Category: General

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.

Silver Futures

Silver futures in the December contract settled last Friday at 17.53 currently trading at 16.75 down about $.30 in New York this Friday afternoon as the U.S dollar is up over 100 points this afternoon sending the precious metals sharply lower as silver has hit a 5 year low and if you took my original recommendation selling at the 4 week low of 20.44 continue to place your stop at the 10 day high which stands at 18.00 as the chart structure will improve on a daily basis. I remain very pessimistic silver prices and I do think that prices will continue their downtrend as the U.S dollar is very strong to the upside and I do not believe that trend is going to reverse so continue to sell rallies in this market placing the proper stop loss as the commodity markets in general over the last several months have been very pessimistic and I don’t think the bottom has occurred. Silver futures are trading far below their 20 & 100 day moving average continuing to grind lower as deflation in Europe and around the world is a real concern and that is also helping put pressure on prices here in the short term as nobody wants to step in front of a falling knife and that’s what’s occurring at this time as platinum prices are down another $45 this afternoon. I’ve been trading commodities for over 20 years and the one lesson I try to harp on is the fact that you must be a trend follower & the trend is to the downside because it’s easier to trade with the path of least resistance rather than trying to pick a top or bottom.
TREND: LOWER
CHART STRUCTURE: IMPROVING Continue reading "Weekly Futures Recap With Mike Seery" →

Poll: Even Ben Bernanke Cannot Get A Loan

Posted on by The INO.com Team

Former Federal Reserve Chairman, Ben Bernanke, was addressing the National Investment Center for Seniors Housing and Care conference in Chicago on Thursday and said that, "I recently tried to refinance my mortgage and I was unsuccessful in doing so." He went on to explain that lenders "may have gone a little bit too far on mortgage credit conditions" according to the Bloomberg report.

I thought I would ask you the same question today....

Do you think lenders have gone to far on mortgage credit conditions?

View Results

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As always, I would love to hear you thoughts on the subject. Please take a moment to vote and leave a comment.

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

The Best Strategy For Reliable Income In A High-Risk Market

Posted on by admin

By: Zachary Scheidt of Street Authority

The covered call strategy is a reliable way to generate income in your investment account on a monthly basis. Basically, this investment approach captures income by selling call option contracts, which speculators purchase in hopes that they will generate outsized returns as stock prices advance. By selling call options, we allow these speculators the chance to make large profits, while we collect high-probability income payments.

Here's how the covered call process works: We purchase shares of stock the same way a traditional investor would. We then sell call option contracts against these shares (one for every 100 shares that we own). Selling these contracts obligates us to sell our stock at the option's strike price, provided the market price is above this level before the option expires.

This approach puts a cap on our potential return because regardless of how high the stock trades, we will still be obligated to sell at the strike price. However, since we are receiving a payment from selling the call contract, known as a premium, this income is very reliable and gives us a much higher probability of a positive return on our investment. So the covered call approach sacrifices the potential for a very high return in exchange for a more stable, reliable income stream.

Choosing Which Call Option Contract to Use

Option contracts are available on a monthly (and in many cases, weekly) basis, giving us more choices in terms of which contracts we want to sell. Traditional call option contracts expire on the Saturday after the third Friday of each month.

When implementing a covered call trade in our account, we must choose an expiration date. Typically, the more time left until expiration, the higher the price will be for the call option. This is because the contract is more attractive to buyers, because a longer time horizon allows the stock more time to trade higher, giving the owner a greater chance to profit. From our perspective as call sellers, a higher price means that we receive more income from selling the contract. Continue reading "The Best Strategy For Reliable Income In A High-Risk Market" →

Advanced Technical Indicators - Bollinger Bands

Posted on by The INO.com Team

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple.

If you like this article, Larry’s also agreed to give you free access to his weekly trading tip.

Let's take another look at a more advanced technical tool - Bollinger Bands. These were developed by John Bollinger in the 1980s. In simple terms, they use a simple moving average and standard deviations to give a different perspective on potential highs and lows.

Bollinger Bands have a middle band and two outer bands.

The middle band shown on this indicator is a moving average, usually a simple moving average (see Tip #29 for more on those) although some traders do use the exponential moving averages. The standard deviation calculations for the outside bands can be calculated like this example: Continue reading "Advanced Technical Indicators - Bollinger Bands" →

Top Approaching in Berkshire Hathaway?

Posted on by The INO.com Team

By: Elliott Wave International

Editor's note: The following article originally appeared in a special September-October double issue of Robert Prechter's Elliott Wave Theorist, one of the longest-running financial letters in the business. From Sept. 25 to Oct. 1, Prechter's firm, Elliott Wave International, is throwing open the doors to all of its investor services 100% free. Click here to join EWI's free Investor Open House now.

It piques our interest when a person or company makes the front page of a magazine or newspaper. On August 15, USA Today ran an article with a chart on the share-price performance of Warren Buffett's company, Berkshire Hathaway. The Guardian and other papers covered the news, too, which was that the stock had cleared $200,000/share.

The stock (symbol BRK-A) has returned a 19.7% compounded annual return to shareholders since 1965, the year Buffett turned a failing textile company into an investment company. It has returned 22.8% annualized since 1977. Let's just say that the stock has produced about 20% per year compounded.

The above figure shows that the stock has just met a 16-year resistance line on arithmetic scale. The next figure shows that it is still a bit shy of that line on log scale. Continue reading "Top Approaching in Berkshire Hathaway?" →