No doubt by now, you've heard of the problems in Russia with its currency. You have to say to yourself, "a 17% return on my money sounds pretty good," but when the ruble sinks more than that in one day, you say, "WHOA, will I get my money back?" And that my friends is Russia’s Achilles' heel right now, as investors ponder whether they going to get their money back before capital controls are put in place.
If you didn't think commodity markets are important, think again. The correlation between the collapse of the Russian ruble (CME:6R.Z14.E) and the collapsing oil market is extraordinary and I will illustrate it for you in today's video.
Who knew that Saudi Arabia alone could, in essence, break the Russian economy almost in half, not with tanks and bombs, but with a commodity called crude Oil (NYMEX:CL.F15.E).
Saudi Arabia has continued to push production from its vast oil fields in order to lower the price of oil and make it difficult for competitors to stay in business. One of the amazing side effects to all this is the fact that Saudi Arabia has basically ripped the guts out of the Russian economy and its cash cow, crude oil. Continue reading "Russia's Achilles' Heel"→
Remember Greece? Yes, that's the very same country that created all the problems for the world's economies back in 2008. Well, Greece is back and the problems could be even greater this time. I'm not sure who it was who said this, but it has been said that you don't solve debt problems by piling more debt on to more debt. I agree, but that is exactly what the world has been doing since 2009.
In every great challenge there are great opportunities and 2015 could be one of those extraordinary years when smart investors can do very, very well. I don't think it's going be on the long side of the market, however. I think this bull market that has been going on for six years is about to come to a screeching halt as reality finally sinks in and we begin to pay for the folly of our deeds. Continue reading "The Looming Greek Disaster"→
Hello traders and MarketClub members everywhere! There's no doubt about it, this bull market which began in Q1 of 2009 is getting a bit long in the tooth and may be setting itself up for a correction in 2015. If that's the case, we could see gold (FOREX:XAUUSDO) once again come into fashion as I believe it is building a base to do just that.
Sandy, a valued MarketClub member, asked me to start looking at some shorting opportunities in the stock market. Some of you may never have traded stocks from the short side before, but it can be likened to buying stocks, only in reverse.
It seems like now would be a good time to bring this up, particularly with my thoughts turning more and more to 2015. I'm going to be looking at several stocks that I believe will to continue to erode and offer trading opportunities on the short side of the market. Continue reading "Is The Market At A Tipping Point?"→
Hello traders and MarketClub members everywhere, welcome back to reality! I hope you all had a wonderful Thanksgiving holiday and a well-deserved break from the markets.
Here we are in December, the final trading month of the year, and what a year it's been. As we move into December, the S&P 500 has gained 14%, even after the big dip that we witnessed in October.
December has traditionally been a positive month for stocks and I suspect that this December will be pretty much a continuation of the bull trend.
One word of warning about December, after about the second trading week in this month, trading volume drops off dramatically as many traders wind down their year and look forward to the holidays and a break from the markets. The reason I mention this is, if you have not made your money for the year yet, the last two weeks of the year are not a time to take big risks and swing for the fences.
In today's video, I will be looking at the continued slide in crude oil (NYMEX:CL.F15.E) prices and the wild swings in gold (FOREX:XAUUSDO), along with a few other markets that look interesting.
IMPORTANT REMINDER: December is traditionally a good month for stocks, but the last two weeks of the year can be extremely dangerous because of the lack of liquidity.