Exactly 1 Year Ago Today, GoPro Gave A Sell Signal At $46.50

Posted on by The INO.com Team

Hello everyone! GoPro, Inc. (NASDAQ:GPRO) had a sell signal exactly a year ago today indicating that this stock was in trouble and headed lower. That signal came in at $46.50 on a monthly Trade Triangle. GoPro is currently trading below $12 a share.

Two of the major indices are now officially in bear markets based on the Trade Triangle technology. I have talked about the power of the Trade Triangles and how they can give off early warning signals of impending changes in the market. For example, if you look back last December, members received an early warning signal that all was not well in the S&P 500. That signal came in the form of a weekly Trade Triangle on December 11th at 2,019.39. As I write this commentary, the S&P 500 is currently trading at 1,880! The same warning signals occurred in both the Dow and the NASDAQ. These warning signals occur in stocks as well, take a look at Apple Inc. (NASDAQ:AAPL), Best Buy Co. Inc (NYSE:BBY), Under Armour Inc. (NYSE:UA) and a host of other stocks that were once thought to be invincible.

If you have been reading this blog for any length of time you've heard me make the statement, "they slide faster than they glide". That means that markets tend to go down much faster than they go up. Some market pundits blame it on gravity, I just say that perception may be the real culprit here. Right now confidence in the market is low and perception is high that there is more trouble ahead. Continue reading "Exactly 1 Year Ago Today, GoPro Gave A Sell Signal At $46.50" →

Are Investors Secretly Turning Bearish On The Dollar?

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Less than two weeks into 2016 and history has already been made. This January will go down in the record books as Wall Street’s worst in decades. China is losing control, the Middle East is boiling over and the Emerging Markets are in dire straits. All of which has led stocks to shed more than a trillion dollars in value.

It’s the classic boiling-to-the-brim pot which suggests we’re ready to push the dollar higher, right? Instead, dollar strength has really been rather tame which, on the face of it, is quite puzzling. That is unless investors have secretly been turning bearish on the greenback. The question is, are they? Continue reading "Are Investors Secretly Turning Bearish On The Dollar?" →

My Favorite Swing Trading Strategy

Posted on by The INO.com Team

By: Cory Mitchell, founder of VantagePointTrading.com

Whether I'm day trading or swing trading forex (and other markets as well), I frequently use the method described below. It's a price action trading method, with trendlines and trend channels used to help establish entry points and potential targets. Here's the basic strategy; adjust it to your liking or add your own indicators to help you implement it.

Before Placing Trades

Before placing a trade, calculate your proper position size. Position size is calibrated for the trade so you are risking 1% (or less) of your account capital on each trade. All trades taken must have at least a 2:1 reward:risk ratio, but often we'll end up with trades that have a 5:1 or 6:1 ratio (more on that in a bit). If risking 1% of your account, you stand to make at least 2%, but often 5% or more...that's 5% on your total account, not just traded capital (because our risk is also based on the total account). If you risk up to 2% per trade, your gains double.

Before commencing trade, note any significant economic data coming out over the next 24-hours. Avoid placing entries or stop loss orders close the current price right before a major news announcement, as this can cause slippage. Best to avoid those trades. Continue reading "My Favorite Swing Trading Strategy" →

Here's How The World Cup Portfolio Performed In 2015

Posted on by The INO.com Team

There is no doubt about it 2015 will be viewed as a very tough year for most investors. Most of the large hedge funds were not immune to losing money with many of them going out of business. This is in sharp contrast to the easy money years of 2009 through 2014 when the Fed was dropping rates and printing money like it was going out of style.

Today I'm going to be looking at the World Cup Portfolio and see how it performed quarter by quarter market by market. The World Cup Portfolio was not immune to the challenges of 2015, but it did finish the year in the black.

While the World Cup Portfolio showed a positive return at the end of 2015, it was the lowest return that the portfolio has had since its inception. The 19.4% return for the year while positive and still very respectable by most measurements was somewhat disappointing by our standards.

So let's go through the markets quarter by quarter and see how the WCP was able to show a positive return when many others didn't. Continue reading "Here's How The World Cup Portfolio Performed In 2015" →

Aggressive Covered Call Options Strategy To Generate Current Income

Posted on by The INO.com Team

Selling aggressive covered call options (i.e. aligning the strike price at or near the current price) to generate current income may augment overall portfolio returns while mitigating risk. In brief, options are a form of derivative trading that traders can utilize in order to initiate a short or long position via the sale or purchase of contacts. In the event of a covered call, this is accomplished by leveraging the shares one currently owns by selling a call contact against those shares for a premium. An option is a contract that gives the buyer of the contract the right, but not the obligation, to buy or sell an underlying security at a specified price on or before a specified date. The seller has the obligation to buy or sell the underlying security if the buyer exercises the option. An option that gives the owner the right to buy the security at a specific price is referred to as a call (bullish); an option that gives the right of the owner to sell the security at a specific price is referred to as a put (bearish). I will provide an overview of how an aggressive covered call is utilized and executed to generate current income and mitigate risk. Further details focusing on actual examples of selling in-the-money covered calls and the ability to sell these types of options in an aggressive manner to generate cash in one’s portfolio will follow. Continue reading "Aggressive Covered Call Options Strategy To Generate Current Income" →