A Special Report on Crude Oil

Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with a SPECIAL REPORT ON CRUDE OIL for Thursday the 16th of February.


The New Bull Market --- it's OIL!!
Today we will use our Trade Triangle Technology and figure out Oil's next big move.

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.

What do you think is going to happen to Crude Oil in the next 6 to 7 weeks?

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I would like to hear your thoughts on Crude Oil. Please vote and if you wish leave a comment below.

Take care everyone,
Adam Hewison
President INO.com and co-founder of MarketClub.com

A Companion For Your Trading Day

A few weeks ago we introduced you to a friend of INO's,  Aamar Shehzad. Today he's going to give our readers a tool that everyone can use daily to improve their trading.

The INO Pivotfarm Data Sheets combine useful market metrics with a very flexible trade journal all on one page. On the market metrics side of things the data sheets include, Market Profile, Fibonacci, Pivot Points, COT Reports, Retail Trader positioning, trend analysis and an Economic calendar. In the center of the data sheet is a fully functional trade journal area that you can use to type in your trades and save to review later. The sheets also contain video news updates inside the PDF! All in all a very valuable tool for 8 markets including Gold, Oil, S&P 500, Nasdaq, Dow Jones. Continue reading "A Companion For Your Trading Day"

Poll: Black gold, Texas tea... whatever you call it, how high will it go in the next 3 months?

How high do you think oil is going to go?

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As always, we encourage you to leave your thoughts on this volatile market in our comments section.


The MarketClub Team

Traders, Are Commodity ETFs Fueling the Energy Spike?

In today's Guest Blog spot, I decided to contact Chuck E. Cash from Forex-Trading-School.com. I wanted to get his thoughts and insight on what he thought about the current commodity markets, with Crude and Gasoline as the specific targets. Take a look below and enjoy!


It's hard not to notice the rally cries coming out of the political parties lately. Each side has their "solution" for the energy problem. The left wants windfall profit taxes and investigations. The right wants a tax holiday and more drilling.

Lately I've been wondering, are the spat of energy ETFs partly to blame?

Conceptually, the energy ETFs should create a more liquid (and thus more perfect) market. But I am starting to have my doubts.

For those unfamiliar with these commodity ETFs, let me explain who they are and how they work.

The first US traded energy ETF, USO, was introduced just 2 years in April 2006. This was the first in a series of unique ETFs whose assets were held in futures and options contracts. Specifically, they seek to track the spot price of West Texas Intermediate (WTI) light, sweet crude oil. These funds also invest in futures contracts for other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels.

This is in sharp contrast to previous commodity ETFs such as GLD, which is backed by some 600+ tonnes of the gold.

Since USO was introduced, other petroleum tracking ETFs have followed.
The aptly named OIL opened August 15 2006.
UCR opened November 29, 2006.
In January 2007 Deutsche Bank introduced DBO and DBE.
And the newest member, UGA which just started trading Feb 26 2008, tracks gasoline futures.

So what's wrong with all these ETFs? Why would they drive up energy prices?

IMO, the commodity ETFs have contributed in 2 key ways.
1. They have allowed casual investors to participate

Futures trading is frequently described as both risky and sophisticated. No doubt, this is because futures are traded on margin, which creates huge profit and loss swings in a short period of time.

By packaging the futures into an ETF though, many participants now see it as a type of stock and behave accordingly. They are willing to buy and hold. They are able to sit through a $14 down turn believing their asset will rebound.

2. They create a new entity, a tracker.

For close to 2 centuries futures markets worked with three types of participants - producers, users, and speculators. These new ETFs have added a 4th entity, a tracker whose sole role is to mimic price movements. Now the traditional players must compete with this new tracker for shares of the same asset. Demand for the contracts has grown while the supply of contracts has not. As we all know, when demand outpaces supply, prices go up.

Don't get me wrong, I'm a capitalist pig no doubt. And I don't think closing these ETFs is a panacea. But I do believe they are exacerbating the spike.

So traders I ask, what do you think?
Are these ETFs helping to create a perfect market that reflects a fear of peak oil?
Or, are they creating a new type of speculation that is contributing to the spike in energy prices?

Chuck E. Cash from Forex-Trading-School.com

Here's a great way to help you kick off the new week and Q2.

The "90 Second Trading" Series
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I created "90 Second Trading" as a quick and easy way for you to understand how you can benefit from my many years of real world trading.
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