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The Truth About Amazon

When was the last time you bought something on Amazon.com (NASDAQ:AMZN)? For me, I purchased a pair of cycling gloves last week. It seems that when Amazon reported a wider than expected loss, investors were surprised and shocked. What were they expecting?

The reality is that Amazon is a juggernaut in online commerce and is seeking world domination in selling you stuff. The strategy that Jeff Bezos is using for Amazon is not new, Sam Walton in the 60s did the exact same thing with Wal-Mart Stores, Inc. (NYSE:WMT). Sam's idea was pretty simple, start with low prices so it puts your competitors out of business, then you can raise your prices afterwards. Amazon is doing the same thing, but online.

Just like Walmart, Amazon made it easy to buy something and return it if you don't like it, all with no hassles. Amazon is building something that is incredibly valuable - millions of consumers who want to buy products through them alone.

Just imagine, all Amazon has to do is raise prices just a little bit and they will be very profitable. Will consumers run the other way when this happens? No, as consumers we are so trained to buying at Amazon that a small price increase is not necessarily going to have buyers running.

Let's face it, we are all creatures of habit and I've gotten into the habit, like millions of other consumers, of just going to Amazon looking for an item and buying from them. Sure, if I searched around the web and spent a lot of time, I may save a dollar or two, but I would also be potentially doing business with companies I don't know. How reputable are they? Do I feel comfortable giving them my credit information and other private information? [Read more...]

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.

Candlestick Patterns – Harami

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple.

If you like this article, Larry’s also agreed to give you free access to his weekly trading tip.

I've already covered some of the better known patterns like Doji and Engulfing  – now it's time to add Harami to your candlestick chart pattern arsenal. Let's take a look at what this technical signal looks like, and what opportunities might be presenting themselves when you see it.

Harami patterns can be bearish or bullish

Harami, like engulfing patterns, are a two candlestick formation. They are actually often confused with engulfing patterns because they both involve candles where one real body is bigger than the other. The difference is that in harami, the preceding (or first) candle in the pattern is the longer one of the pair; it encompasses the whole body of the second candlestick. [Read more...]

Five Internet Stocks To Buy And One To Avoid

Hello traders everywhere, today will be looking at Internet stocks and what's hot and what's not. The six stocks we will be looking at today are Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), Facebook Inc. (NASDAQ:FB), Yelp Inc. (NYSE:YELP) and finally Yahoo! Inc. (NASDAQ:YHOO).

There is no question about it we live in the Internet age or as Intel likes to say "The Internet of everything."

When trading Internet stocks momentum seems to be the rule of the day, and when an internet stock is in favor and going up you want to be long and when they're going down you want to be out. Sounds pretty straightforward doesn't it? But sometimes investors drink the Kool-Aid and stay with bad trades too long or in this case Internet stocks that go south and never return. In today's video will show you how to avoid that syndrome.

As you can see from the symbol choices, these are all well-established, liquid companies in terms of trading, you are not buying speculating in some start-up that makes no money.

So let's get started and go to the videotape and see what's cooking with these six stocks.

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

Good Way To End The Trading Week

We're coming to the end of a rather dismal trading week as far as many traders are concerned, so let’s take a look at a positive way to end the week.

As this is Friday, I want to look for markets that are making new 52-week highs, particularly when they're going against the general grain of the market.

Within MarketClub, under the SmartScan tab, I'm going to use the link for 52-week highs. I'm also going to be filtering the results by "Equities," "last price less than $50" and "volume greater than 2 million shares traded a day." I'm also only going to search on US exchanges.

With the filtering completed, I came up with a list of about 16 stocks that meet my criteria. From your own scan of the stocks that meet your criteria, you could choose what you would like to trade, or you could trade all of them. Your next step is to scan 15 minutes before the close looking for stocks that are trading close to their highs for the day. You only want to trade those stocks that are closing strong for the day and the week.

