Category: General

High Oil Prices Are Here To Stay -- Here's How To Profit

Posted on by admin

American oil production is surging. Yet oil prices remain near $100 a barrel.

You may be wondering: When will all of this additional production finally overtake demand and push the price of oil down?

You can find one answer in the price of oil futures -- which say we can expect oil to fall to closer to $80 in the coming few years and stay there.

 

Is the market correct? Are oil prices heading south?

I think that the answer is no, for several reasons -- especially after I listened to a recent presentation by Bill Thomas, the CEO and chairman of EOG Resources (NYSE: EOG).

EOG is, by a considerable margin, the largest horizontal oil producer in the world. That means the company has access to the best data available on horizontal oil production and resources.

Put simply, EOG and Thomas believe that the futures market is all wrong about oil prices. The company is bullish on oil and focused on producing more of it.

What EOG sees -- and the market doesn't seem to grasp -- is that for all intents and purposes, the horizontal oil boom is coming from only two plays: the Bakken Formation in the upper Midwest and the Eagle Ford Shale in South Texas. A slide from EOG's most recent investor presentation illustrates this clearly: Continue reading "High Oil Prices Are Here To Stay -- Here's How To Profit" →

Letting Go of Your Leverage: Why Slow and Steady Works Better With FX Trading

Posted on by The INO.com Team

Would you consider taking out a $50,000 loan against your home in order to finance a gambling trip to Las Vegas? Of course not, and yet when you leverage your Forex trades that is essentially what you are doing; borrowing money at a risk that you won’t be able to afford to pay it back.

What Does Leveraging Your Trade Mean?

On the surface, leveraging looks like a good idea. Most brokers will allow you to borrow from them to make a trade, usually with a small percentage down. Let’s say yours will require 1%.  This means that for every $1,000 in your account, you potentially could trade with $10,000. Leverage has nothing to do with changing your chances of a successful trade, it just means you are able to invest more into it then what is in your Forex account.

How Can Leverage Help?

Forex trading is measured in pips, which are actually fractions of a cent. In some cases, a gain of 100 pips may only equal one dollar. Continue reading "Letting Go of Your Leverage: Why Slow and Steady Works Better With FX Trading" →

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 August contract traded in a very tight and narrow trading range this week going out last Friday at 1,246 and settling this Friday at 1,251 up about $5 for the week, however I’m still recommending a short position when prices broke below 1,267 placing your stop loss above the 10 day high which currently stands at 1,290 risking around $40 or $4,000 per contract from today’s price levels. Gold futures are trading below their 20 and 100 day moving average telling you that trend is lower as major support is at 1,240 and if that level is broken I would think you have to retest 1,200 as the same old story continues with the S&P 500 hitting all-time highs once again as money is coming out of the gold sector into equities and I think that trend is going to continue especially with low interest rates staying around for quite some time. At the current time there are no geopolitical events that one must rush into the gold market with the stock market continuing its trend higher it’s difficult for gold to rally at this time so I do see lower prices ahead but make sure you do place your stop loss at the 2 week high in case the trend does change as an investor or trader you always must have an exit strategy.
TREND: LOWER
CHART STRUCTURE: IMPROVING

Continue reading "Weekly Futures Recap With Mike Seery" →

Poll: Will You Buy Apple Stock After The Stock Split?

Posted on by The INO.com Team

If you're like me, I've wanted to Apple (NASDAQ:AAPL) stock to my portfolio, but it's too pricey for me to buy at its current level. With Apple's seven-for-one stock split happening after the close of business today, I'm excited to add it to my holdings next week. At the current price, the new shares would be worth $92.12 after the split takes effect Monday.

I wanted ask everyone if they will be....

Will You Buy Apple Stock After The Stock Split?

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Please take a moment to vote and leave a comment with your thoughts on Apple's stock split.

Every Success,
Jeremy

The Government's Disastrous Reign over U.S. Money

Posted on by The INO.com Team

By Elliott Wave International

Very few people know that the United States did not create a monetary unit pegged to "buy" some amount of metal, as if the dollar were some kind of money independent of metal.

In 1792, Congress passed the U.S. Coinage Act, which defined a dollar as a coin containing 371.25 grains of silver and 44.75 grains of alloy. Congress did not say a dollar was worth that amount of metal; it was that amount of metal. A dollar, then, was a unit of weight, like a gram, ounce or pound. Since the alloy portion of the coin was nearly worthless, a dollar was essentially defined as 371.25 grains -- equal to 24.057 grams, or 0.7734 Troy oz. -- of pure silver. (15.43 grains = 1 gram, and 480 grains = 1 Troy ounce.)

In a nutshell, a dollar was equal to a bit more than 3/4 of an ounce of silver; or, in reverse, an ounce of silver was equal to $1.293.

The same act declared that a new coin, called an Eagle, would consist of 247.5 grains of gold and 22.5 grains of alloy. It valued this coin by law at ten dollars, meaning 3712.5 grains of silver. Continue reading "The Government's Disastrous Reign over U.S. Money" →