Here is what I don't think is going to happen in 2012

It Doesn’t Matter What You Think Going Into 2012!

Let me say that again: It Doesn’t Matter What You Think going into 2012!

Why would I say something like that as we come to the end of 2011?

Well here’s the cruel reality of the marketplace ...

It doesn’t matter who's right and who's wrong with their 2012 predictions. What matters most is Continue reading "Here is what I don't think is going to happen in 2012"

Lowest Trailing P/E Ratio In 2 Decades, But...

Today we have a special guest blogger, Price Headley of Big Trends. Price is a Traders Hall of Fame inductee and is a regular contributor on CNBC, Fox News and Bloomberg Television, and in a variety of print and online financial news outlets. Today Price will share some of his insight on the recent sell-off and his predictions on the week ahead. Be sure to look over Price’s shoulder as he trades with 3 Months of his Investor’s Edge Newsletter FREE!

If you thought two weeks ago was rough, last week's 7.0% slide made the previous week's 4.0% pullback look like child's play. There is sort of' a bright spot in there though, IF the bulls play their cards right and the bears still aren't angry. (That's a big if though.)

Before we slice and dice the market though, let's run down last week's and this week's big economic numbers.

Economic Calendar:

Even relatively good news was treated like bad news last week by expert market analysts. Mainly, a slightly optimistic employment picture still didn't stave off some serious selling. The unemployment rate fell from 9.2% to 9.1%; job creation easily topped the expected figure of 100K with 154K new payrolls added, and unemployment claims basically held steady. Nobody cared. Continue reading "Lowest Trailing P/E Ratio In 2 Decades, But..."

Last Chance!

No one can be successfully accurate at predicting the markets...at least not on a regular basis. But when there's an Android Tablet to win, you might as well try!

If you have been following our blog in the last month, then you know all about our prediction challenge. If you haven't already emailed your predictions for the DJI and DX for the end of QE2, do so now! You have until the end of today (11:59 p.m. ET) to submit your winning guess to Jennifer@ino.com

Still confused? Get caught up here!

Best,
The MarketClub Team

Looking back on gold...

Adam has created countless trading videos throughout the years. One in specific was recorded in February of 2010 regarding cycles in the future price of gold. Let us refresh your memory…click here.

Now that you have the back story and the video to prove it, let us share with you an article that was published by The Street yesterday afternoon:

Over the course of the past few months, one large buyer has accumulated approximately 50,000 gold call option contracts -- most of the calls are strikes between $1,600 and $1,800 an ounce and for expirations between August and December. In total, as much as $50 million in call premium has been paid out by the purchaser.

As the gold futures market is roughly 10x to 15x the size of the gold options market, this is a huge bet in absolute dollars relative to the liquidity of the market.

Considering that the calls are well out-of-the-money (gold, on a futures basis, today trades at $1,512), the call option is all premium and, as such, is a decaying asset. So, given the size of the purchase, the buyer is not likely an individual hedge fund -- more likely, it is a central bank or a sovereign fund.

It is interesting to note that all of the buyer's options mature after QE2, so the buyer might believe, for example, that the institution of QE3 holds a greater probability to be implemented than the consensus is currently forecasting.

The buyer is clearly betting on a large run-up in the price of gold during the summer and fall months.

With all this leverage in the hands of one owner, a sharp price appreciation in the price of gold could cause the shorts (on the other side of the call option trade) to continuously buy futures and further contribute to a rising gold price in order to maintain a flat delta. –

We read this article, and thought to ourselves, “Why does this prediction look so familiar?” Then we remembered…

WE PREDICTED THE SAME THING IN 2010!!!

We hope that you listened to our “Trade Triangles” and got your piece of the fifty-million dollar pie. If you’ve been wondering what MarketClub can do for you…now you know!

Best,
The MarketClub Team

If you "snooze" you lose!

If I wasn’t still getting a steady stream of emails after reminding you of the prediction challenge, I would feel like that pesky alarm that you dread as your morning wake up call. Well consider this your final hit to the “snooze button!” We are embarking on the last week of the contest.

Contest? What contest, you ask? Wipe the sleep from those beautiful eyes of yours, charge that battery, and show everyone that you deserve to be a “trillionaire”, “the smartest man/woman of the universe”…and at the very least, the winner of an Android Tablet!

Email Jennifer@ino.com to submit your genius predictions for the DJI and DX for the end of QE2.

Still confused? Get caught up here!