Today is the first day of spring and maybe this is the cause for the spring in the markets. March 20th also happens to be "International Happiness Day" and I'm sure that many investors have a smile on their face today with the way the markets are acting in Europe, Asia and the U.S.
Today, I'll be looking at gold prices because they are acting and doing something that they haven't done in a long time and I want to share that with you in today's video. It is impossible to pinpoint what is causing gold to rally, whether it is short covering or the potential that Greece is going to implode any day now. Either way, it's not important what is causing the rally. The important thing to remember when trading is to get the direction right and not worry about what is causing the trend. I remember when I was in the trading pits in Chicago, I asked someone why the market was going up and he said to me, "It doesn't matter, it's going up". There is a lot of truth in that comment. That's one of the big takeaways in trading, don't over think markets.
As I write this commentary before the market opens, we could be seeing the equity markets close well towards the end of the day and possibly closing in new high ground on short equities before the weekend. The NASDAQ is very close to breaching the 5000 level, a close over that area today can be viewed as being very positive for the weekend.
Crude oil also appears to be finding some support at lower levels but has not yet reversed trend and turned around. I will be looking at that market to see where the key points are for a trend reversal to the upside. Remember markets can get very crowded on one side of the ledger when everybody believes that the trend will continue and go on forever. When that happens, a market tends to reverse and go the other way. The reason that happens is because markets are forward-looking trading instruments.
I will be getting into the recent Trade Triangle scan today to find new trades that may be just emerging. You won't want to miss that part of today's video.
This being Friday, I will of course, be looking for weekend trades using our "52-week highs on a Friday" strategy.
Every success with MarketClub,
American oil production is surging. Yet oil prices remain near $100 a barrel.
You may be wondering: When will all of this additional production finally overtake demand and push the price of oil down?
You can find one answer in the price of oil futures -- which say we can expect oil to fall to closer to $80 in the coming few years and stay there.
Is the market correct? Are oil prices heading south?
I think that the answer is no, for several reasons -- especially after I listened to a recent presentation by Bill Thomas, the CEO and chairman of EOG Resources (NYSE: EOG).
EOG is, by a considerable margin, the largest horizontal oil producer in the world. That means the company has access to the best data available on horizontal oil production and resources.
Put simply, EOG and Thomas believe that the futures market is all wrong about oil prices. The company is bullish on oil and focused on producing more of it.
What EOG sees -- and the market doesn't seem to grasp -- is that for all intents and purposes, the horizontal oil boom is coming from only two plays: the Bakken Formation in the upper Midwest and the Eagle Ford Shale in South Texas. A slide from EOG's most recent investor presentation illustrates this clearly: Continue reading "High Oil Prices Are Here To Stay -- Here's How To Profit" →
Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
As the week starts, our attention turns to the June Crude Oil futures (NYMEX:CL.M14.E). After gaining nearly $7/barrel in less than a month, the market has recently consolidated around $103.50/barrel as it begins to decide which direction it will take. It appears that some of the recent slowing of the market is due to profit-taking, as the recent sharp up-trend may have gained too much too soon. There are a number of fundamental factors at play in the market, many of which seem to work in contrast with each other: support from Russia-Ukraine uncertainty, resistance from ample supply concerns, and improved demand prospects following solid US Economic data last week. With a number of different fundamental factors in play – and uncertainty over which fundamental factor the market will focus on moving forward – I will focus on the technical aspects of the market for a potential trading opportunity.
Thursday’s range last week was consolidated within the previous day’s range and a move above or below that range should give us good direction to go off of. Continue reading "Chart of The Week - Crude Oil" →
By CHRIS KAHN
AP Energy Writer
(AP:NEW YORK) Oil prices dropped near their lows for the year following warnings of a "severe recession" in Europe and an apparent easing of tensions over Iran's nuclear program.
Benchmark U.S. crude on Tuesday lost 91 cents to end the day at $91.66 per barrel in New York while Brent crude fell by 40 cents to end at $108.41 per barrel in London. Both contracts hit a low for 2012 on Friday at $91.48 and $107.14, respectively.
Oil has declined almost every day this month as elections in Greece and France threatened existing plans to fix the Continue reading "Oil closes near 2012 low today" →
Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with a SPECIAL REPORT ON CRUDE OIL for Thursday the 16th of February.
TRADING TIP: DON'T FIGHT THE MARKET … MOVE WITH THE MARKET
The New Bull Market --- it's OIL!!
Today we will use our Trade Triangle Technology and figure out Oil's next big move.
CRUDE OIL (APRIL CONTRACT)
BIG PICTURE: Strong Trend +100
TRADE TRIANGLES: Long-Term = Bullish | Intermediate Term = Bullish | Short-Term = Bullish
MARKETCLUB SCORING: Trading Range (50 to 65) : Emerging Trend (70 to 80) : Strong Trend (85 to 100)
It appears as though the crude oil market is coiling up and getting ready to spring upwards. Here are my 3 main reasons for being bullish on crude oil.
# 1: All our Trade Triangles are green indicating that a very strong trend is in place.
# 2: Crude Oil tends to make major lows every eight or nine months (last major low in October) look at the weekly chart on the video and I'll show you this.
# 3: The Crude Oil market tends to make a major high every 11 or 12 months.
Presently we are about 6 to 7 weeks away from making a major high in Crude. This cyclic pattern, if it persists, should push Crude up and into a new 6 week high in late March or early April. A move and close on Friday over $103.38 should be viewed as very bullish for Crude Oil, indicating sharply higher levels to come in the weeks ahead.
DISCLAIMER: As with any market analysis there are no guarantees. Always use stops to protect capital and never trade with funds that you cannot afford to lose. With our monthly, weekly and daily Trade Triangles all in a positive mode, we expect to see further gains in Crude Oil.
Watch today’s SPECIAL REPORT Crude Oil Video Here.
Suggested Crude Oil Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures & Options are available to trade this market. Contact your broker
WARNING: Liquidity in some ETFs is very thin. Contact your broker for more information.
I would like to hear your thoughts on Crude Oil. Please vote and if you wish leave a comment below.
Take care everyone,
President INO.com and co-founder of MarketClub.com