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.

Crude Oil Futures

Crude oil futures in the December contract are down $1 at 81.00 a barrel trading far below their 20 and 100 day moving average settling last Friday at $82 down about $1.00 for the trading week hitting new multiyear lows as the oversupply situation continues to pressure prices to the downside. The chart structure in crude oil was terrible at the time of the breakout as I’ve been sitting on the sidelines, however I have not been recommending any type of bullish position in this market as I do think prices are headed lower and if you are short this market I would place my stop above the 10 day high which currently stands at 85.13 as the chart structure is improving dramatically on a daily basis as a strong U.S dollar and record U.S supplies continue to put pressure on prices here in the short term. The fact that prices don’t have the giant spike ups due to the fact of turmoil in the Mid-East is a great thing as the United States in my opinion does not rely on Mid East oil like we used to so continue to sell rallies while placing the proper stop loss at 85.13 which is around $4,000 or $4 from today’s price levels as there is a high possibility that prices will trade down to the $75 level or even lower especially if the supply situation increases over the next several months as we are entering the non-demand season of winter. Saudi Arabia last week announced that they will not cut production as they are trying to squeeze U.S refineries to slow down their production because of lower prices hurting margins, however it doesn’t seem to be working at the current time as the trend is your friend in the commodity markets so continue to short this market.
TREND: LOWER
CHART STRUCTURE: IMPROVING Continue reading "Weekly Futures Recap With Mike Seery" →

Amazon's Greatest Nightmare

Posted on by The INO.com Team

Yesterday, Amazon.com Inc. (NASDAQ:AMZN) reported its earnings. They were a shocker and pushed the stock down over 9% overnight.

While Amazon was reporting no profits, Jack Ma, the head of Alibaba Group Holding Limited (NYSE:BABA), was in Hollywood looking to buy content and movie studios for his mammoth "find everything" website. Mr. Ma has also said publicly he wants to have US companies on his website so they can sell their products in China. Alibaba has over half a billion customers at the moment and is growing fast.

When I look at the stock of Amazon I can see that this stock hasn't gone anywhere and keeps losing money. Somewhere along the line, I think investors are going to say enough with Amazon already, it's got to start making money. Amazon has its fingers in a lot of pies including advertising, merchandising, newspapers, the cloud and probably a lot of other ventures you don't even know about.

But even if you didn't know anything about Amazon or Alibaba and you just look at the charts, you have to say that the chart on Alibaba looks a lot more positive than the one for Amazon. Now admittedly, Alibaba has not been trading in the US that long, but something seems to be right about what's going on with this company and its charismatic leader, Jack Ma.

While Amazon stock has gone up and come down, it's practically unchanged from where it was a year ago. It is down over $100 for the year, while AliBaba's stock is within 2 or 3% of its IPO high price of $99.70 on September 19th.

In today's video, I will be looking at both the stock of Amazon.com Inc. (NASDAQ:AMZN) and Alibaba Group Holding Limited (NYSE:BABA). I'll also be looking for some weekend trades of the 52-week kind and see what I can come up with. And of course, I will do a recap of the week and show you the winners and the losers.

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

What's More Volatile, Stocks Or Commodities?

Posted on by The INO.com Team

If you said stocks, you'd be right. There's a big misconception that commodities or futures are more volatile and risky than stocks. The truth is, what makes commodities or futures appear risky is the leverage factor. You only have to margin up a small amount of capital, usually less than 5%, to control a large amount of capital. What that means is when the market moves even a small amount, you get a bigger return, or in some cases a bigger loss, on your money because of leverage. If you put up the whole value of a commodities or futures contract, you effectively de-leverage your investment and at the same time lower your risk and return.

For example, say you want to buy 100 ounces of gold. At the current price, you would have to pay $123,500 and you would own the gold. Instead, you could buy 1 futures contract of gold worth $123,500 and only margin up $4,400. Now let's say we have a $10 move in gold. On 100 ounces that would be worth $1000. As you can quickly see, the return on $4,400 is a heck of a lot higher than the return on $123,500 if you owned the gold outright. Which would you rather have, close to a 25% return on your margin on 1 futures contract, or have a $123,500 tied up in physical gold and see a return of less than 1%?

That, my friends, is why commodities or futures are interesting and can be very profitable when you approach the market with discipline. Naturally, leverage slices both ways and you could lose just as fast as you make money. The key here is to be diversified like our World Cup Portfolio.

Here's the 6 individual markets of the World Cup Portfolio shown quarter by quarter. As you can see, not every market made money every quarter, but combined every quarter was profitable. This underscores the power of diversification and disciplined trading. Continue reading "What's More Volatile, Stocks Or Commodities?" →

2 Stocks To Buy Today

Posted on by The INO.com Team

Good day traders and MarketClub members everywhere! I have found two stocks that I believe are going to move higher in the near future and I will be discussing those stocks with you today.

I'm also going to be looking at the general market and analyzing how much further this rally can go in the major indices. Also included in today's video is a look at gold (FOREX:XAUUSDO). How much further can it go on the upside? Has crude oil (NYMEX:CL.Z14.E) finally found a bottom? Lastly, a quick peek at the US Dollar Index (NYBOT:DX) and why it took a breather.

You are going to have to watch the video to find out which two stocks I really like. I think you'll find the stories behind them very compelling as one of these particular stocks takes up almost 40% of a well-known hedge fund's portfolio.

Don't miss today's video!

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

CF Cycle for Life - INO Cares

Posted on by admin

It was a beautiful morning! Although chilly and very windy, it was still a great day for a bike ride. We bundled up, broke out the spandex and jumped on our bicycles to participate in the Cystic Fibrosis Ride for Life at Herrington Harbour in North Beach, Maryland. Our November INO Cares project was a great success. We helped the Cystic Fibrosis Foundation raise over $40K and we had two newbie cyclists each finish a 20 and 40 mile race! Family and friends came to cheer on our riders and join us for a great after-party.

The Cystic Fibrosis Foundation is a fantastic organization that funds research in hopes of finding a cure to this fatal genetic disorder. Learn more about the Cystic Fibrosis Foundation and the nationwide Cycle For Life events.

Best,

Lindsay Bittinger
The INO Cares Team