Nobody Knows The Data We've Seen

Posted on by The INO.com Team

That could well be the Fed's dilemma as it wrestles with the problems it sees with its data series. It's Wednesday and no one has a clue as to what the Fed is going to do. More importantly, no one knows what the market is going to do in reaction to what the Fed may or may not do.

So as traders, what should we be doing?

The important thing to remember is that you have many days to trade the markets and put on new positions, you don't have to do it today or just before the Fed's big announcement. No one is saying that you have to trade today.

The move yesterday in the markets was somewhat surprising, but did not change the overall direction of the Dow or the S&P 500. In the case of the NASDAQ, yesterday's move did change things in terms of the Trade Triangles. The NASDAQ is officially on the sidelines based the new weekly green Trade Triangle. In regards to the other two major indices, everything remains the same, you should either be short or out of the market on the Dow and the S&P 500. Continue reading "Nobody Knows The Data We've Seen" →

Year To Date Dynamics: Metals Versus Top Assets

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Today I prepared for you the year-to-date comparative dynamics of the metals versus the top financial instruments including the Dollar Index, crude oil and the S&P 500 index.

Gold Comparison Chart
Chart courtesy of TradingView.com

As seen in the above graph, half of the instruments started the year on an upbeat tune, lead by Silver and followed by Gold, Platinum and the Dollar Index. The other half started with a nose-diving fall, especially crude oil followed by Copper, Palladium and the S&P 500 bringing up the rear. Continue reading "Year To Date Dynamics: Metals Versus Top Assets" →

Joe McAlinden Reverses View, Predicts Recovery for Gold, Oil and Housing

Posted on by admin

With the markets in whiplash mode, Joe McAlinden, founder of McAlinden Research Partners and former chief global strategist with Morgan Stanley Investment Management, believes volatility is going to stick around for a while, and we might see a correction double of what we've had so far. In this interview with The Gold Report, McAlinden bucks conventional wisdom to argue that an interest rate hike is good for gold and oil, and lays out his investing strategy for this period of market uncertainty.

The Gold Report: For more than a decade, you led Morgan Stanley Investment Management's global investment strategy; now you own your own research firm based on your observations of the industry for more than 50 years. How do you explain the volatility in the markets right now and how should investors position themselves to prepare for what is coming?

Joe McAlinden: It has been a wonderful bull market, a wild ride going all the way back to 2007 when the market made its top. That was followed by a horrendous plunge. We've not only made that back, but the market has reached highs that were 36% above the 2007 highs. I had been concerned recently, however, that price-earnings ratios have become elevated and we are seeing other spooky similarities to the conditions that prevailed prior to the 1987 crash, including the absence of a more than a 10% correction for three years and a breakdown of small-cap stocks. The market could be vulnerable to some kind of major shock. I believe that the big shock is only beginning to unfold and that as it does, this correction will get considerably worse, perhaps double what we've had so far and maybe even worse than that.

TGR: What do you think the market expects the Federal Reserve Board to do? Continue reading "Joe McAlinden Reverses View, Predicts Recovery for Gold, Oil and Housing" →

Sorry Guys, I Am Not Drinking The Kool-Aid

Posted on by The INO.com Team

Yesterday, the market was remarkably quiet and lulled everybody into a sense of complacency. Well, I'm sorry I'm not going to drink the Kool-Aid because I still think we are going to see a push to the downside in the markets.

With all of the Trade Triangles in a negative mode and the weekly pattern indicating stocks should finish lower for the week, I see little to get excited about.

Everyone is waiting for Thursday and to see what the Fed is going to do. Even the best minds in the industry are split on what the Fed is likely to do on Thursday. My view is that they are just going to leave everything the way it is. The Fed is like a deer frozen in the headlights of a car and incapable of moving one way or another. What I suspect they will say is that they need more data, which I think is a cop out. Continue reading "Sorry Guys, I Am Not Drinking The Kool-Aid" →

This Stock Could Help Your Portfolio Take Off

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


As the broader indexes experience higher volatility, new opportunities are available for savvy investors who aren't afraid of taking risks. In a market that's swung up and down by hundreds of basis points on multiple trading days, a stock that's been climbing higher on a relatively consistent basis is worth a second look.

As investors begin to resemble Chicken Little, afraid the sky is falling and the economy is about to reverse course, it helps to take a step back and take a wider view. If we examine the transportation industry – often heralded as a leading economic indicator – those red alarms don't seem to be quite as valid as you might think. Continue reading "This Stock Could Help Your Portfolio Take Off" →