Last night on MarketClub TV, Susan and I discussed what we and the “Triangles” saw in the markets in the days to come and well, it didn’t even take days. In a little more than 12 hours, the markets showed us that we were dead on.
SKF discussed in the above video recorded on Wednesday is up + 9.8% today!
Of course, even we know that we can’t be right all the time, but more often than not MarketClub has put us on the right side of many markets. Want to see for yourself? For the first time ever, we’re offering you a MarketClub membership at a price you’d be crazy to refuse. Click here to find out more.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
What would be more comfortable for me is to know how YOU are trading using MC.
Mike,
I take full advantage of all the MC tools to trade. Trade Triangles, PSAR, MACD, Donchian etc. There is no easy way to explain exactly how I trade, but I will say this, if you have watched my videos you know how importantq our Trade Triagles are to my own trading.
All the best,
Adam
Adam, thanks for that information. As a subscriber of MC, I'm well aware of the rules you suggest for using MC. I'm referring to this particular article where you say you'd be waiting (on SKF) for the Weekly Red Triangle. If you are using these rules, then you couldn't (or shouldn't) have entered prior to 7/18 @ 67/sh. No red weekly triangle has showed up yet. When I wrote my original comment to this article, the Weekly Red Triangle would not have shown up until $ 60.94. Now, it's $ 62.78. I realize that you are not advising and I'm not trying to get you to give "investment advice". I'm trying to determine if YOU'RE using MC the same way you are telling your subscribers (like me). Because if you are, I'm confused. From that 7/18 entry, SKF made a 23 point move. Waiting for MC to trigger a stop using the Weekly Red Triangle (in this particular case) means you would have to watch a 23 point move disappear and possibly be waiting to stop out with a (now) 4 point loss. I know you use PSAR and figure you probably would have exited (or at least exited on part) much higher. In this particular article, you are pointing out that you think (at least at the time of the writing of this article) that this might have been another buy point on SKF. I understand why. Again, though, if you entered at this point (on this day), the stop (Weekly Red Triangle) is pretty far away. Sure, you can size down, but using MC's "strategy" would have given you a 12 point risk. I'm just trying to confirm. "If" you took this position at around 73 on 8/18, would you be saying that you would have been risking 12 points on that day as your stop point? Or would you have been using PSAR or some other stop (percentage, other point stop) BEFORE the Weekly Red Triangle showed itself? Thanks
Mike,
I think what you are referring to is the Fibonacci pullback which was 61.8%. If I remember correctly this was just another way, if you're not in a trade to enter into a trade with what I believe is a low risk entry.
The SKF is a leveraged ETF, which means it's going to be volatile and have big swings. You certainly cannot trade this market with super tight stops. You must give the market plenty of leeway.
To answer your question about how I trade and what I recommend to people are 2 different matters. We have traders out there who are just beginning their trading career, and we have other folks who are further along in the trading expertise. We recommend that you follow the markets first off and understand how our Trade Triangle technology works. Overall if you just use this one approach, that is the Trade Triangle based on the rules I put on this blog yesterday you would do well. Other traders have different personalities and have trouble staying with them very cut and dry approach to the market. Some traders find the Trade Triangles boring, it is better to be bored and make money than to be frantic and losing money. One of the really great traits about MarketClub's Trade Triangles is the fact it really keeps you in the trend and shows you what the trends are.
The PSAR is a great indicator and one that was created by Welles Wilder is great for helping certain traders manage their money and their stops. We also have members that use our monthly Trade Triangles and use the PSAR's as entry and exit points. It's really all about finding what is comfortable for you. Only you can really answer that particular question.
I hope you're enjoying MarketClub and the solid advice and learning videos on how our Trade Triangles work. If you haven't seen our 1pm updates and our weekly show on Wednesday at 5 PM, I strongly recommend that you check them out.
