Tag: analysis

The Bullish Markets

Posted on by The INO.com Team

Here is your 1p.m. update for Thursday, June 30th. Today Susan reviews the very bullish market that we seem to be trading in this week. Susan also gives you some pointers on how to follow the "52-week new highs on Friday rule." If you have forgotten what those rules are, we have posted them here as a refresher. Watch today's update now!

These are the only three rules you need to trade with “The 52-week new highs on a Friday rule” successfully.

  1. On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
  2. Exit the long position on the opening of the following Tuesday.
  3. If the market opens sharply lower on Monday, exit the position immediately.

“The 52-week new highs on a Friday rule” works extremely well in futures and in the Forex markets. This rule can be reversed for “The 52-week new lows on a Friday rule” if you are so inclined to trade the short side of the market. The same rules apply.

So, there you have it!

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Best,
The MarketClub Team

Looking back on gold...

Posted on by The INO.com Team

Adam has created countless trading videos throughout the years. One in specific was recorded in February of 2010 regarding cycles in the future price of gold. Let us refresh your memory…click here.

Now that you have the back story and the video to prove it, let us share with you an article that was published by The Street yesterday afternoon:

Over the course of the past few months, one large buyer has accumulated approximately 50,000 gold call option contracts -- most of the calls are strikes between $1,600 and $1,800 an ounce and for expirations between August and December. In total, as much as $50 million in call premium has been paid out by the purchaser.

As the gold futures market is roughly 10x to 15x the size of the gold options market, this is a huge bet in absolute dollars relative to the liquidity of the market.

Considering that the calls are well out-of-the-money (gold, on a futures basis, today trades at $1,512), the call option is all premium and, as such, is a decaying asset. So, given the size of the purchase, the buyer is not likely an individual hedge fund -- more likely, it is a central bank or a sovereign fund.

It is interesting to note that all of the buyer's options mature after QE2, so the buyer might believe, for example, that the institution of QE3 holds a greater probability to be implemented than the consensus is currently forecasting.

The buyer is clearly betting on a large run-up in the price of gold during the summer and fall months.

With all this leverage in the hands of one owner, a sharp price appreciation in the price of gold could cause the shorts (on the other side of the call option trade) to continuously buy futures and further contribute to a rising gold price in order to maintain a flat delta. –

We read this article, and thought to ourselves, “Why does this prediction look so familiar?” Then we remembered…

WE PREDICTED THE SAME THING IN 2010!!!

We hope that you listened to our “Trade Triangles” and got your piece of the fifty-million dollar pie. If you’ve been wondering what MarketClub can do for you…now you know!

Best,
The MarketClub Team

5 Key Advantages of Trading in the Forex Market

Posted on by The INO.com Team

Many MarketClub members trade or at-least keep an eye on the Forex market, and for good reason, it is THE largest market in the world.  We do however hear many misconceptions daily about the Forex Market and many traders still have the mind set that it is not for them. That may very well be the case, but as with everything it is best to fully understand all aspects. I've invited Forex Pro, Jason Fielder to shed some light into the world of Forex and why he likes it so much. Be sure to check out his article below and grab a copy of his new report for more on Forex.

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The Forex Market is the largest financial marketplace in the world...The Bank of International Settlements estimates that average daily turnover in the FX Market is around $4 trillion. In comparison, the New York Stock Exchange turns over about $75 billion a day. That means the FX Market is over 50 times larger than the NYSE!

In the last 10 years, traders have swarmed to the Forex Market due to its many advantages. In this article, we are going to discuss 5 key reasons why the Forex Market is so attractive to traders. Continue reading "5 Key Advantages of Trading in the Forex Market" →

A New Look At Exit Strategies

Posted on by The INO.com Team

With the level of volatility in today’s markets, many of us may be questioning our confidence regarding our personal exit strategies. Allow trading expert and professional, Chuck Le Beau, to show you how to avoid big losses and to better understand the setup of a sound exit strategy.

Discover what has aided this trader’s success for years…

Best,
The INO TV Team

Forex Fundamentals: The Other Side Of The Coin

Posted on by The INO.com Team

Many of you know from reading the Trader's Blog that we often talk about, and advocate, technical trading. Today's guest blogger, Georgia Anderson of GAFNN.com, also looks at "the other side of the coin," fundamental analysis, but she uses it in a way that is almost technical.

In this post, Georgia is going to give us her perspective on forex and fundamental analysis by way of an input-output matrix.
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Technical analysis or predicting the market by looking through the previous history a currency pair is a very useful and indispensable tool that every forex trader uses, however, fundamental analysis, like its name suggests, is more fundamental in nature, and tries to see what drives the forex market in the first place.

There are thousands of market drivers that move and influence the forex market and this fundamental data can be used in a very technical way. One way to take care of these is through the approach of an input-output matrix. This matrix contains information about the factor and its influence. In simple terms, the cause and effect due to one particular factor is captured as numbers in a matrix. By doing this for all the important factors, one can get an input-output matrix that well describes the future potential market movements. Continue reading "Forex Fundamentals: The Other Side Of The Coin" →