Author: The INO.com Team

Apple Skids And Amazon Reports Tomorrow, What's Your Strategy?

Posted on by The INO.com Team

In yesterday's post on Apple, Inc. (NASDAQ:AAPL) I told you exactly what I was going to do based on the earnings pattern I have seen historically for the stock of Apple.

From yesterday's report:

So here's what is needed to make a trade in Apple before today's earnings report is released. The position is taken the day Apple releases its earnings report.

(1) Both the weekly and monthly Trade Triangles are in sync.

(2) Take a position on the close in the direction the Trade Triangles are indicating.

(3) Exit the position the following day on the close.

Based on this strategy, you should have shorted Apple on the close yesterday at $99.99 and you would cover this position on the close today win, lose or draw.

After the close, Apple did announce its earnings which turned out to be disappointing, pushing the stock of Apple down in the aftermarket.

Tomorrow (Thursday), Amazon.com Inc. (NASDAQ:AMZN) reports earnings after the close. I have included a spreadsheet of how Amazon has performed using MarketClub's Trade Triangles in the last 12 quarters. Continue reading "Apple Skids And Amazon Reports Tomorrow, What's Your Strategy?" →

How To Trade Apple's Earnings Today

Posted on by The INO.com Team

After the close of business today Apple, Inc. (NASDAQ:AAPL) will report its fourth quarter earnings. I thought it would be interesting to go back and look at the last three years to see how you would have done if you just used this simple trade strategy.

The premise is simple, when both the weekly and monthly Trade Triangles are in sync, i.e. when they are both in the same direction, you would take a position on the close in the direction the Trade Triangles were indicating. You would then exit this position the following day on the close.

So here's what is needed to make a trade in Apple before today's earnings report is released. The position is taken the day Apple, Inc. (NASDAQ:AAPL) releases its earnings report, i.e. today.

(1) Both the weekly and monthly Trade Triangles are in sync.

(2) Take a position on the close in the direction the Trade Triangles are indicating.

(3) Exit the position the following day on the close.

These are simple, straightforward instructions. As an old mentor of mine used to say, "They don't pay you any more for making it complicated."

So how has this worked in the past? Continue reading "How To Trade Apple's Earnings Today" →

Anatomy Of The Gold Market

Posted on by The INO.com Team

Well it was quite a weekend here on the East Coast with a record-breaking blizzard that closed down Washington DC today and made digging out from the 30-some inches of snow quite an interesting challenge. For those of you who live on the East Coast like us, we hope that you and your loved ones were all safe over this dangerous storm.

Now let's take a look at the gold market. This market has been in a bear market for the last four years, almost the exact opposite of the equity markets that have been going up for the last six years. It appears technically that gold is once again coming into style as more investors are becoming leery of the equity markets and the value of their holdings and money in general.

A great deal of this uncertainty has been created by the Federal Reserve Board and the European Central Bank which seemed to have run out of ideas and tools. It appears to this observer that in the last few years these two central banks have literally been winging it on a hope and a prayer. I hope I am wrong on the one as it will make 2008 look like a walk in the park.

8 year daily chart of gold

CHART 1

Looking at the long-term chart of gold, you see a MAJOR LONG-TERM SUPPORT TREND LINE that supported gold for several years before it was broken (see figure 1 on the chart). After breaking below the support line, the gold market again tried to rally, but failed (you can see this in figure 2), which created a TWIN MOUNTAIN TOP. Once through (figure 3) the PIVOT POINT, it was all over for gold as it moved into a major bear market that has now lasted just over four years.

The big question is … has the bear market in gold come to an end? Continue reading "Anatomy Of The Gold Market" →

An Aggressive Covered Call Options Strategy For Netflix

Posted on by The INO.com Team

Netflix is a high-flying growth stock with a sky-high valuation based on its price-to-earnings multiple. Due to its rapid growth, expanding original programming, wrestling market share away from big cable companies, expansion into international markets and its overall ubiquity, it’s difficult to arrive at an accurate valuation based on traditional metrics. Due to these factors and the difficulty of placing an accurate valuation on Netflix, options in the form of aggressive covered call writing may be an effective way to leverage this high-flier while mitigating downside risk and generating additional income. Netflix offers a confluence of volatility, liquidity and a high level of interest which gives rise to high yielding premiums on a bi-weekly or monthly basis which bodes well for options trading. Selling aggressive covered call options (i.e. aligning the strike price at or near the current price) to generate current income may augment overall portfolio returns while mitigating risk. This may be particularly invaluable if one is long a highly volatile stock such as Netflix. Below, I’ll walk traders through an aggressive options trading strategy leveraging Netflix stock a proxy. Continue reading "An Aggressive Covered Call Options Strategy For Netflix" →

Getting New Insights From Old Indicators

Posted on by The INO.com Team

Today's video contains one of the best lessons you ever will learn. It will teach you how to apply and integrate technical indicators into your trading plan. Not only will you gain a new perspective on traditional technical indicators, but you also will learn new ways to interpret some innovative indicators you that may not know about.

Along with that, you'll pick up, at least, two valuable new insights on the principles of momentum interpretation, and you will discover some of the major weaknesses that plague many of today's most commonly used indicators.

WATCH NOW: Getting New Insights From Old Indicators

Best,
The INOTV Team