We got it right ... did you?

Posted on by The INO.com Team

Wednesday, October 8, 2008

FR: Adam Hewison, President INO.com

RE: We got it right ... did you?

Dear blog reader,

Here's a follow up to a trade we alerted you to three weeks ago.

After watching the video, I'm confident that you'll agree that we got it right.

The purpose of this video is to educate you to trade this pattern successfully in the future.

Here's the video

If you have any questions please don't hesitate to call our offices at 1-800-538-7424. Remember we are not brokers. Our mission is to help you achieve your maximum potential by making educated and scientific trading decisions.

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

Traders Toolbox: Williams %R

Posted on by lindsay

MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

Williams' %R oscillator, attributed to Larry Williams, is a variation of the stochastics indicator previously discussed. Because the two oscillators are essentially the same, only minor modifications to the formula are required. The formula for calculating %R is: %R = Hn – C / Hn – Ln where Hn = highest high of the period, C = Close of the current period and Ln = lowest low of the period.

The %R oscillator differs from the %K formula in the stochastics indicator because the outcome of each formula is inverse to the other. In other words, %K compares the close with the lowest low, whereas %R compares the close with the highest high. Similar to other oscillators, %R is plotted with horizontal zones of 20% and 80%. When the indicator has a reading of -80% or below it signifies an oversold condition. Similarly, a reading of -20% or above signals an overbought condition.

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You can learn more about the Williams %R and Larry Williams by visiting INO TV.

"Saturday Seminars" - Determining Trends in the Foreign Exchange Markets

Posted on by lindsay

J. Adam Hewison, the founder and president of INO.com, will share with you the technical tools he uses every day to determine trends in the foreign exchange markets. He will also discuss the outlook for the U.S. dollar and major cross-rates and show you a very simple technique to determine the major trend in the currency markets.

Adam will explain negative and positive forces in the marketplace and how the big moves are often set up years in advance. As a former floor trader, Adam will discuss the difference between trading on the floor of an exchange and trading from an office thousands of miles away.

PDF Workbook

Adam HewisonBefore starting INO in March 1995, Hewison was a foreign exchange trader and advisor. He was one of the first currency traders when the International Monetary Market (IMM) of the Chicago Mercantile Exchange pioneered financial futures in the 1970s, and in the 1980s he introduced a very popular daily fax advisory service, FXPro. He is also the author of two highly-acclaimed guides to the foreign exchange markets: "International Monetary Report" and "Right on the Money, the Definitive Guide to Forecasting Foreign Exchange Rates".

In addition to an IMM membership, Hewison held seats on the CME's Index and Options Market (IOM), and was a charter member of the New York Futures Exchange (NYFE) and the London International Financial Futures and Options Exchange (LIFFE). Also during his trading career, he managed the currency and risk exposure of a large multinational corporation, based in Geneva, Switzerland.

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Saturday Seminars are just a taste of the power of INO TV. The web's only online video and audio library for trading education. So watch four videos in our free version of INO TV click here.

INO TV

Traders Toolbox: Stochastics (K%D)

Posted on by lindsay

MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

The stochastics indicator created by George Lane measures the relative position of the closing price within a given time interval. This indicator is based upon the premise that prices tend to close near the upper portion of a trading range during uptrends and near the lower portion of a trading range during downtrends. When prices close in the middle of a range, this suggests a sideways market. There are two components to this calculation, the %K value and the %D value. The %K is calculated as follows: %K= (C-Ln / Hn – Ln) x 100 where C = closing price of current period, Ln = lowest low during n time periods. Hn = highest high during n time periods and n = number of periods.

The %D value is the moving average of the %K value. The simple moving average calculation is: %D = 100 (Hn / Ln) also in the %K formula.

These formulas produce two lines that oscillate between a scale of 0 and 100. As with the other oscillators, a stochastic value below 30% suggest an oversold condition, while a value greater than 70% suggests an overbought condition.

Some simple trading rules apply in the use of the stochastics indicator. A sell rule would be to sell when the fast (%K) crosses over the slow (%D) and both are pointing down, but are still above the 70% level. A buy signal would be triggered when the fast crosses the slow, and both point up, but are below the 30% level.

Another type of signal occurs when the stochastics indicator diverges from a price move similar to momentum and RSI.

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You can learn more about the Stochastics and George Lane by visiting INO TV.

Just because it looks cheap doesn't mean it can't go lower.

Posted on by The INO.com Team

Just because it looks cheap doesn't mean it can't go lower.

With General Electric (NYSE_GE) trading around 22 1/4 today it looks cheap, but can it go even lower? The answer is yes. The last time General Electric traded at current levels was back in October of 2002. Now add in inflation and General Electric is even lower today than it was 6 years ago!

Despite the fact that Warren Buffet invested 3 billion dollars in GE preferred stock giving him a 10% yield, I see no reason to buy GE. The deal Mr. Buffet received was a deal that every investor would love to have in their portfolio. The bottom line is the trend for General Electric which is on the downside and it shows no signs of turning around at this point in time. I would rather buy General Electric at let's say 30, knowing that it's going higher than trying to pick a "value bottom."

Watching CNBC this morning, Mark Haines who has been around for a long time in the financial world made a statement that the buy and hold strategy is no longer a successful strategy in the stock market. I have long held the belief that the world has changed and you can no longer just buy a stock and hold it forever hoping that in long-run it will go higher. We only have to look back at a recent blog commentary on General Motors (NYSE_GM) to see that this is a flawed strategy. Looking at General Electric today proves once again that we are in a trading world and not an investment world.

I understand many of you will disagree with that statement but the truth is the markets have changed, not just domestically here in the US, but globally. Now, the US has to contend in a competitive way with China, India and Russia. The US is in a much more competitive world, where fortunes will be made and fortunes will be lost.

At MarketClub, our mission is to help you make money in this ever-changing market. We are still waiting to see what the outcome will be from the rescue package, bailout package, save America package, any name you want on it package.

No one is going to be able to predict what will happen to the market, except the market itself. We've talked about this in the past. The market is the ultimate mechanism for price discovery.

I do not believe that the current global economic slowdown is going to turn around any time soon. I don't expect to see a "V bottom" in the stock market and that "demand destruction" will force a retracement in many markets that were very much in demand just a few months ago.
So here's my advice... the one thing we do know about the markets is that they a reflection of human nature. Having said that we would want to pay attention to our "Trade Triangle" technology. Those of you who are MarketClub members, follow the "Trade Triangles" because they will keep your emotion out of the market and show you which way the market is headed. For those of you who are not MarketClub members, you should be looking at some sort of technical analysis to help you avoid stock meltdowns.

It doesn't matter what markets you trade because there are always opportunities to make money in the trading game. Our mission is to present those opportunities to you in a very easy way to understand.

Every success in what can only be described as an interesting, turbulent and opportunistic time.

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