An Extraordinary Admission Of Failure!

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Wednesday, the 10th of August.

We have had an extraordinary admission of failure!

Yesterday, the chairman of the Federal Reserve, Ben Bernanke, acknowledged in what was perhaps the most stunning statement ever by a sitting chairman of the Fed... That the economy was not doing as well as they had predicted.

Duh Ben, welcome to the real world!

In our comments yesterday before the chairman spoke, we hoped that the Fed wouldn't do anything stupid like announce QE3 or that they will be dropping money from helicopters. Instead, the United States has just played its cards out to the world, saying that we are not going to be raising interest rates until.........let me guess 2013, after the elections. Continue reading "An Extraordinary Admission Of Failure!" →

Lowest Trailing P/E Ratio In 2 Decades, But...

Posted on by The INO.com Team

Today we have a special guest blogger, Price Headley of Big Trends. Price is a Traders Hall of Fame inductee and is a regular contributor on CNBC, Fox News and Bloomberg Television, and in a variety of print and online financial news outlets. Today Price will share some of his insight on the recent sell-off and his predictions on the week ahead. Be sure to look over Price’s shoulder as he trades with 3 Months of his Investor’s Edge Newsletter FREE!

If you thought two weeks ago was rough, last week's 7.0% slide made the previous week's 4.0% pullback look like child's play. There is sort of' a bright spot in there though, IF the bulls play their cards right and the bears still aren't angry. (That's a big if though.)

Before we slice and dice the market though, let's run down last week's and this week's big economic numbers.

Economic Calendar:

Even relatively good news was treated like bad news last week by expert market analysts. Mainly, a slightly optimistic employment picture still didn't stave off some serious selling. The unemployment rate fell from 9.2% to 9.1%; job creation easily topped the expected figure of 100K with 154K new payrolls added, and unemployment claims basically held steady. Nobody cared. Continue reading "Lowest Trailing P/E Ratio In 2 Decades, But..." →

Everything Is Possible

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Tuesday, the 9th of August.

Will the Fed come to the rescue of the market?

Everything is possible, it just depends on how stupid the Fed wants to be. In the study of economic history and capitalism in America there are periods of maximum euphoria and maximum depression. You almost can't have one without the other, that is one of the ways capitalism works. We've gone through a period of time that we've seen unprecedented euphoria and debt put on America's chalkboard. And we have witnessed millions of Americans faking their way to happiness using credit cards.

As hard as it is for everyone to accept that the good times are over, it is now time for what everyone doesn't want... Economic pain. You may want to look at an earlier posting, that I posted in 2008 on cycles in American capitalism. It holds true now just as it held true 100 years ago.

The next shoe to drop will be interest rates. Interest rates have only one direction to go, and that is to the upside. This a fact of the marketplace and probably more pain than most people want to endure.

The potential for the equity markets to continue to erode and drift lower is very high, in my opinion. To temper that thought I'm going to say up front that I'm a trader, not an investor. Right now, the days of buy and hold are over and will not resume for many years to come.(See 100 years of capitalism). If I am right, the equity trends will remain negative with minor counter trend rallies. We could see the equity markets on the defensive until right before the 2012 elections. Only time will tell... Continue reading "Everything Is Possible" →

Triangles or Crystal Ball?

Posted on by The INO.com Team

It would almost seem like MarketClub's Trade Triangles could see into the future, but you won't find any mumbo-jumbo or "black box" technique hiding behind our symbols, just market-conquering technical analysis.

If you tuned into last week's MarketClub TV show, you heard Adam talking about the Proshares Ultra-Short inverse etf, SKF.

MarketClub gave SKF gave a green monthly Trade Triangle on May 24th - nearly 3 months ago(!) with an exit on June 29th (profit of 1.06%). Then, a re-entry point occurred on July 18th and if you bought then, you'd be up 32.71%!

Even if you didn't get in until the morning after Adam talked about it on MarketClub TV, you STILL be up 28.33%!

I don't think we could make it any easier if we tried.

Every success in this crazy market,

Susan Jackson
MarketClub TV Co-Host

Time To Pay The Piper

Posted on by The INO.com Team

Due to Technical issues we do not have a video at this time. However we are working to  add a video from Adam later this afternoon.

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Monday, the 8th of August.

Just when you thought it was safe to go back into the water, Standard & Poor's downgrades the US debt for the first time since 1917, back when the US gained its AAA status. Psychologically this is a huge blow for the US, it would appear that we have just been marked down like some product in Macy's bargain basement in New York.

Even though we have the largest debt market in the world, the psychology is such that the move to AA+ was not a good thing for the fragile psyche of the world economy.

Rather than shoot the messenger, in this case Standard & Poor's is saying we should commend the messenger for calling the politician's bluff. We have all heard the expression "no pain, no gain."

Well it's time for pain, and to pay the piper for the excesses of the last 20 or 30 years, which is the last time the US had a positive saving picture. We have a whole generation that basically lives on credit cards.

Last week, we saw trillions of dollars evaporate in the world markets as fear returned and confidence evaporated in a big way.

Technically, as you are aware if you've been following this report, you know that all of our Trade Triangles are negative on the equity markets and have been for some time. You also know that we have been steadfastly bullish, based on our Trade Triangle technology on the precious metals.

So what's ahead? There are going to be lots of opportunities in the markets we track and we expect to get our fair share of profits. We expect we will see some form of short covering and profit taking coming into the markets in the next few days, from the sharp downward move we have experienced at the beginning of this week.

Certainly there is no guarantee that this will happen, however most markets do not go straight down. We only have to look back to 2008 and see that we did have rallies in the equity markets. Those rallies were opportunities to short the market. I think any rallies in the current market environment will be opportunities to once again short the equity markets.

So let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011.

Continue reading "Time To Pay The Piper" →