Know Your Limits

Posted on by The INO.com Team

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple.

If you like this article, Larry’s also agreed to give you free access to his award winning book.

One thing that I see that catches traders up all the time is knowing their limits. There are times when it is probably wiser to step away from a trade or not trade at all.

Sometimes the best favor you can do for yourself is to take a break.

It doesn't matter who you are or what kind of trading you do. There are going to be times when you need to step back and take a break from things. This can happen after a bad trade, a big loss, and even after a really good performance. It can help you get things back into perspective. It also allows for an opportunity for you to review your trades, and learn from any mistakes or plans that you think cost you in the long run. Continue reading "Know Your Limits" →

Are These Stocks Right For You?

Posted on by The INO.com Team

Yesterday, I mentioned that I thought the lows seen in most of the major indices would be interim lows and I expected to see a bounce from those lows.

Today, we are seeing that bounce and I have three stocks that I believe you should be looking at, and perhaps buying, if they meet your risk profile.

I will show you why you should be buying these stocks and the exact rules I'm following to buy them. You will be able to mimic these same rules using the tools available to you as a MarketClub member.

The three stocks I'm looking at are: Continue reading "Are These Stocks Right For You?" →

Jobs Report Not Enough to Signal September Liftoff

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates


Was May's better-than-expected jobs report strong enough to convince the Federal Reserve to start interest rate liftoff in September?

Based on the market's reaction on Friday, the answer sure looks like yes. Yields on long-term U.S. Treasury bonds spiked to their highest levels since last October, and stocks were mostly lower.

But let's not carried away with one number and one report. Certainly the data-paralyzed Fed won't. If we get three solid months of positive economic statistics, then I’ll think there's a chance – albeit a slim one – the Fed will make a move in September. Until then, we'll have to wait and see.

Notice I've already written off next week's Fed meeting as the first interest rate increase. While the minutes of the Fed's April 28-29 monetary policy meeting "did not rule out" the possibility of raising rates at the June meeting, it was "unlikely" that economic data would justify doing so by then. Nothing's happened in the meantime to change that. Continue reading "Jobs Report Not Enough to Signal September Liftoff" →

Caution Advised, The Danger Flags Are Up!

Posted on by The INO.com Team

Yesterday, the weekly Trade Triangles flashed warning signs on both the S&P 500 and the NASDAQ. This is the first indication we have had indicating that the intermediate-term trend for both of these indices has turned negative.

Now before you go selling everything, just remember this is not a major signal, it is just a warning sign that things may be going sideways to lower for a while. Look at the weekly Trade Triangles like the canary in the mine - if you don't exit the scene, there could be bigger trouble later on.

As many of you are aware, the markets have been moving sideways for quite some time now without any real solid direction. When you look at the broader picture, it would appear as though we are in a wide trading range, bound by the recent highs and lows that were seen in late March. Continue reading "Caution Advised, The Danger Flags Are Up!" →

Central Banks Keep Buying Gold When You Are Not

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold is a unique asset class, despite being uninteresting from a volatility investing perspective. I mean, it's currently sideways amid a soaring equity and dollar value, but it is still interesting for selected market participants for its safe haven status and diversification purposes.

We all have different time frames that we use, common investors use daily, weekly and monthly charts and the quarter to year perspective when they summarize the profits or losses. And so do the public companies when filing their earnings reports every quarter. And for these type of investors, Gold's dynamics in recent years have been frustrating as it is has been totally unmoved month by month, making investment unpromising.

SPDR vs. Gold
Data courtesy of www.spdrgoldshares.com

On the above monthly chart, tailored especially for INO.com readers, I want you to see for yourselves the direct relationship between Gold prices and the demand for ETF holdings. For 2 years as depicted on the chart, Gold lost 17% of its total value. Meanwhile the SPDR Gold Trust holdings lost 22% of its total value, almost matching dynamics. The holdings fell even more than the Gold price did telling us about worsening investors' sentiment for Gold. Remember the old words that "the Fear has a large shadow". The holdings were falling, gradually neglecting upswings in the Gold price, and only this January did the holdings pick up from 709 to 763 tons amid Gold's price growth from $1172 up to $1273. But this outstanding move proved to be short-lived, and both indicators fell back to the lows.

On the contrary, the central banks are buying Gold despite the sideways market. Continue reading "Central Banks Keep Buying Gold When You Are Not" →