Hello MarketClub members everywhere. Like many people around the world, I was watching the events unfold last night in Indiana. The two big surprises to me were the fact that Ted Cruz suspended his campaign and that Bernie Sanders won the Democratic primary. So what does all of this mean and how likely will it affect the markets? For some time now the market has been moving sideways and looks as though it's reflecting the lower growth rates that we are seeing. Occasionally you'll see it pop, but then the market just seems to fall back under its own weight. The stock market is a forward-looking vehicle which looks ahead 6 to 9 months into the future. I think it's predicting that the battle between the representatives of both the Democrat and Republican parties will get nasty. All of which will translate into negative news for the stock market in the interim. Having said all that, I'm going to do what I always do and that is separate fiction from fact with the use of the Trade Triangles. What I mean by that is if everyone says a stock should go up, but the stock is going down, then you have to understand that the trend is down and not what everyone wishes it should be. One of the standout features on the indices today is that they are all below the 50 RSI line which should be support. The fact that they are below this line is not a good sign; it indicates a potential for further weakness. Another sign of weakness, particularly in the NASDAQ (NASDAQ:COMP), is the fact that a weekly red Trade Triangle triggered on April 28 indicating that a sidelines position is in order. The Dow (INDEX:DJI) will trigger a red weekly Trade Triangle if it dips below 17,553. Similarly, if the S&P 500 (CME:SP500) moves below 2,039, it would trigger a red weekly Trade Triangle as well. It is possible we could get there this week, so close attention should be paid to those levels. Gold (FOREX:XAUUSDO): After flirting with the $1300 level, gold has pulled back, but has not changed its general direction. I would not be surprised to see this market consolidate before breaking through the $1300 announced level. Both long-term and intermediate-term traders should maintain long positions. Short-term traders should be on the sidelines for the moment. Crude Oil (NYMEX:CL.M16.E): I still like the formation I see on the crude oil chart. However, if you are a short-term trader, you should be on the sidelines at the moment. One key level to watch on the June contract is the 42.91 level which is the PSAR number. Should that level be broken, it would indicate further weakness. You should also keep an eye on the RSI indicator, presently trading around the 57 level, to find support at the 50 level. This is a classic case of everyone saying we have too much oil so oil prices can only go lower. But, look what happened in reality, oil went from $28 a barrel to well over $40 a barrel in just the past four months. The Trade Triangles, on the other hand, ignore all of the fundamentals and focus on price movement. Pricing is the bottom line on your trading statements. Tesla Motors Inc. (NASDAQ:TSLA): Tesla reports its earnings after the close today and they're expected to show a continued loss of as much as $.60 per share compared to a .35 loss they reported last period. Based on the Trade Triangles, you should be on the sidelines with a mixed picture based on the monthly Trade Triangle being green and the weekly Trade Triangle being red. Facebook Inc. (NASDAQ:FB): It is all systems go for this stock. The one thing that concerns me now is talk that Facebook could be the world's first company worth a trillion dollars. I remember when everyone was saying that Apple Inc. (NASDAQ:AAPL) was going to be the first company to hit that mark - what happened? They also said that about Alphabet Inc. (NASDAQ:GOOG), what happened there? The bottom line is that the world changes as technology and events change entrenched business models. Just look at how powerful Microsoft Corp. (NASDAQ:MSFT) once was, but under Steve Ballmer's stewardship, it completely missed the mobile revolution. Can Facebook become the first trillion dollar company? Your guess is as good as mine.
MarketClub/INO, a division of TIFIN Group LLC, is affiliated with Magnifi via common ownership. Affiliates of Magnifi will receive cash compensation for referrals of clients who open accounts with Magnifi. Due to this compensation, a conflict of interest exists since MarketClub/INO has an incentive to recommend Magnifi LLC.
Magnifi LLC does not charge advisory fees or transaction fees for non-managed accounts. Clients who elect to have Magnifi LLC manage all or a portion of their account will be charged an advisory fee. Please see Magnifi’s Form ADV for additional information about fees and charges that may apply. Magnifi LLC receives compensation from product sponsors related to recommendations. Other fees and charges may apply.
Magnifi, normally $14 per month, will be available at no additional cost to MarketClub members. Account holders must be 18 years of age and have an approved Magnifi account. Magnifi will determine qualifying account holders at its own discretion.
U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.