S&P 500
1921.22
-29.91 -1.53%
Dow Indu
16102.38
-272.38 -1.66%
Nasdaq
4686.37
-47.13 -1.00%
Crude Oil
45.84
-0.91 -1.95%
Gold
1121.385
-2.965 -0.26%
Euro
1.11450
+0.00182 +0.16%
US Dollar
96.241
-0.166 -0.21%
Weak

It's Friday And Things Could Get Ugly

Even before the announcement of non farm payrolls, which is one of the most significant data releases of the summer, the markets were on the decline. One of the reasons for that has to be yesterday's market action, all the indices fell from their best levels of the day and closed at or close to the lows.

Yesterday's close in both the Dow and the S&P 500 was on target to be the lowest Friday close if nothing happened today. The fact that we are down sharply this morning is a huge negative in my book, but is not one that is surprising.

As we go into the long Labor Day weekend look for the markets to be very thinly traded and volatile. I'm looking for a new low Friday close today. The lowest most recent Friday close was 16,559.75 on the Dow and 1,970.89 on the S&P 500. The NASDAQ was the only index to remain above its lowest Friday close yesterday by just a few points. The level to watch in the NASDAQ is 4,717.16, that level represents the lowest most recent close on a Friday. [Read more...]

Is The Market Doing Push-Ups?

It sure seems that way, doesn't? We are up one day and down the next. I'm not surprised with the market's action, it is what I expected after such a big drop.

It's Thursday and while this is an important day, I think Friday is going to be a more important day. Last Friday we saw the Dow Jones close at 16,643.10, the S&P closed at 1,988.87 and the NASDAQ closed at 4,828.54. As I write this, all three major indices are lower than last Friday's close and are down for the week. However, they are not lower than the recent Friday low close we witnessed just a few weeks ago when the Dow closed at 16,459.75, the S&P 500 at 1970.89 and the NASDAQ at 4717.16. Those closes in my mind are all crucial, if they are broken we could see a continuation to the downside. If they hold, it gives hope to the bulls that this was just a short-term correction and the markets will start going back up. [Read more...]

Should You Buy Crude Oil Or Gold?

One of the things I love about trading is how the dynamics of markets change. Change can happen quite quickly in many instances and quite slowly in others. In today's video, I'm going to be looking at some slow and fast changes in crude oil, gold, as well as the major markets.

I will also be looking at tools that you can use to spot changes and accelerations in markets and how you can set these tools up to work for you.

September promises to be a very choppy month as the markets settle down after the dramatic downturn we all witnessed in late August. One of the great things about the market is you don't have to be in the market all the time, you can be on the sidelines. Having a position on the sidelines is what I call the third position, there is nothing wrong with just observing the market from the safety of sidelines.

Two days ago, the gold market gave us a buy signal which I will be taking a look at in today's video. [Read more...]

It's Not Over…

I believe that the "dead cat bounce" I discussed last week has occurred with the market action seen late last week. Many of the major indices have rallied back to their Fibonacci resistance levels which should hold the markets' upward momentum, at least in the short term.

If you're not familiar with our Fibonacci tool, you can learn about it right here.

Another big negative for the markets is that many of the world indices had their worst month in three years. Unless there is a miracle today, it would appear as though the month of August is going to go into the minus column for the Dow, S&P 500 and NASDAQ.

There is an old trading maxim which you may have heard, "don't try to catch a falling knife," that should be every investors' mantra for September.

One of the problems overhanging the market right now has to be the Fed and if they are going to raise interest rates in September. This uncertainty is not a good thing for the market and it would appear as though the Fed and the rest of the Central Banks are pretty much out of bullets in terms of helping the economy and the markets. [Read more...]

Choppy Action and a Dead Cat Bounce

This week has been one for the history books and it's not over with yet, we still have today's action to contemplate. So what has the market really accomplished this week? Well, it has frustrated both the bulls and the bears, that's for sure. It's hard to believe that after all of this chop that the Dow is only up 1.18% for the week if it closes where it is currently trading (and less than that on the S&P 500).

What does all of this choppy action mean? Has the market topped out? Is this a "dead cat bounce"?

Let's just let all the dust settle and see what is going on in the major indices for the week and the month.

Last week the major indices closed at: [Read more...]

