Author: The INO.com Team

Two Cannabis Giants Trading 61% Below 52-Week High

Posted on by The INO.com Team

Analysis originally distributed on April 4, 2018 By: Michael Vodicka of Cannabis Stock Trades

Warren Buffet is the most successful investor of all-time. His net worth of $84 billion makes him the third richest person in the world.

Buffet’s fortune was built on a contrarian view on investing. He once said, “Be fearful when others are greedy and greedy when others are fearful.”

This is good advice for the cannabis sector right now.

After posting huge gains in 2017, the global cannabis sector fell into a bear market in the first quarter of 2018.

However, despite that short-term weakness, the long-term picture for the cannabis industry and cannabis stocks has never looked better.

Cannabis stocks got off to a blazing start in early 2018. Since climbing to an all-time high, the sector spent most of February and March trickling lower.

The Canadian Cannabis Index fell 15% in the first quarter.

Cannabis Stocks Continue reading "Two Cannabis Giants Trading 61% Below 52-Week High" →

Global Tensions Push Oil To Three Year High

Posted on by The INO.com Team

Hello traders everywhere. Global tensions have Rocked the oil markets today sending crude oil to a three year on the back of a +3% gain in Tuesday's trade. WTI crude is trading above the $66, a +2% gain, breaking through the previous levels of resistance were sitting just shy of $65. The last time the price oil was this high was in 2014.

The reason for the sharp upward move stems from comments by Russia and the United States over the conflict in Syria. Russia's ambassador to Lebanon told local media that Russia would shoot down American missiles headed Syria's way. This follows an alleged chemical weapons attack by President Bashar Assad that killed dozens in a rebel-held area over the weekend.

Global tensions

President Trump responded via Twitter saying:

"Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and 'smart!' You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!"

To add to that, the Energy Information Administration (EIA) data on Wednesday showed swelling surpluses at the biggest domestic storage complex as well as nationwide last week. American crude production also climbed, while exports of American oil declined to 1.21 million barrels a day.

Key Levels To Watch This Week:

S&P 500 (CME:SP500): 2,741.38
Dow (INDEX:DJI): 24,977.65
NASDAQ (NASDAQ:COMP): 6,630.67
Gold (NYMEX:GC.M18.E): 1,330.10
Crude Oil (NYMEX:CL.K18.E): 61.93
U.S. Dollar (NYBOT:DX.M18.E): 88.53
Bitcoin (CME:BRTI): 6,194.46

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Stocks Rebound As Trade War Fears Fade

Posted on by The INO.com Team

Hello traders everywhere. After a Friday close of -2% for all three major indexes, the stock market has rallied today with gains of +1.5% for the DOW and S&P 500 respectfully, while the NASDAQ is posting a +2% gain on the day.

Of course, this move higher comes on a feeling that the trade war with China won't happen or that it won't be as bad as we first thought.

Tariffs

Treasury Secretary Steven Mnuchin said on Sunday he does not expect a trade war between the U.S. and China to take place and President Donald Trump himself said in a tweet Sunday: Continue reading "Stocks Rebound As Trade War Fears Fade" →

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.

10-Year Note Futures

The 10-year note in the June contract was basically unchanged for the trading week at 121/02 and has been going sideways over the last couple of months as traders are looking for some fresh fundamental news. I have been recommending a bearish position from the 120/18 level and if you took the trade continue to keep the stop loss at 121/18 as the original risk was around $1,000 per contract plus slippage & commission as the yield on the 10-year note is at 2.82%, and volatility remains very low. The U.S. stock market has experienced incredible volatility this week, and when the stocks are sharply lower the notes rally and vice versa as yesterday, we had a 700 point reversal in the Dow Jones. I'm still negative the entire bond sector as I think the yields are way too low as the United States experienced a 2.9% GDP number last quarter which is very solid. The 10-year note is trading right at its 20-day but still below its 100-day moving average as the trend is mixed. I still think prices will crack the 3% level in the weeks ahead so stay short & continue to place the proper stop loss as I still believe the risk/reward are in your favor as the longer-term downtrend line remains intact.
TREND: MIXED - LOWER
CHART STRUCTURE: SOLID
VOLATILITY: LOW
Continue reading "Weekly Futures Recap With Mike Seery" →

Covered Puts: An Alternative To Buy and Hold

Posted on by The INO.com Team

Options can provide an alternative approach to the traditional buy and hold for the long-term strategy. Options can add value to one’s portfolio in a variety of ways, specifically, maintaining liquidity via maintaining cash to engage in covered put options, initiating positions via being assigned shares strategically prior to or upon expiration of the option contract and capturing premium income via closing out the contract prior to expiration as the shares move in your favor to realize income. Here, I’ll discuss these three different scenarios and strategies behind each one with real life examples.

Maintaining Liquidity and Capturing Premium Income

Maintaining liquidity is integral to any portfolio as cash can be deployed in opportunistic scenarios to capitalize on sell-offs or adding to a long position that has corrected to lower cost basis. Covered puts can be implemented as a means to leverage cash on hand to sell contracts that are covered by cash. This cash would be deployed in an effort to maintain this cash balance yet be put to work via an option contract. This cash reserve can be utilized for selling covered puts thus not purchasing the underlying security with the end goal of never being assigned shares and netting premium income in the process. Once the contract expires, the covered cash allocated to the contract will be freed in addition to the cash that was realized from the option premium at expiration. This scenario will allow cash reserves to be maintained while adding cash via covered put contracts. Continue reading "Covered Puts: An Alternative To Buy and Hold" →