What's going on in the Markets... (5/18/11)

Hello, Adam Hewison here for MarketClub with your 1 p.m. market update for Wednesday the 18th of May.

Watch what's happening right now ...

S&P500: -60. Market very oversold. Long term uptrend remains intact. Market at the lower end of the Donchian Channel. Neutral - Trading range.

Silver: Score -60. possible bullish divergence on the Williams %R indicator. Major resistance at $39.50. Support at $32.00.

Gold: longer term trend still positive. Score +65. Support at $1,462.50. Resistance at $1,526.Trading Range

Crude Oil: +80 neutral Trading range. Long term indicator remains positive. Mid point on the Donchian Channel. Possible bullish divergence on the Williams %R indicator.

The Dollar Index: Score +55. In a trading range with the longer term outlook remaining negative. Possible negative divergence. Look for a pullback?? Major resistance remains at 77.50.Minor support at 74.00.

The Thomson Reuters/Jefferies CRB Commodity Index: Score -55. Near-term resistance at 348.50. Support at 333.50. Market very oversold on hedge fund liquidation. Bullish divergence on the Williams %R indicator.

All the best,

Adam Hewison
President of INO.com
Co-founder of MarketClub

Congratulations Stevenson High!

We just received the results regarding the Stevenson High competitors! We are lucky to have such a passionate teacher provide us with frequent updates on his students' success using MarketClub. Here is an update of the most recent success in their stock market competition...

Well, the results are in. One of our teams finished 7th, and another 14th out of a field of 120 +!! On the other hand, the two other teams finished in the 80's (approx.) and 100 plus. Now, what is exciting is that the two top finishers are freshman and sophomores and they religiously followed MarketClub.

Thanks again for your help. You have a great product and I am looking forward to next years competitions.

Regards,

*Teacher's name removed for privacy*
Adlai E. Stevenson High School
Lincolnshire, Illinois 60069

We wish a heartfelt congratulations to the students at Stevenson High on their trading success!

Best,
MarketClub

1p.m. Market Update (5/17/11)

Hello, Adam Hewison here for MarketClub. Watch what's happening right now in the markets ...

S&P500: -70. Market very oversold. Long term uptrend remains intact. Market at the lower end of the Donchian Channel. Neutral - Trading range

Silver: Score -70. possible bullish divergence on the Williams %R indicator.Major resistance at $39.50.Support at $32.00.

Gold longer term trend still positive. Score +55. Support at $1,462.50. Resistance at $1,526.Trading Range

Crude Oil: +55 neutral Trading range. Long term indicator remains positive. Possible bullish divergence on the Williams %R indicator.

The Dollar Index: Score +70. In a trading range with the longer term outlook remaining negative.Possible negative divergence. Look for a pullback?? Major resistance remains at 77.50.

The Thomson Reuters/Jefferies CRB Commodity Index: Score -70. Near-term resistance at 348.50. Support at 333.50.Market very oversold on hedge fund liquidation.

All the best,

Adam Hewison
President of INO.com
Co-founder of MarketClub

"Take calculated risks. That is quite different from being rash."

Continuing with our options theme this week we have brought in, J.W. Jones, the primary analyst and moderator of OptionsTradingSignals.com. Today J.W is going to share with you his take on the recent silver market, and how volatility and options have presented him great opportunities in markets where traditional investors are running for the hills. Be sure to comment with your thoughts and visit J.W at Options Trading Signals.com.

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Take calculated risks. That is quite different from being rash.
– George S. Patton -

Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.

I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. In order to understand the thinking behind this trade, it is necessary to understand the concept of implied volatility of an option contract. Implied volatility, together with time to expiration and price of the underlying security, form the three primal forces that rule the world of option pricing. This measure of volatility is best described as the collective opinion of traders as to the future volatility of the price of the underlying. Implied volatility is the variable which determines if options are priced cheap or overvalued. Continue reading ""Take calculated risks. That is quite different from being rash.""

Options Trading Success With MarketClub

Todays Trader’s Blog guest is Trader Travis, owner of Learn-Stock-Options-Trading.com. Like many of you, Travis spent a good bit of time looking for a trading system that fit his style and mindset that could supplement his income. During his search, Travis stumbled onto MarketClub, and has developed an interesting way to incorporate it into his trading style. We think you will really enjoy this article regarding his trading experiences. Be sure to comment with any questions for Travis, or add your own MarketClub tips and tricks in our comments section.
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I hope you've enjoyed the Learning Options series that MarketClub has provided for you.

Today I wanted to share my personal experiences with using MarketClub as an options trader. In my humble opinion, options trading success with MarketClub comes down to 3 primary things:

•    Trade in the same direction of the general market (Dow, Nasdaq, and S&P)
•    Only trade when the stock and the general market both have strong trends either up or down
•    Then sit back and allow the trade triangles to guide your entry and exit points

Seems rather simple and common sense, but you'd be surprised how many of us don't use common sense in trading. Now the Silver ETF seems to be its own market and seems to play by its own set of rules so here is an example of how a real trade played out… Continue reading "Options Trading Success With MarketClub"