Did the market put in bottom? YES —

So is a recession looming or are happy days here again?

What we witnessed this past week was a massive short
covering rally in the equity markets. We have discussed this
before, bears make the best bulls, and that’s exactly what
happend in the equity markets this past week. We witnessed a
massive unwinding of the oil/equity spread. Traders bolted
for the same door as they covered short financial equities
and liquidate long positions in crude oil.

On top of all that, help,came into the equity markets in the
form of Fed governor Donald Kohn and later in the week from
Ben Bernanke. Each of them let it be known that they were
not against lowering interest rates. With so much good news
the market only had one way to go UP, UP, and maybe away.

But can it last? That’s the question on most traders minds
this first weekend of December 2007. Is the subprime (old
story ) still hanging around ready to throw the world into
a recession. Is the soft housing market  going to crimp
consumer spending this holiday season? Is oil going to
shoot over $100?

It’s all part of the ebb and flow of the marketplace.

DOW has resistance at 13,500.

NASDAQ has resistance at 2,700 and again at 2,740.

GOLD SPOT has resistance at 830 and support at 772.
CRUDE OIL (Jan) resistance at 96.00 support at 84.00

Speaking of the marketplace …
———————-
BROTHER CAN YOU SPARE 90 SECONDS …

Is it possible to learn how to trade forex in just 90 seconds???

The answer is a resounding yes.

Now you can stack the deck in your favor and trade like a
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winner in the FOREX markets in just 90 seconds. Click, load,
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———————-
SOMETHING TO REMEMBER
"It’s better to be wrong than wrong and stupid."
How to manage losses.
———————-
WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers
in plain English on any market.
There is no cost.
———————-
THE VOTES ARE COMING IN ON THE ECONOMY
Here’s the question we posted on our Traders Blog blog. "Are
you comfortable about the economy?" The results may surprise
you. Vote, then check out the results.
———————-
TIME TO LAUGH
Two traders riding in an elevator at the Chicago Board of
Trade. One trader turns to the other and says "What’ya do
this weekend?" The other trader answers "I got a dog for my
wife". The first trader without missing a beat says, "Nice
trade".

———————-
INO QUOTED IN THE NEWS THIS PAST WEEK

• SINGAPORE BUSINESS TIMES
‘You’ve got some of the top Wall Street minds, from George
Soros to Warren Buffett and Julian Robertson, saying we’re
heading into a recession, and the price of oil is clearly a
big reason why,’ said J Adam Hewison, president of INO.com,
a financial research firm that offers technical analyses of
equities, futures, options and foreign exchange markets.

Just as worrying, the prospects for oil retreating to lower
levels in the next several months appears low, many Wall
Street analysts said. ‘I put a lot of the blame for what I
see as a sustained rise in oil prices at these levels on the
Fed (the US central bank) and its chairman, Ben Bernanke,’
said Mr. Hewison.

We also want to thank the markets for just being there and allowing us the opportunity to trade them in a free society. Wow, we are lucky to live in such interesting times.

Lastly, our thanks go to real values and treasures in our lives and that is our family and our friends.

O.K., with Thanksgiving day behind us for ‘07, are the equity markets and the dollar going to remain turkeys in "08? That is the question on most traders minds this weekend.

This past week the market action in equities and the dollar painted a disappointing and rather a bleak picture for the markets.

We expect today’s market action on expected reduced volume, could produce some large and volatile price swings. Most traders I know left their offices and posts early Wednesday for a long weekend. 

It’s all part of the ebb and flow of the marketplace. Speaking of the marketplace …
 
Did you know you can …
———————-

LEARN HOW TO TRADE FOREX IN 90 SECONDS.

Is it possible to learn how to trade forex in just 90 seconds???

The answer is yes, and yes again.

———————-

FREDDIE MAC IMPLODES

This past week the Freddie Mac team addressed what was a packed conference call to report their earnings for Q3 and project where Freddie Mac will end up … AND WE WERE THERE!!

Watch how we traded this disaster.

———————-
CHAIRMAN BERNANKE LET’S GO SHOPPING

Open invitation to the FED Chairman Bernanke and to all Fed governors to go shopping

Let’s go shopping.

I invite you and your entire committee to come shopping with me for groceries in any local supermarket you like. Oh, before we do that let’s stop at a filling station and buy some gas.

