Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 21st of June.
Well, it could mean Dimone as in Jamie Dimone from Citibank, or it could mean Depression as in world, or it could mean Deflation. The question is, are the markets moving into what appears to be a deflationary cycle? With the continued weakness in crude oil and gold, it all points to less demand in the world markets for oil. And with gold down almost $40 today, it says that investors are fleeing what was a hedge against inflation. The Reuters/Jeffries CRB Index is now at its lowest level in over 22 months, yet another sign that we are in a deflationary environment.
As an investor/trader, what can you do?
Well, here at MarketClub our solution is pretty simple and effective. We use our Trade Triangle technology and go with the flow. That's it! The markets don't pay you more for making it complicated. I found in my investment career that keeping it simple, is without question the best way to make money in the marketplace.
3 STOCKS ON THE MOVE TODAY:
The following stocks had monthly buy signals based on our Trade Triangle Technology and liquid volume of over one million shares traded daily.
JETBLUE AIRWAYS (JBLU),SUN HEALTH CARE GROUP (SUNH),and SPECTRUM PHARMACEUTICALS (SPPI).
TODAY'S MARKET MOVING SECTORS and STOCKS:
Percentage changes in stocks are relative to the S&P 500
| CONSUMER GOODS: +0.16% | Biggest Winner TSLA +12.09% |
| SERVICES: +0.91% | Biggest Winner UAL +8.53% |
| HEALTHCARE: +2.11% | Biggest Winner ONXX +5.72% |
| ENERGY: -1.43% | Biggest Loser ROSE -10.80% |
| TECHNOLOGY: +0.05% | Biggest Winner NVDA +6.44% |
| FINANCIAL: +0.23% | Biggest Winner STI +3.74% |
| INDUSTRIAL GOODS: +0.12% | Biggest Winner PPO +5.24% |
| BASIC MATERIALS: +0.43% | Biggest Winner UAN +14.37% |
| UTILITIES: +0.11% | Biggest Winner GEN +13.21% |
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology. Click Here to view today's video
D = downgrade...and a rise in interest rates.
Something that I have been following from 2007 is Elliottwave.Com. Thier short term analysis is 50/50 but man, their long term analysis has been right on. I have found it very helpful technical analysis Elliot Wave/Fibonacci and now with the trade triangles which I have back tested I am doing much better in my trading. I believe I have found a good combination.
Get the two books "Conquer the Crash" the older one from 2002 and then the most recent one and I believe you will get a better handle on what is really going on in current events and what is possibly to come. The books are a real eye opener and not for the faint of heart.
Some of us still live in the real world. Our food bills are not deflating. Neither are our medical bills, health premiums, college tuitions, heck those have been going up over 10% per year. The things we actually need are soaring in price, only someone not living in the real world would deny that.
I respectfully submit that you and most of us paying these gouged high prices are not living in the the 'real'world. Indeed, we have not been living in a 'real' world since 2008 when the banksters were saved by the Fed and TARP. No mark to market for the toxic housing assets has allowed factitious 'unreal' high prices to flourish with the Fed rigging the market since 2009 to support the equity markets creating the 'wealth effect'. The Fed prints a about 1.3 trillion dollars/yr yet wage growth is 1% adjusted for 'inflation'. The IRS collects around 250 billion/yr. Where is all this extra money going? It get sopped up by the banks and corporations and the interest on national debt, I think. The result is actually a money depression for the average consumer. This is why metals are going down-deflation in a world still acting and assuming that we can spend more and more on higher priced goods and services when the fact of the matter is that we cannot unless they are paid for through a business account which, I suppose, is an argument for incorporation if one could do so, however, who knows when the rules will change. Also, how much more can the Fed realistically do without Congressional action? Uncertainty prevails and the safe port in the storm is the dollar and cash, for now. But the metals are not part of the story. They will be at some point, but we are not there yet. Be careful with the bonds as well as at some point the vigilantes will come out of the woodwork and drive yields higher on the 30 year vehicle. When that time comes, TBT will do like inverse gold funds have done for the past year, and, incidentally, TBT puts and calls are highly liquid and good trading instruments.
Please excuse my rant as I am probably preaching to the choir, and I reserve the right to amend my remarks or change my mind.
Deflation has been rearing it's ugly head for awhile. Why do you think Helicopter Ben's liquidity has not caused inflation?
Gold and the market are in a correction mode. Technical's aside how can we have meaningful growth in this environment?
Cash Cash Cash!!!!!!
DEFLATION!!! Geee, if the stock market is tanking why is Gold tanking? It's called ALL THE SAME MARKETS. When deflation really kicks in the value of everything will be worth pennies on the dollar. Which brings up a question. If everything cost less becuase of deflation will the dollar buy more? So does that mean that cold hard cash will be king? hummm.
Right, have you ever seen a Bull market where cash was king? Like those GDX puts.
By the way, Great Call Dennis!