Why markets reverse... blame it on Fibonacci

There are times when markets reverse for no apparent reason and seem to defy any news that would support the direction of the trend. We call the this occasional event the "Fibonacci factor." This occurs when markets reach certain retracement levels and often reverse direction from their previous trend.

In this new short video I outline this phenomenon on the S&P500 and will also be covering it when our new educational trading video debuts this Friday, which will be of course, "Fibonacci Friday".

Enjoy today's video and let us know what you think. As always there is no charge and no need to register.

All the best,

Adam Hewison
President INO.com
Co-founder of MarketClub

DOW and NASDAQ: New Video

It may surprise you as to which indices have had the most comeback from the lows seen in March. In today's video we take a close look at both the Dow and NASDAQ indices.

In this short video we look at the retracement levels and why these indices may be getting ready for a reversal, but having said that, the major trend remains positive at this time for both indices.

As always our MarketClub videos are free to watch and there is no need to register.

Please give us your feedback on this video on our blog.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

Two Major Forces Collide in the Index Markets

On Wednesday, 11/11/09, the Dow Jones Industrial Index rallied to a 50% retracement level based on MarketClub's Fibonacci measuring tool. The action today indicates that this level is very important and that it could be an important top for this market.

In my latest video I cover both the Dow and the S&P 500 and tell you what I think is going to happen to both of these markets in the near and intermediate term.

Continue reading "Two Major Forces Collide in the Index Markets"

Is The NASDAQ Now In Thin Air?

Of the three major indexes we track: DOW, NASDAQ and the S&P 500, only the NASDAQ is in thin air.

What do I mean by thin air? So far the NASDAQ is the only index to make it past the 50% Fibonacci retracement levels as measured from the highs seen in 2007 and the lows that were made in March of this year.
Both the Dow and the S&P 500 have rallied strongly from their March lows but have not made it over the 50% retracement level.

Many professional traders - myself included - are looking at the NASDAQ's Fibonacci retracement as it represents a potentially key turning point for this year's market.

Continue reading "Is The NASDAQ Now In Thin Air?"

3 Potential Mega Trades In Q4

It seems to me that we are at an inflection point in the economy. The government has blown pretty much all of its money and the economic recovery and the economy is still sputtering along.  No surprise there.

So what's going to happen? I believe that we'll have another economic downturn which is going to push the dollar to new lows, push gold to new highs, and push the equity markets back down to their March lows.

Continue reading "3 Potential Mega Trades In Q4"