It's Over!

Posted on by The INO.com Team

Monday, August 24th will long be remembered by investors as the day the world turned red. Every exchange in the world is showing big losses. It all started in China when the Shanghai index closed down 8% for the day, its biggest daily loss since 2007. The drop in China quickly moved over to Europe where the FTSE 100 and other major indices all lost upwards of 4%.

What happened?

The experts and pundits will all point to different reasons why this happened, but the reality is, the market has been having problems for some time and those problems have manifested themselves in the minds of investors who suddenly perceive things as being not so rosy.

I have said many times before that markets tend to slide faster than they glide. Simply translated, that means they go down a lot faster than they go up and we have certainly seen that in the last week or so.

One of the strongest market movers for any market is perception. Perception suddenly took a very negative turn this past week for most of the major indices. We have a lot to be thankful for as the Trade Triangle technology warned us on 6/30/15 that the markets were beginning to change direction. I pointed this out on Friday in my video and showed the long-term trend line that goes all the way back to 2009 when the lows were seen in the market. At the time of my video, the Dow was down around 160 points and was very close to breaking the below this long-term trend line. As the day progressed, that support line was clearly broken with the Dow closing down over 500 points for the day. The breaking of this long-term trend line is a big deal, in my opinion, and it represents more than just a correction in a bull market. Continue reading "It's Over!" →

Find Winners On Down Days In The Market

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


When the broader stock averages all fall, savvy investors can find winning companies by watching for stocks that show a gain when all others show a loss.

Concern over the state of the global economy sent markets plunging on Friday with the S&P 500 shedding 3.19%, the Dow losing 3.12% and the NASDAQ dropping 3.52%. Stocks like Valero Energy and Ross Stores fell over 9% and further corrective activity is expected to follow next week.

But not all stocks are facing negative pressure. One company is the growing data storage field showed promise and lifted expectations following a surprise earnings beat that helped the stock gain 8.95% on a day where most others fell. Strength in a difficult market environment is a good sign of a solid company and could provide a safe haven for investors looking for bullish plays right now. Continue reading "Find Winners On Down Days In The Market" →

The Unconventional Way To Play Oil In FX

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Will Oil continue to fall? That is still a question with no definitive answer. But as I emphasized in my latest article on Oil, there's a growing chance of an Oil rebound. And even if an Oil rebound doesn't eventually materialize it's prudent to have a strategy in place. In this article, we'll focus on a strategy that is slightly less common. Of course, you could just take a naked bet on an Oil-oriented currency, e.g. the Norwegian Krone or the Canadian Loonie. But those trades could easily and quickly tank if the signals for an Oil rebound turn out to be false. So what is this unconventional way? Don't short/buy a petro currency against a currency unrelated to oil (e.g. Dollar, Yen or Euro). Instead, buy or sell a petro currency vs. a peer that is deemed a commodity currency, but a non-petro one. That could prove to be a much safer play.

Trading Correlated Currencies Reduces Risk

When you trade correlated currencies against each other, such as the NOK and Aussie, you have a reduced upside. While that's a true statement, there are also big benefits. When there is a short-term gap in performance, there is a higher likelihood that this gap will close. And that provides an opportunity that is rather easy to spot. Then, too, the downside is also more limited, so while the profit might be reduced so are the risks. In fact, if you compare the potential of correlated trades vs. uncorrelated, those trends tend to be slower moving and generate fewer profits. However, it compensates the investor with more certainty (the gaps almost always close), making them less volatile and less risky. Continue reading "The Unconventional Way To Play Oil In FX" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the December contract settled in New York last Friday at 1,112 an ounce while currently trading at 1,157 up about $45 for the trading week on massive concerns of global slowdowns pushing stock prices to a 7 month low therefore putting money back into the precious metals as I’m currently sitting on the sidelines in this market getting stopped out around 1,105 or 10 day high around 10 days ago as Monday’s trade certainly will be interesting in my opinion. The chart structure is extremely poor at the current time as we’ve had about an $80 rally from recent lows as prices traded as high as 1,168 earlier in the trading session but this market concerns me due to the fact that many of the commodity markets are headed lower as this is just a flight to quality here in the short term in my opinion. Continue reading "Weekly Futures Recap With Mike Seery" →

Three Ways To Trade This Market

Posted on by The INO.com Team

Hello traders and MarketClub members everywhere. Yesterday certainly was a rout to the downside, decimating many stocks across the board. The Trade Triangles gave a major trend change sell signal on the NASDAQ index. Now with all three indexes in a negative mode and confidence and perception dramatically waning, I expect to see further downside price action in the markets.

So what are those three ways to trade the market?

Well, simply put you have three options when it comes to trading (I am not talking about options trading) you can be long a stock, short a stock or out of the market, which in and of itself is a position. Continue reading "Three Ways To Trade This Market" →