Gold Mining is Counter Cyclical

Posted on by The INO.com Team

The following is the opening segment of this week’s Notes From the Rabbit Hole, NFTRH 276:

Somewhere along the road from the 2000 bottom in gold stocks to the 2008 flame out of inflationary hysteria, the gold stock sector went from counter cyclical first mover to ‘inflation trade’ also ran.  Gold stocks put in a secular bear market bottom in 2000 just as the US and many global economies were topping out.

Then came the era that NFTRH has labeled ‘Inflation onDemand’ (IoD).  The economy was successfully* inflated by Alan Greenspan early in the decade as easy monetary policy fomented an epic credit bubble, which took over and did the heavy lifting for a cyclical bull market and buoyant economy that terminated hard in 2007/2008.

During this time of IoD ‘inflation bulls’ and commodity bulls who had all the answers for a newly inflation-phobic public emerged and took center stage.  Misperceptions were formed, cemented and driven home.  Nowhere were the misperceptions more intensely and dangerously embedded than the gold stock sector, which at its core is different than most commodity sectors and indeed, most stock sectors.  Introducing another one of our ‘busy’ charts to illustrate…

hui.mo

Okay, article over… the chart says it all.  No more words necessary! Continue reading "Gold Mining is Counter Cyclical" →

How To Improve Your Trading In February

Posted on by The INO.com Team

Hello traders and MarketClub members everywhere! Welcome to the new trading month of February.

Today, I am going to do something a little bit different, I hope you enjoy the experience and find it educational and informative. To start with, I am going to analyze a static chart of the stock of Applied Materials, Inc. (NASDAQ:AMAT).

In addition to posting a single static chart on the blog, I am also going to be doing a video of that same chart. The video is short, to the point, and explains how I analyze stocks using the tools in MarketClub.

Today's in-depth analysis of Applied Materials shows a confluence of technical indicators that do not add up to a positive outlook for this stock. Remember, any analysis I do at MarketClub should not be considered a recommendation or an endorsement to buy or sell a particular security.

Click the chart to watch Adam's video analysis of Applied Materials Inc. (NASDAQ:AMAT)

There is an old adage in trading that goes like this, "they slide faster than they glide". Translated, that means stocks go down faster than they go up.

Here are the 8 technical aspects that could spell trouble for Applied Materials. Continue reading "How To Improve Your Trading In February" →

Chart to Watch - EURUSD (FOREX:EURUSD)

Posted on by The INO.com Team

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of the EURUSD Forex pair (FOREX:EURUSD).

When trading Forex with the MarketClub system, you use the weekly Trade Triangles to tell trend, and the daily Trade Triangles to time the entry and exits points of the trade.

The EURUSD made a double top on a bearish MACD momentum divergence. Continue reading "Chart to Watch - EURUSD (FOREX:EURUSD)" →

The Super Bowl Indicator - Seattle Seahawks (Bulls) VS. Denver Broncos (Bears)

Posted on by The INO.com Team

Have you ever heard of the Super Bowl Indicator? Who do you want to win? Are you a Bear or a Bull?

How it works

The Super Bowl Indicator rules state that if a team from The National Football Conference (NFC) wins the Super Bowl, a bull market will prevail. If a team from American Football Conference (AFC) wins, a bear market will prevail.

The Denver Broncos are from the AFC, and they will represent the bear market in 2014. The Seattle Seahawks are from the NFC, and they represent the bull market. If the Seahawks win the Super Bowl there is an 80% chance that the markets will rise this year.

I don't know about you, but I want the Seahawks to win.

There are two notable exceptions as of late:

2013 saw the Baltimore Ravens (AFC) win the Super bowl, and the DOW rose 26.5%. This should have been a bear market. Continue reading "The Super Bowl Indicator - Seattle Seahawks (Bulls) VS. Denver Broncos (Bears)" →

Snapchat and the Disappearing Bears in the Stock Market

Posted on by The INO.com Team

See what happens in the financial markets when the bears vanish

By Elliott Wave International

If Inspector Gadget or Maxwell Smart had lived in the digital age, their bosses would have used the smartphone app Snapchat to deliver their secret missions.

Snapchat is a popular app with about 8 million users that lets your smartphone send a photo that self-destructs seconds after your recipient views it. As of September 2013, users were sending about 350-400 million vanishing messages a day -- which compares with the 127.5 million shares that changed hands in the Dow on Jan. 27, 2014.

But when Evan Spiegel, the Stanford student who came up with the idea, unveiled it to his product design class in 2011, his classmates gave it a thumbs-down. Disappearing photos? Who will use it? Little did his classmates know how the app, originally called Picaboo, would go on to capture the attention of teenagers and young adults. And even a few older folks who want to connect with them, such as 51-year-old Senator Rand Paul, who recently signed up to woo younger voters.

The idea of the disappearing photo applies beautifully to the situation in the stock market today. Pessimists on stocks are disappearing quickly. And so are bearish analysts. Not in 10 seconds, but they are still doing a version of a Snapchat disappearing act. Here's how The Elliott Wave Financial Forecast describes it (emphasis added) in this excerpt from our just-released 2014 State of the Global Markets report: Continue reading "Snapchat and the Disappearing Bears in the Stock Market" →