Category: General

Poll: Are You A Buyer Or Seller?

Posted on by The INO.com Team

Don't be surprised if the stock market stabilizes or bounces back in the next few days. The markets are due for a short-term rally after the dramatic drop of the last six days. This usually happens after a sell-off. But, buyer beware. Anyone who automatically assumes this is another easy "buying opportunity" should do so with caution. I don't think this is over yet and here are a couple of reasons why:

1. We are still waiting on the Fed to announce if they will raise rates in September.

2. China's stock market extended its steep losses as lower interest rates failed to halt a $5 trillion loss.

Will the market head higher or lower from here? No one really knows, but we are certainly in for a volatile ride for a while I suspect. That leads me to a simple poll question today...

Are you a buyer or seller?

View Results

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As always, take a moment to vote and leave a comment on the markets. I'd love to hear what you have to say.

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the December contract settled in New York last Friday at 1,112 an ounce while currently trading at 1,157 up about $45 for the trading week on massive concerns of global slowdowns pushing stock prices to a 7 month low therefore putting money back into the precious metals as I’m currently sitting on the sidelines in this market getting stopped out around 1,105 or 10 day high around 10 days ago as Monday’s trade certainly will be interesting in my opinion. The chart structure is extremely poor at the current time as we’ve had about an $80 rally from recent lows as prices traded as high as 1,168 earlier in the trading session but this market concerns me due to the fact that many of the commodity markets are headed lower as this is just a flight to quality here in the short term in my opinion. Continue reading "Weekly Futures Recap With Mike Seery" →

Look for Value Opportunities and Put Your Capital to Work Selectively in this Market

Posted on by admin

The Gold Report: When we talked in November, you warned that there would be downward pressure on gold this year. What are you anticipating for the balance of 2015 and into next year?

Florian Siegfried: We were being cautious in November when we published guidance that indicated gold could trade as low as $1,070 per ounce ($1,070/oz) as a support zone. And that is pretty close to where it is trading right now. But I think that we have to distinguish between the paper price of gold and the physical price, which trades at a premium. For example, the U.S. Mint currently sells gold at around $1,400/oz.

"Pretium Resources Inc.'s Brucejack is one of those mines that brings a long mine life and high grade in a safe jurisdiction."

This suggests that there is some tendency toward increasing premiums in the market for physical metal. Where we go by the end of the year is a difficult question because it's always hard to catch the bottom of the market. But a look at the last three or four years gives us some clues. Hedge funds were maximum net long in gold at the peak of 2011, and now they're maximum net short, which could be a good contrarian indicator (see chart above).

It looks as if $1,080/oz could be the bottom. It's not defined yet, but the sentiment is definitely at extremes.

The turn in gold will come from short covering, and the short covering will come when the bearishness really reaches a climax event. Probably we are there, but we will have to wait and see. It is difficult to make a call for year-end because there are so many factors influencing the gold price, and sentiment is extremely negative. The trigger for moving up could come from the bond market, which is in a difficult spot right now. Liquidity is down. Yields and credit spreads are rising. When something goes wrong there, where will the conservative money go to? I don't think it is going to go back into government funds. As investors lose confidence, that could be the trigger for gold. We are probably going to see this in the fall, by September or October. I think the bond market is about to turn around.

TGR: What are some of the other triggers you're watching? Are you monitoring the U.S. Federal Reserve and whether that rate hike happens in the fall? Continue reading "Look for Value Opportunities and Put Your Capital to Work Selectively in this Market" →

Don't Look Now, But McDonald's Hit A New 52 Week High

Posted on by The INO.com Team

As part of my daily routine, I use Smart Scan to look for stocks hitting new 52-week highs. I was shocked today when I saw McDonald's on the list. I can honestly say that McDonald's hadn't crossed my mind as of late, other than when the talking heads on TV talk about how poorly the company is performing here in the United States. And yet there it was, making a new 52-week high of 101.44 yesterday. Not only that, but it's closing in on the all-time high of 103.78 on 5/14/14.

It just so happens that I took my youngest son out to lunch yesterday and of course he wanted to go to McDonald's. So we jumped in the truck and headed over to the brand new one that they built in my town. Yes, I said new one. There are now two in this little town, the established one that's been here forever and the new one about 3 miles north of the old and on the other side of town. I remember asking myself, will the new one be busy? Will it take away to much business from the old one? I guess time will tell.

NYSE:MCD

We pull up to the new one, and I notice that they still have a "Now Hiring" sign out front, and I think, "Oh boy, this isn't going to go well." As I walk in, I'm hit with the newness and completely different look and feel of this McDonald's. It's very futuristic and almost characterless honestly. I also notice that there is a line of cars around the building and 5-6 people waiting on food inside with looks of disdain on their faces. As I turn to get in line, I notice that they only have one person working the counter with a line of people waiting. As people start to complain about the wait I make an executive decision, "kid, were going to the other one" and we leave. Continue reading "Don't Look Now, But McDonald's Hit A New 52 Week High" →

Oil's Slippery Slope: How Far Will Prices Fall?

Posted on by The INO.com Team

By Elliott Wave International

Editor's note: You'll find the text version of the story below the video.

Recall crude oil's dramatic 2008 price collapse. The high that year was in July at $147.50 a barrel. By December, the price had plummeted to $30.28.

This chart shows how Elliott Wave Theorist subscribers were warned ahead of time. Continue reading "Oil's Slippery Slope: How Far Will Prices Fall?" →