No Surprises With This Week's Choppy Action

Hello MarketClub members everywhere, it's Friday and the market action this week reflected what I said in last Friday’s post titled, This Rally Will Come To An End Very Soon.

Major Indices

The major indices continue to be in “thin air” as the choppy market action I predicted last week continued this week. I would not be surprised to see further choppy action this coming week as the fight between the bulls and the bears continue.

Here are the major resistance points on a close-only basis that I see each for each of the major indices.

DOW (INDEX:DJI) - 17,178
SP500 (CME:SP500) - 2,011

The two arguments, of course, are: Continue reading "No Surprises With This Week's Choppy Action"

Are All Yen Bets Off?

Lior Alkalay - Contributor - Forex

Is the short bet on the Yen over? Well, maybe not when it comes to trade vs. the Dollar. But as far as other weaker currencies, that's a different story. As it relates to the Euro, then indeed, the long bet on the EUR/JPY might be over. And here's the reason why.

Inflation might be coming back

That's a rather straightforward statement, but the Bank of Japan believes that inflation is inching higher. And while it's not as clear-cut a case a, let's say in the US, still there is a basis for it. When calculating Japan's inflation, excluding volatile prices such as food and energy, inflation gained 0.6%. Now, while that's still low, it's a move in the positive direction.

Moreover, a quick look at the inflation figures per segments and you can see most segments have experienced price increases. That is a mildly hawkish sign. It must be pointed out that the BOJ is about to change the way it measures core inflation. Going forward, the BOJ will publish core inflation figures, calculated both with and without energy prices. However, the BOJ will focus on core inflation excluding energy prices. Previously, by including them, it distorted the inflation figures into the downside. Continue reading "Are All Yen Bets Off?"

2 Stocks To Watch This Week

This week, you may want to keep your eye on 2 stocks:

AliBaba Group Holding LTD (NYSE:BABA) and Under Armour (NYSE:UA)

Both of these stocks are in positive trends and have seen a recent pullback from their highs. Is this a good time to buy?

Let's start with the chart of AliBaba and go through the numbers.

Alibaba chart

1. We have a +85 Trend Score as both the weekly and monthly Trade Triangles are positive, indicating a strong upward trend.
2. $120 is the all-time high for this stock and that was shortly after its initial IPO.
3. Major negative force trend line.
4.- 5. Positive divergence on the RSI line versus negative price action.
6. Breakout over the negative force trend line.
7. Trend change with the monthly Trade Triangle at $91.88.

Strategy: Continue reading "2 Stocks To Watch This Week"

The Secrets Of A Dead Mathematician

Good day, let me begin by welcoming the hundreds of new members who have just joined MarketClub in the last few weeks. I welcome you and wish you every success with MarketClub.

Today I would like to share with you one of the many lessons that are available to you as a MarketClub member.

Technical analysis has been around for a long time. It has been said that Japanese rice traders kept hand charts over 200 years ago to track the price of rice. More recently in the 50's, technical analysis began to gain acceptance, and the 70's could be called the golden age of technical analysis. Technical analysis is now widely regarded as mainstream, no longer do traders and investors think of technical analysis as Ouija boards and funny-sounding chart formations. Technical analysis is a serious tool that you can use to make money.

Fundamentals are important, but technical analysis, in my humble opinion, is more important because it provides you with timing which I think you'll agree is everything in life.

I'm going to be looking at one of my favorite indicators that can help you enter or exit a market on favorable terms. This tool also works extremely well with the market-proven Trade Triangle technology.

Today's lesson is on the Fibonacci Sequence.

Leonardo Fibonacci was a mathematician born in 12th century Italy. His study of Fibonacci numbers (a sequence of numbers where each number is the sum of the two previous numbers) is often applied in technical analysis to find support and resistance in stock charts.

This timeless lesson I learned many years ago when I was a member of the Chicago Mercantile Exchange trading in pits. It is one tool that has stood the passage of time and one that I still use today.

How this amazing 12th century Italian mathematician figured this out is way beyond my pay scale, but I can say without hesitation that it works.

Watch the lesson here and then leave a comment.

How To Use Fibonacci Retracements

The principle behind a Fibonacci retracement is that after a stock moves upward or downward, the price will often retrace or correct some of this movement. Many technical analysts believe that the amount of retracement will often correspond to one of the Fibonacci levels. The five horizontal lines represent percentages of 100%, 62%, 50%, 38% and 0% (with 62 and 38 being Fibonacci numbers).

The Fibonacci sequence works on intraday charts, daily charts, weekly and monthly charts. I do not know why it works in the financial markets. Through all my reading and research, I've never found a reason other than it works in nature.

I'm going to show you just how easy it is to use Fibonacci in your own trading.

This is one lesson you do not want to miss, it will open your eyes as to how and why markets move. One of the many benefits of Fibonacci retracements is that it will allow you to enter a position with very little risk. That is a big plus in today’s markets.

So enjoy and learn from this valuable lesson and yes, take a look at some charts after watching the video and apply what you learned using MarketClub's Fibonacci tool.

By all means, please feel free to share your findings on the blog with your fellow members. You can leave your comments and findings just below this post.

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

Metal Tactics: Short Silver and Palladium With A Tight Stop

Aibek Burabayev - Contributor - Metals

Dear Readers,

The end of January brought worrisome signals to the metals' bulls and I want to show you where Silver and Palladium failed to sustain growth and why.

Silver Is In A Downtrend

Let's start with Silver, as it's more liquid and therefore more interesting. Below is a weekly candle chart. I started my metals posts from an overview of a monthly time frame and now I am digging deeper into details using a weekly period.

Weekly Silver Candlestick Chart

The medium term trend is bearish. At the end of 2014, Silver managed to stop a free fall that started above the $21 level. Price sculpted a double bottom figure (highlighted in the blue semicircle) in the $15-18 range. Continue reading "Metal Tactics: Short Silver and Palladium With A Tight Stop"