Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 24th of June.
Everyone Wanted To Buy A Dip In This Market, So Where Are The Buyers?
One of the most fascinating parts of the market in my mind is the psychology of price movement. You can talk all you want about the fundamentals of a stock, future earnings, takeovers, financial forecasts, but it really comes down to PERCEPTION!!
Remember not so long ago everybody wanted to buy a 5% pullback in the stock market? Well, where are those buyers today? They have all but disappeared from the financial landscape. The reality is, market perception has gripped investors and taken over their minds. What the market is trading now is not stocks, it's money pure and simple. I warned our members three weeks ago that our Trade Triangle technology had given early warning signals for the major stock indices. We will be covering all the indices in today's video, so please tune in to get my latest thoughts on today's market.
Bottom Pickers
Sometimes it's so tempting to buy a market because it looks cheap, but this is not the recommended way. Catching a falling knife is not smart idea, nor does it put the odds on your side. Tools like our Trade Triangles put the odds on your side and let you sleep better at night knowing that you will come out ahead of the game.
Longer term, the major indices are still in a bullish trend, however all intermediate-term trends remain negative and I believe a position on the sidelines is the safest place for your money at the moment.
The Trade Triangles Are Killing It In Gold
For some gold investors, is has been a terrible year to be invested in this once precious metal. But for every Yin, there is a Yang in the markets, and in 2013 our Trade Triangle signals have been making a killing in gold on the short side of the market. In fact, early returns suggest that we are having our second best year since 2008, when our Trade Triangles produced a return in excess of 500% for our World Cup Portfolio. Gold is one of the 6 markets that make up MarketClub's World Cup Portfolio.
This Little Stock Turned Up On Our Trade Triangles This Morning
NASDAQ:STEC. The last time we had a buy signal on this stock at these levels was back in February of 2009. The stock moved from $5.69 up to $40 in less than seven months. We just received a buy on STEC this morning at $5.61! Could the same thing happen again?
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Watch Today's Video Update Here
There's More
In addition to looking at our normal markets, we will also be looking for stocks that are trending higher today. If you haven't watched any of my recent videos, you can watch them by clicking on the links below.
Recent Special Videos:
Gannett (NYSE:GCI)
Gold
Early Warning System
SodaStream (NASDAQ:SODA)
Apple (NASDAQ:APPL)
Yahoo (NASDAQ:YHOO)
S & P 500 (SP500)
Wal-Mart (NYSE:WMT)
Lululemon (NASDAQ:LULU)
Apple (NASDAQ:APPL)
Tesla (NASDAQ:TSLA)
Google (NASDAQ:GOOG)
Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.
The Trade Triangles is likely one of the best games in town while the value of all things tangible is at the mercy of the monetary gurus, until such time that faith and credit totally evaporates into oblivion, and even then the Trade Triangles might still be the best guide available.
Stocks are massively overbought. There has only been one real test of the 200-Day MA in the last three years, that of the latter half of last year. The action reminds of the systematic run-up to the last crash that we remember all too well. Already there have been two 50% crashes in a decade, now I suspect that a similar magnitude is on the way.
The world is totally drowning in stuff and overcapacity. More and more people are realizing that going into debt to chase falling prices makes no sense at all.
Hi, trading triangles? How to get more info, I'm trading the spx options, will this help? todd riley
Although MarketClub does not suggest a specific methodology when trading options, many options trader have told us that they use the Chart Analysis score to determine trend and strength. The score of +100 to -100 will give an indication of possible direction movement and the short-term, intermediate-term and long term trends that support that direction.
They have also said that they use the weekly and daily “Trade Triangles” for the underlying symbol. These triangles represent the intermediate and short-term trend directions. By confirming that both of these triangles are pointing in the same direction, it put the odds in your favor that the trend will continue in that same direction. However speed and strength should be further analyzed by using another technical analysis indicator.
You can learn more about trading options by visiting the options section in Trade School. Although these seminars will not show you have to trade options with MarketClub, they will give you other strategies that you may want to incorporate into your own trading plan.
We also have a member strategy Webinar that we did with a member about how she uses MarketClub to trade Options. Please use the link below.
http://club.ino.com/trading/marketclub-member-strategy-webinar-manisha/
Best,
Jeremy