MarketClub's Trade Triangles nailed this market when almost every hedge fund got it wrong

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 4th of December.

MARKETS WITH STRONG TRENDS: MARKETS WITH MIXED TRENDS:
COPPER (Dec): Higher for the week.
CLOSED LAST FRIDAY AT $3.6230		 S&P 500: Lower for the week.
CLOSED LAST FRIDAY AT $1,416.18
EURO (Spot): Higher for the week.
CLOSED LAST FRIDAY AT 1.2985		 CRUDE OIL (Jan): Lower for the week.
CLOSED LAST FRIDAY AT $88.94
GOLD (Spot): Lower for the week.
CLOSED LAST FRIDAY AT $1,714.19
SILVER (Spot): Lower for the week.
CLOSED LAST FRIDAY AT $33.36


SCORE ONE FOR THE TRADE TRIANGLES

The Euro against the Dollar is one market which has been moving steadily higher. This upward trend has been to the chagrin of many hedge funds who have been forced to cover their short Euro positions. The thinking among many hedge funds was with all the problems in Europe, the Euro was going to drop much lower against the Dollar. The reality of the market place had a very different idea as the Euro has moved to its best levels since the middle of October.

That is the principal danger of listening and relying on the fundamentals to justify your position. When you listen to the market with the help of our Trade Triangle technology, you get a very different story for the Euro/Dollar relationship. The Trade Triangles rely on market action, which in the case of this cross-rate, the trend was clearly in favor of the Euro. The bottom line and the lesson to learn here is that the market is the ultimate arbitrator of its own trends. It is of our opinion that it is best to trade with market action and leave the fundamentals to others. Continue reading "MarketClub's Trade Triangles nailed this market when almost every hedge fund got it wrong" →

How my worst trade turned out to be my best trade ever!

Posted on by The INO.com Team

Today I’d like to share a hard, but important lesson I learned early in my trading career. At the time, I considered it my worst trade ever, but in retrospect it turned out to be the best trade of my career.

Here’s why…

I started in the commodities business in Chicago as a broker for a company called Conti Commodity Services. Conti was a division of Continental Grain Co., one of the largest and oldest grain companies in the world. Back in the 70s, Conti was just starting a new division to handle customers in the brokerage business. I was lucky enough to have them hire me as I had no experience and very little education. But, I was enthusiastic and willing to learn.

So there I was at Conti Commodity Services dialing and smiling and looking to get business for myself and the company. All this was back in the 70s when grain prices were skyrocketing. After a brief time on the job, I guess I thought I knew better than everybody else.

So here’s my worst trade… Continue reading "How my worst trade turned out to be my best trade ever!" →

Gold Chart of the Week

Posted on by The INO.com Team

Each week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (December 3rd through December 7th)

Welcome everyone to the month of December and to trading the February Gold Futures. The futures First Notice Date was last week on Friday and we will move our attention to the February Futures chart.

Last week ahead of the roll date, Tuesday provided a small slip in the price while Wednesday brought a sharp drop that took me by surprise. On the open of the pit traded session,  Warren Buffet made a comment in an interview to CNBC regarding his take on the Fiscal Cliff negotiations that drove Gold prices to trendline support in a hurry. Buffet suggested the Fiscal Cliff agreement would likely be made but said he did not feel that Washington would have the ability to get the job done by the end of the year. This remark was made one day after Senator Reid told reporters that he was not confident in the Republicans and Democrats at all. He thought that no progress had been made yet and traders responded by taking gains from the prior Fridays rally.

So while we are now trading past the December Futures contract, not much has changed. One day the markets are happy and taking the stairs up while the next day the markets are disappointed and taking the elevator down. Even though we started this week’s trade with a continuation of a weaker US Dollar (normally a bullish indicator for Gold) we are seeing little interest in Gold. Continue reading "Gold Chart of the Week" →

Will December bring a Santa Rally or a Fiscal Fall?

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 3rd of December.

MARKETS WITH STRONG TRENDS: MARKETS WITH MIXED TRENDS:
COPPER (Dec): Higher for the week.
CLOSED LAST FRIDAY AT $3.6230		 S&P 500: Higher for the week.
CLOSED LAST FRIDAY AT $1,416.18
SILVER (Spot): Higher for the week.
CLOSED LAST FRIDAY AT $33.36		 CRUDE OIL (Jan): Higher for the week.
CLOSED LAST FRIDAY AT $88.94
EURO (Spot): Higher for the week.
CLOSED LAST FRIDAY AT 1.2985		 GOLD (Spot): Higher for the week.
CLOSED LAST FRIDAY AT $1,714.19


CRUDE OIL PUSHES TO ITS BEST LEVELS IN 5 WEEKS

Continued hedge fund buying over the last two weeks pushed crude oil to its best levels in over five weeks before profit taking kicked in. Crude oil appears to be making a strong base capable of carrying today's black gold up to the $93.00 to $94.00 level. A solid close over the $90 a barrel level, basis the January contract, should be viewed as very positive for this market. Continue reading "Will December bring a Santa Rally or a Fiscal Fall?" →

Monday Morning Energy Commentary

Posted on by The INO.com Team

January crude oil was slightly higher overnight as it extends the trading range of the past six weeks. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 89.80 are needed to confirm that a short-term low has been posted. If January renews the decline off September's high, the 87% retracement level of the June-September rally crossing at 82.36 is the next downside target. First resistance is the reaction high crossing at 89.80. Second resistance is the reaction high crossing at 93.98. First support is the reaction low crossing at 84.53. Second support is the 87% retracement level of the June-September rally crossing at 82.36.

January heating oil was slightly higher overnight while extending the trading range of the past six weeks. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. If January renews November's rally, the reaction high crossing at 318.00 is the next upside target. Closes below the 20-day moving average crossing at 302.66 would confirm that a short-term top has been posted while opening the door for sideways to lower prices into early-December. First resistance is November's high crossing at 318.00. Second resistance is October's high crossing at 321.44. First support is the 20-day moving average crossing at 302.66. Second support is November's low crossing at 293.87. Continue reading "Monday Morning Energy Commentary" →