If a stock is making new highs on Friday, it potentially means that something is going on behind the scenes that the general public is not aware of. It could be merger talks, a new product announcement or simply news that comes up that's viewed as positive for that particular stock or sector. Once you pick out the stock and buy it, you want to take profits on the opening on Tuesday. You're looking for the market to continue its strong upward momentum on Monday and early on Tuesday when the stock opens. [Read more...]

Strategy Trading Using Next Day Predictive Highs and Lows

We get a lot of questions here at INO.com about how to use highs and lows to predict market movement. As a treat to our blog readers we have asked Darell Jobman, a leading expert in technical analysis to share some his techniques. In this video workshop you'll discover how to putting indicator clues together to identify setups for a new trend. Darrell has been writing about financial markets for more than 35 years and has become an acknowledged authority on derivative markets and technical analysis.

Watch Now:Spotting Breakouts That Lead To Trend Reversals

Best,
The INO.com Team

Is This Stock Ready To Pop?

I was looking over the charts this past weekend and noticed one stock that I wanted to bring to your attention. There are two reasons why I think this stock is worth a look.

1. There was a new monthly Trade Triangle signal on June 27th at $48.04.

2. I like the formation. This chart has a "W" formation, which normally occurs at the bottom of a move and signals a reversal. In this case, it would look as though once we close over $48 a share, we could see a quick pop up to $50.

The stock I am referring to is Coca-Cola Enterprises Inc. (NYSE:CCE), traded on the New York stock exchange. This is a large company and has been around for a long time. While not usually considered a hot stock, the formation is undeniable. As with any position, you should always be using money management stops.

Another part of this formation I like is the classic Fibonacci retracement of 60%, that was again tested on June 13th and it held. [Read more...]

Are You Prepared For Q3?

It's hard to believe, but here we are coming to the end of the trading week and also the end of the second quarter. We only have a few more trading days before Q2 is done and dusted.

Earlier this week I wrote about Tesla Motors (NASDAQ:TSLA) and First Solar (NASDAQ:FSLR).

I still believe that both of these stocks will move higher, as the Trade Triangles are all in place. If you missed these posts, you can read about Tesla here and First Solar here. Both of these stocks are higher for the week while the general stock market is flat. I view this as a psychologically positive sign for these stocks.

Last week I also posted a special report on gold. I still believe gold is going to remain in a positive upward trend until about the middle of August. That is when this market next cycle should top out. As always, money management stops should be in place on all positions. [Read more...]

Another Way to Play the Upcoming Energy Crisis

Yesterday I talked about Tesla (NASDAQ:TSLA) and how this company could skyrocket based on the potential high prices at the pump and the potential lack of availability of petroleum products.

Today I am going to be taking a similar view, but with a different company, First Solar Inc. (NASDAQ:FSLR). When this company first came on the scene, it moved dramatically higher and in a matter of months was trading well over $300 a share, back in 2008. Since that time, the stock has generally drifted lower for the last several years until hitting a low in June of 2012. After trading below $12, the market has made a steady recovery to where we are today, around $70 a share. I certainly hope no one out there has been holding onto any shares since $300.

I am bullish on FSLR based on a number of factors. The Trade Triangles are all positive, we are in a strong uptrend, and this market could complete a classic Fibonacci retracement that would take it back over the $100 a share level. This stock has also shown a remarkable cyclic tendency and we are presently in a cyclic up-cycle right now.

As I stated in my piece on Tesla, the energy problem is going to remain and probably will deteriorate as the Middle East could go down in flames.

1. Cyclic high periods
2. Cyclic low periods
3. Fibonacci target zone between $94 and $113
[Read more...]

Candlestick Patterns - Engulfing

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple.

If you like this article, Larry’s also agreed to give you free access to his weekly trading tip.

Candlestick charts have all kinds of potential patterns that technicians are watchful for. One of the easiest to spot is an engulfing pattern. This set-up consists of two candlesticks, one of which is “engulfing” the previous one. That means the body of the second candlestick is longer than the first one. It doesn’t have to extend beyond the wicks of that first candlestick, just the real body. period of time. [Read more...]

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