It hasn't sunk in yet, and maybe it never will.

It hasn't sunk in yet, and maybe it never will.

For most people who've lost 30% or 40% of their IRAs or 401(k) plans, it just looks that way on paper. In other words, it hasn't sunk in yet. The reality is that when this sinks in, and it will, the realization will have a significant negative impact on the psyche of the US consumer and the US economy.

This is the first real bear market we have seen in a generation and maybe the start of the greatest bear market we have seen since the Great Depression. All of these distressed securities have to be worked out and priced accordingly in the marketplace and that is going to take time. Right now, there is no reason to jump in and buy stocks because they look cheap.

The technical and fundamental trends are clearly down in all the equity markets as the de-leveraging of the hedge funds continues. You may remember I made a post some time ago about hedge funds. I said that in the end "they will devour their young." That's exactly what's happening right now.

This is without a doubt an extremely challenging time for both the US and world economy. There are no easy answers. China's economy was built on manufacturing and selling products primarily to the United States, but also the rest of the world. The global slowdown will dramatically impact their economy.

The fact that crude oil has crashed and lost almost half its value in a very short time has helped the consumers shake the real fear that rests in their subconscious psyche. Will lower gas prices jump-start the economy if consumers see more disposable income in their pockets? Even if lower gas prices come to fruition, will consumers commit to spending the extra money?

The greatest fear right now has to be fear itself. I discussed this in one of my previous posts and I believe it hasn't yet sunk in to the general public just how bad the economy is.

If we see the recent lows in the equity markets taken out, we could see another huge capitulation to new lows. If that occurs, both professional and amateur investors alike will be scrambling for the exits at the same time.

So what's an investor to do? I have blogged in previous posts that these are not markets you can buy and hold forever. Unfortunately those days are long gone. The classic fall-back line for all stockbrokers is, "if it doesn't go your way, it will work itself out in the long-term." Did General Motors (NYSE_GM) work itself out over the long-term? NO. Has GE (NYSE_GE) worked itself out over the long term? NO. This can be said for thousands of other stocks that have not gone up "in the long-term." So remember when your broker tells you to, "hold it for the long-term...it'll come back," you might want to cut your losses early.

The key thing to trading and investing is knowing what the markets are doing at all times. Right now the market remains negative. Why would anyone go into defensive stocks just to be in the market? If the trend is down in a so-called defensive stock, why would you want to hold on to that stock? It just doesn't make much sense in my book.

I believe we are going into a prolonged, protracted time when stocks don't do much of anything. People are fearful right now. Over the years we've lived the good life here in the United States. Credit was easy, people thought the money carousel would go on forever. Well, guess what? The world has been playing musical chairs and when the music stopped (read that as the credit) there are no chairs to sit on. We are left standing, not sure what to do next.

I am normally an very optimistic person, but at the moment, I feel an economic chill settling over the world for quite some time.

Having said all of this, the perception of the marketplace can change at anytime. When that does, you need to change with it. You can no longer be passive in these types of markets. The individuals who do remain passive and hold for the "long-term" are now way behind the eight ball. Unfortunately, many may never recover.

Mark my words, there will be some fantastic opportunities in the weeks, months and years ahead. But, those opportunities will only go to the well-prepared, disciplined individuals traders who believe in what they're doing in the market. That's the only way successful investors will succeed in my humble opinion.

Best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Top Yielding Debt Free Stocks

When the market corrects like it does many people see value in stocks. But what about compaines that have low stock prices compared to their history...but a ton of debt? It's often hard to find those companies with good potential without a lot of debt. Today I've asked Stockerblog.com to come and give us some insight into potential markets. Please consult with your broker, Trade Triangles, or your preferred technical indicator before making any trades. These are not trade recommendations...just great hints!

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Top Yielding Debt Free Stocks

With the extreme market volatility that has been taking place lately, investors are looking toward high yield stocks, so they have income coming in while waiting for their stocks to appreciate. In addition, investors prefer companies with no debt for additional safety. Combine those two features together, and look for the stocks with low PE ratios and low PEG ratios and you get the following list.