Beware Of Dead Cats

Whether we like it or not, the markets made history with yesterday's 1000+ point swing in the Dow. We've also never seen three days in a row where this index has lost 300 points each and every day. So what does all this mean? What it underscores is just how fragile the world markets are at the moment and the general uncertainty and concern that investors have in the U.S., Europe and Asia.

At the moment, China is writing the script and with today's announcement of yet another cut in interest rates I don't see how China can win no matter what it does. It is very hard to bring back investor confidence and trust to the markets once it has gone. I think the loss of confidence has already happened in China and no matter what the government does, it is not going to be enough to bring it back any time soon.

The fact is, the government of China is in a lose-lose position no matter what they do and they have just brought this upon themselves. I do not expect the Shanghai index to rebound in a sustained manner anytime soon.

I'm not sure who created the phrase "dead cat bounce" and how it relates to the market, but it goes like this. When a market has had a pronounced move down like we've just seen in all the major indices and in many stocks, it's not unusual for the market to rebound. Professionals call this a "dead cat bounce" and it is not to be trusted as it does not change the previous negative direction of the market. It is simply a rebound, possibly caused by news or a short covering rally. [Read more...]

It's Over!

Monday, August 24th will long be remembered by investors as the day the world turned red. Every exchange in the world is showing big losses. It all started in China when the Shanghai index closed down 8% for the day, its biggest daily loss since 2007. The drop in China quickly moved over to Europe where the FTSE 100 and other major indices all lost upwards of 4%.

What happened?

The experts and pundits will all point to different reasons why this happened, but the reality is, the market has been having problems for some time and those problems have manifested themselves in the minds of investors who suddenly perceive things as being not so rosy.

I have said many times before that markets tend to slide faster than they glide. Simply translated, that means they go down a lot faster than they go up and we have certainly seen that in the last week or so.

One of the strongest market movers for any market is perception. Perception suddenly took a very negative turn this past week for most of the major indices. We have a lot to be thankful for as the Trade Triangle technology warned us on 6/30/15 that the markets were beginning to change direction. I pointed this out on Friday in my video and showed the long-term trend line that goes all the way back to 2009 when the lows were seen in the market. At the time of my video, the Dow was down around 160 points and was very close to breaking the below this long-term trend line. As the day progressed, that support line was clearly broken with the Dow closing down over 500 points for the day. The breaking of this long-term trend line is a big deal, in my opinion, and it represents more than just a correction in a bull market. [Read more...]

Three Ways To Trade This Market

Hello traders and MarketClub members everywhere. Yesterday certainly was a rout to the downside, decimating many stocks across the board. The Trade Triangles gave a major trend change sell signal on the NASDAQ index. Now with all three indexes in a negative mode and confidence and perception dramatically waning, I expect to see further downside price action in the markets.

So what are those three ways to trade the market?

Well, simply put you have three options when it comes to trading (I am not talking about options trading) you can be long a stock, short a stock or out of the market, which in and of itself is a position. [Read more...]

Big Trend, Big Stock, Low Risk Trade?

Hello traders and MarketClub members everywhere. I would like to bring to your attention a stock that has been in a strong upward trend for some time that just flashed another buy signal yesterday. I consider this a sign of strength, particularly as the general market was down yesterday.

I decided just to do a short video today and focus on this one stock to show you an approach that I believe offers a very nice risk-reward ratio. I'm also going to share with you a way that you can lower the risk even further by using this one very simple technique.

The stock I'm going to be looking at is a big, well-known, high volume stock that offers lots of liquidity.

Check out today's video and see what you think of this stock and this one very simple technique to lower risk and enhance profits.

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

Are You Looking For A Winning Portfolio?

Hello MarketClub members and traders everywhere. It's the start of another trading week and I would like to share with you one of the model portfolios that is available to you as a valued member of MarketClub.

The portfolio I will be looking at is the Internet portfolio. This portfolio performed extremely well in 2013 with a 65% return and had a more conservative return of 16% in 2014. This year, the Internet portfolio has seen some tremendous profits in just two of the five stocks are tracked in this portfolio.

Every day the Internet portfolio is updated showing you the most current position and possible next move. The five stocks that are tracked are all well-known stocks that are traded heavily and offer great liquidity.

Both Netflix and Amazon have proven to be big winners. Yelp is also looking good and is currently short from $41.25.

Here are the current positions and open profits as of 8/14/2015: [Read more...]

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