Today's Video Update: Is the high price of crude oil going to torpedo the equity markets?

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 19th of July.

One piece of financial news that doesn't seem to generate a lot of press is the high price of crude oil. The price of crude oil has been sneaking up for the past month and is now fast approaching $110 a barrel. That equates to a 15% price hike for anyone driving or using any kind of products that use petroleum, like plastics, paint, roof shingles, cosmetics, tires, asphalt and many many more products that we use on a daily basis.

It is interesting to note that the Fed does not include energy or food items in its inflation index.

The question has to be asked, "is the high price of crude oil going to torpedo the equity markets?"

At the moment, it would appear as though the markets are ignoring crude oil prices and focusing on earnings. If the high price of crude oil continues, I would expect it will eventually catch the eyes of smart traders and could act as a catalyst for a market break. At the moment the torpedoes are in there tubes waiting to be fired.

With a target zone of $110 per barrel for crude, I see no reason to abandon long positions and want to hold firm for longer term traders. This market could be a classic weekend play. Watch today's video and I'll explain why.

Detroit Goes Belly Up And Gold Goes Nowhere
Despite the news that the fourth largest city in the US just declared Chapter 9 bankruptcy, gold prices barely moved. In fact, gold has been moribund for the last four weeks with all our Trade Triangles still in a bear mode.

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Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

My Early Morning Appearance On CNBC Asia

MY EARLY MORNING APPEARANCE ON CNBC ASIA
I had the pleasure last night or I should say early this morning to be interviewed by the lovely Chloe Cho of CNBC ASIA in Singapore about my outlook on the markets.

I thought you might enjoy this clip watching this lively exchange on Chloe's "Capital Connection" show. The delightful Carolin Roth who also anchors the show out of London asked me a very interesting question, about a well known stock. My answer may surprise you just as it surprised Chloe and Carolin.

Here is the link it will take you to the clip I am talking about. You may have to view a brief commercial coming from CNBC (not us) before the clip plays.

Chloe Cho100014162-100014162-CNBCTV-BD-Capital-Connection.160x105Carolin Roth

You can also click on the images above they both take you to the same clip.

All the best,
Adam

Google, Microsoft, and what the Dell?

The soap opera for Dell (NASDAQ:DELL) continues with Michael Dell and Carl Ichan, the principal figures in this financial showdown. It's too early to say what's going to happen, but my money will be with Carl Ichan on this one. Michael Dell has had this time with the company and the stock which is what shareholders thought didn't do well under his stewardship. On the other hand, Carl Ichan has done very with his investments and has a track record of being a "disruptive force in the boardroom".

NEWS FLASH: Just this morning it was announced we are going to have to wait until the 24th of July when everyone is going to reconvene to have another meeting on taking Dell private.

Change equals opportunity and Mr. Ichan does represent change. He also has a successful track record and is holding substantial stakes in companies like, RJR Nabisco, TWA, Texaco, Phillips Petroleum, Western Union, Gulf & Western, Viacom, Uniroyal, Dan River, Marshall Field's, E-II (Culligan and Samsonite), American Can, USX, Marvel Comics, Revlon, Imclone, Federal-Mogul, Fairmont Hotels, Blockbuster, Kerr-McGee, Time Warner, Motorola, Netflix and Herbalife.

Can Mr. Ichan turn Dell around? Fortunately or unfortunately we are going to have to wait until the 24th of July to find out the fate of Dell.

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So what are you waiting for? Let's get started right away!

After the bell, Google (NASDAQ:GOOG) is expected to announce earnings of $10.78 per share vs $10.12 per share last year. I will be looking at that stock today and doing a quick analysis of what I think is going to happen after the earnings are announced.

Likewise, Microsoft (NASDAQ:MSFT) is expected to announce earnings $0.75 per share vs $0.67 per share last year. I will also take a look at that stock today and see if Microsoft has what it takes to compete in the new mobile world.

Enjoy the video, and every success in your own trading.

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

Today's Video Update: Let's Face It, Bernanke Is A Wimp

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 17th of July.

Let's Face It, Bernanke Is A Wimp
To be fair to Fed chairman Bernanke, he is human and like all humans, he is not perfect. His weakness right now is he just wants to get through the rest of his term, which ends on the 14th of January 2014, and not rock the boat. I think if anyone has said that the QE program (yeah, printing money), now in it's fourth year, would take this long nobody would have believed it, including chairman Bernanke.

The reality is, QE looks like a trade that has gone bad and nobody wants to admit it. It was a bad bet (trade) the Fed made and they all have egg on their faces, but nobody from the Fed is ever going to say they made a mistake with the QE program, including Chairman Bernanke. Like I mentioned earlier, humans are known to make mistakes. Continue reading "Today's Video Update: Let's Face It, Bernanke Is A Wimp"