United Online, Inc. (UNTD) is an Internet and media services companies which owns the NetZero and Juno brands. The stock has a PE of 10 , a PEG ratio of 0.86 , and pays a yield of 9.84%.

Williams Pipeline Partners L.P. (WMZ) is a natural gas transportation and storage company. The stock has a PE of 2 , a PEG ratio of 0.24 , and pays a yield of 9.29%.

Pioneer Southwest Energy Partners L.P. (PSE) owns oil and gas properties. The stock has a PE of 5 , a PEG ratio of 0.68 , and pays a yield of 8.56%.

Starlims Technologies Limited (LIMS) creates and markets laboratory information management systems software solutions. The stock has a PE of 9 , a PEG ratio of 0.60 , and pays a yield of 7.17%.

NutriSystem Inc. (NTRI) is a provider of weight management and fitness products and services. The stock has a PE of 6 , a PEG ratio of 0.34 , and pays a yield of 5.86%.

Maxim Integrated Products Inc. (MXIM) makes and sells linear and mixed-signal integrated circuits. The stock has a PE of 14 , a PEG ratio of 0.92 , and pays a yield of 5.71%.

Electro Rent Corporation (ELRC) rents, leases, and sells electronic equipment. The stock has a PE of 15 , a PEG ratio of 0.99 , and pays a yield of 5.22%.

Patterson-UTI Energy, Inc. (PTEN) is a provider of onshore contract drilling services. The stock has a PE of 6 , a PEG ratio of 0.57 , and pays a yield of 5.10%.

Christopher & Banks Corporation (CBK) designs and markets women's apparel. The stock has a PE of 12 , a PEG ratio of 0.88 , and pays a yield of 4.67%.

Safety Insurance Group, Inc. (SAFT) is a provider of automobile insurance in Massachusetts. The stock has a PE of 7 , a PEG ratio of 0.49 , and pays a yield of 4.36%.

If you like high yield stocks, you should check out the the High Yield Utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com. You should also take a look at Top Yielding Defense and Aerospace Stocks.

Author owns UNTD.

By Stockerblog.com

A Life Changing Opportunity

I don't think anyone would consider themselves a wild investor...except The Wild Investor! With the market swings, government bailouts, and political stumping we need some good news. I asked The Wild Investor to come and give us some good news and how we can benefit from all the news. Enjoy!

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When you think about the events that have taken place over the last year it almost feels like we are reading a book that is still being written. By the time we find a way to pull ourselves out (and we will) of this downward spiral of a market, the shelves will be littered with How I Survived the Credit Crisis Era books and paraphernalia.

You see the media has a way of exacerbating situations. While many of these outlets try to be as neutral as possible, often times they create more problems themselves than they report. We are constantly flooded with the notion that we are currently experiencing one of the worst economies since the Great Depression, soon nobody will have jobs, and all businesses will go bankrupt; however, all this couldn’t be further way from the truth. I would go as far as to say we are possibly experiencing one of the best opportunities anybody could ask for.

If you look back through history, then you will notice that many of the successful people in the world somehow found a way to be extremely profitable when nobody else could. If you delve down even further, you will notice these methods to get insanely rich were actually pretty easy and duplicatable. But if it was so easy, then how come more people didn’t profit? The answer is simple. Nobody wanted to take the risk.

Regardless of what experience you have had with the stock market, everybody can agree that there is always some sort of calculated risk. The misconception is that risk increases as the market goes down. The truth is that the risk is greater, while the market is rising.

How I have come to this conclusion is pretty simple. Lets say we are experiencing a bull run and stocks are on the rise. What happens if we decided to buy shares only to see the market suddenly turn for the worse? The higher a stock goes up; the more it can fall. Many people got trapped in this type of market just last year. We experienced huge gains, and when people finally got the courage to invest some money the market headed south.

