Author: The INO.com Team

Stocks up, Crude down ... what's going on here???

What we witnessed today was a massive short covering rally in the equity markets. You've heard us say this before, bears make the best bulls, and that's exactly what happend in the equity markets today.

The scramble to cover short positions in financial equities signaled an unwinding of the oil/equity spread.

Traders covered short equities and in turn liquidate long positions in crude exiting what had been a dream trade.

It is very seldom you see the market participants so heavily stacked one way for so long. Long crude - short financials. What's causing all this volatility? I am going to point to the SEC's removal of the "Up Tick Rule". To get a better understanding of the importance of this rule watch this short video.

However, one day does not make a market, or a trend.

Also fueling the equity fire, was Donald Kohn of the Fed, hinting that the FED may cut interest rates again. Do you remember what happened last time the Fed cut rates? The market rallied for a couple of days and then promptly tanked.

The message here is be careful what you wish for.

Here's how I see it.

Equity Indexes = wide trading range

DOW: resistance 14,000 support 12,750
________________________

Crude Oil = wide trading range

Crude resistance 99.00 support 90.00

Thursday and Friday should make for interesting trading. Look for continued volatility and markets that are skittish at best.

As always remain diversified and disciplined.

Adam Hewison

Good Wednesday Morning everyone!
I pray everyone had an enjoyable Thanksgiving...
and BLACK FRIDAY! Do you agree with the term
"Cyber Monday"? I heard a figure like 65% of the
workforce will be losing productivity this past Monday.
I for one was NOT one of them!

Here's your sixth lesson in "The Secrets Of
Professional Floor Traders" mini email course.

Lesson 6 - "Point-and-Figure Charts"
presented by Adam Hewison
================================================================

This particular technique has been around for over one
hundred years. So you might say it has stood the test
of time. I first saw it used on the floor of The Chicago
Mercantile Exchange by some very successful traders.
Since then I have seen very few other traders using it
despite the fact that it is amazingly accurate.

This is a true gem of a lesson and not to be missed.

Because this lesson contains charts, it has been posted
here.

Point-and-Figure Charts

P.S. Look out for the next lesson - "The RSI Indicator"
This is a powerful indicator that is heavily watched
by the pros.

Forget the pain at the pump ...

Here's how I see it this Tuesday morning.

The pain in the market should not be hurting you if you have been reading this blog and using our "Trade Triangle" technology.

As a matter of fact if you have been following our approach to trading with our "Trade Triangles" you should have had an excellent year like Milt in Virginia.

---

"When I started using the MarketClub, I checked out your signals versus the signals I generate for a few weeks. I used mine to verify yours… now I use yours to verify mine and the profits have been astounding!"
Milt Fall, Virginia

Thanks Milt. I am glad that our "Trade Triangle" technology is working well for you.

P.S. If you are not yet using our "Trade Triangles" you can check them out here risk free.

---

We have thousands of investors like Milt, who use MarketClub successfully everyday to make important investment decisions. Are you one of them? If not, find out how MarketClub can help you safely navigate the iceberg laden investment waters.

Now it's time to zip back in blog time and revisit perhaps the most important SEC rule change in my entire investment lifetime. It's called the "UP TICK RULE" watch the video here and see why the SEC abolished it to the detriment on every stock investor.

I believe that this rule change along with the growth of hedge funds have all contributed to the markets downturn. There are of course other contributing factors for the economy which have all added to declining stock prices, like record high oil prices, the sub-prime disaster and all the CDO and SIVs that are imploding.

Is the economy going to get better anytime soon? Not in my opinion. See what I predicted on Bloomberg TV on September 13th when I indicated that spiraling raw material prices and a falling dollar would present a bleak picture for the U.S. economy and stocks.

Now more than ever ... be prepared and be disciplined in your trading.

Adam Hewison

This has been a week of giving thanks. First, we want to thank you for allowing us to email you with our thoughts and ideas on the markets. Secondly, we want to thank you for using our #1 website INO.com Thirdly, we wish to thank all the members of our sister site MarketClub.com for subscribing to our service.

We also want to thank the markets for just being there and allowing us the opportunity to trade them in a free society. Wow, we are lucky to live in such interesting times.

Lastly, our thanks go to real values and treasures in our lives and that is our family and our friends.

