Tag: Guest Bloggers

Rick Rule: Be a Risk Manager, Not a Reward Chaser

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The Gold Report: Rick, you believe the natural resources sector is experiencing a cyclical decline in a secular bull market similar to the 1970s. Is that true for other sectors as well?

Rick Rule: I learned the hard way not to assume that my success in the natural resource business was transferable to other sectors, so I am going to stick with resources.

However, there are parallels with the gold market. In the 1970s, we had a spectacular resource market, in particular for gold. Its price soared from $35/ounce (oz) to $850/oz. By 1975, in the middle of that secular bull market, gold had fallen to $100/oz. Those who sold at the bottom missed an 800% move in six years.

"I own gold the way that I own life, auto or homeowner insurance. I regard it as catastrophe insurance."

It is important to understand that in cyclical markets like resources, declines in secular markets are to be expected. From my point of view, you need to understand cyclical declines for what they aresales.

TGR: Is it fair to think that the prices of natural resources will bounce back as they did in 1970s, when the recession was much shorter and not as global? Continue reading "Rick Rule: Be a Risk Manager, Not a Reward Chaser" →

Chart to Watch - Copper

Posted on by The INO.com Team

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of December Copper (HG.Z12.E).

I hope you are having a GREAT week !

This week we will take a look at December Copper, as it looks to definitely be a Chart to Watch right now!

The monthly MarketClub Trade Triangle is green which means the monthly time frame is bullish.

Copper looks to be forming a Head and Shoulders base, and if it breaks out to the upside MarketClub will put in a green Trade Triangle on the weekly time frame. Continue reading "Chart to Watch - Copper" →

What Every Investor Should Know About Income and Growth: Kenny Feng

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The Energy Report: Kenny, you are a former MLP portfolio manager. You've also been an analyst at a bulge-bracket investment bank, Goldman Sachs Group Inc. (GS:NYSE), where you followed the energy and power sector, as well as MLPs. Is Alerian similar to Standard Poor's or Russell Investment's indices?

Kenny Feng: Yes, it's similar in that we are purely an indexing firm that maintains benchmarks for the MLP sector. But we are also an education provider for the asset class and aspire to be the Wikipedia of MLPsthe first-pass information source for an investor who comes across the sector through an article in Barron's, a commercial on CNBC, a conversation with a friend or financial advisor, or even through one of these interviews at The Energy Report. So besides the statistics we provide, we also speak at conferences and conduct free teach-ins to educate the investment community about MLPs.

TER: Do you manage any assets?

KF: No, and because we don't manage any assets, the investment community views Alerian as an unbiased source of information. We field questions for investors across the spectrumfrom individuals who have $100 to invest, to the multibillion-dollar institutions that are conducting due diligence on the sector prior to making a percentage allocation to the asset class.

TER: How does Alerian make money? Continue reading "What Every Investor Should Know About Income and Growth: Kenny Feng" →

HUI-Gold Ratio; 3 Views, 1 Conclusion

Posted on by The INO.com Team

Here is a little snippet from NFTRH 213 that showed the important indicator of gold sector health, the HUI-Gold Ratio (HGR) from three different views; daily, weekly and monthly.  As you can see, daily must hold to keep the weekly intact, which in turn must hold to keep the monthly big picture of the secular bull (for the HUI, not this sad looking ratio) intact.

This is a difficult sector to own and indeed these charts say it is best to trade the stocks regardless of what one does or does not do with the bullion.  But the conclusion is that until the HGR breaks down to a lower low, the current situation is viewed as a buying opportunity.  On the other hand, HGR will serve as a handy risk management indicator if it should unexpectedly collapse.  From #213: Continue reading "HUI-Gold Ratio; 3 Views, 1 Conclusion" →

Fibonacci Tips For E-mini Futures Trading - Part Two

Posted on by The INO.com Team

FIB TIPS AND OTHER HEAD TRIPS

As traders, we are quick to put on mental shackles. Bind ourselves to a way of thinking that lives somewhere between no-sense and nonsense. No trader makes it through unscathed. We all get a little taste of the snake oil in one form or another. However, if you are going to succeed in building your trading business, you must learn how to trade. Interestingly enough, the most powerful tools available in today’s hi-tech trading arena, in my opinion, aren’t the new ones; it’s the tools that are steeped in a rich history, the ancient of days.

  • Candlestick Signals - 400 years old
  • Fibonacci Sequence - Created “In the beginning” discovered by man recently in 1202

In our previous article, Fibonacci Tips For E-mini Futures Trading, we covered the basics of Fibonacci Retracements in the context of an uptrend. In this article, we will use the same concept and approach, but we will simply apply them in the context of a down trend. This is a large part of why Day trading E-mini Futures is so attractive. Unlike investing in a company where you often wait weeks, months, or even years for the stock to appreciate, E-mini Futures’ profit opportunities are as readily available in a downtrend as they are in an uptrend. Continue reading "Fibonacci Tips For E-mini Futures Trading - Part Two" →