For some time now, I've been talking about the volatility of the markets and for the last three days, volatility has been front and center. So, what is an investor to make of this and what opportunities are there to make money?
One way to take advantage of this difficult period is to look at our Smart Scan technology. In today's graphic, you can see that the market is beginning to tilt more and more to the bearish side of the ledger.
You can see by the Smart Scan numbers, the "Long Term Down" stocks now exceed the "Long Term Up" stocks by almost 400. When you look at "Chart +100", which means there's a strong uptrend, you see just 140 stocks trending upward. The number of stocks trending down in "Chart -100" is over 1000!
There are many stocks that are close to or have just reversed to the downside and you should be either on the sidelines in these stocks or shorting them.
With this being the last day of a tumultuous week, I expect the market to be a little exhausted and do not expect to see a big move either way today. Having just made that statement, I'm going to hedge myself and say as this is Friday, markets can and do sometimes go into turmoil.
MarketClub's Smart Scan technology contains an amazing amount of information that you can use to help trade with the trend. Smart Scan can also alert you to changes in the bigger picture for the general market.
Let me share with you and example of how that would work. Looking at the graph below, you'll see a series of numbers, 1 through 4. I've illustrated the graph with these numbers to showcase what's going on right now in the general market.
1. "Long-Term Trend Up +90 (178)" - This means only 178 stocks have a +90 reading or higher.
2. "Long-Term Down -90 (832)" - This means 832 stocks are trending down and have a reading of -90 or lower. The number of stocks in a strong downtrend clearly outweighs the number of stocks in an uptrend over 4:1.
3. Looking at the stocks making "52-Week Highs," we see only 35.
4. The number of stocks making "52-Week Lows" is 646, which far outweighs the number of stocks that are making new highs.
At this point in time, I think it's clear to say that negative trend is winning out and in the majority.
In each of the 24 scans found in Smart Scan, it can really tell the story of the market. I highly recommend you spend some time looking at Smart Scan to see how you can successfully incorporate some of these scans into your own trading approach.
I find I constantly go back to this tool, not only to find stocks that are making new highs and trending higher, but also to see what's making new lows and what opportunities there are to short the market.
Every success with MarketClub, Adam Hewison
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 15th of November.
It has been quite a week! It's Friday and time to look for new 52-week highs in the markets. It was a strong week for the indices and several of the markets I am following, so after a quick recap of the major markets, I will show you how to find new 52-week highs and the rules you need to trade them.
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your market update for Monday, the 11th of July.
Last week, the standout story was the disastrous jobs report. As this week unfolds, we are faced with more problems such as the debt ceiling and the total lack of cooperation between the Democrats and the Republicans. It seems as though both parties are firmly entrenched in their own party lines and are failing to see just what it's doing to the country.
We have talked about this before, and the fact that the politicians both in Europe and here in the United States really don't want to face the truth has created the current mess over the last 20-30 years. It is always same old story of "kick the can down the road" and let somebody else take care of it.
Well, it's showtime or should I say it's a showdown now! We need to get serious about getting this right in this country. I believe that we got into this together and now we should get out of it together.
Hello, traders everywhere. Adam Hewison here, co-founder of MarketClub, with your market update for Friday the 8th of July.
It was a shocker. We only created 18,000 jobs and unemployment jumped up to 9.2% - how can we say things are getting better when here we are basically two years after the low in the equity markets with unemployment still stubbornly stuck over 9% and probably going back over 10%.
Folks, there is no "Plan B". For the past two years, this administration has declared warfare on business, particularly small businesses - the folks who actually create jobs in this country!
It is amazing to me that they could be so blinded with their political philosophy that they have actually forgotten that there are real people out of work that need jobs. Small businesses - the very people who create 70% of all jobs in America, are being punished as the current administration wants to tax them more. How stupid can things get. Oh, they can get pretty stupid.
As I mentioned yesterday in my 1 p.m. update, I felt that the S&P was in thin air and also as cyclic high. I think we could be seeing the start of a 15 to 20 day correction. We also recommended taking some money off the table in our crude oil trade which also went very well.
As mentioned earlier I'm doing this report a little bit earlier as I feel today could be an important turning point in the markets.