The rate cut maybe too late for the baby boomers …
The rate cut may be too late for the baby boomers …
As many baby boomers are facing retirement, this recent meltdown in the stock market has put many in a precarious position. Money they had counted on for their golden years has quickly disappeared and will not likely return anytime soon.
To illustrate this point, a friend of mine recently sent me a chart which I would like to share with you. This charts shows that we may be going into a prolonged period of no growth in the overall stock market. The NASDAQ peaked at 5,132.52 on March 10th, 2000. The NASDAQ market is in many ways more important than the DOW, and should be considered more of a leading indicator. If that is truly the case, then we have been in a bear market for the last eight years.
If many stocks have lost 50% of their value, they must now go up 100% just to get back to where they were. If we are to assume that the stock market grows by 10% a year (and that is not a good assumption), then it’s going to take at least 10 years for many of these stocks to reach the heights they once were at. Many stocks will never come back. I don’t think we will ever see Yahoo trade anywhere close its all time intraday high of $500.13 (set January 4, 2000).
I expect to see a prolonged economic climate that is not conducive for stocks to move higher. However, there will be pockets of opportunity where certain markets and sectors will move higher.
All in all, this is not a rosy picture for either the US economy or the world economy. As I have said many times on this blog, these are trading markets and not markets to hold long-term. Witness our General Motors blog, and the fact that General Motors (NYSE_GM) is a scrambling to either avoid bankruptcy or to find a partner. The latest rumor is that they’re looking at Toyota (NYSE_TM).
Trading throughout the balance of this decade and into the early part of the next decade is going to be the key to survival and for recovering the profits in your portfolio. We strongly recommend that you approach these markets with some level of expertise and knowledge of technical trading.
The future is going to be the future and we need to take advantage of every moment and prepare ourselves to be the very best we can be in whatever business or endeavor we are pursuing.
Every success in the future,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The video that proves it all.
Dear blog reader,
I just finished a new educational trading video on crude oil. This short video shows you all the Q3 trading signals that took place in this market. The results have been nothing short of spectacular. With gains of over $20,750 per contract, I think you’ll understand why we are so excited about our “Trade Triangle” technology and this video.
During the Q3 period we had six trades; four winners and two losers. The biggest gain was $13,160 a contract, while the biggest loss was $3,770. Q3 was a great quarter that produced fabulous results. While our Q3 results were great, what is more impressive is our “Trade Triangle” approach has consistently produced positive gains for the past five quarters. With gains of $88,450.00 per contract over that last five quarters, you can see why we believe we have the perfect balanced approach to this market. That’s what we are most proud of.
Every success,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Our Q3 results matched the market volatility and then some.
In Q3 we hit unheard of levels of volatility in the markets.
I have been trading now for over three decades and I still love it. But, I have to admit that I have never witnessed markets that were so volatile, and in many cases so unpredictable. However, I know from experience that when you have a tool that eliminates emotion and calculates positions from actual market movement, it puts the odds in your favor that you’ll come out on top.
So the question is, how did MarketClub’s “Trade Triangle” Technology make out in Q3?
As you may know, we have been publishing our quarterly “Trade Triangle” results on corn, wheat, soybeans, crude oil, gold, and the Dollar Index. We’ve tracked these markets through their ups and downs and published the results on a regular basis. We have been doing this for 15 months and I’m happy, but not surprised to say that our “Trade Triangle” technology has been profitable in every quarter.
It just so happens that Q3 has turned out to be our best quarter ever. In this blog posting I have included three images. One that will show the results market by market for the past 5 quarters. The other chart shows the cumulative gains for the past 5 quarters, which is $$234,501.50. The last illustration is not a chart, but a spread sheet which displays the trading results in numeric format.
I’ve also made a short video that shows the results of trading crude oil (NYMEX_CL) with MarketClub. In this video, I’ll show you all of the trades that we made to achieve those “Trade Triangle” results. In crude oil we made a total of six trades. Out of those six trades, we had four winning trades and two loosing trades. The current margin required to trade one contract of crude oil is around $10,000. If you would have followed all our “Trade Triangle” signals, the margin required would be around $50,000. I think you would agree that this approach has shown some pretty spectacular returns during the last 5 quarters. This new video will debut on Tuesday October 21st.
I also recommend that you to take a look at our previous 2007 Q3 and Q4 results as well as the results from this year’s first two quarters. I think it proves my point that you can make money in any market when you have a game plan and you are disciplined.
If you have any questions about the “Trade Triangle” results, please give one of our customer service specialists a call at 1-800-538-7424. They can quickly set you up with a 30 day Risk-Free trial to MarketClub. This is where you can check on and replicate the same trading results shown above. You will also spot some new moves as our “Trade Triangle” technology is dynamic and instantly alerts you to price movements when they happen and not after the fact.
Every success,
President, INO.com
Co-creator, MarketClub
Game Changer
Game Changer
There’s no doubt about it, these are volatile times and that is reflected in the broad swings in all of the markets. One market that had a huge move today (10/16) may have produced a game changer that you can make money on.
