There Is Only One Word to Describe Q3: Volatility
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
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Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 30th of September.
It’s here! We’ve reached crunch time for the markets and portfolio managers everywhere. It is not often you have the weekly, monthly and quarterly markets all ending on the same day, but Q3 is playing out to that scenario.
I think there is only one word to describe Q3: volatility. Volatility ruled the markets and has pushed many investors to the sidelines. Conservatively, it is better to be in cash than be long the equity markets at the present time.
I find it hard to believe that some of the pundits say we can go into defensive stocks. My question would be why? Why be in the market when it’s going down? It just makes no sense to me.
The philosophy behind our Trade Triangle Technology is very simple. We want to be long the market when it is going up and either short or out of the market when it is going down. The reality is the market can only do three things: it can go up, down, or sideways, that’s it! How many things in life do you know that are that simple?
Yesterday, we talked about the major trends in the markets and how important it is to know the direction of the trend for each and every market you have an interest in.
In today’s video, we will be focusing on the 6 markets we track everyday in a slightly different way.
As always, our goal is to share with you ideas that have been used by generations of successful traders. I’m sure you have heard the expression, “that there is nothing new under the sun” and that expression can be applied perfectly to trading. With nothing new under the sun, using some tried and true methods that I am sharing with you today, I’m sure you too will be successful trading the markets.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
Do You See the Trees In a Forest, Or Do You Just See the Forest?
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your mid-day market update for Thursday the 29th of September.
Do you see the trees in a forest, or do you just see the forest?
There is a saying that goes like this “can’t see the forest for the trees” is a reference to people who get so involved with the details of an issue that they lose sight of the big picture.
If your involved in the markets, it is easy to fall into the trap of just looking at the minute or hourly charts, rather than considering the market as a whole. When you can’t see the market for the minutia, it means that you are deeply involved in a situation, and you are perhaps focusing too much on the inner workings of the market, and not enough on the big trends.
With all of this talk of problems in Greece, defaults, contagion and a host of other problems in Europe, it is easy for traders to get distracted, and not see the forest for the trees.
The most important element in trading in my opinion, is the direction the major trend for that market. It doesn’t really matter what the news is, if the market is doing something else. As traders I believe we have to look at the forest in this case the big trends in the marketplace.
Let’s look at them now: S&P 500 index–major trend down. Gold-major trend up. Metals–major trend down. Crude oil–major trend down. Dollar index–major trend up. CRB index–major trend down.
So, there you have it, all the major trends in all the markets we are dealing with right now. Everything else is just individual trees, that don’t mean a heck of a lot in the big picture.
It takes a tremendous amount of energy to move a market and change a major trend. This kind of energy normally does not happen in one or two days. As they say in statistics, one data point does not make a trend.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
What Do All Super Traders Have in Common?
Filed under: General, MarketClub Techniques, Tips & Talk, Trading Videos
Often what is missing from an unsuccessful trader’s strategy has nothing to do with what trading software they are using or which technical indicators they follow, but more about their psychology as a trader.
What differentiates these “super traders” from the rest of us? Well, read the questions below and if you answer ‘no’ to any of them, then you may be lacking important characteristics that are holding you back from trading success.
- Have you learned to develop patience with your trading?
- Do you know how to come out of a loss as a better trader?
- Are you able to avoid trading panic?
- Do you love trading?
Watch today as Jack Schwager, best-selling author of Market Wizards, presents “Market Wizard Insights” – a powerful guide to get you on the road to profitability, completely free of charge.
Visit here to watch now compliments of INO TV.
Enjoy,
The INO TV Team
Where Will the Markets Finish Q3?
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 28th of September.
What does the word austerity mean to you?
“Austerity: noun, the trait of great self denial, especially refraining from worldly pleasures, strict economy.”
It would seem that the meaning of the word “austerity” has been lost in translation in Europe. How can you expand and grow an economy when the very meaning of austerity is the opposite of expansion? There is no way Greece or any country can grow their economy in an austerity program. They won’t be able to pay back the massive amount of money they owe everyone.
What we are seeing now is pure political theater. Everyone talks a good game, but unfortunately there are no easy answers or solutions to a problem that took years to grow into a global problem.
We are just two days short of the end of Q3 and the end of the month. How are these markets going to close for the quarter and for the week? Depending on which markets you are looking at, most markets are lower for the month, with the exception of the dollar index. The dollar index could possibly close at a seven-month high on the monthly charts.
One thing is for certain, Europe is not the United States of America. In Europe there are too many areas of national pride for each individual country. I always believed this national trait would act as the Achilles’ heel in a euro zone economy. My view has not changed.
Can the banks be saved? We will let the markets answer that question for us.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
How Much Does It Cost to Create a Job?
Filed under: Guest Bloggers, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 27th of September.
How much does it cost to create a job?
According to Martin Feldstein, a Harvard economist, each job that is created by the “American Jobs Act” would cost taxpayers about $200,000.
I think that most small businesses could produce three times as many jobs on the same amount of money. It seems the government is jumping into an area where it has proven in the past to have no expertise.
