Category: MarketClub Techniques, Tips & Talk

Forget the pain at the pump ...

Here's how I see it this Tuesday morning.

The pain in the market should not be hurting you if you have been reading this blog and using our "Trade Triangle" technology.

As a matter of fact if you have been following our approach to trading with our "Trade Triangles" you should have had an excellent year like Milt in Virginia.

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"When I started using the MarketClub, I checked out your signals versus the signals I generate for a few weeks. I used mine to verify yours… now I use yours to verify mine and the profits have been astounding!"
Milt Fall, Virginia

Thanks Milt. I am glad that our "Trade Triangle" technology is working well for you.

P.S. If you are not yet using our "Trade Triangles" you can check them out here risk free.

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We have thousands of investors like Milt, who use MarketClub successfully everyday to make important investment decisions. Are you one of them? If not, find out how MarketClub can help you safely navigate the iceberg laden investment waters.

Now it's time to zip back in blog time and revisit perhaps the most important SEC rule change in my entire investment lifetime. It's called the "UP TICK RULE" watch the video here and see why the SEC abolished it to the detriment on every stock investor.

I believe that this rule change along with the growth of hedge funds have all contributed to the markets downturn. There are of course other contributing factors for the economy which have all added to declining stock prices, like record high oil prices, the sub-prime disaster and all the CDO and SIVs that are imploding.

Is the economy going to get better anytime soon? Not in my opinion. See what I predicted on Bloomberg TV on September 13th when I indicated that spiraling raw material prices and a falling dollar would present a bleak picture for the U.S. economy and stocks.

Now more than ever ... be prepared and be disciplined in your trading.

Adam Hewison

I don't know about you, but I get lost in the car all the time. I have a bad sense of direction. If I'm supposed to turn left, I accidentally turn right. When I go into the city, I always end up on the expressway back out of town. I am the person pulled over on the side of the road with a big map spread across my dashboard.

I have come to the realization that I need an automobile GPS. I need the annoying voice to tell me to "Turn Left In 0.3 Miles." I need a big arrow pointing to my destination at all times. I need someone to tell me that I have arrived at my destination.

It's funny that I need the same help with driving that I do with trading. I need someone, something to say... "Weekly Positive Trend on 9/28 at $23.97." I need to see a big arrow pointing which way to go. I need something to tell me that we have arrived at the trend destination, or we need to get back on for a another move.
MarketClub's trade triangles help me have a better sense of direction in the markets. It's not that I need someone to tell me what to do, it's a confirmation of my own intuition. It's how I can keep my emotions out of my trading by making simple rules for myself and following them!

Let's look at Garmin (NASDAQ: GRMN). Since 1989 Garmin has been developing automotive, aviation, marine and outdoor recreation navigation and communication devices. With the latest craze in automobile GPS units, internationally distributed Garmin products are flying off the shelves.

Garmin's stock has increased more than 400% in little over a year. Maxing out at $126/share, Garmin has made MarketClub members quite a profit since September of 2006. Of course it's easy to look back a chart and say, "Wow... look what you would have done," but if we set realistic rules... we can get the big picture of the big profits.

In 09/28 @ 23.97 - Out 11/01 @ 23.81 -$0.16
In 11/30 @ 25.29 - Out 01/09 @ 52.03 $26.74
In 02/08 @ 52.60 - Out 03/07 @ 51.13 -$1.47
In 04/20 @ 55.60 - Out 07/26 @ 73.58 $17.98
In 07/31 @ 87.00 - Out 10/01 @ 103.16 $16.16
In 10/23 @ 116.9 - Out 11/02 @ 103.13 -$13.077

This has been a week of giving thanks. First, we want to thank you for allowing us to email you with our thoughts and ideas on the markets. Secondly, we want to thank you for using our #1 website INO.com Thirdly, we wish to thank all the members of our sister site MarketClub.com for subscribing to our service.

We also want to thank the markets for just being there and allowing us the opportunity to trade them in a free society. Wow, we are lucky to live in such interesting times.

Lastly, our thanks go to real values and treasures in our lives and that is our family and our friends.

O.K., with Thanksgiving day behind us for '07, are the equity markets and the dollar going to remain turkeys in "08? That is the question on most traders minds this weekend.

This past week the market action in equities and the dollar painted a disappointing and rather a bleak picture for the markets.

We expect today's market action on expected reduced volume, could produce some large and volatile price swings. Most traders I know left their offices and posts early Wednesday for a long weekend.

It's all part of the ebb and flow of the marketplace. Speaking of the marketplace ...

Did you know you can ...
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The answer is yes, and yes again.

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FREDDIE MAC IMPLODES

This past week the Freddie Mac team addressed what was a packed conference call to report their earnings for Q3 and project where Freddie Mac will end up … AND WE WERE THERE!!

Watch how we traded this disaster.

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CHAIRMAN BERNANKE LET'S GO SHOPPING

Open invitation to the FED Chairman Bernanke and to all Fed governors to go shopping

Dear Chairman Bernanke,

Let's go shopping.

I invite you and your entire committee to come shopping with me for groceries in any local supermarket you like. Oh, before we do that let's stop at a filling station and buy some gas.

You know what gas is, right? Well that's the stuff the goes in your car's gas tank, that's what gets most Americans to work.

I am not sure if you, or any of your committee have at anytime in the past year purchased a gallon of milk, a gallon of gas, or any groceries to put on the table. But, if you haven't, then its time we went shopping together.