All the best to you,
Adam
Unfortunately, Adam, you never answered my question. The way you tell people to use MC is to enter when the monthly and weekly triangles are green. I'm still not clear because even then you wait for trend scores (usually) are above 75. So, on SKF, using the method you have been telling your subscribers, you shouldn't have entered prior to 7/18 when the weekly triangle was at 67.
I asked whether you would be waiting for the weekly triangle to go red (and knowing how they fire, it wouldn't fire until 60.94 or six points below your entry) to stop out.
Mike,
Here are the rules for our "Trade Triangle" Technology.
Thanks,
Adam
How "Trade Triangles" work in stocks.
The major "Trade Triangle" to watch in trading stocks is the monthly "Trade Triangle" as this triangle determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that stock. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the stock. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly "Trade Triangle" for entering and exiting the market.
How "Trade Triangles" work in the PerFect Portfolio "R"
The major "Trade Triangle" to watch in trading ETFs in the Perfect Portfolio is the monthly "Trade Triangle" as this "Trade Triangle" determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that ETF. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop/exit out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop/exit out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the ETF. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly green "Trade Triangle" exiting a position and a red weekly "Trade Triangle"for re-entering the market.
The major "Trade Triangle" to watch in trading the 4 ETFs in MarketClub's Perfect "R" Portfolio is the monthly "Trade Triangle" as this triangle determines the trend and your position. You would use the monthly GREEN "Trade Triangle" as an entry point and use the monthly RED "Trade Triangle" as an exit point. You would only reenter a long position if and when a GREEN monthly "Trade Triangle" kicked in. This portfolio is suitable for 401K and IRA retirement accounts therefore it is not allowed to short ETFs.
How "Trade Triangles" work in ETFs (Global Strategy Portfolio)
The major "Trade Triangle" to watch in trading this portfolio is the monthly "Trade Triangle" as this triangle determines the trend and initial positions. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is GREEN this indicates that the major trend is up for that ETF. You would then use the initial GREEN monthly "Trade Triangle" as an entry point and use the weekly RED "Trade Triangle" as an exit point. You would only reenter a long position if and when a GREEN weekly "Trade Triangle" kicked in. You would then use a weekly RED "Trade Triangle" as an exit point. Providing that a monthly GREEN "Trade Triangle" is in place the trend is positive for the ETF. The reverse is true if a RED monthly "Trade Triangle" shows that the trend is down. You would then use the weekly RED "Trade Triangle" for entering short positions and the GREEN weekly Trade Triangle exiting the market.
How to use "Trade Triangles" in futures and Forex.
In the futures and Forex markets we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.
How to use trade triangles in Gold.
In the gold market we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.
What does one have to do to participate in entering a stock position in the aftermarket ?
Sunday,
Best thing to do, is to call your broker, they can help you on this.
Adam
Yep, that's great and I love watching them that way. But how about portfolio manager?
Audio quality. The volume level of Adam talking in the video has been turned so high during recording that the signal has been clipped, which sounds distorted. To improve audio quality, make sure that you avoid clipping by turning the recording volume down.
Flash is not supported by Apple and so it does not run on my Iphone or Ipad. Any solutions you can think of?
Btw, I love Marketclub. Just canceled my Vectorvest subscription to focus solely on your approach. Keep it up, guys!
Christian
Christian,
Glad to hear that you love MarketClub. We post all of our video content to YouTube for all of our iPad users out there.
http://www.youtube.com/marketclub
Best,
Jeremy
Great advice Adam, while it is true you can't put "to much" into the SAR, it has helped us make that final decision on entry and exits points over the years. But you never see or hear traders talking about it.
Hi,
I follow the Perfect R Portfolio but I don't want to be on the sidelines with oil at the moment. I want to be profitiing from the downturn. Anyone else in the same boat? I would guess so.
**** Any suggestions for an ETF to short Oil? ****
I am looking at DNO, SZO and SCO (leveraged) but not sure which one to go with. Feedback would be really appreciated. I hear a lot of worrying things about inverse ETFs, especially leveraged ones, so I think it is worth a decent amount of research before jumping in.
