Check out my new video where you will find precise turning points on the major indices. You will also see and hear where we expect the major indices to head in the next six to twelve months.
Let me know what you think. You can leave your comments right here on this blog.
Enjoy the video.
Adam Hewison
President, INO.com
Co-creator, MarketClub
Yesterday I was just looking at some of my earlier posts and came across this one. My how the world has changed since I penned this special report.
First posted on June 25th, 2007
There used to be a time when investing was simple.
You know what I mean? You buy at 10 and sell at 15 and make 50% on your money. I can understand that, and so can most investors.
I have to admit that some of these off book derivatives that banks and hedge funds are creating and trading are just not that simple to understand.
When the time comes and it will, you will see the you know what hit the fan. Some of these hedge fund managers will see that a lot of stuff that looked good in computer simulations, may not look or work as well in the real world (see the sub-prime melt down).
Just look at what happened to this hedge fund, Amarath Advisors who lost 6 BILLION and how they thought they where more smart that the markets.
And now the Blackstone Group has gone public with great fanfare. Now that's going to be an interesting one to watch. I am going to be watching this one closely, if it drops below its initial public offering at price of $31.00, it could spell problems for the whole market. If this stock trades below 30 you are going to see a lot of press, finger pointing and speculating that we are seeing a top in the markets.
The only way to consistently be successful in the market is to learn how the market works, have a game plan and have two other key elements necessary for success.
Here they are:
* Discipline
* Diversification
Once you understand how the markets work, have a game plan and master discipline and diversification, you are on your way to success.
Every success in the future,
One thing that I've been paying attention to more and more is the Forex markets. Honestly, over the past few months my attention has landed pretty squarely on Forex and how Forex reacts with the ebb and flow of the general stock and futures markets. Now one guy that I've been paying a ton of attention to (other then Adam as he's the published author and successful Forex trader) is Bill Poulos from ProfitsRun. I've been following him for a while personally and professionally, and can say without a doubt that he is the second best resource I have for Forex related questions! Yes SECOND best!
Regardless of that, I asked him to do two things for me today. First I wanted him to give away (for free) the Forex kit I paid for a while back. I was able to glean a TON out of information and again I paid for the "Forex 4-Pack" pack that he's agreed to give away for free.
Second I wanted him to explain why Forex is so hot and how we can benefit from the huge flow of liquidity thats moving into Forex. Check out the article below and get the Forex 4-Pack.
Please feel free to comment as Bill will be responding to ALL questions and comments!
==================================================================
If you've followed the stock markets (and really, who hasn't?), you've likely wondered where the buyers are when stocks are now at their lowest levels in decades.
One place money has been flowing to has been the Foreign Exchange (or Forex) -- which has grown rapidly in the last several years and is fast gaining wide popularity among traders.
Forex alone now accounts for more than $3 TRILLION in average daily turnover and shows little sign of slowing down.
What does this mean to you, the trader?
It spells opportunity. This is one of the best times I can recall to learn to trade and to start trading the enormously popular and potentially profitable Forex markets.
Why?
Because with the world's financial markets in turmoil, mega trends in the Forex markets have seldom been better. The pressures causing disruption in the stock markets around the world are also causing awesome trading opportunities in the Forex markets.
Keep in mind that with Forex, you don't need to wonder when the market will stop going down or when it will recover, or how long it will take. With Forex, the six major pairs are almost always up or down in what I call mega-trends, providing trading opportunities right here, right now.
The problem I see is that too many traders aren't sure how to take advantage of those opportunities, or how to spot those trades they could be making. Or, if you have never traded the Forex markets, people are wonder how they can participate? Still others worry about controlling risk or being able to capture a 'free' trade situation when trading these markets.
As of this writing, the U.S. Dollar has rallied against most major currencies. The continued economic fallout from the housing, banking and credit crises, major unemployment explosion and the ongoing recession have forced the U.S. government into unprecedented spending. That spending creates incredible inflation risk for the dollar, and could well send the dollar into a significant reversal. Regardless, the Dollar will continue to provide great trading opportunities versus the other major currencies time and time again.
Simply put -- as governments across the globe scramble to provide liquidity to credit markets and inject cash into their money supplies to refloat their economies, they will directly impact the value of their respective currencies as they relate to one another. This then acts to drive the six major currency pairs up or down, in very recognizable and tradable trends.
At the end of the day, economists and media gurus are all predicting what will happen to the economy, when the recession will end, when the stock market will "bottom" and recover -- but here's the thing: Forex traders don't have to wait for a recovery. Nor do they care, necessarily, when a recovery will come.
