Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 5th of March.
In addition to the markets we normally report on, we will also be looking at the following markets using our Trade Triangle technology.
CNBC ASIA
Tonight at 9:50p.m. ET, I will be appearing on "Cash Call" on CNBC ASIA.
WHY THE MARKET TOOK A BITE OUT OF APPLE
Apple has fallen some 40% from its highs around $700 and is now worth only $400 million. What a change of fortune for what was once the most valuable company in the world. In addition to losing market share in the tablet wars in Q4 to Samsung, Apple is only forecasting a 10% growth rate, its lowest in five years! What happened to this stock? Well, trends and sentiment change and the trend for Apple has been negative for some time. Our Trade Triangle technology certainly caught the move on the downside and remains short this stock. So what's on the horizon for Apple? The potential of the iWatch could be the next "big thing" for Apple. It is not going to be as big as the iPhone or iPad, but it offers a clear up-sell path from those products. In today's video, we will be analyzing Apple to see what is left on the downside and determine if it is time to be looking to buy this stock.
ARE WE ALL GOING TO BE WEARING GOOGLE GLASSES IN THE FUTURE?
Yesterday Google closed at new all-time highs. Our Trade Triangle technology picked up Google at $642 and change (nice trade). Yesterday's close over $820 was a very positive sign for this market, with major investment companies calling for Google to hit $1,000 a share. This all sounds eerily familiar... Remember when Apple was the most valuable company in the world, trading at $700 a share, and everybody was calling for Apple to hit $1,000? Can the same fate await Google? Here is a quick lesson on that very subject. Google is perhaps a little different in the sense that it does have a leadership role in the online search and advertising world and it does control 70% of the world smart phone market. Only time will tell.
IS IT TIME TO LOOK AT GOLD?
Just because you think a market should be going up, doesn't mean that the market is going to go up. Gold has been a huge disappointment for many gold bulls, as it has slowly and painfully lost value after reaching its high of 1907.80 on September 6, 2011. Our recent poll results indicated that many of you are waiting for gold to show signs of a technical turnaround. As of this morning, gold has not yet made a turn. However, it is beginning to find some support and some early building blocks around the $1,500 to $1,550 area. We are somewhat optimistic that we have seen the lows in gold, but it is too early to say for sure. We learned a long time ago not to catch falling knives. Mentally we want to be ready to buy gold and catch the move up, as it will inevitably come at some point in time when inflation kicks in.
PAY CLOSE ATTENTION TO:
WISDOMTREE INDIA EARNINGS (EPI) is the ETF that we use to track the Indian economy.
iSHARES MSCI ITALY INDEX (EWI) is the ETF that we use to track what is going on in Italy.
MORE CHAOS AHEAD
March 27th - Budget Resolution Expires
May 19th - Debt Ceiling Suspension Expires
Have a great trading day, see you tomorrow.
Adam Hewison
President, INO.com
Co-Creator, MarketClub
1) Inflation has already kicked in. The metrics for calculating the CPI were changed drastically in 1999, for instance health care premiums constitute a less than 2% weighting for CPI calculations. That should be a huge indication to anyone how phony the calculations are, anyone not living under a rock knows the "hardly any inflation" story is bogus.
2) "Many of you are waiting for a technical turn in gold" That actually sounds a little ominous, it's when everyone has thrown in the towel instead that a major low has been made, not when everyone is still in broken clock twice per day mode.