Did ISIS, Ebola, And The White House Crash The Market?

Exactly 19 days ago, the Dow was trading at a new all-time high. So how did everything become unraveled in less than three weeks?

In my humble opinion, the complacency that was in most investors' minds was overcome with uncertainty and distrust.

It arrived in the form of three waves.

The first wave was ISIS and their rapid takeover of key areas in the Middle East. This uncertainty was exacerbated and emboldened ISIS further when the president of the United States stated on national TV that "we have no strategy" to deal with ISIS. It doesn't matter if you are a Democrat or a Republican - you do not expect to hear the president make a statement like that.

The second wave came with the news that Ebola had reached across West Africa to the shores of the United States. This scary news should not have been a problem, however it became a major problem with the conflicting stories about how a nurse who was in fully dressed in protected clothing contracted this deadly disease. To make matters worse, this morning we hear of another nurse who was diagnosed with Ebola. The Centers for Disease Control (CDC) so far seem ill-prepared. Not leveling with the American people about what is going on just adds another layer of uncertainty and distrust in government. Continue reading "Did ISIS, Ebola, And The White House Crash The Market?"

The One Market Truth You Need To Know

There's no question about it, the markets are a little jittery right now. With the S&P down almost 6% from its September highs, people are beginning to ask themselves, "is this the big one?"

Here is the one market truth you need to know:
No one knows for sure what's going to happen, except the market itself.

The market determines prices and when you are investing, how the market closes directly effects your bottom line. Whether you are in business or in the business of investing, the bottom line is what everyone looks at. You invest or trade to make money and how a market closes determines how much money you're making or losing at that particular point in time.

You can watch all the economists, all the talking heads, read all the blogs you want and you'll come away with 100 different views about what's going to happen to the market.

The only voice you really need to pay attention to is the voice of the market. The market itself tells you what it's going to do if you listen carefully. If you been following this blog for any length of time, you know that I have been out of market and on the sidelines since about the middle of September. If you take a look at Gold (FOREX:XAUUSDO), I have been either short or out of the market since July 13th. It is pretty much the same picture with Crude Oil (NYMEX:CL.Z14.E), where I have been either short this market on the sidelines since early July, with the exception of one fake out in late September.

Let the market tell you what it wants to do, rather than guessing or trying to pick a top or bottom.

In today's video, I will be listening to all the major markets. I am also going to share with you how the market actually talks, you won't want to miss that.

Every success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Smart Scan Can Keep You On Track In Any Market

MarketClub's Smart Scan technology contains an amazing amount of information that you can use to help trade with the trend. Smart Scan can also alert you to changes in the bigger picture for the general market.

Let me share with you and example of how that would work. Looking at the graph below, you'll see a series of numbers, 1 through 4. I've illustrated the graph with these numbers to showcase what's going on right now in the general market.

1. "Long-Term Trend Up +90 (178)" - This means only 178 stocks have a +90 reading or higher.

2. "Long-Term Down -90 (832)" - This means 832 stocks are trending down and have a reading of -90 or lower. The number of stocks in a strong downtrend clearly outweighs the number of stocks in an uptrend over 4:1.

3. Looking at the stocks making "52-Week Highs," we see only 35.

4. The number of stocks making "52-Week Lows" is 646, which far outweighs the number of stocks that are making new highs.

At this point in time, I think it's clear to say that negative trend is winning out and in the majority.

In each of the 24 scans found in Smart Scan, it can really tell the story of the market. I highly recommend you spend some time looking at Smart Scan to see how you can successfully incorporate some of these scans into your own trading approach.

I find I constantly go back to this tool, not only to find stocks that are making new highs and trending higher, but also to see what's making new lows and what opportunities there are to short the market.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

What We're Doing Right Now With These 5 Major Internet Stocks

There is no question about it, volatility has returned in the last two weeks to the stock market. How is this going to affect many of the major Internet stocks that we track?

The stocks that I will be analyzing today are:

Amazon.com Inc. (NASDAQ:AMZN)
Facebook Inc. (NASDAQ:FB)
Yelp Inc. (NYSE:YELP)
Yahoo!Inc. I (NASDAQ:YH00)
Netflix Inc. (NASDAQ:NFLX)

If you own or if you're thinking of buying any of these stocks, you need to watch today's video. In this short video, I go through each stock in detail and describe the key levels that will be game changers for each of theses markets.

As always, we welcome your feedback. If you have questions about any of these stocks or any other market, please feel free to add a comment below.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Is This The Best Indicator In The World?

It's hard to believe that the third quarter of the trading year is coming to a close today. It has been quite a quarter, especially the last week of September when the market volatility has been picking up.

One of the tools I love looking at in MarketClub is the quarterly charts on all the markets. These charts were created to show you the big picture, as we know that investors can get sucked into short-term thinking and trading and "cannot see the forest for the trees." The biggest stand out feature for quarterly charts is their ability to clearly show the direction of the big trends. And that is really how you make the big money in trading by staying with the big trends.

Day trading can be looked upon as "very sexy," but it's not where the big money is. Arthur Cutten, a well-known trader and investor in the 20s and 30s, was asked how he made so much money trading and he answered the question this way, "By sitting." Continue reading "Is This The Best Indicator In The World?"