You know what gas is, right? Well that’s the stuff the goes in your car’s gas tank, that’s what gets most Americans to work.

I am not sure if you, or any of your committee have at anytime in the past year purchased a gallon of milk, a gallon of gas, or any groceries to put on the table. But, if you haven’t, then its time we went shopping together.

You see Mr. Bernanke, I along with three hundred million other hard working Americans are having a hard time understanding why you keep saying that inflation is under control.

We just don’t understand where you get your numbers from? You see we are the regular folks who get paychecks, shop at the local stores and supermarkets and fill up our tanks at the local filling station.

We just don’t understand where you go to get your groceries or buy your gas. That is why I want to invite you and your entire committee to come shopping.

I know you are busy, so if my invitation doesn’t work for you, perhaps you could let me in on the secret store and filling station where you and the Fed governors shop and buy gas.

Thanks.

I look forward to hearing from you.

• MARKETWATCH
"There will be no Thanksgiving reprieve for the U.S. dollar. Sentiment remains decidedly negative as traders now have their sight set on the big number of $1.5000," said Adam Hewison, president of INO.com, a technical analysis Web site.
http://www.marketwatch.com/news/story/dollar-under-pressure-ahead-fed/story.aspx?guid=%7B3605CE46-035A-414D-8052-0D66DC7CE7AD%7D
———————-
WHAT ARE YOU THANKFUL FOR?
Great uplifting video if your spirits are down.

———————-
LEARN & EARN
Brad Stafford, posted another video lesson - "Freddie Mac NYSE:FRE - MarketClub Video Lesson"

———————

DID A 300 YEAR OLD DISCOVERY TORPEDO GOOGLE
Find out what’s going on in Google right now.
———————-
FOUR FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here’s a small sample of what is coming up on INO TV
———————-
CHECK ON THE WORLD MARKETS 24 HOURS A DAY
Don’t miss any of the global overnight action.
———————-
PICK A MARKET, ANY MARKET
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Give it a try.
———————-

This is Adam Hewison,

With all the market volatility just lately, traders seem to be rearranging the deck chairs for something big.

Have you noticed lately how all the market action seems to to take place in last 30 minutes of trading? Well there’s a reason for that, and here it is.

When I was trading on the floors of the Chicago Mercantile Exchange almost every floor trader knew how the day traders were positioned. If the day traders were short and the market wasn’t going down like they had expected, the pit traders instinctively knew that they would have to cover before the end of the day.

It’s all part of the ebb and flow of the marketplace.

Speaking of the marketplace …

Maybe this energy jump is for real, Mr. Bernanke.
———————-
LEARN HOW TO TRADE A DOWNWARD TRENDING MARKET
In this video lesson, Brad Stafford gives traders three compelling pieces of information about how to trade a downward trending market. Watch this streaming video lesson to learn about shorting stocks.

———————-
A LIGHT HEARTED LOOK AT THE MARKETS…
This will put a smile on your face

———————-
SOMETHING TO REMEMBER
"They slide faster than they glide"

———————-
WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Watch it here.

———————-
THE VOTES ARE IN ON $100 CRUDE OIL
Here’s the question  "Will Crude Oil Trade at $100 before the end of December?" As of this writing 488 votes are in. See the results here as to how traders are looking at the new black gold. No registration required. Vote and find the results on the upper right hand side of this page.

——————-—
INO QUOTED IN THE NEWS THIS WEEK

"If we see the market take the euro below $1.45, then the euro will drift to the $1.43-to-$1.42 range," said Adam Hewison, president of INO.com in Shady Side, Maryland. "Overall, the market looks like it’s overdone on dollar selling."

Reuters and Bloomberg hold the repective trade marks on the images shown on this blog.
———————-
ON THE TRADERS BLOG THIS WEEK
———————-

The Jingling This Holiday Season Won’t Be Extra Change In Your Pockets!

———————-
MARKET THOUGHTS FOR TUESDAY
Sub-Prime, submarines, and the fear of the unknown
Why E-Trade tanked.

———————-

"The Secrets Of Professional Floor Traders" "Trending with Moving Averages"

———————-
IS THE BULL RUN OVER FOR GOOGLE?
After reaching a record high of $747.24 on an intraday basis on November 11th Google proved that gravity does indeed exist as its stock plunged over $120 in just 4 trading days!!

Find out what’s going on in Google right now.