Now lets say we are in a bear market and prices are obviously headed downwards. (like the market we are currently in). What happens if we buy some shares? There are two things that can take place. The first being the stock heads a little lower before eventually moving back up or we got lucky and correctly picked a bottom.

So you see there is less risk during a bear market. We know what the problems are, and there are really no surprises. As long as we do our due diligence and invest in solid opportunities, stocks or whatever you investment is more likely to move up, then had you bought on the rise.

The strong minded, who are able to set aside any third party news and take on that risk, will eventually be rewarded. Although the economy could still head lower, we are in a messed up time: expectations are low, but opportunities are higher.
While everybody is fleeing, the successful ones are heading towards the problem. We may be experiencing on of the worst economies, but we are also experiencing a life changing opportunity. Don’t take it for granted.

The Wild Investor - http://thewildinvestor.com
Speak Stocks - http://speakstocks.com

The video that proves it all.

Dear blog reader,

I just finished a new educational trading video on crude oil. This short video shows you all the Q3 trading signals that took place in this market. The results have been nothing short of spectacular. With gains of over $20,750 per contract, I think you'll understand why we are so excited about our "Trade Triangle" technology and this video.

During the Q3 period we had six trades; four winners and two losers. The biggest gain was $13,160 a contract, while the biggest loss was $3,770. Q3 was a great quarter that produced fabulous results. While our Q3 results were great, what is more impressive is our "Trade Triangle" approach has consistently produced positive gains for the past five quarters. With gains of $88,450.00 per contract over that last five quarters, you can see why we believe we have the perfect balanced approach to this market. That's what we are most proud of.

Every success,

Adam Hewison

President, INO.com
Co-creator, MarketClub

Our Q3 results matched the market volatility and then some.

In Q3 we hit unheard of levels of volatility in the markets.

I have been trading now for over three decades and I still love it. But, I have to admit that I have never witnessed markets that were so volatile, and in many cases so unpredictable. However, I know from experience that when you have a tool that eliminates emotion and calculates positions from actual market movement, it puts the odds in your favor that you'll come out on top.

So the question is, how did MarketClub's "Trade Triangle" Technology make out in Q3?

As you may know, we have been publishing our quarterly "Trade Triangle" results on corn, wheat, soybeans, crude oil, gold, and the Dollar Index. We've tracked these markets through their ups and downs and published the results on a regular basis. We have been doing this for 15 months and I'm happy, but not surprised to say that our "Trade Triangle" technology has been profitable in every quarter.

It just so happens that Q3 has turned out to be our best quarter ever. In this blog posting I have included three images. One that will show the results market by market for the past 5 quarters. The other chart shows the cumulative gains for the past 5 quarters, which is $$234,501.50. The last illustration is not a chart, but a spread sheet which displays the trading results in numeric format.

I've also made a short video that shows the results of trading crude oil (NYMEX_CL) with MarketClub. In this video, I'll show you all of the trades that we made to achieve those "Trade Triangle" results. In crude oil we made a total of six trades. Out of those six trades, we had four winning trades and two loosing trades. The current margin required to trade one contract of crude oil is around $10,000. If you would have followed all our "Trade Triangle" signals, the margin required would be around $50,000. I think you would agree that this approach has shown some pretty spectacular returns during the last 5 quarters. This new video will debut on Tuesday October 21st.

I also recommend that you to take a look at our previous 2007 Q3 and Q4 results as well as the results from this year's first two quarters. I think it proves my point that you can make money in any market when you have a game plan and you are disciplined.

If you have any questions about the "Trade Triangle" results, please give one of our customer service specialists a call at 1-800-538-7424. They can quickly set you up with a 30 day Risk-Free trial to MarketClub. This is where you can check on and replicate the same trading results shown above. You will also spot some new moves as our "Trade Triangle" technology is dynamic and instantly alerts you to price movements when they happen and not after the fact.

Every success,

Adam Hewison

President, INO.com
Co-creator, MarketClub