How To Profit From The Polar Vortex

To profit from the short-term openings the market hands you, it takes the right strategy.

That's a lesson I had to learn after correctly predicting that the U.S. would be in for a remarkably cold winter. Though temperatures in much of the U.S. have fallen to the lowest levels in years, the stock picks I suggested simply didn't have enough leverage to weather as I anticipated. As I noted in late December, those picks rose only modestly as winter dug in, even as natural gas-focused exchange-traded funds (ETFs) fared a lot better.

The explanation is straightforward. As I noted last month, "Many energy traders don't trust quick moves in energy prices, and they assume that profit-taking will soon ensue. If gas prices move back below $4 per thousand cubic feet (Mcf), then these companies will generate a lesser benefit."

Since then, natural gas prices have kept surging, and these stocks still haven't budged much.

Yet a change in the weather provides a shot at redemption. Those rapidly surging ETFs appear set to reverse course, and you can even invest in this strategy without initiating a short sale. Continue reading "How To Profit From The Polar Vortex"

My 10 Golden Rules of Trading

Even though 2014 has just begun, so far it has been difficult and frustrating for most investors and traders. One only has to look Apple's (NASDAQ:AAPL) recent performance as a prime example of how 2014 is going to be a very different year from 2013.

Today, I want to share with my "10 Golden Rules of Trading" that never go out of style. Why? These rules are the universal truths of the marketplace. To ignore them you could be condemning your portfolio to failure.

While I did not invent all of these rules myself, I did discover them the hard way. My discovery was painful, expensive, and brutal as I made practically every mistake in the book, before finding success in the markets.

Incorporating these "10 Golden Rules of Trading" into your own strategy can help you down the path to success in the markets.

1) Have a Game Plan - Figure out why you’re getting into the market and, more importantly, how to get out if you’re wrong. Continue reading "My 10 Golden Rules of Trading"

David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'

The Gold Report: When we interviewed you last, you mentioned the possibility of "resource wars" in 2014 as referenced in Michael Klare's book of the same title. What will that look like to the average investor?

David Morgan: The resource wars have already started. Look at Mexico. It has a resource that it covets very much, and that's energy. That is why the government levied a new tax designed primarily at energy but subsequently adds a 7.5% royalty on mining profits. Is it a war? Not per se, but it is detrimental to companies that operate in Mexico today and in the future. I think we will see even more of this kind of thing in 2014.

TGR: Last year was a volatile year for precious metals prices with silver going below $20/ounce ($20/oz) and gold bobbing around $1,200/oz at the end of the year. Are we still three or four years from $100/oz silver as you said in your last interview? What's going to push it to that level? Continue reading "David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'"

Apple Inc. (NASDAQ:AAPL) Reports Earnings After The Bell

Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Monday, the 27th of January.

I am going to be looking at the stock of Apple Inc. (NASDAQ:AAPL), who reports earnings after the bell today. The psychological stakes could not be any higher for Apple, which in many ways, still mourns the loss of Steve Jobs' visionary qualities. The big question on investors' minds these days, is Apple still a momentum stock or has it become a dividend paying stock?

This is a big challenge for Apple because one of its core markets is young people and one thing Apple cannot afford to do is lose its cool factor with this audience. It may have already lost its cool factor with the younger generation, as Android is certainly showing up more and more in the hands and minds of teenagers. Continue reading "Apple Inc. (NASDAQ:AAPL) Reports Earnings After The Bell"

Chart to Watch - S&P 500 Futures

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 S&P 500 Futures Contract (CME:SP.H14.E).

This week let's take a look at the S&P 500 futures contract.

When trading futures with the Trade Triangles you use the weekly Trade Triangles to tell trend and the daily Trade Triangles to time the entry and exits.

The weekly Trade Triangle turned red Trade on 1/13/14 and a red daily Trade Triangle on 1/21/14 which would have put any one trading the E-mini S&P 500 with the MarketClub system short just before Friday's 1/24/14 big down day and break of support. Continue reading "Chart to Watch - S&P 500 Futures"