In addtion, in case it helps, I have SPXU to short S&P, GLL to short Gold (not very popular at the moment) and EUO to short Euro.
thanks
Tristan
Tristan,
Thanks for using the "Perfect Portfolio". I am sure you are happy to have avoided the current downward spiral in the equity markets. To answer your question about inverse ETFs, the one key to look at with an ETF is liquidity, which means volume. The other key concern is leverage and how the ETF is readjusted daily.
All the best,
Adam
for sme reason this will not load up on my browser, like your 1 pm updates
Andy,
Sounds like you do not have the Adobe Flash player. Just go to Adobe.com and download the free player and then you will be able to watch our videos.
All the best,
Adam
Adam,
Thanks for the great video, today's 1 pm update was excellent, great enthusiasm and confidence! It may seem boring to you going over the same markets
each day, but it really helps me, just your review gives me confidence and commitment to stick with the plan.
On to my question. When there was a buy trade triangle given to get into SKF, how do you know exactly where to put
your stops since this ETF sure swings alot. Also, as the price moves up, what technique do you use to adjust your stops
as the ETF goes higher. I got stopped out on the downside a couple times last week during the over night. One more thing,
you mentioned tightening up the stops on gold, what technique is used there?
Thank you.
Best Regards,
Robert Levy
Robert,
Thanks for your feedback.
You might want to take a look at the "Parabolic SAR " indicator to tighten up stops on gold. It is not perfect, but it moves your stops up as the market is moving higher. Hope this helps and tevery success in the markets.
Adam
SH up 4.8%, QID up 9.7, TZA up 17.57, SOXS up 17.53... This market is going into the drink. Thanks to the RNC and their removal of Glass-Steagall in 1999....... Same morons as 1929, highly leveraged, highly risky securities and no financial regulations... Same results..... Only good thing is that soon some investigative reporter will connect the dots, get a Pulitzer and for another 50 years, those folks will have a hard time even being elected dog catchers....
Mike,
The more things change the more they stay the same.
Cheers,
Adam
I came across ths service on another letter I got. It looks really interesting. Obviously this was a big win so far. Buying a few calls could have made alot of $. So I am wondering how accurate is the system. How many opportunities are their to invest and what is the rate of accuracy. Is it 90% on all recommendations of a specific rating and only 2 of those occur a wk? Or what? I don't have a very big portfolio but you have intrigued me. More info would be greatly appreciated.
Michael,
Many of the answers are here.
All the best,
Adam
Well, great call. One problem. If you weren't able to take an entry before yesterday's close, you were out of luck with the gap up today. The other problem is that you said you would wait for the Red Weekly Triangle to take you out of the trade. Even if you took the trade before the close yesterday, yesterday's low was $ 73.05 (that the absolute lowest entry you could have had). The Red Weekly Triangle wouldn't fire until 60.94. That's about 12 points on a $ 73 ETF (or around 16%) which seems a bit loose for a reasonable stop point.
Not only that, if you entered on the Green Weekly Triangle back on 7/18 at 67 (that would in hindsight have been a good entry, but you still would have been risking 9 points to the Red Weekly Triangle or about 13%), if you were now waiting for the Red Weekly Triangle to take you out, that would be almost 7 points below your entry at 67 which means you'd take a loss after this play shot up some 23 points from your original 7/18 entry.
Would you really have waited for the Red Weekly Triangle?
Mike,
Thanks. We have been long SKF for quite some time based on our Trade Triangle technology. Had you watched the show at 5PM on Wednesday you could have gone into the after market and bought SKF around $75.00. Lastly our Trade Triangles have never waivered.
Thanks for your feedback.
Adam
Great post... It is like the SH or DOG or PSQ, etc. that I suggest investors consider when investing in uncertain times.