Two Contrarian Trades for the Coming Decade
The last time Nicholas Vardy was a guest blogger he generated quite a buzz with his article and the comments that followed. This article should do the same, but you’ll have to read on and let your thoughts and opinions be heard. After you read the article and comment, please visit Nicholas’s site (Global Stock Investor) to read more articles and opinions from him.
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U.S stock markets have just come off of their worst decade ever, with inflation-adjusted returns in the S&P 500 dropping as much as 30%. That’s a far cry from what investors were expecting at the turn of the millennium. The Internet was creating paper billionaires overnight.
Fast forward 10 years, and Nasdaq is still 40% below its peak. In addition, the Pew Research Center just designated the past decade as the “worst in 50 years.”
But just as there was a technology bubble in 2000, today there is also a strong “pessimism bubble” about the U.S. economy over the coming decade. And like all bubbles, this one will eventually pop – as will the rising China bubble. Understanding this is the key to ensuring you don’t end up like investors who have spent the last decade waiting for Cisco to “get back up to $80.”
Rarely has the global stature of the United States been lower than it is today. A recent Washington Post/ABC poll found that 61% of the American people think the United States is in long-term decline. In another poll, 44% of Americans said that China was the top economic dog in the world, compared with only 27% favoring the United States.
Saturday Success Story – Ronald, California
At MarketClub, our mission is to help you become a better trader. Our passion is creating superior tradingtools to help you achieve your goals—no matter which way the markets move—we promise objective and unbiased recommendations not available from brokers.
Here is one of our member’s story…
“I was so pleased to be given the opportunity to tell how MarketClub has changed my trading. I started following MarketClub about a year now, and I’m following the Trade Triangles with great success to say the least. I noticed that if I get a signal from the daily and enter on either a stop order or on the market open on the next day and stayed with the trade till the daily triangle signal tells me to exit the trade, most of trades have been winning trades. My profits range between $5,000 dollars (lowest month) to $13,000 dollars (best month). Also they added a new Alert feature, and it’s outstanding, giving traders a hands on alert to when a profit target or stop placement have been hit (not having to wait until end of day to find out.) In closing, I would like to say that I’m very happy to be a member of MarketClub and look forward to many years of profitable trading with Trade Triangles.” ~ Ronald H., California
To send your own success story, please email blog@ino.com. We wish all of our members the best and we look forward to hearing your success story.
Steve Jobs, Apple, the iPad, and King Gillette
On Wednesday, after much hype and drama, Steve Jobs walked onstage and unveiled Apple’s latest creation – the iPad. Having watched almost every key address for Apple for many years I, like many others, were disappointed that the product didn’t live up to the hype. Nonetheless, Apple will sell a boatload of these products, but not as many as the iPhone.
Upon reflection, it occurred to me that Steve Jobs is changing the whole business model of Apple and I don’t believe anyone has caught on to this yet.
In all the reports I’ve read after the launch of the iPad, I think every writer/analyst missed this key point: Steve Jobs wants to be like King Gillette.
If you don’t know who King Gillette was, you may not old enough to shave. King Gillette started his business at the beginning of the century. His business model is what I believe Apple’s business model will be in the future.
The MarketClub Minute – Lesson 8
What do all successful traders have in common? Today Adam shares what might be the most important facet in trading like the pros. This last minute in the MarketClub Minute series is a “can’t miss”!
Click here to view Lesson 8 in the MarketClub minute series and find out what will keep you from avoiding a common downfall of new traders.
Best,
Adam and The MarketClub Team
Nasdaq Index – Trendline Alert
One of the most powerful technical tools that a trader possesses is a pencil and a ruler. It sounds kind of old-school, but the reality is trend lines in technical analysis are enormously important.
In my new video I will show you how the NASDAQ index has broken a very important trend line and what the ramifications are for this index.
We can all learn from the simplicity of this approach and how effective it is in the long run.
As always our videos are free to watch and there are no registration requirements.
Enjoy the video and please feel free to comment on blog about this simple yet effective way of trading.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Trader’s Whiteboard: Lesson 5
If you’ve made it this far through the series, you’ve learned the basics: reading charts, spotting trends, implementing stops, but what now?