———————-
FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here’s a small sample of what is coming up on INO TV

———————-
ONE MARKET, ONE WORLD FIND IT ALL ON INO.COM
Don’t miss any of the overnight action from around the world on INO.com.

———————-
WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost.

———————-
PRO’S DON’T FIGHT THE TAPE
The markets will tell us when they are ready to go higher.

———————-
This is Adam Hewison,

The first thing to do is an attitude check from the neck up.

To become a successful trader it begins with believing in yourself and having a winning attitude.

Everyone wants to be a winner; at least, they think so. Unfortunately, most are not willing to perform the tasks necessary to become a consistent winner.

Winners generally achieve success by being focused on a goal. Being focused allows winners to remain committed to the tasks at hand. Most winners perform a lot of hard work; including a willingness to deal with sometimes mundane duties. Most of all, winners perform with an "I am responsible for both my failures and successes" attitude.

So, where does the would-be trader start to become a success? By focusing on the tasks at hand. Most of all, treat trading as a business. And, as in any business, money management is critical.

Money management, next to trend, is probably the aspect of trading most overlooked by smaller investors. Man, by nature, is an optimistic creature and the amateur trader often acts instinctively. Unfortunately, this instinct or optimism is often the undoing of the smaller trader.

When a person enters a trade, he does so with the hope it will be a winner. When the position goes against him, he keeps thinking (or hoping) "it will come back." He knows he should have a stop in place, but hope keeps telling him to stay just a little longer since everybody knows "you always get stopped out the day the market turns." Eventually, hope turns into frustration, desperation and, finally, panic, prompting the trader to issue a GMO (get me out) order.

If the trader hasn’t learned his lesson by this point, he develops the "I have to get it back" syndrome. He generally rushes into another poorly planned trade, throwing good money after bad.

Winners show several different characteristics. They enter the market knowing they can be wrong and, in fact, are wrong as often as they are right. They have learned markets don’t run on hope. They understand markets tell them when they are right or wrong. When a trade is losing money and getting worse, the market is telling them to get out.

Bad Trades

A bad trade is like a dead fish: The longer you keep it, the worse it smells.

Good Trades

When a trade is making money, the market is telling them they are right and to let the position ride.

Winners don’t add to, or "average", losing positions. They dump the trade and go looking for a new opportunity. Successful investors may add to the winning trades. When ahead, they press their advantage while remembering that at any time the market can turn on them and prove them wrong.

It trading keep your mind clear and do not get emotional about a trade. Remember you are not married to a stock rather you are in the dating game.

Next week… it’s a surprise.

Crude trades over $95 a barrel, gold hits new highs and Google breaks over $700 a share. On top of all that, the Fed cuts rates by a quarter point, giving the market what it wants, and stocks crater on Thursday.

So what’s ahead … more volatility?

Although it is sometimes believed that Greenspan’s comment was made near the height of the dot-com boom (and contributed to its downfall), it was actually said much earlier, in December 1996. Read more about it on Wikipedia.

The subject of todays blog posting is something you need more than ever in these volatile markets and that is money management. 

In my previous Friday blog postings we discussed diversification  and stops. These two disciplines are all part of your money management suite of tools. But there are two other elements that make up a successful money management strategy in my opinion.

Just imagine not having to worry about Fed actions, or stressing out about if some companies earnings is going to miss expectations.

Well, all that is possible with good money management. The tools we have discussed in our previous posts stops and diversification allow you the luxury of not worrying and stressing out over things you cannot control.

Rule Number One: Never lose money.
Rule Number Two: Never forget Rule Number One.

If you follow this advice you will be very successful, perhaps like Mr. Buffett?

We were lucky enough to recently share some TV time with Mr. Buffett.  You can watch it here.

Say you are bullish on a certain stock or futures market. You need to FOCUS on three key components. 1. Entry price. 2. Trade risk. 3. Profit potential.

This is what I believe is the difference between winners and losers in the market.

Without DISCIPLINE the odds of being successfull in the market are against you.

Here’s a simple recap of the four basic components that make up your money management game plan.

1. DIVERSIFICATION
2. STOPS
3. FOCUS
4. DISCIPLINE

Once you have mastered these four elements there is no doubt that you will be successful.

Next week The Friday Focus will take on the biggest hurdle most traders face and that is the importance of psychology in trading. Till then … have a great weekend and a super profitable trading week.

Adam Hewison