You see Mr. Bernanke, I along with three hundred million other hard working Americans are having a hard time understanding why you keep saying that inflation is under control.

We just don't understand where you get your numbers from? You see we are the regular folks who get paychecks, shop at the local stores and supermarkets and fill up our tanks at the local filling station.

We just don't understand where you go to get your groceries or buy your gas. That is why I want to invite you and your entire committee to come shopping.

I know you are busy, so if my invitation doesn't work for you, perhaps you could let me in on the secret store and filling station where you and the Fed governors shop and buy gas.

Thanks.

I look forward to hearing from you.

Sincerely,

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LEARN HOW TO TRADE A DOWNWARD TRENDING MARKET

In this video lesson, we give traders three compelling pieces of information about how to trade a downward trending market. Watch this streaming video to learn about shorting stocks.
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SOMETHING TO REMEMBER
"The past is the teacher of the future"
Old Hungarian Proverb
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WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Give it a try.
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THE VOTES ARE COMING IN ON THE ECONOMY
Here's the question we posted on our Traders Blog blog. "Are you comfortable about the economy?" The results may surprise you.
Vote, then check out the results. No registration required.
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INO IN THE NEWS THIS PAST WEEK

on CNBC
See what Adam has to say about Hugo Chavez,
OPEC and the Crude Oil live on CNB
http://www.cnbc.com/id/15840232?video=596552505&play=1

• MARKETWATCH
"There will be no Thanksgiving reprieve for the U.S. dollar. Sentiment remains decidedly negative as traders now have their sight set on the big number of $1.5000," said Adam Hewison, president of INO.com, a technical analysis Web site.
http://www.marketwatch.com/news/story/dollar-under-pressure-ahead-fed/story.aspx?guid=%7B3605CE46-035A-414D-8052-0D66DC7CE7AD%7D
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WHAT ARE YOU THANKFUL FOR?
Great uplifting video if your spirits are down.

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LEARN & EARN
Another video lesson - "Freddie Mac NYSE:FRE - MarketClub Video Lesson"

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DID A 300 YEAR OLD DISCOVERY TORPEDO GOOGLE
Find out what's going on in Google right now.
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FOUR FREE ONLINE TRADING VIDEOS YOU CAN BENEFIT FROM TODAY
Here's a small sample of what is coming up on INO TV
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CHECK ON THE WORLD MARKETS 24 HOURS A DAY
Don't miss any of the global overnight action.
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PICK A MARKET, ANY MARKET
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost. Give it a try.
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This is Adam Hewison,

have a great weekend and a profitable new trading week.
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Open invitation to the FED Chairman Bernanke and to all Fed governors to go shopping

Dear Chairman Bernanke,

Let's go shopping.

I invite you and your entire committee to come shopping with me for groceries in any local supermarket you like. Oh, before we do that let's stop at a filling station and buy some gas.

You know what gas is, right? Well that's the stuff the goes in your car's gas tank, that's what gets most Americans to work.

I am not sure if you, or any of your committee have at anytime in the past year purchased a gallon of milk, a gallon of gas, or any groceries to put on the table. But, if you haven't, then its time we went shopping together.

You see Mr. Bernanke, I along with three hundred million other hard working Americans are having a hard time understanding why you keep saying that inflation is under control.

We just don't understand where you get your numbers from? You see we are the regular folks who get paychecks, shop at the local stores and supermarkets and fill up our tanks at the local filling station.

We just don't understand where you go to get your groceries or buy your gas. That is why I want to invite you and your entire committee to come shopping.

I know you are busy, so if my invitation doesn't work for you, perhaps you could let me in on the secret store and filling station where you and the Fed governors shop and buy gas.

Thanks.

I look forward to hearing from you.

Sincerely,

Adam Hewison

On November 8th Google (symbol goog) had it sharpest one day point move for the year, as it dropped over 37 dollars for a stunning 5% loss for the day. Many Google traders were shocked at the severity of the down move. The move which was like a tidal wave of selling pressure triggered two key technical indicators to turn negative for the first time since August 23rd. This ended what had been an amazing bull run for Google and the two other titans of tech, Apple (aapl) and Research in Motion (symbol rimm). It also proved that gravity, discovered 3 centuries ago by a mathematician and physicist Sir Isaac Newton was alive and well.

Many traders were simply stunned by Google's market action as it led the tech sector meltdown. Here was one of its shining stars caught in a downdraft that seriously damaged it's stock price and the psyche of many traders.

Now for the good news. Could the precipitous drop in Google's stock have been predicted? The answer to that question, is yes and no.

Technical analysis is enormously important when measuring market sentiment and judging on how hot a market is running. Google's move below its Parabolic Support line on 11/08 was the first indication since August 23rd when this indicator turn positive that Google was in trouble. A day later on November 9th, Google crashed below its Moving Average Convergence Divergence line (MACD) this also added to Google's downward spiral. These two indicators that are widely available in most commercial charting package and well as our own MarketClub.com confirmed that the down move in Google was for real.

While Google appears to have put in a top at $747.24 on the November 7th it remains to be seen if this is major top. Our gut feel, is that this is an important top but we have no confirmation that this is a major top for this stock. We expect that Google will have to do a great deal more backing and filling south of the $700 level and enter into more of a two way market in the short term.

As for me, I will be watching both the Parabolic and the MACD indicators to see where this market bottoms out.

Adam Hewison