Author: The INO.com Team

Monday Morning Market Rally Fades

Posted on by The INO.com Team

Hello traders everywhere. The Monday morning market rally in the U.S. market faded as we entered afternoon trading with evaporating tech gains leading the way which leaves the Nasdaq on track for its the worst monthly loss in ten years. The NASDAQ had been up as much as 1.7% on the day before Netflix (NFLX), and Amazon (AMZN) collapsed, both falling over 3% on the day.

However, the S&P 500 and DOW are back in positive territory for the year, if only just and albeit off their session highs. Although the stock market is in positive territory, for the most part, the S&P 500 hasn't had back to back daily gains all month, and that's been rare for the DOW.

If this Monday morning market rally can make it to the end of the day will it continue into tomorrow? Or will the pattern repeat?

Monday Morning Market Rally

Key Events On Tap This Week:

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Gold Stocks Will Benefit From Cyclical Change

Posted on by The INO.com Team

As we have noted over the many years of the gold sector’s bear market, the gold miners will not rally for real until the real sector and macro fundamentals come into place. Those fundamentals do not include commonly promoted inflation, China/India “love” trades, a US dollar collapse or especially, war, pestilence or any other human misery than economic. The more astute gold bugs do not fall for that.

The gold miners are counter-cyclical as they leverage gold’s performance (whether positive or negative) relative to cyclical assets and markets. Hence the handy picture showing the key fundamental items with the 4 largest planets orbiting the golden sun being the most important.

macro fundamentals

So the 3 Amigos (of the macro) were saddled up last year in order to guide us to the point of macro change. Linked here is the most recent update from October 19. In this post let’s look at just one macro fundamental indicator among several important macro and sector fundamentals; the ratio of gold to developed stock markets.

As a side note, the macro fundamentals indicate whether the larger economic cycle and investor sentiment backdrops are right for the gold sector and the sector fundamentals that we track indicate whether gold mining companies are likely to improve, operationally. The gold stock sector is a real value now, assuming the turns in stock markets are for real, unlike the February spike down. Continue reading "Gold Stocks Will Benefit From Cyclical Change" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the December contract is currently trading at 1,238 after settling last Friday in New York at 1,228 up about $10 for the trading week hitting a three month high while still experiencing extremely low volatility. I have a bullish bias towards gold as I am also recommending a bullish position in silver as the U.S. stock market has fallen out of bed in recent weeks and is down nearly 500 more points in today's trading session as money flows are coming out of equities and into the precious metals. If you are long a futures contract, I would place the stop loss at the two week low as an exit strategy which stands at 1,221 as I do believe higher prices are ahead. I don't think the washout in the stock market is finished at this time. Gold prices are trading above their 20 and 100-day moving average as the trend is to the upside with the next major level of resistance at 1,250, and if that is broken, I think we can head up to 1,270. I do believe volatility will start to increase substantially to the upside as gold is used as a flight to quality and that could happen in next week's trade so if you are long stay long in my opinion.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Continue reading "Weekly Futures Recap With Mike Seery" →

Tech Losses Continue To Weigh On Market

Posted on by The INO.com Team

Hello traders everywhere. For most of the year, the tech sector was the belle of the ball and the one sector that was driving the stock market to record highs. But this dance may be coming to an end as we enter the fall earnings season. The S&P 500 is poised to enter into correction territory joining the NASDAQ after earnings reports from Alphabet and Amazon fell short of expectations.

Amazon (AMZN) tumbled over 8% after it missed quarterly sales estimates and gave a below-par holiday-season sales forecast, that sparked a 3% plunge in the S&P consumer discretionary sector. Alphabet (GOOG) sank 4% after its revenue missed estimates, refreshing concerns that regulatory scrutiny and competition could slow down its scorching pace of growth.

weekly losses

It's been quite a week for the major indexes with wild swings higher and lower, but at the end of the week, all three indexes are going to post deep losses and resuming the current downturn after a brief respite last week. The S&P 500 will post a weekly loss of -3.5%, the DOW -2.5% and not to be forgotten the NASDAQ will post a weekly loss of -3.2%. Continue reading "Tech Losses Continue To Weigh On Market" →

All For Naught When It Comes To Stock Market

Posted on by The INO.com Team

Hello traders everywhere. As the slide to lower levels continued on Wednesday, I couldn't help but notice that these current levels looked familiar to me, so I did some investigating. I started by looking at yearly charts for the three main indexes, and it became quite clear as to why those levels looked familiar. As it stands, the S&P 500 is only 19 pts away from the opening of trading on Jan. 2, 2018 where it opened at 2,683.73, currently trading around the 2700.00 level. The DOW is only 180 pts away for it's yearly open at 24,809.35, currently trading around the 25,000 level. Meanwhile, the NASDAQ has quite a bit more room between its current trading levels at the 7,200 range and its yearly open of 6,937.65 or 332 pts. But the way it's been getting hammered lately case in point today, it won't take long for it to reach that level if the slide continues.

Does this mean that all of the record highs that we've seen this year are all for naught?

yearly open

Key Levels To Watch This Week:

Continue reading "All For Naught When It Comes To Stock Market" →