The IRREFUTABLE LAWS of the MARKET

SIX STEPS and the IRREFUTABLE LAWS of the MARKET
What Every Investor and Trader needs to know to Succeed in the Markets.

Step 1: A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders' information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.

Step 2: Days, weeks, or sometimes months after a move has started, there is a brief mention in the electronic media (radio, cable, TV) or on one of the internet chat boards that a market has moved. The public hears for the first time and begins to get interested, but does not buy.

Step 3: A blurb of information appears in print media. The move also begins getting more exposure on blogs and internet message boards. The public starts paying a little more attention, and will buy a little bit.

Step 4: Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. The public begins buying in greater volume.

Step 5: A full-blown front-page article appears about the particular stock or market in one of the major financial newspapers, magazines, or financial websites. This is often six months after the fact and after a market has shown its greatest appreciation. There is often heavy public buying, even a possible frenzy, as all media, brokers, and so-called "gurus" start to tout the market.

Step 6: As step 5 gets underway, the sponsors or smart traders begin to move out of the market and take their profits off the table.

The finale Step: The move ends, the market falls, and investors lose money.

Does any of this sound familiar to you? If it does then you know the key rules of engagement in the market. If none of this is familiar to you then learn to recognize these six step asap. Your financial life depends on it!!

Is Yahoo a buy? ... not according to our Trade Triangles

The news is out and so is Terry Semel as CEO.

Jerry Yang, one of the original co-founders is taking over the leadership of this faded internet star.

Yesterdays almost 8% rise did not turn around any of our "Trade Triangles" into a positive mode.

Would we buy this stock?

NO .... not at the moment.

We would only buy Yahoo when all our "Trade Triangles" are green for go. We are happy to be on the sidelines watching this drama play out.

Watch the "Trade Triangles" for a buy point as they will tell you what the smart money is doing.

The MarketClub Team.

Yahoo is a registered trademark of Yahoo, Inc.

One of our best trades for the year... so far

Last Friday (6/15) we covered our 3 short contracts in the 10 year bonds at 106.31. MarketClub members clearly saw the signal the same time we did on the daily chart.

This turned out to be one of our best trades so far, for the year.
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This trade yielded a profit of $12,468.75 on three contracts, before commissions.
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Commissions vary widely between brokers and it is sometime a good idea to shop around. One tip is to remember is that the lowest price/commission may not be the best commission. Many times execution of a trade is worth a whole lot more than just saving a few dollars on a trade.

OK, here's the update. For now we are standing aside in the 10 year until we get another signal. The two positions that remain from our "On the Line" trade demonstration in stocks worked out well today. Both positions are showing positive results despite the move down in the DOW today.

STOCKS
Long 275 PGH shares at $18.02. Close 6/18 at $18.89
Open Profit $239.25

Short 125 M * (FD) shares at $39.07. Close 6/18 at $38.75
Open profit $40.00

* Federated Department Stores, Inc. (FD)(NYSE Arca:FD) today announced that shareholders have approved a change in its corporate name to Macy’s, Inc., effective June 1, 2007. On that date, the company’s shares will begin trading under the ticker symbol “M” on the New York Stock Exchange.

Watch the original video here.

All trades were entered on May 17th, 2007.

Trading Tip: Always be diversified, be disciplined and always use stops.

If results like these are attractive to you and you are not already a member think about joining MarketClub today and you can catch big moves too.

Every success with MarketClub.

Cheers,

$2,000 later the move has begun...

The move has started with little or no fanfare, and almost zero media
attention.

This is how the big moves start, they are usually off the radar screens of
most traders and media pundits.

It is only when the move is almost over do you begin to see exhaustive
coverage and market projections on all media outlets. Then it is too late.

This move, in this market will potentially create major problems for the
world equity markets.

In my new video you will see, point by point what I mean.

Enjoy the video here look at the date on the video and then check today's prices!!

No registration needed ... watch with our complements.

Cheers,


Adam Hewison
President, INO.com

Stops - Where Do You Place Your Stops?

I promised MarketClub member, Tommy Beard that I would release this today...

Here is Joe Ross's Seminar on "STOPS"

Joe Ross, an active professional trader, author, and educator, is president of Ross Trading International . He holds a degree in business administration from U.C.L.A. He is best known as the inventor of the Ross hook. He has written Trading by the Book, Trading by the Minutes, and Trading is a Business.

In the workbook below, Joe raises the question, "Where Do You Place The Stop?" You will learn which specific items are important to consider for stop placement. You will learn several techniques for placing protective, objective, entry and exit stops. You will learn to place stops based upon natural support and resistance and volatility. You will be taught about small profit objective stops and full profit objective stops. You will learn how to properly trail stops and how to increase the size or your protective stops using OPM. Joe shows you how to "curve fit" market volatility, and how and when to use Fibonacci expansions for objective stops.

Learn about:

  • Mechanical Stops: As dictated by mechanized trading systems.
  • Protective Stops: To protect against loss, or to protect profits.
  • Entry Stops: To initiate a trade.
  • Exit Stops: To terminate a trade.

Also Learn About Stops Considerations based around:

  • The size of the margin account
  • Margin requirements
  • Individual psychological and emotional tolerance
  • You economic tolerance for loss
  • The number of existing open positions already held
  • Market volatility
  • The rate of trade
  • The tick size

Read about this and more in Joe Ross's work book, "Stops- Where Do You Place The Stops?"

Listen to Joe Ross on "Stops"
Follow Along In Workbook

"The point I'm trying to make here is that a lot of traders end up stopping themselves out of a market when there is no need." -Joe Ross


Enjoy,