Author: The INO.com Team

Today's Video Update: Cyprus, the mouse that roared

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 20th of March.

Cyprus, The Mouse That Roared
On Monday, I appeared on CNBC Asia's "Cash Flow" program and discussed Cyprus as being the "mouse that roared." Cyprus geographically is a very small country and represents only .5% of GDP for the EU. However, the ramifications and the notoriety of what this small island country is/was trying to do by seizing savers bank accounts is a psychological bombshell that was heard around the world, especially in Europe. That leads us to Russia, which has a great deal of its money on deposit in Cyprus. It is also rumored that some of the largest deposited funds belong to the Russian mafia. If that is the case, we would not expect to see the proposed disastrous idea of stealing savings from individuals and companies get passed. Continue reading "Today's Video Update: Cyprus, the mouse that roared" →

Today's Video Newsletter: The Fed meets today and tomorrow … what to expect

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 19th of March.

What Will The Fed Do?
The Fed will be meeting today and tomorrow to decide the future course of action for interest rates. I suspect the blowup in Cyprus, which could be the tip of the iceberg, will be weighing on policy makers' minds and that the Fed will hold steady. The Fed is on a tricky course to try to juice up the market and the economy with low interest rates. The strategy of keeping interest rates low and pumping money into the system to the tune of $4 billion every trading day has many detractors, who claim the cost of doing this is just too expensive and the nation cannot afford it. It would seem to this market observer that the Fed and the market are both addicted to cheap money. When interest rates begin to rise, and they will, expect to see a radical change in sentiment towards the equity markets as inflation will once again rear its value robbing head to a whole new generation of investors. Continue reading "Today's Video Newsletter: The Fed meets today and tomorrow … what to expect" →

Congress works on budget for both 2013 and future

Posted on by The INO.com Team

Congress is finally cleaning up its unfinished budget business for the 2013 budget year with a bipartisan government-wide funding bill. But even as that measure heads toward approval, the House and Senate are moving toward divisive votes that will underscore sharp differences on a bigger problem: how to fix the nation's long-term deficit woes.

The Senate is positioned to approve the catchall spending bill Tuesday after it cleared a procedural hurdle Monday by a strong 63-35 vote. The House, which approved a narrower version two weeks ago, is expected to quickly clear the measure and ship it to President Barack Obama for his signature.

On a separate track, the GOP-controlled House and Democratic Senate are readying votes this week on sharply different budget blueprints for next year and beyond. The measures are non-binding and largely symbolic. But they veer off in opposite directions at the same time President Barack Obama seeks to nurture a future compromise blending new tax revenues with spending cuts beyond what his Democratic allies are willing to offer now. Continue reading "Congress works on budget for both 2013 and future" →

Morning Energy Commentary

Posted on by The INO.com Team

NYMEX CRUDE OIL

April crude oil was higher overnight as it extends the rally off this month's low. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If April extends the aforementioned rally off this month's low, the reaction high crossing at 94.46 is the next upside target. Closes below the 10-day moving average crossing at 92.51 would temper the near-term friendly outlook. First resistance is the reaction high crossing at 94.46. Second resistance is the reaction high crossing at 97.49. First support is the 10-day moving average crossing at 92.51. Second support is this month's low crossing at 89.33.

April heating oil was lower overnight as it extends the decline off February's high. Stochastics and the RSI are diverging but remain neutral to bearish signaling that additional weakness is possible near-term. If April extends the decline off February's high, the 50% retracement level of the December-February rally crossing at 288.66 is the next downside target. Closes above the 20-day moving average crossing at 298.58 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 294.75. Second resistance is the 20-day moving average crossing at 298.58. First support is the 50% retracement level of the December-February rally crossing at 288.66. Second support is the 62% retracement level of the December-February rally crossing at 280.52. Continue reading "Morning Energy Commentary" →

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 (March 18th through March 22nd)

And so it begins. The first wave of profit taking came on a Sunday night thanks to reports from Cyprus that banks may begin taking money from accounts to help satisfy debt. While the final vote on its implementation has been postponed until later today, the news alone of banks seizing money from account holders at will was enough to have not only European investors concerned, the worry carried over to markets globally. Continue reading "Gold Chart of The Week" →