What Is Correlation Trading And Why Is It So Powerful?

We've spoke and taught about correlation trading before here on the Trader's Blog, but today I've asked Jason Fielder (a multi-time guest blogger) to give us his insight on correlation trading. The below article is an excellent read and I HIGHLY recommend taking a few notes so you don't miss anything. Jason has told me that he will be responding to all comments and questions you post below. Also, he wanted me to give you a heads up about his new Correlation Cheat Sheets...so check that out if you have some time...but read the article first!

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Correlation Trading is a style of trading that is gaining momentum between traders “In the know”. In fact, the momentum is so strong, Correlation Trading is the cover of this month's Futures Magazine!

As soon as you understand this methodology, not only you will understand WHY it's so powerful, you'll immediately want to get your hands on a few correlation strategies. Correlation trading is all about discovering a way to see what I call “cracks” in the market.

Now for the really interesting part...

Continue reading "What Is Correlation Trading And Why Is It So Powerful?"

Big Milestone in the Markets

The euro for the first time since last August broke through the psychological barrier of 1.5000. This move confirms our belief that the dollar is headed lower - a lot lower. If you take a look at our latest video, you will see some of the target zones we are projecting for the dollar.

I also strongly recommend that you should watch this Euro/Dollar video that we made back on September 25th to see how back then the market dovetails with todays actions and how we derived the cyclic predictions we forecast for the dollar.

As always, our videos are free to watch and there is no registration required.

Adam Hewison
President, INO.com
Co-founder, MarketClub

What A Great Day For The Perfect Portfolio

Well, it was quite a day for The Perfect Portfolio. Three of the four markets we shared with you in our earlier video, The Perfect Portfolio (you can watch it here), scored impressive gains.

In today's action we saw the dollar go down (we are long in the ETF FXE +.48), we saw crude oil jump dramatically (we are long in the ETF USO +. 94), we watched gold reverse and move higher for the day (we are long the ETF GLD +.31), and finally we saw the S&P 500 move lower  (we are long in the ETF SPY -.97).

All in all, a great day for The Perfect Portfolio. If you missed our perfect portfolio video, I strongly recommend that you take a look at it. I believe no matter what economic conditions we go through in th next 36 months that this portfolio will protect and grow your capital.

The video is free to watch and there are no registration requirements. We hope to hear from you on our blog.

Enjoy the video, all the best.

Adam Hewison
President, INO.com
Co-founder, MarketClub

Is The NASDAQ Now In Thin Air?

Of the three major indexes we track: DOW, NASDAQ and the S&P 500, only the NASDAQ is in thin air.

What do I mean by thin air? So far the NASDAQ is the only index to make it past the 50% Fibonacci retracement levels as measured from the highs seen in 2007 and the lows that were made in March of this year.
Both the Dow and the S&P 500 have rallied strongly from their March lows but have not made it over the 50% retracement level.

Many professional traders - myself included - are looking at the NASDAQ's Fibonacci retracement as it represents a potentially key turning point for this year's market.

Continue reading "Is The NASDAQ Now In Thin Air?"

An Old Fashioned View...

With the Dow back over 10,000, I like a few other people have been considering a taking a few more positions, sticking my neck back out if you will. This got me thinking about the very basic principles of the market. I wanted to share with you a brief list put together by my friend Hale of Bonddad Blog. These are a few basic points that still resonate with him while trading. What do you think, what are some of the basics that you'll never loose? Leave us a comment and be sure to visit Hale at Bonddad blog.

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For a guy who lives in the 21st century I have a remarkably old fashioned view of the market.  My favorite technical analysts -- Gartley, Murphy, Gann and Schabacker -- are some of the earliest practitioners of the art.  There are a few basic points from these people that still stand out for me.

First, you can make money on both sides of the markets – going long and going short.  This means we can always be invested so long as we know the market’s direction.  To know the market’s direction we need to know how the fundamentals of the US economy are doing – is the economy expanding or contracting?  This requires basic knowledge about the economy.  If you don’t know it, learn it. Continue reading "An Old Fashioned View..."