Today's Video Update: The Beat Goes On

Hello traders everywhere! Adam Hewison here, President of and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 15th of May.

Google Music?
Word on the street is that Google (NASDAQ:GOOG) is set to announce today a new streaming music service, one that will compete against Pandora and Spotify. Once again, it seems as though Google wants to be everything to everybody, and whether Google can compete in the music business and be successful remains to be seen. Should you buy or sell Google? If you haven't watched my Google trading video on how to trade Google successfully, you can watch it here.

The Beat Goes On
Stock prices hit a high yesterday as more and more disenfranchised short sellers are covering their shorts and exiting this market. So far, this market has not yielded to any downside pressure or correction to the surprise of many professional traders. What I do know, is that trends tend to persist longer than expected, and that they don't ring a bell at the top of any market. In a recent blog poll, we asked readers what they thought of the market: Continue reading "Today's Video Update: The Beat Goes On"

Today's Video Update: Gold and Oil Prices Swoon

Hello traders everywhere! Adam Hewison here, President of and Co-creator of MarketClub, with your mid-day market update for Friday, the 12th of April.

Gold (XAUUSDO) continues to come under pressure and is going to close out the week on a negative note. It would appear as though nobody wants to hold gold anymore. The gold market is close to a key area of support around the $1,500 area. A close below that area today does not auger too well for this market. Rumors that Cyprus is selling gold to improve its bank balances is also adding downside pressure on an already depressed market. We will be checking in on gold today and analyzing just how far this market can go from here. Continue reading "Today's Video Update: Gold and Oil Prices Swoon"

Gold Chart of The Week

Each Week will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (April 1 through April 5th)

After reviewing notes and performance from last week in the markets, one cannot help but be impressed by the US stock indexes. Despite reaching record levels on the charts, despite mediocre reports, and despite continued concerns about the ripple effect of Cyprus, the buy switch continued to stay on. The same big question still remains, “when will the market retrace”?

I believe that the stock indexes in the US will begin a gradual decline once European news begins to flow again. It has been too long since we heard the likes of Angela Merkel, Francois Hollande, and Mario Draghi. I think back to last year when these three may as well have been the President, Vice President, and Speaker of the House in the US with all of the press they had here. Yet suddenly, they have seemingly disappeared from all news lately. Continue reading "Gold Chart of The Week"

Leonard Melman: Are You Prepared for Hyperinflation?

The Gold Report: You recently told a crowd of investors at Prospectors Developer Association of Canada (PDAC) that precious metals are the best place to invest in an inflationary period. Why is that?

Leonard Melman: When prices are going up, you wouldn't want to be in housing stocks or auto financing, but you would certainly want to be in precious metals. You also might want to short the bond market. That is why you have to be aware of the direction of inflation. It is important to the concept of precious metals pricing. If you've been around for a few years, as I've been lucky enough to be, then you can easily recall a time when high inflation was the absolute key ingredient in massive previous bull markets. That is why I thoroughly look at what has led to past inflation and hyperinflation. I use four examples: the Roman Empire, the French Revolution in the late 1700s, the German hyperinflation in the 1920s and the recent catastrophe of hyperinflation in Zimbabwe. I examine whether America and other countries in the world are perhaps following the same paths that led to those previous hyperinflations.

TGR: Do you think investors are going to see hyperinflation in the foreseeable future? Continue reading "Leonard Melman: Are You Prepared for Hyperinflation?"

Value Market in Gold Will Work for Patient Investors: Jocelyn August

The Gold Report: Jocelyn, I'm looking at a portfolio of junior precious metals mining stocks, and all I can see is red ink. With the exception of MAG Silver Corp. (MAG:TSX; MVG:NYSE), all in that group are underwater for the past 52 weeks. We are currently in a down-trending precious metals market, and I'm interested to know if catalysts matter anymore.

Jocelyn August: Catalysts absolutely do matter right now. We may see a catalyst occur in a company followed by a 2% uptick in its stock, on the same day the sector as a whole may be down 25%. We may see that even in this price environment. If you were aware of that catalyst and you bet on it, you would actually have fared better than the sector on that day. By comparison it actually did help the stock price.

"Catalysts absolutely do matter right now."

Conversely, we also see a fair amount of catalysts that might have a negative consequence to the stock price, particularly when it comes to permit approval decisions that may go the wrong way for the company. You could get pretty badly burned. For example, back in early October 2012, Pacific Booker Minerals Inc. (BKM:TSX.V; PBM:NYSE.A) announced that the environmental assessment permit for its Morrison project in central British Columbia was denied. The stock dropped 66% in one day and then dropped even further in the week. A month after that event, Pacific Booker was down 75% from the day before the announcement. So, catalysts do matter.

TGR: In this kind of depressed gold and silver market, it appears that the effect of negative news is magnified. Is that in fact the case? Continue reading "Value Market in Gold Will Work for Patient Investors: Jocelyn August"