Tag: DOW (INDEX:DJI)

Welcome To The Second Half Of The Trading Year

Posted on by The INO.com Team

Hello MarketClub members everywhere. It has been quite a week so far, but before I get to that, let's take a look at what happened in the markets in June and how the markets closed out the month.

MarketClub's Mid-day Market Report

The big winner for the month was gold (FOREX:XAUUSDO). This precious metal was indeed precious to investors last month as it closed out June with a 9.39% gain, far exceeding any other major market.

Crude oil (NYMEX:CL.Q16.E), on the other hand, lost almost 2% in fairly choppy trading conditions. Continue reading "Welcome To The Second Half Of The Trading Year" →

Dead Cat Bounce

Posted on by The INO.com Team

Hello MarketClub members everywhere. I am sticking out my neck today and calling today's overnight rally a "dead cat bounce." This type of rally is not a reversal, it is more of a correction for a very oversold condition in the equity markets.

If we have any cat lovers out there my apologies go to you, but I have to admit I do love the expression "dead cat bounce." I'm not sure where the expression came from, but it seems to fit the markets perfectly.

MarketClub's Mid-day Market Report

Indices & Stocks: Make no mistake about it, the dramatic Brexit slide in the markets worldwide has had a profound effect both technically and psychologically on the markets. The major indices and many stocks appear to have put in tops that are capable of moving to some of the Fibonacci levels I outlined in yesterday's video. Continue reading "Dead Cat Bounce" →

The Big Reset

Posted on by The INO.com Team

Hello MarketClub members everywhere. Well, we had the weekend to ponder and recalibrate our thinking towards Great Britain's historic exit from the EU and its effect on world markets.

Personally, I congratulate the British for having the chutzpah to go against conventional thinking. It is not like England is some third world power, they have the 5th largest economy in the world and provide 50% of the EU's military power. History will prove whether or not the Brits got it right by exiting the EU. My gut feeling is any time you can do without faceless bureaucrats running things, you are better off. I'm hard-pressed to point out any outstanding achievements generated by any bureaucracy. Nor can I point to any example of when a bureaucracy has admitted or taken responsibility for major screw-ups. So, I think Great Britain is better off without Brussels and their faceless bureaucracy.

Where does that leave the markets?

MarketClub's Mid-day Market Report

Here is what I am thinking and it is based purely on market reaction. After Friday's 610.4 drop in the DOW, I would not be in a rush to buy stocks. Make no mistake about it, the 3.39% drop was and is a big deal. Continue reading "The Big Reset" →

See EU Later - Brexit is for Real

Posted on by The INO.com Team

Hello MarketClub members everywhere! The votes are counted and almost everyone got this one wrong, including the British betting shops. It's official - England is leaving the EU after 43 years.

I guess I was in the right camp when I posted this on June 14th.

The early reaction was the British Pound falling to its lowest levels since 1985 and stock markets around the world crashing. The one bright spot was the rush into gold which once again shot up over the $1300 level and seems poised to move to the $1400 level.

MarketClub's Mid-day Market Report

Indices: Looking at the major indices here in the U.S. this morning they are all going to be sharply lower and under pressure. Continue reading "See EU Later - Brexit is for Real" →

All Eyes On Brexit

Posted on by The INO.com Team

Hello MarketClub members everywhere!

Make no mistake about it; the markets will all be obsessing about whether or not Great Britain will stay or leave the EU.

MarketClub's Mid-day Market Report

This morning all the markets are thinking happy thoughts and are rising as they think that Britain is going to stay in the EU.

The bottom line is no one has a clue if Great Britain will stay or leave the EU. The other crazy thing is no one has a clue as to what will happen if Great Britain leaves. As you can see, there is no clear cut path or idea as to what's ahead.

So here is what to do - I call it the "Desert Island" approach to trading. Let's say you were trapped on a desert island with plenty of food and water but with no news of any kind. The only news you could receive is stock and futures prices - could you trade on just that information? Before I answer that question, ask yourself this question, if you were looking back at a stock chart and back testing would you be looking at the news? The answer is probably not, you would be looking at price action and that is exactly what the market proven Trade Triangle's do every day.

The bottom line is price action make market trends.

One caveat - Black Swan Events Continue reading "All Eyes On Brexit" →