Today Adam shows you what you need to do to tie all of this information together. Becoming a more effective, organized, and successful trader is just one short video away.
Click here to watch Lesson 5 in the Trader’s Whiteboard series and take the next step in order to trade like the pros.
Enjoy!
The MarketClub Team
Long Entries and the Opposite Thirds Rule
Today I’d like to welcome Steven Lee Jones to the Trader’s blog. One of the things that makes him so successful in his trading plan is his entries. Steven has written an interesting article regarding how he enters a trade that I think you will enjoy. Please take time to read the article, comment with your thoughts about his methods, and please visit ForexProfitLauncher.com to watch a video from Steven.
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First of all, I want to thank Adam for allowing me to post here today. I’m mainly a short-term forex trader and over the years I’ve worked on the following entry method that’s proven successful for me. It’s not perfect by any stretch, but test it out on your own to see if it might be a good fit for your style. I truly value the blog and hope that my article can give you some insight into my trading and hopefully it can help yours, so let’s dive right in.
What’s Next for MarketClub Webinars?
MarketClub is excited to bring some great topics to the table in the next few weeks! These topics range from a beginner’s to a more experienced trading level and we hope you’ll be able to find a subject or two among them that you can attend and learn from.
Upcoming topics include:
January 29th – “MarketClub’s Scanning Tools” presented by Jeremy Lutz
February 5th – Beginner’s Trading Terminology presented by Susan Jackson & Lindsay Thompson
February 12th – MarketClub’s “World Commodity Portfolio” presented by Adam Hewison
February 19th - MarketClub’s “Perfect Portfolio” presented by Adam Hewison
We look forward to seeing you at upcoming presentations and welcome your suggestions for webinar subjects and feedback.
See you soon!
Susan Jackson
Webinar Administrator
INO.com & MarketClub
Finding an Edge with Support and Resistance
Today I would like to introduce Karen of Wealth Wizard World. Karen is an experienced trader who took an interest in the markets at a very young age has continued since then. Through her own blog and website, Karen shares what she has learned in her twenty-plus years and today she has agreed to share this knowledge with Trader’s Blog readers as well.
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I’ve traded for many years – about 20 to be precise. During the early years, I read everything I could get my hands on and tried several methods. The lessons learned were not what to do, but what not to do, and yet I was looking for something more.
There are lots of indicators to use and chart patterns to watch. What bothered me was that I realized that indicators lag. They respond to the movement of price.
Chart patterns work very well for some people, but they didn’t do much for me. I saw several head and shoulders patterns break to new highs; flags, pennants, and wedges break opposite of what they were supposed to do. What was an eager, studious, young trader supposed to do?
Another Profitable Quarter for the Perfect Portfolio
We first introduced the “Perfect Portfolio” theory in early October and posted updates here and here.
We plan to update the hypothetical “Perfect Portfolio” every quarter to show exactly how you can utilize what I believe is a very conservative, but profitable approach to markets. We’re using four, very liquid and well known ETF’s that I believe are going to be very important in the investment world for the next three years.
The results of the “Perfect Portfolio” for Q4 were as follows: The ETF GLD that tracks gold bullion managed to gain 8.55% for the quarter. Our next ETF, FXE which tracks the Euro, suffered a small loss of 2.9% for the quarter. The star performer for the quarter was USO, which tracks crude oil. This market had a positive return of 8.63%. Our last ETF is SPY, which tracks the S&P 500, and this market put in a very respectable 5.63% return at the end of December.
The average return for the “Perfect Portfolio” for the quarter was 5.13%. This was lower than some other quarters simply because the markets were less volatile. In the future we expect this portfolio to continue to do well and we will be reporting on this blog on a quarterly basis with the results.
If you have any questions on the hypothetical “Perfect Portfolio” and how you can use this strategy with your own account and brokerage company please feel free to contact our office at 410-867-2100. Any one of our professional member relationship team can help answer questions on the “Perfect Portfolio”.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
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