You would think the government would argue that it’s going to cost a lot less than $200,000 to create each new job, but according to Timothy Geithner in a recent ABC interview, he didn’t dispute that number at all!
We have been saying the markets were very oversold and ripe for a rally. I believe the rally we have seen in the last two days is basically a short covering rally. Last week, we saw a tremendous liquidation of all risk assets across the board in most markets. This week, we’re seeing some of those short positions being covered with very little selling above the market. This is all predicated on a potential solution to the Greek/European problem.
Mr. Geithner also claimed in the same interview that if Europe went under, the US banks would stand to lose $41 billion. So here we are again, borrowing money to bail out the banks. We used to have legislation on the books that would have prevented the current problem with the banks. That law was put into place I believe, right after the great depression and was lifted because all the bankers felt that it would never happen again. Well, history repeats itself, just like the markets do. There is an old Hungarian proverb that says, “The past is the teacher of the future.” This has never been more true than it is today.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
All Eyes Continue To Focus On Europe
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 26th of September.
Here we are on the first day of the last week of September, with the end of Q3 approaching on Friday. Are the equity markets building a base to go higher? Or is this just a pause before we start heading back down?
All eyes continue to be focused on the European problem, especially Greece. We still believe Greece will default on their debt. And we still think that the politicians are looking for an easy way out of this economic malaise, unwilling to accept the consequences of their actions.
Last week we saw all the markets under pressure. For the last couple of days we’ve seen some minor support coming to the equity markets. And just today we have seen support come into the metals markets at much lower levels than most folks anticipated.
As always we rely on our Trade Triangle Technology which continues to point the way to profits.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
What A Week! Weekend Video Update
Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 9/23/11.
What a week!
Depending on what side of the market you are on, it was either a terrible week or a fantastic week.
Fortunately, for MarketClub members they were on the right side of the market’s, based on our Trade Triangle technology.
We have said this before, picking tops of bottoms is not where you make the money. You make your money catching the middle part of the big move.
Out of the 6 markets that we track, only one, the dollar index, closed with a positive gain for the week.
The metals market, melted with silver losing an astounding 23.52% and gold ending the week, down 8.57%.
The S&P 500 Index, which put in a positive week 2 weeks ago, gave back everything and then some with a loss of 6.54%.
Both crude oil, and the Reuters/Jefferies CRB Commodity Index, both tumbled producing losses of 8.33% and 8.41% for the week.
The only bright spot for the bulls was the US dollar index which closed up 2.29%.
It would appear that all the predictions for higher gold prices and lower dollars went out the window last week. It proves once again, that the market tells you what it wants to do. Our Trade Triangle technology, gave precise and very clear signals to MarketClub members on the direction of all the markets.
Let’s go take a look at the markets and see how we can preserve and protect and grow your capital in 2011.
S&P500: Change for the week: – 6.54%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long SPY) (Short SH)
2 x Leveraged ETF’s: (Long SSO)(Short SDS)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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SILVER (SPOT): Change for the week: – 23.52%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long SLV) (Short the ETF SLV)
Leveraged ETF’s: (Long AQG) (Short ZSL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
GOLD (SPOT): Change for the week: – 8.57%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long GLD) (Short the ETF GLD)
Leveraged ETF’s:(Long UGL) (Short GLL)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
CRUDE OIL (November): Change for the week: – 8.33%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long USO) (Short the ETF USO)
Leveraged ETF’s: (Long UCO) (Short DTO)
Futures: Call your broker
Options: Call your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
$DOLLAR INDEX (SPOT): Change for the week: + 2.29%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long UUP) (Short UDN)
Non Available Leveraged ETF’s: (Long -) (Short -)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
REUTER/JEFFRIES CRB COMMODITY INDEX (SPOT): Change for the week: – 8.41%
Suggested Trading Instruments:
Non Leveraged ETF’s: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF’s: (Long UCO) (Short CMD)
Futures: Contact your broker
Options: Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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As always, we rely on our market proven Trade Triangle technology for catching the big moves.
MARKETCLUB ONE-ON-ONE PERSONAL COACHING
This weekend, I would like you to ask yourself this question, IS PERSONAL COACHING RIGHT FOR ME?
Give us a call at 877–219–1482 for a free consultation and find out if personal coaching is right for you.
This is Adam Hewison for MarketClub, I’ll see you Monday, have a great weekend.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
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So What’s Ahead?
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your market update for Friday, the 23rd of September.
I believe it has begun… A total loss of confidence in the markets and zero political leadership in the world.
So what’s ahead?
For traders who are not in the loop, it’s going to be rough ride! For traders who are informed, it’s going to be a bonanza! We plan to make the most of it using both our experience and our market proven Trade Triangles.
It is impossible for any politicians to escape the reality of what we shared with you yesterday. The economic cycles that Kondratieff discovered and later wrote about, are the irrefutable laws of economic expansion (good times) and economic contraction (hard times) of a capitalistic economy. I don’t have to remind you which part of the Kondratieff cycle we are in now.
Yesterday, markets around the world voted and the vote reflected a huge sign of no confidence for the global equity markets.
