Author: The INO.com Team

Daily Video Update: Politics and markets make strange bedfellows

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 2nd of October.

Not to get too political, but I believe the markets are going to be in a holding zone for the next day or two waiting for the first presidential debate between Pres. Obama and Mitt Romney, that takes place on Wednesday.

Here's a question for you... Who, in your opinion, is more important? Pres. Obama, Mitt Romney, or Ben Bernanke?

From the market's point of view, I would have to say that Ben Bernanke is more important than either President Obama or Mitt Romney. Bernanke and the Fed are committed to pouring more money into the equity markets with their "QE3-print-more-money-and-to-H#ll-with-the-future-plan". I guess they figure that we can find another solution to the problem later … YEAH RIGHT!!

Equities based on the FED are still in a bullish phase and we have an upside target of $1,550 on the S&P 500 some time next year.

Most traders have written off the Euro, but our Trade Triangles are saying that we are in a bull market, at least for the moment, and the dollar is the one with the bigger problems.

Inflation Watch: Pressure is building on the Reuters/Jeffries CRB Index. Inflation will be arriving in 2013.

Wild Card: Without a doubt, the wild card for everything is the Middle East. We see no positives on that front.

Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.

Click Here to view today's video

FrankenMarket Lives (On)!

Posted on by The INO.com Team

Excerpted from the September 30 edition of Notes From the Rabbit Hole:

I often refer back to my first publicly written article (FrankenMarket Lives, 2004) because it simply stated the terms by which the stock market lives here in the age of Inflation onDemand, which was kicked off by Alan Greenspan in 2001 and is ever more aggressively managed to this day by his successor, Ben Bernanke.

From the article’s opening segment: "As we enter the summer of 2004 [fall of 2012], our markets appear to be moving with all the grace of Dr. Frankenstein’s creation, staggering forward, arms outstretched and seeking sanctuary [i.e. inflation]."

From the ending segment: "This market was stitched together with debt, and it will require more of the same to keep it going." Continue reading "FrankenMarket Lives (On)!" →

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 (October 1st through October 5th)

“Better late than never” comes to mind as I prepare this week’s Weekly Gold Report. Just as I sat down to capture the weekly chart for December Gold, the market erupted after another perfectly timed announcement from a US FED official.

After dismal news from the European Manufacturing sector overnight, a European Union Commissioner made upbeat remarks about Spain, followed by FED member Charles Evans stating that he would like to see “Operation Twist” continue past the December 2012 deadline and go on for another calendar year. The remarks from Olli Rehn in Europe and supportive comments from Evans in the US were enough to offset the worst Manufacturing number that Europe has seen in three months. Continue reading "Gold Chart of The Week" →

Daily Video Update: Hello Q4, Hello gold, and goodbye Dollar

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 1st of October.

The first day of October started dramatically with the price of gold shooting to its best levels in almost a year. We consider this to be a real indicator of peoples' fears about what's going on both in Europe, and more importantly the United States. Technically we have been bullish on gold, based on our Trade Triangle technology and we are holding onto all our long positions. We believe that gold will surpass the $2,000 an ounce mark in the not-too-distant future.

We also want to pay close attention to the crude oil market, as we believe this market can put in a strong performance in Q4. Equities are still in a bullish phase and we are targeting the S&P 500 to move to $1,550 some time next year.

Don't rule out further strength in the Euro. No matter what the problems are in Europe, we may have bigger problems here in the US.

Inflation Watch: A move over $320 on the Reuters/Jeffries CRB Index will be a sure sign that inflation will be coming on strong in 2013.

Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.

Click Here to view today's video

John Mauldin's Prescription for Avoiding Economic Catastrophe

Posted on by The INO.com Team

Best-selling author John Mauldin of Mauldin Economics says the EU is only left with choices that range from bad to disastrous. Meanwhile, Republicans and Democrats will have to hold hands and walk off the cliff together to solve U.S. economic problems. In this exclusive Gold Report interview, Mauldin expands on his comments at the Casey Conference, "Navigating the Politicized Economy." Read more about the consequences of those choices and necessary compromises—and how he would reform the U.S. tax code.

The Gold Report: Back in January you said the European Union (EU) would have to make serious political decisions with "major economic consequences" in 2012. Is the EU making those decisions and what is your prognosis?

John Mauldin: It is doing its best to avoid making decisions, but is being forced to make them, ad hoc. The EU allowed the European Central Bank (ECB) to print money to monetize debt. The ECB is buying time for governments to achieve structural reform.

Structural reform, not the debt, is the problem. The debt is a symptom of bad policies, of a system set up for failure. The EU translated a theory into fact, and the theory did not work.

TGR: Is that theory the EU itself?

JM: The theory is the monetary union. If the EU had just left the trade union alone without trying to layer the monetary union on, it would have been just fine. But the EU wanted a single currency. It was part of the Europhiles' dream. The EU thinks the monetary union is the sine qua non and it is not. Continue reading "John Mauldin's Prescription for Avoiding Economic Catastrophe" →