The Madness of Crowds

George Yacik - Contributor - Fed & Interest Rates

What a difference a week makes. Two weeks ago we were in a nuclear standoff with North Korea’s mad dictator. Then just a week later the nation was plunged into a “crisis” over a few thousand – or is it a couple of hundred? – Klansmen and Nazis, which had the smartest people in government, business and politics refighting the Civil War. Kim Jong-Un and his sycophants in Pyongyang must be laughing themselves silly, or kicking themselves for backing down.

President Donald Trump
Image Courtesy of AP

If all we have to worry about is a bunch of Klansmen and Nazis parading in the streets, things must be pretty darn good in the United States. So intelligent investors shouldn’t be overly alarmed and go about their business, as they seemed to be doing by the end of last week.

Then again, this phony outrage has nothing to do with racism or hate or statues of Confederate generals. It has everything to do with President Donald Trump’s enemies trying to remove him from office.

Whether they will be successful or not remains to be determined. But last week’s events certainly should leave us a little concerned, since we learned a little bit more about who Trump’s friends are, and who he can count on for support if things get worse. Continue reading "The Madness of Crowds"

Where Have All the Statesmen Gone?

By: Marin Katusa, Chief Energy Investment Strategist

One of the most striking things about the Colder War—as I explore in my new book of the same name—has been the contrast between the peevish tone of the West’s leaders compared to the more grown-up and statesmanlike approach that Putin is taking in international affairs.

Western leaders and their unquestioning media propagandists appear to believe that diplomatic relations are some kind of reward for good behavior. But it’s actually more important to establish a constructive dialogue with your enemies or rivals than your friends, because that’s where you need to find common ground. Indeed, it’s been the basis for diplomacy since time immemorial.

Reassuringly, despite having been the target of the Ukraine crisis rather than the instigator, Putin still sees the West as a potential partner, not an enemy. Nor does, he says, Russia have any interest in building an empire of its own. In theory, if Putin is sincere, there should be plenty of room for cooperation, especially in the fight against terrorism.

As Putin said in his speech at the Valdai International Discussion Club in Sochi in October—whose theme was “The World Order: New Rules or a Game without Rules”—he hasn’t given up on working with the West on shared risks and common goals, provided it’s based on mutual respect and an agreement not to interfere in one another’s domestic affairs.

Putin has, of course, already shown that he can rise above the fray. By negotiating the destruction of Assad’s chemical weapons arsenal under international supervision, he did Obama a big favor and got him off the hook in Syria. Continue reading "Where Have All the Statesmen Gone?"

My Response: This is going to infuriate some folks but it needs to be shared

Hello everyone this is Adam,

I just want to thank you all for all your comments on this posting. I've taken some personal attacks on this from people who don't know me and who accuse me of being a racist. I found that one comment repugnant, and certainly not reflective of my views on humanity.

I have also taken plenty of hits from those of you who think I am on the far right and hate President Obama, nothing could be further from the truth.  And those of you who think I hate the left, you are also way off base and incorrect in your thinking. So then, I must be a right wing nut? Sorry, no on that front also.

So why would I intentionally post something on our very reputable blog just to bring out peoples emotions? It was to bring attention to an important trait that you must have if you are going to be successful as a trader. Here's the takeaway lesson, and it has everything to do with the markets.

What I am talking about is EMOTIONS. Bottom line is, personal emotions have no room in trading or investing. Just look back, we are all guilty at some point or other of letting emotions get the better of us in trading. Here is a typical scenario, you get caught up in some story or tip from an expert on TV and you irrationally put on a trade. You have given this trade, no thought or analysis, yet you are committed and in the market. Then what happens? You guessed it, you lose money.

So here's the question I have for you, if the market throws you an emotional surprise, do you act emotionally to that news or do you have a clear game plan that is well thought out and void of emotion?

Here is what I mean ...

The market is not personal, it is not your best friend, nor is it your worst enemy. The fact is the markets are just about as cold and emotionless as you can get.

What causes all your problems in the market is not this blog posting, which I knew would cause an uproar, hence the title  "This is going to infuriate some folks but it needs to be shared"


Once you get emotionally involved about a market, all of those human frailties begin to sneak in. You know the one's I am talking about,fear, greed, anger, frustration, happiness. I would absolutely bet that many of you have had those emotions sometime when you have been trading.

As a trader emotions are by far the biggest hurdle to conquer. It is far easier to find a trade and go long and then take a profit, than getting your emotions under control.

MarketClub's Trade Triangles do an excellent job as someone commented on this particular blog posting of providing a non emotionless way to trade the market.  If you take ALL the TT signals in a disciplined, emotionless way, you will make money with our service.

Win, lose or draw, try to keep your emotions in check when it comes to the market.

I want you all to know that our mission here at MarketClub is to help you become a better trader. Sometimes on a blog like this you have to be dramatic and a little edgy to make a point, this was one of those times.

So here is the bottom line, leave all those emotions behind you when you put on your trading face.

Here's to your best year ever in 2012. You can achieve this goal when you eliminate the "BIG E".

All the best in 2012,
Adam Hewison

P.S. Are your emotions in check when it comes to trading. I would like to hear back from you

This is going to infuriate some folks but it needs to be shared

I received this email from a good friend on mine and I wanted to share it with everyone for comment. For those of you who say politics don't play a role in the markets, it is time to wake up and stop looking through rose colored glasses.  Just look at Europe!

Here is what my friend sent to me. Continue reading "This is going to infuriate some folks but it needs to be shared"

Another war and then another war and then... what is this Groundhog Day?

If you haven't heard the latest news about North Korea attacking and making aggressive moves towards Yeonpyeonga, a small South Korean island, you missed what moved the gold market today.

South Korea scrambled fighter jets and returned artillery fire after North Korea provoked the peninsula’s most serious confrontation in decades.

What you probably did not know was the $20 move up in gold today was signaled the day before by our "Trade Triangles." How was this possible? It has everything to do with some very cool technology developed by MarketClub.