After yesterday, you need this to survive the future

It is always interesting to live through history. However, I think many traders, or should say investors would probably like to forget about the history making market action on Thursday.

I just wanted to write a short post and show you where we stand with our "Trade Triangle" technology.

One of the advantages of using MarketClub's "Trade Triangles" is that you don't have to worry about the problems in Greece, nor do you have to worry about earnings reports, downgrades, supply and demand statistics, and all of the millions of other things that make up the price of a stock or a commodity.

An inescapable reality of the market, that effects all of us, is perception. This one characteristic can trump earnings reports, good news, and any other market changing force that comes out. For the last 12 months, the perception has been that things are getting better, and that pushed the market higher. Perception may have changed yesterday as investors are now once again beginning to worry about the euro, sovereign debt, and the value of paper currencies.

So here is how we stand in the major markets with our "Trade Triangle" technology: Continue reading "After yesterday, you need this to survive the future"

Q1: Gold vs. "World Cup Portfolio"

We began Q1 with high hopes of keeping our winning streak alive, just as we had finished out the year on a very positive note with some strong gains in Q4 of 2009.

Q1 proved to be a challenging quarter for the "World Cup Portfolio." Out of the six markets we track, we had winning positions in four markets (that's the good news) and losing positions in the other two.
However, the big disappointment in Q1 was the gold market which produced our biggest quarterly loss of any market since we began tracking the "World Cup Portfolio."

The main reason for this loss was the choppy, trend-less action in the gold market. In the eleven quarters we have been tracking gold, we have made money in eight of those quarters. This is not the time to abandon trading gold, rather it is a time to continue with our game plan and "Trade Triangle" approach that has been so successful for this portfolio. Furthermore we have never had back-to-back losing quarters in gold.

On the brighter side, the grain markets proved to be resilient and just the ticket as corn, wheat, and soybeans all put in positive performances. The only other market to put in a negative performance in Q1 was crude oil. Continue reading "Q1: Gold vs. "World Cup Portfolio""

Our Stand In Key Markets at the End of February

I thought that our Trader's Blog readers would like to know where we stand at the end of February in some of the key markets that we track with MarketClub's Trade Triangle Technology.

Gold -- neutral

Crude Oil futures -- long

Indices -- long the Dow, SP500 and NASDAQ

Euro -- short Euro, long dollar

As we head into March and the beginning of the end of Q1, I believe we'll see some interesting moves in the above markets.

We have discussed this before, but I would like to again touch on market perception. If you remember, the US dollar was going to continue to trade down. That did not happen as events in Europe drove the euro down and the dollar was once again perceived as a safe haven. Once again perception trumps over the market.

The equity markets continue to remain in a positive trend, however the seesaw action of the last week or two in February indicates that there is a tremendous amount of jousting between the bulls and bears.

Crude oil remains positive based on our "Trade Triangle" technology, whereas gold at the moment is neutral.

It is going to be an interesting month in all four of these markets.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

P.S. The above positions are based on our Trade Triangle Technology and  can change and should not be perceived as written in granite.

How To Spot Big Trends?

Every trader and investor I know would love to buy at the bottom and sell at the top. The reality is that this is not a winning solution, nor is it possible to do this on a consistent basis.

What we look for at MarketClub is to catch the sweet spot of the trend. The sweet spot is the 70% to 80% that's in the middle of a trend.

I've been in this business a long time and know enough people in the industry to know that nobody buys the bottom and sells at the top. If they tell you that's what they do on a consistent basis, run a country mile because they are exaggerating their capabilities.

Continue reading "How To Spot Big Trends?"