Would you have bet on the Malaysian Index?

Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your 1 p.m. market update for Monday the 20th of June.

The big news over the weekend was Greece and the 17 nations were unable to come to an agreement to put together a package for that beleaguered country. This agreement has been pushed off yet again until July. Markets both here and Europe initially reacted in a negative fashion but have come back and appear to be regrouping and rethinking the implications of this delay.

The bank stocks however still look sick and the trends are clearly down in this sector.

The Shanghai and Hong Kong indexes are also looking very negative as are most equity indexes around the world. The only index that is looking positive using our trade triangle technology is the Malaysian index.

Let's take a look at the major markets now... Continue reading "Would you have bet on the Malaysian Index?"

Traders Toolbox: Momentum Revisited...

MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

Momentum measures the change in a commodity's price with time. M = Pc-Pn where M = momentum, Pc = current period's price and Pn = price n periods ago.

The length of time used for the prior period is a matter of personal preference and time horizon of the trader. A narrow window of less than five periods back would be short-term in nature while six to nine periods would be considered intermediate; 10 or more would be a longer time perspective. Continue reading "Traders Toolbox: Momentum Revisited..."

RIMM - From "CrackBerry" to oblivion in one fell swoop?

Research in Motion (NASDAQ:RIMM), the makers of the BlackBerry aka "CrackBerry," is down more than 20% in trading today after some pretty bad earnings reports.

Now if you're a trader that relies heavily on fundamentals, you may have been caught in this dive.

However, MarketClub members came out ahead of the game by simply following the "Trade Triangles" which had us out of RIMM in March at $64.25... a far cry from the high $20 range we're currently trading at.

P.S. If you're not a member, you might want to take advantage of our last chance deal of 2 free months on a year membership. Click here for more details!

Options: Two Ways to Play Dividends

As with trading any financial product, there are many strategies to choose from. One strategy isn't necessarily better than another and many times the strategy that works best for you simply depends on your trading style.

Today's guest blog post is from Elizabeth Harrow of Schaeffer's Research and she is sharing 2 different options strategies that revolve around playing dividends. Enjoy the post below and leave a comment on the blog. If you like this article and wish to receive 6 months free Option recommendations, please click HERE.

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As you may or may not be aware, dividends are one of the many factors that influence an option's price. Because dividends don't have as big an impact as other variables, such as time decay and implied volatility, they're generally not a topic that I dedicate a lot of time and analysis to. However, every option trader worth his or her respective salt should know that dividends create trading opportunities (even if only so that he or she can break out this tidbit at particularly boring cocktail parties). So, in today's column, we're going to take a look at two common ways to trade around dividends.

Dividend arbitrage

First up is dividend arbitrage, which uses a combination of stock and in-the-money puts to capitalize on dividend-related price changes. Continue reading "Options: Two Ways to Play Dividends"

Gold and silver are oversold... time to buy?

Adam's UpdateGood afternoon and thanks for stopping by for the 1PM Afternoon Update.

Hello traders everywhere!

Adam Hewison here, co-founder of MarketClub, with your 1 p.m. market update for Tuesday, the 14th of June.

Okay, here's what's happening right now in the major markets ...

SP 500: -60. This market remains in a broad trading range with resistance coming in beginning at 1296 and 1305 and finally 1315 which represents a 62% Fibonacci retracement. Major downside support is at 1250.

Silver:-60. Currently this market is oversold, however it is in the state of flux with no clear trend. Using the Donchian Channels and the fact that this market is oversold, expect to see a bounce from current levels. Major Support at $34.00. Continue reading "Gold and silver are oversold... time to buy?"