trade Triangle indicates to cover any short positions.
4. Monthly Trade Triangle turns green.
5. A red weekly Trade Triangle indicates exit long positions.
6. New weekly green Trade Triangle kicks in at $335.
7. The RSI indicator is trading above the 50 line indicating a strong trend.
8. The MACD indicator is showing the trend is now positive.

I still believe that Amazon.com Inc. (NASDAQ:AMZN) is a powerhouse to be reckoned with. Amazon's only real challenge will be regulations coming in to squash what is a shining success in entrepreneurial-ism and capitalism.

Today, I'm seeing some profit taking coming into the market and I believe that this presents an opportunity to pick up the stock of Amazon. Currently Amazon is trading just below our original Trade Triangle buy ($335) signal.

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

It's Time To Get Your Yahoo On

It has been some time since I did a review of Yahoo! Inc. (NASDAQ:YHOO). I'm doing one today because a new monthly Trade Triangle kicked in at $37.16 and could be indicating the end of the 4 1/2 month stalemate in this stock.

Now, I'm not saying that this stock is going to skyrocket to the moon, but I do believe that the bulls have the upper hand and this stock will move higher in the weeks ahead.

It seems like Yahoo! Inc. (NASDAQ:YHOO) has been around forever, but it was first founded by Jerry Yang and David Filo in 1994. There have been quite a few changes to the company since that time. Marissa Mayer, previously from Google, was named president and CEO of Yahoo effective on July 17, 2012.

Yahoo! Inc. (NASDAQ:YHOO) operates as a technology company worldwide. The company offers search products, including Yahoo Search, that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktop. [Read more...]

Use Stops To Protect Your Capital And Lock In Profits

Stops are definitely important given the volatile conditions of today’s domestic and international economy. They are an enormously important part of a trader’s arsenal of trading tools and some traders confirm that stops are the most important part of their trading armor.

Learn more about using stops here.

To Trade Successfully, You Must Trade With The Trend

In life, trends are all around us and you only have to look at the weather to know that’s true. It's a pretty safe bet that temperatures will be colder in December than they will be in August, at least in the Northern Hemisphere. Trends also persist in the marketplace, but unlike the weather, these are moving trends and change year to year. As a trader and investor, you want catch the trends near a top or bottom.

Learn more about trading the trend here.

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