Tag: Mid-Day Report

The Real Reason Why Crude Oil Is Moving Lower

Posted on by The INO.com Team

As you may well know, crude oil (NYMEX:CL.Z14.E) prices have been dropping precipitously this year. In fact, they are at their lowest level in two years. I have a theory as to why oil prices are dropping.

I believe one of the great unsung victories for automobile manufacturers are the new cars they are producing that are getting, on average, an amazing 25 miles per gallon. That is a quantum leap from just a few years ago. With hybrids (cross between electric and gasoline) becoming more mainstream and more motorists turning in their old cars to buy new, more efficient cars, I would expect to see this trend continue. Better cars produce better mileage, therefore their need to go to the pump to fill up is less frequent than before.

Last week I witnessed the markets having one of their best weeks ever, up close to 4%. This strong market action for the week put a smile on a lot of people's faces, however it is still too early to confirm a major trend reversal to the upside.

I also mentioned in my last video that I liked Apple Inc. (NASDAQ:AAPL), which was making new all-time highs on Friday, along with Alibaba Group Holding Limited (NYSE:BABA) and Facebook Inc. (NASDAQ:FB). I will be checking in on those stocks today to see how they're doing. Also in today's video, I'll be looking at crude oil (NYMEX:CL.Z14.E), gold (FOREX:XAUUSDO), the U.S. Dollar Index (NYBOT:DX) and the major indices.

You are more than welcome to join in the conversation or leave your comment below this post.

It's going to be an interesting week for sure, so stay tuned.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Amazon's Greatest Nightmare

Posted on by The INO.com Team

Yesterday, Amazon.com Inc. (NASDAQ:AMZN) reported its earnings. They were a shocker and pushed the stock down over 9% overnight.

While Amazon was reporting no profits, Jack Ma, the head of Alibaba Group Holding Limited (NYSE:BABA), was in Hollywood looking to buy content and movie studios for his mammoth "find everything" website. Mr. Ma has also said publicly he wants to have US companies on his website so they can sell their products in China. Alibaba has over half a billion customers at the moment and is growing fast.

When I look at the stock of Amazon I can see that this stock hasn't gone anywhere and keeps losing money. Somewhere along the line, I think investors are going to say enough with Amazon already, it's got to start making money. Amazon has its fingers in a lot of pies including advertising, merchandising, newspapers, the cloud and probably a lot of other ventures you don't even know about.

But even if you didn't know anything about Amazon or Alibaba and you just look at the charts, you have to say that the chart on Alibaba looks a lot more positive than the one for Amazon. Now admittedly, Alibaba has not been trading in the US that long, but something seems to be right about what's going on with this company and its charismatic leader, Jack Ma.

While Amazon stock has gone up and come down, it's practically unchanged from where it was a year ago. It is down over $100 for the year, while AliBaba's stock is within 2 or 3% of its IPO high price of $99.70 on September 19th.

In today's video, I will be looking at both the stock of Amazon.com Inc. (NASDAQ:AMZN) and Alibaba Group Holding Limited (NYSE:BABA). I'll also be looking for some weekend trades of the 52-week kind and see what I can come up with. And of course, I will do a recap of the week and show you the winners and the losers.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

2 Stocks To Buy Today

Posted on by The INO.com Team

Good day traders and MarketClub members everywhere! I have found two stocks that I believe are going to move higher in the near future and I will be discussing those stocks with you today.

I'm also going to be looking at the general market and analyzing how much further this rally can go in the major indices. Also included in today's video is a look at gold (FOREX:XAUUSDO). How much further can it go on the upside? Has crude oil (NYMEX:CL.Z14.E) finally found a bottom? Lastly, a quick peek at the US Dollar Index (NYBOT:DX) and why it took a breather.

You are going to have to watch the video to find out which two stocks I really like. I think you'll find the stories behind them very compelling as one of these particular stocks takes up almost 40% of a well-known hedge fund's portfolio.

Don't miss today's video!

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Will The Rally End?

Posted on by The INO.com Team

Will Friday's rally continue or was it just a "dead cat bounce"? There is no doubt about it, we have been seeing lots of volatility in the markets. Is it likely to continue? Like in the past, it will continue until it stops and the market settles down. Nobody can give you an exact timeline when that's going to happen, but it will happen. In the meantime, having a solid game plan, one that you know has been successful in the past, will lead you to successful trades.

You've heard me say this before, the market can only move three ways, it can go up, down and sideways, that's it! When you boil it down to those simple terms, it is easy to see how investors can create many of their own problems by over-thinking a situation. You may have been guilty of this yourself at some point in time, I know I have. It is so easy to get caught up with the hubris of the market and lose sight of your investment goals. It's also easy to fall into the trap of listening to too many talking heads. Oftentimes when this happens, it leads to confusion and will leave you in a state of paralysis. Continue reading "Will The Rally End?" →

The One Market Truth You Need To Know

Posted on by The INO.com Team

There's no question about it, the markets are a little jittery right now. With the S&P down almost 6% from its September highs, people are beginning to ask themselves, "is this the big one?"

Here is the one market truth you need to know:
No one knows for sure what's going to happen, except the market itself.

The market determines prices and when you are investing, how the market closes directly effects your bottom line. Whether you are in business or in the business of investing, the bottom line is what everyone looks at. You invest or trade to make money and how a market closes determines how much money you're making or losing at that particular point in time.

You can watch all the economists, all the talking heads, read all the blogs you want and you'll come away with 100 different views about what's going to happen to the market.

The only voice you really need to pay attention to is the voice of the market. The market itself tells you what it's going to do if you listen carefully. If you been following this blog for any length of time, you know that I have been out of market and on the sidelines since about the middle of September. If you take a look at Gold (FOREX:XAUUSDO), I have been either short or out of the market since July 13th. It is pretty much the same picture with Crude Oil (NYMEX:CL.Z14.E), where I have been either short this market on the sidelines since early July, with the exception of one fake out in late September.

Let the market tell you what it wants to do, rather than guessing or trying to pick a top or bottom.

In today's video, I will be listening to all the major markets. I am also going to share with you how the market actually talks, you won't want to miss that.

Every success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub