Tag: Crude Oil

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Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 30th of September.

It's here! We've reached crunch time for the markets and portfolio managers everywhere. It is not often you have the weekly, monthly and quarterly markets all ending on the same day, but Q3 is playing out to that scenario.

I think there is only one word to describe Q3: volatility. Volatility ruled the markets and has pushed many investors to the sidelines. Conservatively, it is better to be in cash than be long the equity markets at the present time.

I find it hard to believe that some of the pundits say we can go into defensive stocks. My question would be why? Why be in the market when it's going down? It just makes no sense to me.

The philosophy behind our Trade Triangle Technology is very simple. We want to be long the market when it is going up and either short or out of the market when it is going down. The reality is the market can only do three things: it can go up, down, or sideways, that's it! How many things in life do you know that are that simple?

Yesterday, we talked about the major trends in the markets and how important it is to know the direction of the trend for each and every market you have an interest in.

In today's video, we will be focusing on the 6 markets we track everyday in a slightly different way.

As always, our goal is to share with you ideas that have been used by generations of successful traders. I'm sure you have heard the expression, "that there is nothing new under the sun" and that expression can be applied perfectly to trading. With nothing new under the sun, using some tried and true methods that I am sharing with you today, I'm sure you too will be successful trading the markets.

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 "There Is Only One Word to Describe Q3: Volatility" →

Hello traders everywhere, Adam Hewison here co-founder of MarketClub with your mid-day market update for Thursday the 29th of September.

Do you see the trees in a forest, or do you just see the forest?

There is a saying that goes like this “can't see the forest for the trees” is a reference to people who get so involved with the details of an issue that they lose sight of the big picture.

If your involved in the markets, it is easy to fall into the trap of just looking at the minute or hourly charts, rather than considering the market as a whole. When you can't see the market for the minutia, it means that you are deeply involved in a situation, and you are perhaps focusing too much on the inner workings of the market, and not enough on the big trends.

With all of this talk of problems in Greece, defaults, contagion and a host of other problems in Europe, it is easy for traders to get distracted, and not see the forest for the trees.

The most important element in trading in my opinion, is the direction the major trend for that market. It doesn't really matter what the news is, if the market is doing something else. As traders I believe we have to look at the forest in this case the big trends in the marketplace.

Let's look at them now: S&P 500 index–major trend down. Gold-major trend up. Metals–major trend down. Crude oil–major trend down. Dollar index–major trend up. CRB index–major trend down.

So, there you have it, all the major trends in all the markets we are dealing with right now. Everything else is just individual trees, that don't mean a heck of a lot in the big picture.

It takes a tremendous amount of energy to move a market and change a major trend. This kind of energy normally does not happen in one or two days. As they say in statistics, one data point does not make a trend.

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 "Do You See the Trees In a Forest, Or Do You Just See the Forest?" →

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 28th of September.

What does the word austerity mean to you?

"Austerity: noun, the trait of great self denial, especially refraining from worldly pleasures, strict economy."

It would seem that the meaning of the word "austerity" has been lost in translation in Europe. How can you expand and grow an economy when the very meaning of austerity is the opposite of expansion? There is no way Greece or any country can grow their economy in an austerity program. They won't be able to pay back the massive amount of money they owe everyone.

What we are seeing now is pure political theater. Everyone talks a good game, but unfortunately there are no easy answers or solutions to a problem that took years to grow into a global problem.

We are just two days short of the end of Q3 and the end of the month. How are these markets going to close for the quarter and for the week? Depending on which markets you are looking at, most markets are lower for the month, with the exception of the dollar index. The dollar index could possibly close at a seven-month high on the monthly charts.

One thing is for certain, Europe is not the United States of America. In Europe there are too many areas of national pride for each individual country. I always believed this national trait would act as the Achilles' heel in a euro zone economy. My view has not changed.

Can the banks be saved? We will let the markets answer that question for us.

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 "Where Will the Markets Finish Q3?" →