You Want To Borrow More Money, But You Can't Pay Me Back

Posted on by The INO.com Team

Let's face it, Greece is going to be a tragedy one way or another. It is only a matter of time. Can you imagine someone wanting to borrow more money so they can help pay back the loan that they already can't pay back? Does that make any sense to anybody, anywhere on this planet?

Well, that's exactly what's happening in Greece right now and in my humble opinion, it is only a matter of time before it implodes and Greece exits out of the euro zone. Fiscal responsibility is not a word known in the Greek language. There is no way that Greek citizens are going to ante up and volunteer to pay more taxes, they are too used to getting free things from a government which they do not trust. That, my friends, is why socialism does not work and in the immortal words of the late British Prime Minister, Margret Thatcher on socialism, "sooner or later you run out of other people's money". And that's exactly what has happened to Greece. Continue reading "You Want To Borrow More Money, But You Can't Pay Me Back" →

This Shiny Metal Could Be In Bargain Territory For Value Investors

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Stocks are trading close to all-time highs and valuations are well above average with a P/E of 19.72 compared to the historic median of 14.57. At first glance, it might seem as if there's no value to be had in this market, but when one asset class thrives, it generally means another is struggling.

Right now, commodities are the unloved asset class by investors. A strong U.S. dollar and booming stock market have driven prices lower as demand favors equities. However, the tide could be on the verge of turning, putting one precious metal in a position to flourish.

A bright outlook for silver prices

For contrarian investors, silver looks like a bargain right now. This chart shows silvers prices at 5-year lows – a good sign for those looking for value opportunities.

Silver Spot Price 2010-2015
Chart courtesy of StockCharts.com

Now take a look at the signals silver is giving investors right now. It's trading below it's 200-day moving average of $17.91 which is a sign that's it's being undervalued. What's more important though is what the Bollinger Band Width is saying. It tracks volatility and identifies when a potential squeeze might occur. Hovering at around 10, less than its 200-day moving average, it could be a signal that silver is getting ready to rally to the upside. Continue reading "This Shiny Metal Could Be In Bargain Territory For Value Investors" →

Dollar Volatility Coming Your Way

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Would you say that Janet Yellen was some sort of silver tongued wizard? After this week’s rate decision the answer might be yes, because otherwise it’s close to impossible to explain how the Fed Chair was able to come across as sounding both hawkish and dovish in the same speech. On the one hand, Yellen dropped the word “patience,” suggesting that interest rates could rise within any future meeting, with most Fed members in favor of a rate hike in 2015. On the other hand, Yellen pointedly stressed that rates would rise slower than previously anticipated and outlined her concerns on low inflation and wage growth. This “impossible” combination of hawkishness and dovishness resulted in dazed and confused markets, and investors it seems are having difficulty deciding which way the wind is blowing at the Federal Reserve, with the hawks or with the doves. Given that, they’re collectively trying to gauge whether the dollar is now a buy or a sell?

Choppy Times Ahead

Soon after the Fed statement was made, it was a stampede of sellers, bulls running out of dollar positions, and the greenback in a nose dive, shedding more than 2% in less than 3 hours. Yet the following morning, as trade opened in London, everything flipped once again; the dollar was higher and ended up more or less where it is was prior to the Fed decision. Continue reading "Dollar Volatility Coming Your Way" →

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 April contract are higher for the 3rd consecutive trading session hitting a 2 week high as I have been recommending a short position getting stopped out in today's trade licking my wounds as I'm a little disappointed as it was all based on the FOMC minutes as they are not going to raise interest rates anytime soon pushing up many of the commodity markets especially the precious metals. Gold futures are still trading below their 20 and 100 day moving average ,however as an exit strategy when I'm short and prices hit a two week high it’s time to move on and sit on the sidelines as prices settled last Friday at 1,152 while currently trading at 1,187 up over $30 in an impressive week especially considering the fact that the NASDAQ 100 has crossed 5000 once again as everything is basically higher across-the-board this afternoon. Continue reading "Weekly Futures Recap With Mike Seery" →

Is Gold Foretelling An Impending Greek Disaster?

Posted on by The INO.com Team

Today is the first day of spring and maybe this is the cause for the spring in the markets. March 20th also happens to be "International Happiness Day" and I'm sure that many investors have a smile on their face today with the way the markets are acting in Europe, Asia and the U.S.

Today, I'll be looking at gold prices because they are acting and doing something that they haven't done in a long time and I want to share that with you in today's video. It is impossible to pinpoint what is causing gold to rally, whether it is short covering or the potential that Greece is going to implode any day now. Either way, it's not important what is causing the rally. The important thing to remember when trading is to get the direction right and not worry about what is causing the trend. I remember when I was in the trading pits in Chicago, I asked someone why the market was going up and he said to me, "It doesn't matter, it's going up". There is a lot of truth in that comment. That's one of the big takeaways in trading, don't over think markets.

As I write this commentary before the market opens, we could be seeing the equity markets close well towards the end of the day and possibly closing in new high ground on short equities before the weekend. The NASDAQ is very close to breaching the 5000 level, a close over that area today can be viewed as being very positive for the weekend.

Crude oil also appears to be finding some support at lower levels but has not yet reversed trend and turned around. I will be looking at that market to see where the key points are for a trend reversal to the upside. Remember markets can get very crowded on one side of the ledger when everybody believes that the trend will continue and go on forever. When that happens, a market tends to reverse and go the other way. The reason that happens is because markets are forward-looking trading instruments.

I will be getting into the recent Trade Triangle scan today to find new trades that may be just emerging. You won't want to miss that part of today's video.

This being Friday, I will of course, be looking for weekend trades using our "52-week highs on a Friday" strategy.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub