Snowmageddon, Part 2
UPDATE:
We’re still snowed in. Well, I guess it would be snowed out of our offices. With the promise of another couple feet of snow and lots of packed snow and ice still on the roads, we would rather be safe than sorry when it comes to our staff.
Not to worry though, we’ve all been to the store to pick through the last few eggs and grab a stickerless, mystery gallon of milk at the grocery store with everyone else on the east coast.
We hope that anyone else who is bearing this storm along with us stays safe and warm and we hope to get back to normal as soon as possible!
Best wishes,
Susan Jackson
Director of MarketClub Education
INO.com & MarketClub
If you are a MarketClub or INO TV member, you may still reach us via email at support@ino.com and we will respond as soon as possible.
Traders Toolbox: Learning Options Part 1 of 4 Revisited…
At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals — no matter which way the markets move — with objective and unbiased recommendations not available from brokers.
The Trader’s Toolbox posts are just another free resource from MarketClub.
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“There are four components to an options price: underlying contract price, intrinsic value ( determined by strike price), time value (time remaining until expiration) and volatility. (A fifth element, interest rates, also can affect option prices, but for our purposes is unimportant.)Intrinsic value refers to the amount an option is in-the-money. With Eurodollar futures at 95.55, a 95.00 call has an intrinsic value of .55. The more an option is in the money, the greater its intrinsic value. At-the-money and out-of-the-money options have no intrinsic value.
Options are referred to as “wasting” assets because their value decreases over time until it reaches zero at expiration, a process called time decay. Time value refers to the part of an option’s price that reflects the time left until expiration. The more distance an option’s expiration date, the greater the premium because of the uncertainty of projecting prices further into the future…”
Revisit the Trader’s Toolbox Post: “Learning Options Part 1 of 4″ here.
Poll: Is the current administration anti-business?
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We’re Snowed In!
Unfortunately the “Snowmaggedon” (as they’ve dubbed it here in the mid-Atlantic US) dumped up to 3 feet of snow on and around our offices and has kept all of us here at INO.com and MarketClub snowed in. We hope to be back at it tomorrow, but will keep all of our readers posted.
Bear with us as we try to dig ourselves out and get things up and running normally as soon as possible.
Best wishes,
All of us here at INO.com
The irrefutable laws of the market
SIX STEPS that every trader needs to know to succeed in the markets.
Step 1: A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders’ information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.
As Google Goes, So Goes the Market
Here is a quick update:
Yesterday Google (symbol GOOG) flashed a sell and go short “Trade Triangle” signal at $525.61.
This is a significant event as the last signal we had for this stock was a buy signal at $372.36 on February 6th, 2009.
Fibonacci retracement indicates that this stock could pullback all the way to $419.62.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Beginners Terminology Webinar Canceled
Unfortunately due to the expected seriousness of the coastal mid-Atlantic storm on Friday, we are canceling tomorrows webinar.
We have rescheduled tomorrow’s webinar for Friday, February 26th. You can register or re-register for the Beginners Trading Terminology webinar by clicking here.
We apologize for any inconvenience, but hope you’ll be able to join us on February 26th instead.
As always you can view previous webinar recordings or register for upcoming webinars by visiting our webinar archive link.
Susan Jackson
Director of MarketClub Education
INO.com & MarketClub
Why Today’s Market Action is Important
No question about it, today’s market action caught many people by surprise, but it’s important to understand what happened and why it happened from a technical standpoint.
As many of you who have been following my videos already know, MarketClub’s “Trade Triangle” technology has been neutral on the indexes since January 20. We have also been bearish on gold since the 22nd of January. So what is happening to the markets?
The recovery in the indexes from March of ‘09 was basically just that, a recovery. Our Fibonacci retracement indicator was spot-on and points to a potentially more negative down move in the future. All of the indices managed to recover back over 50% of the gains before this recent downturn.
Today, I want to share some significant levels to look for during the balance of February. If these levels are broken and taken out, it would indicate a much more serious problem for the equity markets.
Here are the levels on the indices: S&P 500 key level to watch 1,029.38, NASDAQ key level to watch 2,024.27, and Dow Jones at 9,678.95.
In the case of spot gold, the key level to watch this month is 1,044.20. If the gold market goes below that level, it will signify further retrenchment for this precious metal.
Make no mistake about it, today’s action is not positive for the equity markets. However, providing the levels we mentioned above hold, then you could say we’re in a broad trading range and we expect the lows to be tested. I, for one, am cynical that this is going to happen.
You may also want to take a look at my recent gold and crude oil videos. Cyclically these markets are right on target and acting the way we expected them to act.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Trader’s Whiteboard: Lesson 6
How many times have you turned on your television or computer to see that Corporation XYZ is expected to make huge profits, but when you look at the chart it is telling you otherwise?
Who is right? How do you determine what to look at when you are preparing to enter a trade? Adam has put together this Trader’s Whiteboard video to explain the differences in information and to help you wade through the “noise”.
Click here to watch Lesson 6 in the series and tell us what you think about fundamentals, technicals, and market perception in the comments section.
Enjoy!
The MarketClub Team
Traders Toolbox: Money Management Part 4 of 4 Revisited…
At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals — no matter which way the markets move — with objective and unbiased recommendations not available from brokers.
The Trader’s Toolbox posts are just another free resource from MarketClub.
—
“This is the final portion of the Trader’s Toolbox: Money Management series. This post will recap the 5 main rules discussed. If you missed our previous post please click here for : Part 1, Part 2 or Part 3.
♦ Setting a goal - Decide what your trading objective is (quick profit and steady return) as well as your risk tolerance level
♦Diversification - If possible, allocate your finances between different products to avert the danger of getting wiped out in a single market. Don’t go overboard, though; think in terms of three to five unrelated instruments. Stick to markets you know, rather than risking the unknown for the sake of diversification….”
Revisit the Trader’s Toolbox Post: “Money Management Part 4 of 4″ here.
