Contest Winners…Trillionaires…and the smartest men in the universe!

Congratulations to our contest winners in their close predictions of the DJI and DX closing positions ending QE2 on June 30th, 2011.

Here is a little bit about our winners:

Andrew G.from PA- Winning guess for the DX: 74.377

We asked Andrew to tell us a little bit about himself and this is what he shared:

“I am a happily married 55 year old. We have two sons, one 24 and the other 22. Both graduated recently from UPenn, My oldest son is a bio-engineer, working at a medical device company, the younger one a Wharton graduate working in the financial field. I consider myself a long time student of the market and primarily, a long term investor. Having said that, over the last few years, I have concentrated my efforts on the charts, and technicals, believing that they play an exponentially larger role in the shorter term direction market. That it why I religiously follow the Market Club. It is one of the best top-grade tools for traders and helps to provide great insight as to where we go from here. It has been a great help with my shorter term trading strategies, as I continue to seek more consistency with both intraday and swing trading.”

Our other winner is:

John Hoffman from FL- Winning guess for the DJI: 12,432.39

Here is what John told us about himself:

“I am semi-retired and up until about two years ago I was helping a friend manage the administrative duties of his hedge fund (now closed). I am currently trading in my own accounts.”

All of us here at MarketClub would like to thank everyone for their participation in this fun-spirited contest…hopefully we can get another one together soon!

Congratulations again John and Andrew, enjoy your new Wi-Fi tablets!

Best,
The MarketClub Team

It's good to be back!

Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your 1 p.m. market update for Friday the 1st of July.

I just got back from a business trip to Utah I will tell you all about that trip in a later broadcast. But right now all I can say is what a difference a week makes.

This week on Wednesday to be precise the S&P 500 gave you a strong buy signal with our weekly green trade triangle. Since that time it has done nothing but go higher.

Before I left I underscored how several markets were heavily oversold and at the lower levels of the Donchian trade channels. What this meant was that there was a strong probability that we would see a bounce in both the equity crude oil, and CRB index. That rally took place in the past few days. So what is going to happen now?

Let's go to the markets right now and see what is happening today. Continue reading "It's good to be back!"

Prevent Early Exits

Shaun Downey is a technical analyst with CQG in London and a contributor for SFO Magazine. Shaun has been in the financial business since 1979 and has held a variety of trading and head of trading positions for firms including Rudolf Wolff, Fulton Prebon and AFP. If you enjoy this post on how to prevent early exits, please click here for a complimentary subscription to SFO Magazine.

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A common practice when using trailing stops, (beyond money management techniques) is to use popular indicators such as the parabolic, ADX, moving averages or volatility stop.
While these methods do have merits, a recurrent flaw is their inability to prevent a premature trade exit when a market's corrective phase begins The same thing can occur when traders rely on calculations of a prior range to achieve a more dynamic type of trailing stop. Continue reading "Prevent Early Exits"

The Bullish Markets

Here is your 1p.m. update for Thursday, June 30th. Today Susan reviews the very bullish market that we seem to be trading in this week. Susan also gives you some pointers on how to follow the "52-week new highs on Friday rule." If you have forgotten what those rules are, we have posted them here as a refresher. Watch today's update now!

These are the only three rules you need to trade with “The 52-week new highs on a Friday rule” successfully.

  1. On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
  2. Exit the long position on the opening of the following Tuesday.
  3. If the market opens sharply lower on Monday, exit the position immediately.

“The 52-week new highs on a Friday rule” works extremely well in futures and in the Forex markets. This rule can be reversed for “The 52-week new lows on a Friday rule” if you are so inclined to trade the short side of the market. The same rules apply.

So, there you have it!

Did we miss a symbol you would like current analysis on? Get current analysis on over 230 symbols emailed to you for free!

Best,
The MarketClub Team