Top Approaching in Berkshire Hathaway?

Posted on by The INO.com Team

By: Elliott Wave International

Editor's note: The following article originally appeared in a special September-October double issue of Robert Prechter's Elliott Wave Theorist, one of the longest-running financial letters in the business. From Sept. 25 to Oct. 1, Prechter's firm, Elliott Wave International, is throwing open the doors to all of its investor services 100% free. Click here to join EWI's free Investor Open House now.

It piques our interest when a person or company makes the front page of a magazine or newspaper. On August 15, USA Today ran an article with a chart on the share-price performance of Warren Buffett's company, Berkshire Hathaway. The Guardian and other papers covered the news, too, which was that the stock had cleared $200,000/share.

The stock (symbol BRK-A) has returned a 19.7% compounded annual return to shareholders since 1965, the year Buffett turned a failing textile company into an investment company. It has returned 22.8% annualized since 1977. Let's just say that the stock has produced about 20% per year compounded.

The above figure shows that the stock has just met a 16-year resistance line on arithmetic scale. The next figure shows that it is still a bit shy of that line on log scale. Continue reading "Top Approaching in Berkshire Hathaway?" →

Is This The Best Indicator In The World?

Posted on by The INO.com Team

It's hard to believe that the third quarter of the trading year is coming to a close today. It has been quite a quarter, especially the last week of September when the market volatility has been picking up.

One of the tools I love looking at in MarketClub is the quarterly charts on all the markets. These charts were created to show you the big picture, as we know that investors can get sucked into short-term thinking and trading and "cannot see the forest for the trees." The biggest stand out feature for quarterly charts is their ability to clearly show the direction of the big trends. And that is really how you make the big money in trading by staying with the big trends.

Day trading can be looked upon as "very sexy," but it's not where the big money is. Arthur Cutten, a well-known trader and investor in the 20s and 30s, was asked how he made so much money trading and he answered the question this way, "By sitting." Continue reading "Is This The Best Indicator In The World?" →

Why There's Upside To Silver's Four-Year Lows

Posted on by admin

By: David Sterman of Street Authority

Even as investors were re-embracing stocks in 2010 and 2011, they scored really big gains with one of the hottest commodities in the world: Silver.

The precious metal soared in price from under $20 in August 2010 to nearly $50 an ounce by the next spring. In the hindsight, the silver spike was a classic bubble, fueled by inflation concerns that simply never materialized.

Though few people could have guessed that silver would be capable of a 150% nine-month gain, few also would have predicted that the eventual slump in silver would be so extended. Silver prices fell back below $30 an ounce by the start of 2013, and they've been in freefall ever since. A snapback to 2011 peaks is out of the cards.

You can get a sense of just how painful the silver slump has been by glancing at the performance of key exchange-traded funds (ETFs). The leveraged (2-times and 3-times) funds have been among the market's worst performers.

And when it comes to the silver producers themselves, it appears as if sentiment has utterly collapsed. In recent weeks, industry share prices have slumped another 20%-to-30%. In contrast, the pullback in gold prices and shares of gold miners has not been nearly as severe. Continue reading "Why There's Upside To Silver's Four-Year Lows" →

If You Want To Know What's Going On In The Markets...

Posted on by The INO.com Team

If you want to know what's going on in the markets, just look in the mirror. In one moment, investors are bullish and the next moment, very bearish. It just shows you the skittish nature of the market that we are in.

How do you feel about the market? Leave a comment below and tell us how feel.

Despite last week's wild gyrations, the markets closed lower for the week. This is the big picture you really want to watch and pay attention to. Looking at the S&P 500, as it represents a broad swath of the markets, this index closed out last week at 1,982.85, down 1.3% for the week. This was the lowest close in this index in over six weeks, not exactly a stellar picture. Again, when you look at the bigger picture, a clearer picture emerges of what's going on.

The same dismal story can be applied to the NASDAQ that closed down 1.44% for the week, closing at 4,513.44. Last week's close represents the lowest close for this index in six weeks, again not a good sign.

The Dow also closed lower for the week but still managed to have its third-highest weekly close in history. This morning the DOW gave its first serious indication that things are beginning to come apart as it joined the same picture as both the NASDAQ and the S&P 500. A weekly Trade Triangle flashed a exit and sideline position for this index. Now, just like the S&P 500 and the NASDAQ, the DOW is indicating that you should be out of market at the present time and on the sidelines.

In other markets... Continue reading "If You Want To Know What's Going On In The Markets..." →

Today's Top 50 Trending Stocks

Posted on by The INO.com Team

What does a successful trader do that an unsuccessful trader can't seem to master? They quickly find and get in and out of the winning trades with expert precision. Who does this better than anyone else?  Smart money of course!

More importantly, "Smart Money," such as big banks and large financial institutions, have the capital and agility to persuade large and medium cap stocks to move in a preferred direction. It may sound like they have the upper hand, but individual traders can join them in a move and profit from the ride relatively easily.

The hardest part is finding where the smart money is hiding. So how can you, as a trader, find where the smart money is going to strike next? The answer is simple: You find the top trending stocks! Strong trending stocks have major volume, a clear direction, and sufficient liquidity - this is usually where the smart money is. Wouldn't it be nice to find a list of current, strong trending stocks?

Now you can. Access Today's Top 50 Trending Stocks.

Our latest tool, "Top 50 Trending Stocks," is a dynamic report that compiles a list of the market's strongest movers. This could help you find the stocks that will make a tremendous difference to your portfolio for Q4 of 2014.

No cost and instant access!

It's time you started trading like the smart money - Access Today's Top 50 Stocks list now!