O.K., with Thanksgiving day behind us for '07, are the equity markets and the dollar going to remain turkeys in "08? That is the question on most traders minds this weekend.

This past week the market action in equities and the dollar painted a disappointing and rather a bleak picture for the markets.

We expect today's market action on expected reduced volume, could produce some large and volatile price swings. Most traders I know left their offices and posts early Wednesday for a long weekend.

It's all part of the ebb and flow of the marketplace. Speaking of the marketplace ...

Did you know you can ...
----------------------

LEARN HOW TO TRADE FOREX IN 90 SECONDS.

Is it possible to learn how to trade forex in just 90 seconds???

The answer is yes, and yes again.

Now you can stack the deck in your favor and trade like a pro. All you need to do is watch our NEW 90 second FOREX video.

No registration required … Find out how you can become a winner in the FOREX markets in just 90 seconds.
Click, load, learn from 90 Second FOREX

----------------------

FREDDIE MAC IMPLODES

This past week the Freddie Mac team addressed what was a packed conference call to report their earnings for Q3 and project where Freddie Mac will end up … AND WE WERE THERE!!

Watch how we traded this disaster.

----------------------
CHAIRMAN BERNANKE LET'S GO SHOPPING

Open invitation to the FED Chairman Bernanke and to all Fed governors to go shopping

Dear Chairman Bernanke,

Let's go shopping.

I invite you and your entire committee to come shopping with me for groceries in any local supermarket you like. Oh, before we do that let's stop at a filling station and buy some gas.

You know what gas is, right? Well that's the stuff the goes in your car's gas tank, that's what gets most Americans to work.

I am not sure if you, or any of your committee have at anytime in the past year purchased a gallon of milk, a gallon of gas, or any groceries to put on the table. But, if you haven't, then its time we went shopping together.

You see Mr. Bernanke, I along with three hundred million other hard working Americans are having a hard time understanding why you keep saying that inflation is under control.

We just don't understand where you get your numbers from? You see we are the regular folks who get paychecks, shop at the local stores and supermarkets and fill up our tanks at the local filling station.

We just don't understand where you go to get your groceries or buy your gas. That is why I want to invite you and your entire committee to come shopping.

I know you are busy, so if my invitation doesn't work for you, perhaps you could let me in on the secret store and filling station where you and the Fed governors shop and buy gas.

Thanks.

I look forward to hearing from you.

Sincerely,

----------------------
LEARN HOW TO TRADE A DOWNWARD TRENDING MARKET

In this video lesson, we give traders three compelling pieces of information about how to trade a downward trending market. Watch this streaming video to learn about shorting stocks.
----------------------
SOMETHING TO REMEMBER
"The past is the teacher of the future"
Old Hungarian Proverb
----------------------
WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Give it a try.
----------------------
THE VOTES ARE COMING IN ON THE ECONOMY
Here's the question we posted on our Traders Blog blog. "Are you comfortable about the economy?" The results may surprise you.
Vote, then check out the results. No registration required.
----------------------
INO IN THE NEWS THIS PAST WEEK

on CNBC
See what Adam has to say about Hugo Chavez,
OPEC and the Crude Oil live on CNB
http://www.cnbc.com/id/15840232?video=596552505&play=1

• MARKETWATCH
"There will be no Thanksgiving reprieve for the U.S. dollar. Sentiment remains decidedly negative as traders now have their sight set on the big number of $1.5000," said Adam Hewison, president of INO.com, a technical analysis Web site.
http://www.marketwatch.com/news/story/dollar-under-pressure-ahead-fed/story.aspx?guid=%7B3605CE46-035A-414D-8052-0D66DC7CE7AD%7D
----------------------
WHAT ARE YOU THANKFUL FOR?
Great uplifting video if your spirits are down.

----------------------
LEARN & EARN
Another video lesson - "Freddie Mac NYSE:FRE - MarketClub Video Lesson"

---------------------

DID A 300 YEAR OLD DISCOVERY TORPEDO GOOGLE
Find out what's going on in Google right now.
----------------------
FOUR FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here's a small sample of what is coming up on INO TV
----------------------
CHECK ON THE WORLD MARKETS 24 HOURS A DAY
Don't miss any of the global overnight action.
----------------------
PICK A MARKET, ANY MARKET
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Give it a try.
----------------------

This is Adam Hewison,

have a great weekend and a profitable new trading week.
----------------------