Tag: DOW (INDEX:DJI)

How High Can The Indices Go?

Posted on by The INO.com Team

Hello MarketClub members everywhere, it certainly was a "Super Tuesday" in many respects with the markets having their best moves to the upside in the quite some time. The weekly Trade Triangles all turned green in February indicating a sidelines position in all the major indices.

Indices

Now for some of you who like to swing trade, the upside objectives are pretty clear based on the technical formations that each of the major indices have created. The DOW (INDEX:DJI) has formed a double bottom and a pivot point that has been broken to the upside. If you're not familiar with this formation, we have a little lesson for you right here. The S&P 500 (CME:SP500) index also has this same formation. Continue reading "How High Can The Indices Go?" →

If It Walks Like A Duck, Quacks Like A Duck, It's A Duck!

Posted on by The INO.com Team

Hello MarketClub members everywhere! As the month of February rapidly comes to an end in just three trading days, I thought it would be interesting to look at where the markets closed at the end of January, which as you know was a very volatile month.

So here the closing values of the major indices, gold and crude oil on January 29th: Continue reading "If It Walks Like A Duck, Quacks Like A Duck, It's A Duck!" →

Get Ready For A Buying Opportunity In Gold

Posted on by The INO.com Team

Hello MarketClub members everywhere!

Gold

Is this pullback in gold a buying opportunity or a watching opportunity? I think it's the latter, and here are the reasons why.

Gold (FOREX:XAUUSDO) has had a remarkable rally from early December in 2015 to just a couple of weeks ago when the price of gold peaked at $1260 in the spot market. There are two things that I'm looking at in this market; one is for further consolidation and the second is that I believe that a major cyclic low will be occurring in the near future.

Looking at a chart of gold for the past 12 months you can see that gold had low periods in March, July and December. If that same rhythmic pattern holds true, the next low period should be coming up in April. I expect to see gold remain choppy until that time period.

The major reason why I want to pay close attention to gold is that I believe it is in a longer-term bullish cycle. One area to pay close attention to is the 50 support line on the RSI indicator. You also want to pay particular attention to the monthly RSI, which still remains below the 50 line indicating that it's not fully into a strong upward momentum cycle for gold. I believe that we will see further consolidation below the RSI line before it's broken on the upside. Continue reading "Get Ready For A Buying Opportunity In Gold" →

Stocks Are Down, Talk Of A Recession Coming! It's Time To Panic! Or Is It?

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


A large number of investors, talking media heads, and Wall Street analysts are predicting that the US toward another recession. Even the mention of the 'R' word (recession) sends fear through not only investors blood, but nearly all American's.

Why? Because soon after hearing the word most people begin remembering 2007-08 financial crises which sent the US economy into a 19-month recession, which to make matters worse from a psychological standpoint has been coined 'The Great Recession'. Furthermore, since the 2007-09 recession is still fresh on everyone minds and was terrible in terms of job lose, declining economic activity, low 401-K balances and stock prices, when the 'R' word is used now, everyone immediately thinks of all those terrible things happening again. This causes fear and panic to quickly set in.

From a market standpoint, this can send equity and commodity prices lower, further increasing the likelihood of a recession. (Think self-fulfilling prophecy.)

But let's stop right there for a moment and look at what is really happening with the markets. Continue reading "Stocks Are Down, Talk Of A Recession Coming! It's Time To Panic! Or Is It?" →

It's Not Over Until It's Over And It's Not Over Yet - Part 2

Posted on by The INO.com Team

Hello MarketClub members everywhere! Well, today's sharp drop in equity prices and the rally in gold should come as no surprise as I have been talking about this since the beginning of the year. In fact, here's my first post where I explained why I thought the bear market was going to continue in the equities market. I'm not going to go over the reasons again as to why the markets are going down, suffice to say they are going down and are likely to continue.

At the moment all of the central banks, including the Fed, are clueless as to what to do. Instead of spending time on a cure in 2008, we made it easy for everyone to "take a pill" and mask over the problem. Since it did not cure the problem, we all have to suffer now as the markets readjust and face the music. The new hard reality is that there is no wonder pill.

Let's take a look at the major indices and see how far they could fall based on Fibonacci retracement levels and technical measurements. Continue reading "It's Not Over Until It's Over And It's Not Over Yet - Part 2" →