We Are Again Faced With the Question...

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 6th of October.
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We are again faced with the question: Has the market bottomed out or is this just another dead cat bounce?

It's too early to tell.

Right now the major trends continue to be negative for equities, crude oil and some other markets we have identified in our videos.

No market goes straight up or straight down. You will always see counter-trend rallies. If you are familiar with the Elliott wave theory, you know that markets tend to go up in five waves, three with the trend and two against the trend. When a market is pulling back against the major trend, like we are seeing now, it can be an excellent opportunity to either exit a position if you are long or go short the market. It is definitely going to be important to see how we close out the week.

While the current rally looks exciting and may go higher, the bottom line is the trend is still down in the equity markets.

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3 STOCKS IN THE NEWS
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APPLE (Symbol AAPL) - Trade Triangle (Monthly) Long from $355.13 on 7/7/11.
Now trading @ $383.50

FIRST SOLAR (Symbol FSLR) - Trade Triangle (Monthly) short from $132.17 on 5/04/11.
Now trading @ $65.41

CONSTELLATION BRANDS (Symbol STZ) - Trade Triangle (Monthly) short from $20.19 on 7/29/11.
Now trading @ $20.47.

Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Continue reading "We Are Again Faced With the Question..."

Beware of Mob Madness

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Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 5th of October.
Beware of Mob Madness!

What is it about mobs that make them so dangerous? The problem is mob mentality. Here you have a group of people who individually are regular folks, but put them in a crowd and they lose all sense of what is right and wrong. They justify their actions because of what they see other people doing.

Using social media sites like Twitter and Facebook, mobs were getting together for the Arab spring in the Middle East. Now we have mobs getting together in Greece and other parts of Europe, even my homeland, England! And we have the same problem here in major cities in the United States. This is what I call the dark side of social media, and one that I believe is so very dangerous.

Is it healthy? Is it good for America, or any country? Absolutely not!

One of the most fascinating books I have ever read about the market is Charles Mackay's, "Extraordinary Popular Delusions and the Madness of Crowds." It is a history of popular folly, first published in 1841. The book chronicles its subjects in three parts: "National Delusions", "Peculiar Follies", and "Philosophical Delusions". This book has gathered a body of academic support as a work of considerable importance in the history of social psychology and psychopathology. I highly recommend that you pick up a copy.

As you see, 170 years later we haven't changed very much as human beings. Understanding this mob phenomenon can be a huge advantage and is going to be one of the keys to being successful in the next 12 months. As always, we will do our best to keep you informed and on the right track.

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3 STOCKS IN THE NEWS
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COSTCO (Symbol COST) - Trade Triangle (Monthly) Long from $83.45 on 9/16/11.
Now trading @ $81.50

MORGAN STANLEY (Symbol MS) - Trade Triangle (Monthly) short from $26.70 on 4/12/11.
Now trading @ $13.89.

RESEARCH IN MOTION (Symbol RIMM) - Trade Triangle (Monthly) short from $57.48 on 3/25/11.
Now trading @ $23.55.

Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Continue reading "Beware of Mob Madness"

It’s Official, We Are In A Bear Market For the S&P 500

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 4th of October.
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It's official! We are in a BEAR MARKET in the SP500.

For MarketClub members this is old news, as we alerted all members to either exit or place short positions on the S&P500 on August 2nd at 1258.07. That's over two months ago!

How much further do we have to go on the downside? That's a legitimate question, however, with Bear markets they tend to persist longer and take more pain than most investors are willing to sit through.

As you know from watching our videos, we are projecting lower levels for the S&P 500, as well as the banks and financial institutions. Those moves on not over yet.

In today's presentation, we will be talking about three markets that are in the news. This will be a regular feature and we will try to bring you information that is timely, informative and educational. We will be talking about stocks, the Forex markets, and the futures markets.

Here are 3 markets that are in the news:

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3 STOCKS IN THE NEWS
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AMR - Trade Triangle (Monthly) short from $7.02 on 2/01/11.
Now trading @ $2.33

BAC - Trade Triangle (Monthly) short from $13.16 on 4/14/11.
Now trading @ $5.43

AAPL - Trade Triangle (Monthly) long from $355.13 on 7/07/11.
Now trading @ $379.93

Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Continue reading "It’s Official, We Are In A Bear Market For the S&P 500"

Is October Going to Provide A Treat For Investors?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 3rd of October.
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Many investors are saying, "thank goodness that the month of September is over!" Do you share that sentiment?

Welcome to Q4 and the first trading day in the month of October. It is the "trick or treat" month, as we celebrate Halloween at the end of the month. Is October going to provide a treat for investors? Or will it sucker them in and trick the market down to new lows?

As stated before, the problems in Greece are very real and are not going be solved to anyone's satisfaction. So what happens when a country defaults on its sovereign debt? No one knows what the answer will be to that question. The market however, will figure it out and deliver the answers that smart investors are looking for.

The month of September was brutal for most buy and hold investors, and that is why we advocate being nimble in these amazing economic times.

Now let's go to the 6 major markets we track and update every trading day and see how we can create and maintain your wealth in 2011. Continue reading "Is October Going to Provide A Treat For Investors?"