And because of that, I believe we are seeing more capital flight to Forex, which in turn is creating longer, stronger trends and better trading opportunities.
So, if you're already a Forex trader, you should recognize the impact all of this has had on trading currencies and focus on key trading elements:
- Risk Management
- Trend Identification (beginning and ending)
- Optimal Profit Strategies
If you're interested in Forex, but not yet trading it, or, not yet succeeding in it, you should take this time to LEARN to trade Forex with a solid trading method that teaches you:
- Why Forex is different
- How to trade
- Entry and Exit rules
- Risk Management and Capital Preservation
I think right now is one of the best times to begin trading or to learn to trade in the Forex markets because of the trends being driven by the economic turmoil around the world.
And that turmoil creates trading opportunities every day. If you've been missing those market-moving opportunities, don't miss another one!
Bill Poulos
Get the FOREX 4 PACK as I told Adam I'd give it away!
Can the U.S. survive $80 crude oil?
For the first time since September of 2007, the crude oil (NYME_CL) market has flashed a positive signal that it is headed higher. This is the first buy signal that we have seen in over 18 months in the energy markets.
The big question is, if crude oil is headed higher, how much of a price increase can the US economy afford and withstand?
Here is a raw commodity that is used by everyone and the US has no control over it. This key commodity to commerce just happens to be in areas that are normally hostile to the US. If we see a hiccup in the supply chain that changes this market dynamic, even for a short time period, we could see oil move back to the $80/barrel range in a heart beat.
So how will this affect the US equity markets? If crude oil heads back to the $75-$80 range, I expect that the major indices will head south. I call it the 551 syndrome. 5000 on the Dow, 500 on the S&P 500, and finally 1000 on the NASDAQ.
In this short video I will share with you the potential target zones we could see in the next 6 to 12 months in
crude oil.
So with the trend in crude oil in a positive trajectory and the trend in the US equity markets in a negative trajectory, I think the two will feed off themselves. Look for traders and hedge funds to move aggressively in both these areas with abandon.
Lastly with no reinstatement of the up-tick rule, expect stocks to once again get pummeled to oblivion.
Enjoy the video and all the best in trading,
Adam Hewison
President, INO.com
Co-founder, MarketClub
P.S. We welcome your comments and feedback on this and all the posts we make on this blog.
Today's post is by Jeff Braun of The Market Guardian. Today Jeff is taking a look at the giant we all know as Google. As hard as it seems to find a long position these days, Jeff thinks there may be one right under our noses. So sit back and enjoy as Jeff analyzes the giant.
===================================================================
Google remains a global leader in search, internet advertising! It was just announced today that Google Inc. (GOOG) expanded its lead in the U.S. Internet search market in February at the expense of rivals Yahoo Inc., Microsoft Corp. and Ask.com, according to data published Tuesday by Hitwise Pty. Ltd. There is only a small amount of non-financial companies with $10+ billion of net cash on the books. The optionality of that war chest in this environment is huge. That plus core business spells attractive here to me.
Google (GOOG) may soon see increased federal sales as one of the beneficiaries of an expected uptick in federal spending on technology. It is well known that Federal agencies are testing Google tools as we speak and a key fan is Obama’s new tech hire!
Google (GOOG) just continues to find new markets to enter and in each new market they find ways to be more efficient and a better value than industry competitors such as print media and ad agencies. They will enable the Internet to compete in markets and methods we haven’t yet conceived. And the markets they are already attacking are huge providing abundant growth opportunities well into the future. I am convinced the conversion process of brick and mortar to digital has just begun.
I am thinking Twitter will get sold for $150m to $250m in the next 24 months. Will Google be the one buying them? Google has a short message for those wondering whether the search giant will soon buy the micro-blogging site Twitter: CEO Eric Schmidt “unlikely”
Here are some facts about Google (GOOG)
The historical high for (GOOG) was 741.79 on the 6th of November 2007. It has been 470 days since the historical high price.
The lowest price was 100.01 on the 3rd of September 2004. It has been 1629 days since that low price.
The largest volume day was the 20th of January 2006 when 41,182,900 shares were traded. It has been 1125 days since that big volume day.
The lowest volume day was the 24th of December 2007 when only 1,628,300 shares changed hands. That was 421 days ago.
Between 275-325 It may be time to start accumulating shares. 2-4 years from now I think you will be VERY happy.
Best of luck in the markets,
Jeff Braun
How to tell or refer a friend (short video)
===================================================================
What do you think? Is it time to consider a long position in GOOG? Be sure to comment and let us know your thoughts. For more on Jeff be sure to visit The Market Guardian.
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.
