We revisit a crude oil posting

(First published on 7/21)

How many times have you heard that it's going to be different this time?

Do you remember the dot com bust? Well, that was supposed to be different and look what happened. Same with the housing bubble, that was supposed to be different and look how that's turning out. Both events created the illusion of madness that made everyone rich on paper for at least 20 seconds.

The fact is, it's always different "this time", that's what makes it different.

But it's different this time in crude oil, right?

Okay, I know, I have heard all the reasons why oil is up, we are running out of energy, India and China are buying, the turmoil in the Middle East, etc, etc. Let's face it the energy market is the market du jour.

But it's different this time in crude oil, right?

I have to say that it's always different and at the same time it is always the same, only the names of the players in the markets change. It's all speculation (ooh, dirty word) but the reality of the situation someone is always left holding the bag.

The irrefutable laws of the market never change:

Check out my new crude oil video after you have read the six steps.

Read on and understand why.

What Every Investor and Trader needs to know to Succeed in the Markets.

Step 1: A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders' information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.

Step 2: Days, weeks, or sometimes months after a move has started, there is a brief mention in the electronic media (radio, cable, TV) or on one of the internet chat boards that a market has moved. The public hears for the first time and begins to get interested, but does not buy.

Step 3: A blurb of information appears in print media. The move also begins getting more exposure on blogs and internet message boards. The public starts paying a little more attention, and will buy a little bit.

Step 4: Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. The public begins buying in greater volume.

Step 5: A full-blown front-page article appears about the particular stock or market in one of the major financial newspapers, magazines, or financial websites. This is often six months after the fact and after a market has shown its greatest appreciation. There is often heavy public buying, even a possible frenzy, as all media, brokers, and so-called "gurus" start to tout the market.

Step 6: As step 5 gets underway, the sponsors or smart traders begin to move out of the market and take their profits off the table.

The finale Step: The move ends, the market falls, and investors lose money.

Does any of this sound familiar to you? If it does then you know the key rules of engagement in the market. If none of this is familiar to you then learn to recognize these six step asap. Your financial life depends on it!!

Think about it.

Adam Hewison

President INO.com

5 thoughts on “We revisit a crude oil posting

  1. Reply to Steve,

    Adam put a video link in the blog that shows exactly how one finds out about the great moves in the beginning and it's called a subscription to Market Club and the Triangle Technology.

  2. Please tell me how do I recognize these 6 steps. Must be some steps to follow.

    Thanks, Om

  3. Hi Adam,

    This is a very great point; I'd love to see it followed up with an example in a chart.

    Also, there must be a way for people who have strong interests in particular markets to make their way into the "in crowd" to gain the kinds of insight and information that smart traders have; with the internet, it seems there should be a way to get in on this action. What are your thoughts?


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