Is it time for the dollar index to rally?

The dollar index, which put in a strong performance in the first six months of the year, pulled back from its recent highs and appears to be in defensive mode.

If you are not familiar with the US dollar index (USDX), it is an index, or measure, of the value of the United States dollar relative to a basket of foreign currencies.

Its weighted geometric mean of the dollar's value is compared with these currencies in the following percentages:
* Euro (EUR), 57.6% weight
*Japanese Yen (JPY), 13.6% weight

* Pound sterling (GBP), 11.9% weight
* Canadian dollar (CAD), 9.1% weight
* Swedish krona (SEK), 4.2% weight
* Swiss franc (CHF) 3.6% weight

In this short educational video, I point out what we see in the dollar index and the reason why we think a potential rally may be in the foreseeable future.

As always our videos are free to watch and there is no need for registration.

If you'd like to make a comment on this or any of our videos, please go to the Trader's Blog and let us know your thoughts.

All the best,

Adam Hewison
President of INO.com
Co-founder of MarketClub

How To Merge Easter & Western Technical Analysis Together

Many investors attempt to incorporate candlestick charting into their trading plans, however few know why this tool has become so popular.

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In this complimentary video, "Advanced Applications of Candlestick Charting," authors, software programmers, and co-founders of the International Pacific Trading Company, Gary Wagner & Brad Matheny will walk you through:

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You'll watch and listen as Wagner explains the importance of using this strategy. He says, in part, "Candlestick patterns are a mathematical formula which illustrate the psychological market sentiment. In other words, as a market reverses, or a market is moving in an up-trend, there are certain traits that can be distilled in terms of mathematical formulas that will reveal some very important information."

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3 strikes against the S&P 500

The sharp rally in the equity markets this past week pushes the S&P 500 back into a zone that should present problems. I've included below, three important factors you should be considering in this market:

Strike one is that we've already reached a 50% Fibonacci retracement from the high seen at 1116.59 and the low of 1022.40. This area indicates increasing resistance on the upside for the S&P 500

The second strike against the S&P 500 is the downward trend line from the mid-April high that intersects the market around the 1080 level. This technical force should also act as a resistance level.

The third strike is our monthly "Trade Triangle" which remains in a negative position. The monthly "Trade Triangle" is also confirmed by the weekly "Trade Triangle" which remains in a negative position. The -75 score indicates that the downtrend, while not as strong as before, remains intact.

Based on these three strikes, we expect the market to move first into a trading range and then to resume its downward path.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

Why is gold going down?

This market has surprised many people as they were expecting gold to continue up to the $2000 level without any problems. Normally when you have such the unanimous viewpoint, the markets tend to go the other way. The reason for this is that everyone who is bullish is normally long the market. The current breakdown in the yellow metal has not changed the overall longer-term bullish trend for this market.

The question is, how far will the gold move to the downside, and where is support? In this new video we point out some very positive signs as well as some troubling aspects that we see in this market.

This is a video I think you will get a lot out of and as always you are free to watch it without registration. I hope that you have the time to comment on our blog about this video and share your thoughts on the gold market.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

Is it time to go short the S&P 500?

The current rally in the S&P 500 is bringing this market back to key levels of previous support. Normally when you see rallies back to a previous support level, that support level then acts as resistance.

In our earlier videos, we discussed the death cross as well as some of the other key indicators that continue to remain negative on this market. Today, however, I pinpoint exactly where we think this market is going to run into trouble and where you should perhaps look to go short.

You are free to watch this video with no obligation and no need to register, but I would really like to get your feedback on this video as well as this market.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub