If you have read my posts for any length of time, you will see that I frequently refer to the saying, "the trend is your friend." However in this case, there appear to be two developing trends that will offer some amazing opportunities, but at the same time create some very dangerous times for the planet. I'm sure like many investors, you are tracking what is going on in the Ukraine and Crimea. I do not view this as a positive, in fact, I think this is a once-in-every-two-generations kind of event and a very negative trend not just for the US and Europe, but for the global community in general. The other trend that I see is right in front of our eyes every time we go to buy food at the supermarket. Yes, food costs are rising. This is seldom reported by the national media, but it effects every family here in America and creates the foundation for inflation. This leads me to Janet Yellen's remarks yesterday when she stated that interest rates could be rising as early as the next six months. I have said this before, the only way the Fed is going to be able to dig itself out of the hole it has put itself in, is to inflate the economy. I am not sure that is going to work this time, as the national debt is $18 trillion dollars and even the smallest move in interest rates will cost the US billions in extra interest payments. All in all, not exactly a rosy picture, more like being stuck between a rock and a hard place. In separate news, Bloomberg reported that Hong Kong stocks officially entered into a bear market today, meaning they are down over 20% from their highs. It would appear that many of the markets are literally hanging on by their fingernails to the gains made in 2013. Make no mistake about it, the markets are nervous and this could easily lead to a rush for the exit doors. DOW 30 This is the one index I would watch closely today and tomorrow. Should the DOW move below the 16,046 level, it will reverse the weekly Trade Triangle to red, indicating that you should be short this index or on the sidelines. The other two indices, the S&P 500 and the NASDAQ are stronger, but they will not be immune to downside pressure if the events in Europe spiral out of control. Gold After reaching a high around $1,392, gold prices fell sharply from the $1,400 resistance level that I have outlined in previous reports. The $70 drop was fast and furious and I would now expect it is going to take some time for this market to regroup and repair itself before resuming its upward trend. At this point in time, I would not be in a rush to buy gold, even though the longer term trend remains positive for this market. There is a long-term support line that comes in around $1,300 on the spot gold chart and I expect that area to provide sufficient support to arrest the current decline. The Dollar The very hint of higher interest rates from Miss Yellen was enough to reverse the Dollar from its recent 28-month low against the Euro. I still consider the trend in the Euro to be positive against the US Dollar and I expect this cross to find support around the 1.3750 level. I want to wait until all the dust is cleared before reentering this market. Crude Oil There is somewhat of a mixed picture in the crude oil market, with the Trade Triangles indicating a neutral reading of +55, which means a trading range is in place. It would appear as though the market has found support around the $98 level. I would like to see more backing and filling before the longer term bull trend regroups and begins to move once again to the upside.
MarketClub/INO, a division of TIFIN Group LLC, is affiliated with Magnifi via common ownership. Affiliates of Magnifi will receive cash compensation for referrals of clients who open accounts with Magnifi. Due to this compensation, a conflict of interest exists since MarketClub/INO has an incentive to recommend Magnifi LLC.
Magnifi LLC does not charge advisory fees or transaction fees for non-managed accounts. Clients who elect to have Magnifi LLC manage all or a portion of their account will be charged an advisory fee. Please see Magnifi’s Form ADV for additional information about fees and charges that may apply. Magnifi LLC receives compensation from product sponsors related to recommendations. Other fees and charges may apply.
Magnifi, normally $14 per month, will be available at no additional cost to MarketClub members. Account holders must be 18 years of age and have an approved Magnifi account. Magnifi will determine qualifying account holders at its own discretion.
U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large
potential risk. You must be aware of the risks and be willing to accept
them in order to invest in the futures and options markets. Don't trade
with money you can't afford to lose. This is neither a solicitation nor
an offer to Buy/Sell futures or options. No representation is being
made that any account will or is likely to achieve profits or losses
similar to those discussed on this web site. The past performance of
any trading system or methodology is not necessarily indicative of
future results.
CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.