Are we all connected? The answer is yes, now more than ever.
Billy Joel sang in his 1982 hit Goodnight Saigon “… and we will all go down together”. It looks to me like that’s what is happening now in all the markets.
Key level to watch in the SP500 index today 1123.53. A close below that level should be a signal for aggressive traders to short this market for the weekend.
Now let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
Post-downgrade Volatility: 4 Tips for Trading
Today’s guest blog post comes from our friends at Lightspeed Trading. This original post debuted on their Active Trading Blog on September 20th, 2011. In this post, Lightspeed shares 4 tips for trading in a time of great volatility and uncertainty. Enjoy!
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There is no question that this is a superior environment for active trading. The “fear index” VIX recently hitting 50 combined with ultra wide swings provides traders with numerous opportunities for profit. These moves are triggered by the economic confusion that seems to be affecting the entire global system. The Eurozone debt crisis, Standard&Poors’ US downgrade, and whether or not Ben Bernanke will institute QE 3 all add to the inherent volatile nature of the stock market. However, these same moves that lead to outsized profits can also result in heavy losses for traders not skilled and prepared for the volatility. This article will provide 4 critical tips for dealing with market volatility.
Tip 1. Stay Nimble
Not getting married to any one position is a key for success in volatile markets. In fact, it’s a key for success in any market condition. Trading skill combined with a robust trading platform can enable savvy traders to quickly take profits or cut losses within ultra volatile environments.
Tip 2. Fade the extremes
Buying after a very sharp decline and selling after a sharp rise can be a tactic for profiting in heavy volatility. Just take a look at a recent daily chart of the DJIA or S&P 500 to see an example. The snap back rallies and the subsequent plunges are custom made for fading.
Tip 3. Use options
Options can be a powerful tool to use in volatile markets. A strategy known as a straddle can be used to profit from sharp moves, even if you don’t know the direction. A classic example of an excellent time to use a straddle strategy was prior to the pending S&P downgrade. No one knew for certain what way the market would move after the rumor became reality, creating the perfect straddle environment. This strategy provides profits if the underlying instrument moves substantially in either direction. Straddles are the simultaneous buying of a Put and a Call at the same strike price and expiration date. This position has the trader covered in the case of the economic surprise, bullish or bearish. Just keep in mind that the subsequent move must be aggressive for the straddle to profit. You are betting on the magnitude, not direction, of the move.
Tip 4. Ride the trend
If you are able to recognize a solid move in one direction, jumping on board can lead to profits. This so called trend trading can work nicely for short term traders, as many moves even in volatile markets can last for several days or longer prior to reversing.
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***The views and opinions expressed in this post are that of the featured Guest Blogger. This post does not necessarily reflect the INO.com’s own views. All trading involves a level of risk. Individuals should fully understand risks before entering the market. None of the information contained in this post should misconstrued as advice or any sort of solicitation to buy, sell or otherwise invest in any fund, company or security. ***
This Russian Economist Died By Firing Squad, But He Had the Answer the Fed and Washington Are Looking For.
Filed under: General, MarketClub Techniques, Tips & Talk, MarketClub Webinars, Trading Videos
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 22nd of September.
This Russian economist died by firing squad, but he had the answer the Fed and Washington are looking for.
The problem we have is the Fed and the Government are fighting to shore up the very powerful cycle that made America great: Capitalism.
So what’s the answer to our current economic problem?
Nikolai Kondratieff was a Russian economist who came up with this economic theory: Every 40 or 50 years in a capitalistic society, the markets peak, then turn down and go into a recession/depression. Because of these findings and other work he did on cycles, Nicolai Kondratieff was summarily executed in 1938 by a firing squad. It would appear that these cycles guaranteed the rebirth of capitalism, and that did not sit too well with the Communist Party, who at the time wanted to rule the world.
Doing some rough math, you could look back and say in the 1930s we had a depression, in the early 1970s we had a major recession, and here in 2011 we are facing a serious recession/depression. This is not something new that we’re going through right now. Some time ago we posted a blog report on 100 years of capitalism and how the markets expand and contract. We, as a country, have been here before.
The question is, how do you make money during times like these? You must be flexible! And it helps to have technology like our Trade Triangles available to help you. Today illustrated a good example when we had a signal to exit out of gold for intermediate-term traders. You can also see we’ve been short and out of the equity markets since August. Don’t trade by the seat of your pants in today’s markets, you are going to lose! It is far more expensive to go it alone and not have our service. This has been proven time and time again.
As we came in this morning, Europe was under tremendous downside pressure and some would say that, “the hens have come home to roost.” But the big surprise for many traders was the huge drop in commodities and gold. I think many investors moved into gold thinking it was a safe haven. In the long-term they could possibly be right, but these aren’t buy-and-hold markets anymore. The world has changed and you need to adapt to this new investment world, or you will not survive. In the current markets you need to be aware of the direction of the trend and where to place you money. Our mission here at MarketClub is to help you survive and thrive in these uncertain economic times.
Now, let’s go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Read more
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