Author: The INO.com Team

Janet Yellen Nails it

Posted on by The INO.com Team

From an earlier post by Biiwii.com guest Doug Noland:

Senator Dean Heller: "A quick question about quantitative easing: Do you see it causing an equity bubble in today’s stock market?"

Yellen: "I mean, stock prices have risen pretty robustly. But I think that if you look at traditional valuation measures, the kind of things that we monitor, akin to price-equity ratios, you would not see stock prices in territory that suggests bubble-like conditions. When we look at a measure of what’s called the equity risk premium, which is the differential between the expected return on stocks and safe assets like bonds, that premium is not – is somewhat elevated historically, which again suggests valuations that are not in bubble territory."

Thank you Ms. Yellen for testifying to my point.  Equities are not in a bubble by "traditional valuation measures", just as I have been saying.  If you are sincerely and actively bearish the market you had better be bearish because you either think monetary policy is about to fail (i.e. its efficacy is going to wane) or that policy makers are going to be forced to cease and desist, most likely by the Treasury bond market. Continue reading "Janet Yellen Nails it" →

Measuring How High The Indices Can Go

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 18th of November.

Over the weekend I took some time and looked at the DOW, NASDAQ, and the S&P 500 indices. I wanted to measure just how high these indices could potentially go. All three indices have been on a tear this year, with the DOW making 57 new highs this year alone. On average, that is a new high every four days, which is pretty remarkable.

Now please remember that these are estimates based on technical analysis, they are not written guarantees carved in stone. As with any trade or investment strategy, you need to have an exit plan (money management) in case events change, whether over time or abruptly.

Just like any analyst, unforeseen events can change my analysis on the market. However, if my predictions remain correct, please do congratulate me and tell all of your friends (just joking on this one!).

Let's get started looking at the three indices and measuring the potential up-moves in all three major markets.

I would love to hear what your take is on the major indices and what you think can happen to the markets. How high, how low, agree, or disagree, let us hear your voice. It is always great to chat with other traders and hear their thoughts even, if they differ from my own.

Every Success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (November 18th through November 22nd)

Welcome to another week that have the US FED in the drivers seat from beginning to end. I would love to take time to forecast a few economic figures released this week in Europe and the United States, but there is little reason to do so.

Last week we heard from Janet Yellen regarding the FED and the economy, and her dovish rhetoric stole the show. Traders and investors began buying equities the day prior to her speech and that continued during and after she made it clear that her stance was one that would be supportive of further easing. Continue reading "Gold Chart of The Week" →