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
Fasten your seat belts …
Gold up. Equities down.
Congress fiddles while the markets ( fill in the blank)
Check out our poll, looks like our readers got it right again.
Adam
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
Trader’s Blog First Ever CONTEST!
We’ve all been there….looking at a chart a year later and saying to ourselves “WHY, OH WHY, didn’t I just pull the trigger!?!?!” The chart shows us the sad truth that if only we would have gotten long, we would have had 500% returns, an island in Fiji, and 6 cars!
But we didn’t…
We here at The Trader’s Blog, would like to know what trade would have been your best…if only you would have taken it? Did you see something special in Google at 100.00 in 2004? Was Spot Gold primed at 256 in 2001? What made you stay out of Wheat around the 500.00 mark? Whatever your story we want to hear about it!
We’ll be giving away an Apple iTouch!
How you enter:
Comment today and tell us what that trade would have been…and what you would have bought with the returns!! Here are some trades that we in the office wished we would have done:
Bob F. “I wish I would have gotten long USO February of 2007, when Crude just started to move!”
Brad S. “Playing the AMEX_SKF which is an ultra short financial ETF around April when Bear’s crashed.”
Lindsay T. “Shorted NASDAQ_TRMP on our last monthly Trade Triangle at 16.51 in January of this year…that would have been huge!”
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Here are the details:
1. This contest open for 2 WEEKS!
2. Winner will be picked randomly by software to remove human errors.
3. One entry per person!
4. Winner will be contacted via email.
5. No wrong answers, participation counts as an entry.
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iTouch and Apple are a registered trademark of Apple, Inc. All rights reserved. INO.com is not partner with Apple for this contest and do not hold any type of partnership.
Trading against the core - new APPLE video
Sometimes its pays to fade the news. Find out why APPLE offered a low risk entry point on the opening on Tuesday, July 22nd.
Here is a brand new video I have just finished on APPLE. I think you will find it an eye opener.
This from Associated Press
Apple 3Q profit jumps 31 percent but stock drops
Macintosh and iPod sales helped boost Apple Inc.’s fiscal third-quarter earnings 31 percent, beating Wall Street’s expectations Monday, but investors pummeled the stock after Apple issued soft guidance for the current quarter. Steve Jobs, Apple’s chief executive, did not join the conference call with investors. Earlier in the day, the New York Post cited unnamed financial sources expressing ongoing concerns about Jobs’ health. Jobs has survived pancreatic cancer.
Enjoy the video,
Adam Hewison
President, INO.com
Traders Toolbox: This often overlooked technical indicator is a winner
Parallel trendlines
I am constantly amazed that some of the simplest tools available to technical analysts are often the most effective. One of these simple tools is parallel trendlines. I have used them to identify planes of support and resistance on the charts.
At times, these parallel trendlines will form channels. Commonly, a market will stay within a bounded channel for a sub- stantial period of time. However, these trendlines are not limited to channels of equal width. The weekly corn chart reveals a market which has followed the same angle, or plane, of movement for much of the past three years, but within channels of various widths.
There are three primary applications of this tool which are very useful. The first is to expect a market to respect existing parallel boundaries of support and resistance. Second is to expect a significant change in market action when a boundary is significantly violated. And third is to expect the market to eventually resume trading on a parallel plane at a new level. The weekly corn chart is a good example of all three applications.
How to trade successfully in any market
Happy Q3.
In this short video we will be looking at five key components that you need to be successful in your trading in Q3. The ones we have picked out today are not on every pro trader’s list, so I think they will surprise you.
We consider these five components to be incredibly important to anyone’s trading success, most of all yours.
If you have the time check out our other Traders Whiteboard lessons. We now have a total of eight lessons that you can benefit from and they’re available here.
All the best in trading,
A sell signal in crude oil are you crazy?
I get to eat some humble pie.
As many of you know our “Trade Triangle” technology issued a signal to go short crude oil on 6/4. The question was whether this was a good signal or a bad signal. The truth is it was a good signal, why do I say that? The bottom line is when you’re trading with discipline you must take the signal and try not to over think it. If crude oil had moved down to $120 and then down to the $115-110 level we would have looked like heroes. Instead crude oil had its largest percentage move in seven years.
The last two days in crude oil have been extraordinary by anyone’s imagination and you have to respect the market.
One of my heroes in the market was a gentleman named Bernard Baruch. You basically don’t hear about him anymore, but his teachings about the market are extraordinarily useful. You may want to read his book, “Baruch: My Own Story,” which I highly recommend.
One of my favorite sayings that Baruch gets credited for goes like this: “The main purpose of the stock market is to make fools of as many men as possible.” Well that certainly happened to me this week on the blog when I issued that signal on crude oil. Would I do it again? You bet, because I know the odds are in my favor in the long run.
If you’ve been reading this blog for any length of time you know that we stress diversification and discipline in trading. When you do that, you really do win out in the long run. We have had hundreds of profitable signals trading crude oil and our gains in crude oil in Q3, Q4 and Q1 have been outstanding. Now, I agree with you with this last trade in crude oil was a doozy. But only seeing this occur every 7 years is not such a hardship.
Many traders would be afraid to take the next signal right after a big loss, but sometimes that’s the best time to do so. Many of you may remember the gold signal and how that worked out.
The key to the market, is to be consistent in your approach. Many traders will trade a market and then suddenly say it’s not working, and go onto something else. Then the very market they were following has an enormous move that they were waiting for.
Getting back to our sell signal in crude; would we take the same signal again? Absolutely! Not to take the signal would be a mistake because that could have been a signal that could be very profitable for us. No one knows the future, the only way to successfully achieve profits in the marketplace is to approach it with a game plan and a roadmap that has been successful over the years. Traders come and go, but human emotion is the one constant in the marketplace.
As we have stressed in our Traders Whiteboards Series, diversification, discipline and the use of stops are some of the most powerful tools you can employ in your quest to make money in the market. It doesn’t matter if this is crude oil, Apple, Dell or the Euro
Another one of my favorite Baruch saying is this, “Do not blame anybody for your mistakes and failures.” He also said this: “Whatever errors I have committed, whatever follies I have witnessed my private and public life have been the consequence of action without thought.”
Here is my last comment on the Bernard Baruch and you can apply this to any market: “Without control over your emotions, there is very little chance for profitable success in the stock market.”
Well that’s about it. That’s about as much humble pie as I can eat at one sitting.
Every success in the markets, have a great weekend.
Adam Hewison
Co-creator of MarketClub.com
Gold follow up … was it a good or bad trade?
Hello,
I am not sure if you watched my earlier video on gold, but I wanted to put together a quick follow-up video in light of what has taken place in the last 24 hours.
A few days ago we released a new video on gold. It showed that we had a sell signal using our “Trade Triangle” technology. I thought it would be interesting to follow-up on this video as this signal did not work out as we expected it to.
Now many of you may think this was a bad trade. I happen to think it was a good trade and here’s why…
One of the keys to being a successful trader is to be disciplined and follow your trading plan, or in our case follow the “Trade Triangle” technology. While our last signal resulted in a loss, our previous “Trade Triangle” signals resulted in a very large profit.
I want to share with you a trade that did not work out and show you how you should react when in a negative trade.
It is a very short video, but I think it will teach you a valuable lesson about trading and how the markets really work.
Every success in life and in trading.
Co-founder MarketClub.com
