Fed Signals It Plans To Keep Key Interest Rate At Record Low

The Federal Reserve signaled Wednesday that it plans to keep a key interest rate at a record low for a considerable period because a broad range of U.S. economic measures remain subpar.

The Fed said it planned to keep its benchmark rate near zero as long as inflation remains under control, until it sees consistent gains in wage growth, long-term unemployment and other gauges of the job market.

The central bank retained language signaling its plans to keep short-term rates low "for a considerable time" after it ends its monthly bond purchases after its next meeting in October.

Stock prices rose after the Fed issued its statement at 2 p.m. Eastern time. Traders appeared pleased that the Fed seems in no hurry to raise rates. Continue reading "Fed Signals It Plans To Keep Key Interest Rate At Record Low"

Duffey Footprints 5K & Toni Hansen - INO Cares

We had so many amazing organizations and events that we wanted to select for our August INO Cares Campaign. We just couldn’t choose between them, so we decided to carryover the giving into September.

If you recall, in August we sent a donation to Hope For Guatemala, as a close friend of the INO.com family was traveling to the area on a missions trip. Read all about the organization and Richard Lusk’s adventure.
Duffey Footprints
This month, we would like to highlight two causes that are very near and dear to our hearts!

INO.com partner, David Maher and his wife, Amy Maher, are very involved in the youth program at their church in Moorefield, West Virginia. Amy and Dave are passionate about personal and spiritual health in their tight-knit community. Along with other church members, the Mahers helped the youth group and community members train and prepare for a 5K. The final event was the Duffy Footprints 5k/1Mile Race to raise money for the new Family Life Center and youth programs at Duffey Memorial United Methodist Church.

This self-improvement program used the Run For God curriculum. Run For God began as a 2010 Bible study that paralleled faith and endurance. Since then, tens of thousands have walked successfully though this program and many have adopted new lifestyles which value both physical and spiritual health.

The Mahers also recognize that their home state of West Virginia is a state with one of the highest obesity rates in the country. The CDC reports that 67.4% of adults living in West Virginia are overweight and adolescent obesity is on an up-trend. The Duffy Footprints 5k/1Mile Race was an amazing opportunity to promote healthy living and exercise in their community, while also raising money for a Family Life Center that will help strengthen families in their spiritual faith.

The Duffy Footprints Race took place on August 2nd, 2014. There were approximately 115 runners and the event raised $3,100.

INO.com was proud to sponsor this race and provided the t-shirts for the runners. Because of this, 100% of the registration fee and race proceeds were given to the Duffey Memorial UMC to support their Family Life Center program. We hope that the congregation will make this an annual event!

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There was also a cause that came up quickly and we felt compelled to send aid. In August we wrote about Traders For Toni. This fundraiser was set-up by some of the most well-known and respected traders in the industry to help fellow trader, Toni Hansen.

Toni Hansen is a mother, author, trader, teacher, and friend to many people in the trading community. She has personal relationships with those here at INO.com and her call for help has been heard loud and clear!

After blacking out at home, Toni was taken to the ER. After numerous hospital visits, spinal taps, CT scans and MRIs, Toni has been accurately diagnosed with a spinal fluid leak. The doctors were able to treat her and she is currently in the recovery process. Unfortunately, her insurance company has denied a bulk of her claim and her medical bills have become unmanageable.

INO.com has made a donation to Toni to help ease the burden of out-of-pocket costs for her procedure. To learn more about Toni’s story or to make a contribution, please visit her fundraising page.

If you have any ideas for a future INO Cares campaign, please send them our way!

Best,

The INO Cares Team

Ouch, Yesterday Was An Expensive Day For Many Investors

Has the market topped out?

For the last couple weeks, I have been somewhat skeptical of this market and whether it could keep on moving higher. Yesterday, we witnessed a collapse of several major stocks that were pushing this market higher particularly in the NASDAQ sector.

According to our Trade Triangles, you should get out of the NASDAQ and S&P 500 as they both are showing weekly intermediate-term trends that have turned negative. The DOW is the only index that is holding up so far. The red line for the DOW this week is 16,937 and should the DOW break below that area, it would put all three major indices in an intermediate downtrend.

The following stocks show intermediate downtrends (red weekly Trade Triangles) and unless you are a long-term investor, you should be on the sidelines in these stocks.

Apple Inc. (NASDAQ:AAPL)
Amazon.com Inc. (NASDAQ:AMZN)
eBay Inc. (NASDAQ:EBAY)
Yelp Inc. (NYSE:YELP)
Tesla Motors Inc. (NASDAQ:TSLA)
Netflix Inc. (NASDAQ:NFLX)

To find out if your stock is in trouble, check out the talking chart symbol on the top of every chart. Learn more here.

Now is the time for caution and not bold moves, in my opinion.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Run Your Portfolio Like A Hedge Fund Manager

As I was perusing my morning news feed, I came across an appalling amount of headlines about the ever-dreaded 'correction.' While there is value in some of these articles, the majority provide no unique insight.

Here's how one should think about a possible correction: How do I spot a correction? How do I protect against losing my shirt in a downturn? And how do I properly implement any suggested strategy?

First Question: How does one even know if a correction is coming? Continue reading "Run Your Portfolio Like A Hedge Fund Manager"

A Closer Look at the US Dollar

Using the standard weekly currency chart we followed along for months as the Euro found resistance at the long-term downtrend line as expected, the commodity currencies long ago lost major support and non-confirmed the commodity complex and the US dollar moved from a hold of critical support, to a trend line breakout, to its current impulsive and over bought status.  It is time now for a closer look at Uncle Buck since this reserve currency is key to so many asset markets the world over.

As the charts below show, USD is over bought on both daily and weekly time frames.  But the monthly is interesting because its big picture view is that of a basing/bottoming pattern, and it is bullish.  That is a long-term director, so regardless of what happens in the short-term, a process of unwinding the hyper-inflationist ‘Dollar Collapse’ cult is ongoing.  Signs point to disinflation toward deflation.

We’ll start with a daily chart and then ascend right through the weekly and then the monthly to take the pulse of USD.

As noted, the daily chart below is very over bought.  It is currently consolidating the big jerk upward that has come against Euro-negative policy from the ECB and an increasing drum beat about an eventual rise in the Fed Funds rate in the US.  People are finally catching on to the fact that the US economy has been strengthening since early 2013 and that the Fed is looking out of touch holding ZIRP despite this strength.

So the dollar is getting bid up.  The question the chart asks is whether the current consolidation will work-off of another over bought situation, or is a prelude to a reversal?  The answer is going to be key to the bounce potential in many asset markets, but especially commodities, which are generally tanking and precious metals, with gold eventually due to firm after it finishes its bear market and its fundamentals come in line.

usd.daily

You will recognize the weekly chart as it is the top panel of our long-running multi-currency chart.  RSI has been added to this view to show the over bought level.  Note that the weekly has joined the daily in over bought status on this most recent drive, whereas it was merely healthy – and not over bought – the last time the daily registered an over bought reading in July. Continue reading "A Closer Look at the US Dollar"