I’m referring to a major commodity that has not acted like it would normally act in an economic crisis. In this short video, you will see exactly how we have positioned ourselves and what we expect will be the course of this market in the short term.
The new video, which requires no additional download, also includes a well know stock that tracks the above market very well. You will see first hand where we expect this market to go to.
The video is available now. There is no charge and we believe it will help improve your trading in these volatile times.
Every success,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Fear is not an option for successful traders
“The only thing we have to fear is fear itself.”
Thus spoke Franklin D. Roosevelt 75 years ago.
Looking back on Roosevelt’s speech in 1933, 4 years after the infamous crash of ‘29, he was referring to the economic conditions of the time — better known as The Great Depression. In essence he was saying that if we can’t shake our pessimistic economic outlook, it will be tough to turn things around.
The question is… are things different this time?
The answer is yes and no. People are still fearful of what the future holds and they have very little confidence in the economy. The big difference between the crash of ‘08 and the crash of ‘29 is that we now have India and China on the world stage. Back in ‘29, both of these countries were not on the radar. In fact India was under British Rule.
Both India and China’s economies will suffer with the turn down here in the US. They are now going to have to generate their own domestic consumption patterns for the goods and services they formerly sold to the US. This is going to be hard to do as so much of their economy is based on exports which are evaporating quickly.
The fact of the matter is that the markets are extraordinarily turbulent. We do not expect, even with the worldwide bailout, for things will be rosy again anytime soon. However, that does not rule out some extraordinary trading opportunities in the markets. This is a time for rational thinking. It is also a time to eliminate fear from trading.
There is no need for fear in one’s trading plan if you’re running with a diversified program that has proven to
be successful over time. What I mean by over time is not just the last six months, or six years, but over a long period of time I mean as much as 30 years.
When you have a program that puts the odds on your side, you can trade with confidence knowing that you’re going to lose some small skirmishes in the market, but overall you will make money based on your own trading decisions.
Many of you know that we trade using MarketClub’s “Trade Triangle” technology. This approach has proven successful in all types of markets, including the ones we are in now.
I’ve put together a short 12 minute video to show you how we have fared in three different markets using this technology.
For a small percentage of you, this video will be an eye-opening experience. For another percentage of you, you are already fearless MarketClub members. There will also be some of you that are successful traders using your own system, and there is probably no need to watch this video.
Trading should be an unemotional experience. If you are trading for the excitement, odds are you’re going to lose. If you are trading just to say that you trade, you’re probably going to lose. If your trade for any other reason than to make money, you’re probably going to lose.
The possibility of successfully trading any market is out there. This video will show you how our unemotional, time tested approach to the stock, future, forex, etf, and mutual fund market will put the odds in your favor that you are on the right side of these extraordinary trading times.
“The only limits to our realization of tomorrow will be our doubts of today.”
Franklin D. Roosevelt
Every success,
Adam Hewison
President, INO.com
Just because it looks cheap doesn’t mean it can’t go lower.
Just because it looks cheap doesn’t mean it can’t go lower.
With General Electric (NYSE_GE) trading around 22 1/4 today it looks cheap, but can it go even lower? The answer is yes. The last time General Electric traded at current levels was back in October of 2002. Now add in inflation and General Electric is even lower today than it was 6 years ago!
Despite the fact that Warren Buffet invested 3 billion dollars in GE preferred stock giving him a 10% yield, I see no reason to buy GE. The deal Mr. Buffet received was a deal that every investor would love to have in their portfolio. The bottom line is the trend for General Electric which is on the downside and it shows no signs of turning around at this point in time. I would rather buy General Electric at let’s say 30, knowing that it’s going higher than trying to pick a “value bottom.”
Watching CNBC this morning, Mark Haines who has been around for a long time in the financial world made a statement that the buy and hold strategy is no longer a successful strategy in the stock market. I have long held the belief that the world has changed and you can no longer just buy a stock and hold it forever hoping that in long-run it will go higher. We only have to look back at a recent blog commentary on General Motors (NYSE_GM) to see that this is a flawed strategy. Looking at General Electric today proves once again that we are in a trading world and not an investment world.
I understand many of you will disagree with that statement but the truth is the markets have changed, not just domestically here in the US, but globally. Now, the US has to contend in a competitive way with China, India and Russia. The US is in a much more competitive world, where fortunes will be made and fortunes will be lost.
At MarketClub, our mission is to help you make money in this ever-changing market. We are still waiting to see what the outcome will be from the rescue package, bailout package, save America package, any name you want on it package.
No one is going to be able to predict what will happen to the market, except the market itself. We’ve talked about this in the past. The market is the ultimate mechanism for price discovery.
I do not believe that the current global economic slowdown is going to turn around any time soon. I don’t expect to see a “V bottom” in the stock market and that “demand destruction” will force a retracement in many markets that were very much in demand just a few months ago.
