Death of the Dollar? Gold an Inflation Hedge? Really?

Posted on by The INO.com Team

Take a look around the gold bull landscape and tell me how many of them are featuring a chart like this, showing the US dollar in a bullish short-term stance (to go with the weekly bullish stance we have noted for so long in the ‘Currencies’ segment).

usd.daily

This is not to say that the US dollar has real value. How can it when it is hopelessly dragged down by a national debt-for-growth obsession. But as with gold, value is one thing and price is quite another. It is just that one (USD) receives a price bid due to a ‘nowhere else to hide’ sort of mentality by the majority when asset market liquidity becomes constrained and the other (Gold) receives a more solid value bid, over time.

We saw what happened when gold got the price bid as the panicked ‘Knee Jerks’ flooded in during the acute phase of the Euro crisis in 2011. That was the exclamation point on the first major phase of the gold bull market and the dawn of a cyclical bear market.

We continue to await economic contraction, in which the price of the USD can benefit for a while as capital comes out of assets and into what it thinks is a safe haven. Gold remember, has been soundly discredited as a store of value and that has been the bear market’s job… well done I might add. Continue reading "Death of the Dollar? Gold an Inflation Hedge? Really?" →

Time To Buy Tesla

Posted on by The INO.com Team

Yesterday, Tesla Motors Inc. (NASDAQ:TSLA) flashed a buy signal at $229.78. This put all three Trade Triangles in a positive trend.

The RSI indicator moved over the 50 level, which is also another strong confirmation. I view that action as the continuation of a strong upward trend for Tesla.

CHART LEGEND
1. Long-term positive trend line
2. All Trade Triangles are positive
3. Weekly buy Trade Triangle yesterday
4. The RSI indicator is now over 50
5. Upside target zone of $300

Technically, I can see Tesla Motors Inc. (NASDAQ:TSLA) moving to the $300 range. Look for near-term resistance around the $240 and $260 levels.

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

Next Gold Buying Opportunity May Be Just Around the Corner

Posted on by admin

By: John Kosar of Street Authority

Major U.S. indices closed mixed last week, with the broad-market SP 500 and tech-heavy Nasdaq 100 closing higher and the blue-chip Dow industrials and small-cap Russell 2000 closing lower. The bigger takeaway to last week's lack of direction is that the bellwether SP 500 has been moving sideways for the past month and is essentially unchanged since July 1.

This recent loss of upward momentum suggests some distribution/profit-taking has been occurring and defines a near-term decision point in the index, bordered by 1,986 on the upside and 1,953 on the downside, from which its 2014 advance must resume if still healthy and intact.

Small Caps, Volatility Will Be Key Again This Week
In the July 14 and July 21 Market Outlooks, I pointed out that the Russell 2000 and the Vanguard Small Cap Growth ETF (NYSE: VBK) were situated right on top of major support levels and amid favorable conditions to resume their 2014 advances -- if they were still valid. Following initial rebounds, Friday's sharp decline positioned both back on top of these levels -- 1,143 on the Russell 2000 and $121.53 on VBK. Continue reading "Next Gold Buying Opportunity May Be Just Around the Corner" →

The Truth About Amazon

Posted on by The INO.com Team

When was the last time you bought something on Amazon.com (NASDAQ:AMZN)? For me, I purchased a pair of cycling gloves last week. It seems that when Amazon reported a wider than expected loss, investors were surprised and shocked. What were they expecting?

The reality is that Amazon is a juggernaut in online commerce and is seeking world domination in selling you stuff. The strategy that Jeff Bezos is using for Amazon is not new, Sam Walton in the 60s did the exact same thing with Wal-Mart Stores, Inc. (NYSE:WMT). Sam's idea was pretty simple, start with low prices so it puts your competitors out of business, then you can raise your prices afterwards. Amazon is doing the same thing, but online.

Just like Walmart, Amazon made it easy to buy something and return it if you don't like it, all with no hassles. Amazon is building something that is incredibly valuable - millions of consumers who want to buy products through them alone.

Just imagine, all Amazon has to do is raise prices just a little bit and they will be very profitable. Will consumers run the other way when this happens? No, as consumers we are so trained to buying at Amazon that a small price increase is not necessarily going to have buyers running.

Let's face it, we are all creatures of habit and I've gotten into the habit, like millions of other consumers, of just going to Amazon looking for an item and buying from them. Sure, if I searched around the web and spent a lot of time, I may save a dollar or two, but I would also be potentially doing business with companies I don't know. How reputable are they? Do I feel comfortable giving them my credit information and other private information? Continue reading "The Truth About Amazon" →

Why The Next Stock Market Crash Could Happen Any Day Now

Posted on by admin
By: Nancy Zambell of Street Authority

A "follow-up" market crash could be coming.

I don't mean to scare you, but it's only a matter of time...

The past two happened like clockwork -- seven years apart. One happened just before 2001, after the dot-com burst. The other came with a vengeance in 2008, right after the housing collapse.

It's getting close to another seven years... so what about this time?

Are we headed for a "follow-up" market crash?

 

The very idea of losing more than half of your invested wealth in a market downturn is daunting.

Market analysts claim to know exactly where the market is going, and act like they know exactly when to buy or sell stocks. But how many analysts do you remember saying months before the 2008 financial crisis that the market was going to go down by 57%? Can you name one? Continue reading "Why The Next Stock Market Crash Could Happen Any Day Now" →