Time To Pay The Piper

Due to Technical issues we do not have a video at this time. However we are working to  add a video from Adam later this afternoon.

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Monday, the 8th of August.

Just when you thought it was safe to go back into the water, Standard & Poor's downgrades the US debt for the first time since 1917, back when the US gained its AAA status. Psychologically this is a huge blow for the US, it would appear that we have just been marked down like some product in Macy's bargain basement in New York.

Even though we have the largest debt market in the world, the psychology is such that the move to AA+ was not a good thing for the fragile psyche of the world economy.

Rather than shoot the messenger, in this case Standard & Poor's is saying we should commend the messenger for calling the politician's bluff. We have all heard the expression "no pain, no gain."

Well it's time for pain, and to pay the piper for the excesses of the last 20 or 30 years, which is the last time the US had a positive saving picture. We have a whole generation that basically lives on credit cards.

Last week, we saw trillions of dollars evaporate in the world markets as fear returned and confidence evaporated in a big way.

Technically, as you are aware if you've been following this report, you know that all of our Trade Triangles are negative on the equity markets and have been for some time. You also know that we have been steadfastly bullish, based on our Trade Triangle technology on the precious metals.

So what's ahead? There are going to be lots of opportunities in the markets we track and we expect to get our fair share of profits. We expect we will see some form of short covering and profit taking coming into the markets in the next few days, from the sharp downward move we have experienced at the beginning of this week.

Certainly there is no guarantee that this will happen, however most markets do not go straight down. We only have to look back to 2008 and see that we did have rallies in the equity markets. Those rallies were opportunities to short the market. I think any rallies in the current market environment will be opportunities to once again short the equity markets.

So let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.

Continue reading "Time To Pay The Piper"

Simplifying Complicated Charts

On the Trader's Blog you've heard us talk plenty about how to simplify your trading. As a matter of fact, you've heard Adam preach about keeping it simple over the years. Today we've asked Bill Poulos from Profit's Run to share with us how he keeps his trading method simple by using a simple indicator that we could all benefit from. To find out more about Bill Poulos visit his website here.

One of the problems that many traders run into is trying to find the perfect combination of indicators that will lead them to the perfect trading method.  Not only is this a problem for new traders but we find that many experienced traders continue to over complicate their charts with too many indicators.  They often think that the more indicators they can get on the chart the more successful they will be.     This is usually not the case and only leads to more confusion on the part of our entries. The concept of keeping things simple works especially well when applying it to our trading strategies.  The key for many trading methods is to simply know the trend of the pair and then know when to buy or sell that pair.

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America has been marked down!!

Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 8/05/11.

What a weekend!! S&P  marks America down to to AA+. That bombshell comes on top of everything else that is happening like the markets crashing and Italy imploding. But you know what, it is also a time of great opportunity if you follow our Trade Triangle technology.

Let's see how the markets performed last week. Out of the six markets we track every trading day, four markets were in negative territory for the week. The two markets that did not end up in the minus column were gold up 2.25% and the dollar index which was up 1.06%

The percentage loser for the week was crude oil which lost a massive 9.21% and is now officially in a bear trend according to our Trade Triangle technology. The S&P500 was close behind with another negative week which saw this index shed 7.18%.

Let's take a look at the charts, because unlike politicians, pundits and gurus, they tell you what is really going on in the world.

So here's what happened last week in the major markets…. Continue reading "America has been marked down!!"

The Start Of A Bear Market?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Friday, the 5th of August.

Ladies and gentlemen, the market action yesterday was real. Please be aware that we have started on a bear market. As we have pointed out in our previous updates, we were looking for a move to the downside. That has now happened with all our indicators firmly in negative mode.

Most folks who are not in their 60s do not remember the bear markets of the 70s and 80s which caused a tremendous amount of pain for investors. It seems as though we just kicked the can down the road for the last time. The markets are bringing common sense back and they will find a solution for the economy.

President Obama came on the TV today to reassure everyone that it was not his fault that the stock market was down, it had to do with Europe, the tsunami in Japan. Mr. President we are and have been in a global economy for years. It's too bad that Ben Bernanke and you don't understand that.

Folks who saw their 401(k) and IRA retirement accounts decimated in 2008 are having a déjà vu moment. In the last 10 days the S&P 500 has lost over $1 trillion and we expect it will lose more. A simple solution to get America running again is to cut corporate taxes to 25%. Money will pour in, corporations will start hiring again and start building business. Corporations are the ones that create business and pay taxes in this country. It's not the government that pays taxes.

So, President Obama will you please help give businesses the environment to thrive in, less regulation, less taxation? This is the only way for the country to get out of this recession.

The key element which is overriding everything right now is the current market psyche... Scared. Last night every TV and cable show's lead story was the market crash. If the market closes lower today, everybody will be frantic and worried about their investments over the weekend which means we'll probably see a continuation early next week to the downside. The equity markets are getting close to a 61.8% Fibonacci retracement level of 1148 for the S&P 500 index. We expect that this level will be reached. We would expect to see some profit taking at that area and a modest retracement back to the upside. That is not to say we are bullish, it just means we going to see some profit-taking coming into this market.

I would like to thank everybody for their positive feedback! We are thankful we can help you muddle through this extremely volatile time in the markets.

So let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.

Continue reading "The Start Of A Bear Market?"

Are External Issues Stifling The Economy?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Thursday, the 4th of August.

Happy Birthday, Mr. President.

Well, we are a couple of percentage points lower today in the equity markets and unfortunately your administration points the finger at the tsunami in Japan and other external issues that are stifling the economy. It is always someone else's fault and not your administration.

It doesn't matter if you are a Republican or a Democrat, this is YOUR economy and YOUR administration has to accept responsibility for it. You have spent trillions of tax payer's money on unneeded and unwanted legislation, and it is never going to help the country or create jobs.

You came into office on "Hope and Change"... America got neither.

Do you really want to help the country and ensure your reelection? I think you should turn over the billion dollars you are amassing for your reelection campaign to the treasury. I would see that as a very positive gesture and it would likely get you reelected.

You were recommended to lower the corporate tax rate from 34% down to about 27%, earlier in you administration. What happened to that idea? That would mean that millions of small companies could hire more people, plan more and do more. The program was rapidly shelved because it didn't help everybody. Mr. President corporations employ people. Corporations pay taxes. Corporations and the lack of government regulations and interference are what made America run and be a great country.

I think you're probably a very smart man and you should recognize it's time to change course on this spend, spend, spend attitude. You wouldn't do it with your own checkbook, but it seems to be okay to borrow more money and spend more money for the country under the guise that it's all going to work out.

Mr. President, it is not working out.

It's about 16 months before the election and one promise I will make… If there are no radical changes in your policies, with unemployment at 9.2% officially and unofficially closer to 16%, then your chances of getting reelected are going to be ZERO.

P.S. Please don't come on TV again to tell us your latest plan as it will probably send the markets further into a tailspin.

P.P.S. Where's Hillary?

Continue reading "Are External Issues Stifling The Economy?"