So here’s my advice… the one thing we do know about the markets is that they a reflection of human nature. Having said that we would want to pay attention to our “Trade Triangle” technology. Those of you who are MarketClub members, follow the “Trade Triangles” because they will keep your emotion out of the market and show you which way the market is headed. For those of you who are not MarketClub members, you should be looking at some sort of technical analysis to help you avoid stock meltdowns.
It doesn’t matter what markets you trade because there are always opportunities to make money in the trading game. Our mission is to present those opportunities to you in a very easy way to understand.
Every success in what can only be described as an interesting, turbulent and opportunistic time.
Adam Hewison
President, INO.com
Co-creator, MarketClub
Bailout or bust… for the USA
Bailout or bust… for the USA.
Congress, can’t live with them and we can’t sue them. How about putting a few of them in jail, is that possible given the mess they have put us in?
Let’s think about what can happen if they pass the bill for the “rescue” package. The first thing that will happen is that they will come up with a softer name that will not scare the general public. After that, confidence and fear will push and pull the markets.
Let’s look at the market in the belief that they pass the bill. What will happen the next trading day? What happens is going to be very important as to which direction the market heads. If the market opens lower after they pass the bill, watch out. It won’t be a pretty day and panic will be sure to set in. If the market opens sharply higher and sells off later in the day, it’s not going to instill confidence in the system.
What I’m looking at is how the market closes this Friday. Does it close higher for the week, or does it close lower for the week? Another key will be what are traders comfortable going home with this weekend. You may want to watch the dollar index and gold and see where they are closing for the week as they typically foreshadow things to come for the economy as a whole.
If Congress and the Senate continues to play politics and do not pass this bill for the markets, we are going to see a pullback and a retest of the lows. Again, I can not stress enough the importance of how the indexes close this weekend. I doubt I am the only one who thinks that these guys are incapable of cleaning up this issue given that they made the mess to start with.
Our “Trade Triangle” technology continues to remain in a negative position and we see nothing in the short term that’s going to change the trend of the US economy and the stock indexes that we are following.
For your information the Dow closed at 11,143.13 last week. NASDAQ closed at 2183.34 and the S&P closed at 1213.01.
Again, I stress that I want to see how these markets close for the week and not only how they close the day after the announcement is made.
Our blog poll for traders has always been very accurate over time. Many traders, in this case 67%, are negative on the stock market for the balance of the year. I would not dismiss this poll as it has been extremely accurate in the past in predicting gold, crude oil, and other markets.
We are living in tumultuous times and these times demand strict discipline in the one’s trading.
Round three begins Thursday morning.
Good luck to everyone,
Adam Hewison
President, INO.com
Co-creator, MarketClub.com
This is where the dollar is headed … fasten your seat belts
Hi, this is Adam Hewison. I have just finished creating a video on the dollar index that I am sure you’ll enjoy watching.
The short video quickly shares my through on the dollar and where this market may go. We’ve had a huge success in this market and would like to share with you our ideas on what we think will happen to a dollar when (and if) the bailout is voted into law by Congress.
You do not need any special software,and there is no charge to watch this video.
What happens to the dollar index will have a direct bearing on what happens to the stock market and the economy as a whole.
I’d strongly recommend that if you are concerned about the economy you take a few minutes of your time and watch this video. You will see how you can benefit from the scenario we envision for the future.
MarketClub Members: you can go to the bottom of your homepage above your portfolio and click the Members Videos link to watch this video and avoid the registration page. Please email support@ino.com if you have any issues with the video and our customer service representatives will help you out.
Good luck,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The 700 billion dollar blame game is just beginning
The poster child of the AIG disaster
Last night while sitting in my living room flipping through the TV channels I stumbled upon Jim Cramer’s Mad Money cable show. I had watched the show once or twice before and found Jim to be a great entertainer and faster than a speeding bullet with his quips. But what really got my attention last night wasn’t what stock he was pushing, but rather who he was ranting about. Cramer was ranting about SEC chairman Christopher Cox and his decision to remove the uptick rule on July 6th of last year.
Chris Cox what were you thinking??
So here is a picture of the poster child for the lack of regulation on Wall Street.
Christopher Cox is the 28th Chairman of the Securities and Exchange Commission. He was appointed by President Bush on June 2, 2005, and unanimously confirmed by the Senate on July 29, 2005. He was sworn in on August 3, 2005.
The SEC voted to remove the “short sale tick test”, Rule 17 CFR 240.10a-1 for all equity securities. Effective Friday, July 6, 2007 traders will be able to short all securities on an up, down, or zero tick.
RULE IMPLEMENTED: DOW July 6, 2007 13,611 - DOW September 16, 2007 11,059
Loss 2,552 Dow points
It’s not often that I agree with Cramer or his investment pics, but I have to admit that I agree 100% with what he said last night about Chris Cox. If you are as mad as Cramer is about Chris Cox then email him. chairmanoffice@sec.gov
I doubt that you’ll hear from Mr. Cox personally, but you will feel better that you did something about the lack of regulation on Wall Street.
Adam Hewison,
President INO.com
