SKF, the banks, Fibonacci trading, and why the markets crashed

Last night on MarketClub TV, Susan and I discussed what we and the “Triangles” saw in the markets in the days to come and well, it didn’t even take days. In a little more than 12 hours, the markets showed us that we were dead on.

SKF discussed in the above video recorded on Wednesday is up + 9.8% today!

Of course, even we know that we can’t be right all the time, but more often than not MarketClub has put us on the right side of many markets. Want to see for yourself? For the first time ever, we’re offering you a MarketClub membership at a price you’d be crazy to refuse. Click here to find out more.

All the best,
Adam Hewison
Co-creator, MarketClub

Triangles or Crystal Ball?

It would almost seem like MarketClub's Trade Triangles could see into the future, but you won't find any mumbo-jumbo or "black box" technique hiding behind our symbols, just market-conquering technical analysis.

If you tuned into last week's MarketClub TV show, you heard Adam talking about the Proshares Ultra-Short inverse etf, SKF.

MarketClub gave SKF gave a green monthly Trade Triangle on May 24th - nearly 3 months ago(!) with an exit on June 29th (profit of 1.06%). Then, a re-entry point occurred on July 18th and if you bought then, you'd be up 32.71%!

Even if you didn't get in until the morning after Adam talked about it on MarketClub TV, you STILL be up 28.33%!

I don't think we could make it any easier if we tried.

Every success in this crazy market,

Susan Jackson
MarketClub TV Co-Host

Trader's Blog First Ever CONTEST!

We've all been there....looking at a chart a year later and saying to ourselves "WHY, OH WHY, didn't I just pull the trigger!?!?!" The chart shows us the sad truth that if only we would have gotten long, we would have had 500% returns, an island in Fiji, and 6 cars!

But we didn't...

We here at The Trader's Blog, would like to know what trade would have been your best...if only you would have taken it? Did you see something special in Google at 100.00 in 2004? Was Spot Gold primed at 256 in 2001? What made you stay out of Wheat around the 500.00 mark? Whatever your story we want to hear about it!

We'll be giving away an Apple iTouch!

How you enter:

Comment today and tell us what that trade would have been...and what you would have bought with the returns!! Here are some trades that we in the office wished we would have done:

Bob F. "I wish I would have gotten long USO February of 2007, when Crude just started to move!"

Melissa P. "Playing the AMEX_SKF which is an ultra short financial ETF around April when Bear's crashed."

Lindsay T. "Shorted NASDAQ_TRMP on our last monthly Trade Triangle at 16.51 in January of this year...that would have been huge!"


Here are the details:

1. This contest open for 2 WEEKS!

2. Winner will be picked randomly by software to remove human errors.

3. One entry per person!

4. Winner will be contacted via email.

5. No wrong answers, participation counts as an entry.


iTouch and Apple are a registered trademark of Apple, Inc. All rights reserved. is not partner with Apple for this contest and do not hold any type of partnership.

Trading Successfully in a downward trending market

Today our guest blog posting will cover something that's been on our minds for the past few months...a Bear market! I'm often asked, "what can I do?" There isn't enough time in the day to help someone who asks me questions like that to be honest. If you don't have a place to start, or a strategy in place you're already behind and destine for failure. So read the article below from WallStreetSurvivor and set up your plan.


Making money in a down market may seem impossible, but there are proven strategies that allow you to profit and seize opportunities that are available in almost any Down, or Bear, market.

When there is turbulence in the stock market, and there appears to be widespread pessimism about stocks, should you simply throw in the towel, sell all your holdings and wait for the market to turn bullish again? The answer is NO! The key is to turn these bumps into plateaus of opportunities. There are several proven strategies to turn market losses into your gains.

Here are three:

* Shorting Stocks
* Buying Bear Market ETF's
* Buying Defensive Stocks

Shorting Stocks

So... Shorting is a way to make a profit from a stock falling in price when the market is bearish.
In 'short', it's a bet that a certain stock will fall.

If a stock looks like it will start losing value, then you can bet against it and make money as its price drops. When you short, you are actually borrowing the shares from your broker with the intention of selling them in the future. So basically, it's a loan of the shares. But the price you sell them at is all profit.

Let's look at an example. If stock ABC is trading at $30 and you expect it to go down, you would 'short' sell it. This means if your broker has loaned you money to buy ABC at $30/share and it falls to $25/share, you make a profit $5/share. That is, you sold the stock for $30/share, and you only paid $25/share for it, even though you sold it before you paid for it. Shorting stocks allows you to make money on a stock when it falls in value.

Let's dive into a few more facts about shorting and risks associated with shorting. To start with, borrowing shares means margin and while you short-sold a stock, if the company announces a dividend, you would have to reimburse the owner for the dividend. Meanwhile, your downside risk is equivalent to how high the stock may rise after you short-sold which is potentially unlimited downside risk.

Another way to look at a bear market if you're not a big fan of shorting is...

Bear Market ETFs

An alternative to shorting stocks or indexes is to buy Bear Market Exchange Traded Funds (ETFs)

Bear Market ETFs are designed in a way that when major indexes go down, these ETFs gain value that matches the drop in the index. Moreover, a type of ETF called Ultra Short ETFs allow you to multiply your gains (or losses) by investing in leveraged ETFs. What that means is for a 2:1 leveraged Ultra Short ETF, if the underlying index goes down by 4%, your ETF would go up by 8%. For example, the Ultra Short ETF - Short Ultra Financials (AMEX: SKF) has a 2:1 leveraged relation with the underlying Dow Jones U.S. Financials index (INDEX: DJUSFN). Beginning in November 2007, if you would have bought SKF, with a 10% loss in the index value; you would have gained 20%. Not bad, huh?

In summary, with Bear Market ETFs, you could still reap the benefits of shorting in a down market, without worrying about margin or the unlimited risk associated with shorting a stock. Additionally, Ultra Short ETFs provide an interesting alternative to multiply your gains or to hedge a downturn by investing in leveraged securities.

More Bear Market ETFs:

* UltraShort Consumer Goods (AMEX: SZK)
* UltraShort Health Care (AMEX: RXD)
* UltraShort Oil & Gas (AMEX: DUG)
* UltraShort Real Estate (AMEX: SRS)
* UltraShort Semiconductors (AMEX: SSG)
* UltraShort Utilities (AMEX: SDP)

Bear Market Index ETF's:

* UltraShort Nasdaq (AMEX: QID) is designed to profit when the Nasdaq index of technology stocks goes down.
* UltraShort S&P 500 ProShares (AMEX: SDS) is designed to profit when the S&P 500 index goes down.
* UltraShort Dow30 ProShares (AMEX: DXD) is designed to profit when the Dow Jones Industrial Index goes down.

Defensive Stock Picks

Seema Garg, Program Manager at Wall Street Survivor

Looking for more ways to profit in a Down market? Here are six industries to BUY in a Bear market that could make you money while others may be selling:

Wall Street Survivor