An Investment Strategy For Higher-risk Periods

Today's Guest Post comes from George Leong, Senior Editor of Lombardi Financial. "An Investment Strategy For Higher-risk Periods" originally appeared on the Profit Confidential website on July 15th, 2011. In this piece, Leong gives a brief analysis of the S&P 500, as well as explains a strategy to combat the unsure market conditions. Enjoy with our compliments and please visit this page to obtain complimentary access to a complimentary report, "A Golden Opportunity for Stock Market Investors" as well as a free e-letter subscription to Lombardi's Profit Confidential.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The current market bias is positive, but there’s some concern about the chart. The S&P 500 breached its 50-day moving average (MA) on Monday before rallying, but has failed to mount any sustainable rebound, currently stuck around its 50-day MA. My concern is that failure to edge higher could drive the index back lower and continue the sideways channel in existence since February.

The absence of any strong catalyst could leave the broader market comatose for the summer months.

On the S&P 500, there is key support around 1,250. A break below would be bearish and see a move below 1,200. I expect the support to hold. On the upper end, there is strict resistance around 1,362. A strong break above could drive additional gains towards 1,400. Continue reading "An Investment Strategy For Higher-risk Periods"

Judgement Day For Investors?

It's time for the U.S. Government to sit down and get serious about the Debt Ceiling, but we want to know....

If Obama and the Party Leaders fail to raise the legal limit on government borrowing, will it be catastrophic and lead to financial ruin?

View Results

Loading ... Loading ...

As always, we would love to hear your thoughts on this or even where you think things may go from here. Be sure to share your thoughts in our comments section!

Best,
The MarketClub Team

Will He Or Won't He Implement QE3?

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Thursday, the 14th of July.

Will he or won't he implement QE3?  That is the question on everyone's lips.  I am of course talking about the Federal Reserve chairman, Ben Bernanke.  I don't think it's going to matter too much because the market is acting exactly how we expected it to act.  The market action for the past three days has very negative connotations in my opinion.

The plain truth is the market has been unable to hold or sustain any rallies after its big down day on Monday.  I think tomorrow, being Friday, a lot of traders will be very nervous about holding long positions based on what may or may not happen with the debt ceiling over the weekend.

Gold and silver continue to move to the upside and are in strong hands.  This weekend could be the perfect weekend trade for these two markets.  Target zones are higher than current levels for both gold and silver.

Another concern we have are bank stocks, which continue to look weak.  Bank of America, symbol BAC, could be a perfect candidate for a 52 week rule trade on Friday.  Watch that stock carefully on Friday.

Now, let's go to the markets and see how we can protect and make your money grow.    Continue reading "Will He Or Won't He Implement QE3?"

Record-High Prices For Gold!

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your 1pm market update for Wednesday, the 13th of July.

The big news today has got to be record-high prices for gold.  As you know we've been very positive on this market longer term and we believe that the market was going to make its highs at the end of Q3.  Today's action certainly confirms that this market is moving from a very powerful energy field, which we have explained in many of our previous videos.  Silver followed suit, but has not made an all time high.  Percentage wise today's move in silver is beating out the move in gold.

The rally in the equity markets is not as unexpected, as we thought that we would see a bump up as we described in our previous videos earlier this week. We expect that the current rally in the S&P will run out of steam right around 1333 to 1338.

We also suspect that this market is building the right shoulder of a massive head and shoulders top.  It seems hard to believe that the precious metals and the equity markets are all going up at the same time, but that's what's happening right now.

Now, let's see how we can protect and make your money grow.    Continue reading "Record-High Prices For Gold!"