This Russian Economist Died By Firing Squad, But He Had the Answer the Fed and Washington Are Looking For.

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 22nd of September.

This Russian economist died by firing squad, but he had the answer the Fed and Washington are looking for.

The problem we have is the Fed and the Government are fighting to shore up the very powerful cycle that made America great:  Capitalism.

So what's the answer to our current economic problem?

Nikolai Kondratieff was a Russian economist who came up with this economic theory:  Every 40 or 50 years in a capitalistic society, the markets peak, then turn down and go into a recession/depression. Because of these findings and other work he did on cycles, Nicolai Kondratieff was summarily executed in 1938 by a firing squad.  It would appear that these cycles guaranteed the rebirth of capitalism, and that did not sit too well with the Communist Party, who at the time wanted to rule the world.

Doing some rough math, you could look back and say in the 1930s we had a depression, in the early 1970s we had a major recession, and here in 2011 we are facing a serious recession/depression.  This is not something new that we're going through right now.  Some time ago we posted a blog report on 100 years of capitalism and how the markets expand and contract.  We, as a country, have been here before.

The question is, how do you make money during times like these?  You must be flexible!  And it helps to have technology like our Trade Triangles available to help you.  Today illustrated a good example when we had a signal to exit out of gold for intermediate-term traders.  You can also see we've been short and out of the equity markets since August.   Don't trade by the seat of your pants in today's markets, you are going to lose!  It is far more expensive to go it alone and not have our service.  This has been proven time and time again.

As we came in this morning, Europe was under tremendous downside pressure and some would say that, "the hens have come home to roost."  But the big surprise for many traders was the huge drop in commodities and gold.  I think many investors moved into gold thinking it was a safe haven.  In the long-term they could possibly be right, but these aren't buy-and-hold markets anymore.  The world has changed and you need to adapt to this new investment world, or you will not survive.  In the current markets you need to be aware of the direction of the trend and where to place you money.  Our mission here at MarketClub is to help you survive and thrive in these uncertain 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 "This Russian Economist Died By Firing Squad, But He Had the Answer the Fed and Washington Are Looking For."

All Eyes Are On the Fed Today

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 21st of September.

All eyes are on the Fed – Will they twist again like last summer?

It would seem as though the world and the markets are waiting to see what the Fed is going to do today at 2:15 PM. They are supposed to make an announcement. This is always the technician's dilemma... Do I leave my positions intact with stops? Or do I take them off before this major announcement?

Let me share with you a quick story about one of the most successful traders I've ever known. Here was a gentleman who traded all the markets, strictly on the charts. He didn't listen to the news, didn't care about the news, and certainly didn't care about what Ben Bernanke was about to say. He simply went with the big trends. Based on that thesis, one should remain short the equity markets and remain long in the gold market with the appropriate money management stops.

As traders, we are bombarded with news. Some of it is useful, but a lot of it is just fluff to fill up airspace time. One piece that caught my eye this morning, which I haven't seen reported in the main media, concerns the venerable Lloyds of London insurance company. This company was founded in 1688 in a London coffeehouse and has gone through wars, boom and bust cycles, every money mania known to man and has always managed to survive. The article claimed that Lloyds of London is taking their cash out of the European banks this morning:

http://www.businessweek.com/news/2011-09-21/lloyd-s-of-london-pulls-deposits-from-banks-on-debt-crisis.html

Quite frankly this is shocking, but not surprising given Lloyds' survival instincts. Lloyds of London is one of the most conservative companies, run by some of the smartest people on the planet. Perhaps it's an early warning sign about what could potentially happen in Europe.

It is something to think about.

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 "All Eyes Are On the Fed Today"

Sometimes Markets Don't Make Sense

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Tuesday, the 20th of September.

Sometimes markets don't make sense.

Commentators tend to think they have to make comments on every single blip in the market. Sometimes it's just not possible to put a handle on what drives a market on any given day. Today maybe one of those days when the news that came out was not particularly positive, yet the general market moved higher.

That was not the same story for the bank stocks that reflected the downgrade by Standard & Poor's for Italy overnight. The International Monetary Fund (IMF) also warned of continued economic weakness. And then the market's rally. Like I said earlier, sometimes it is impossible to tell what's going to happen on a day-to-day basis.

You have to look at the big trends in the market to help you when the market doesn't make sense. And right now the big trends continue to remain negative for the equity markets and positive for the gold market. Those two factors have not changed as of this writing.

We have discussed perception many times before and this is one of the most powerful elements in any market. One only has to look at the recent example of Netflix to understand how powerful perception can be in the market. In fact, it is one of the stocks we will look at today to show you just how our Trade Triangle technology works and how it can benefit you in the future.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "Sometimes Markets Don't Make Sense"

"I want a DIVORCE... "

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Monday, the 19th of September.

I want a divorce…

Perhaps this is a little bit of a teaser headline, but the reality is Angela Merkel, the German chancellor, must be thinking that she would love a divorce from these other euro countries. Politically, it would solve a great many problems for her.

Here you have Germany, who is Europe's economic powerhouse, being pulled down by the likes of Greece, Spain, Portugal and Ireland. If you were in Angela Merkel's shoes right now, wouldn't you want to divorce these countries?

Now the politicians can't blame this one on the banks. They were the ones that overspent, they were the ones who recklessly put programs into place that just cost too much money. So there you have it! It's not the banks, it is the politicians who are the problem...

Does anybody believe that Greece is going to pay back what they owe? Their debt now stands at 165% of GDP. There is no way that Greece can get themselves out of this. Will Ireland, Spain, and Portugal be able to hold on if Greece goes under?

Lastly, everyone loved the market on the upside last week. Today that sentiment has changed as the problems in Europe are once again in the forefront of every investors mind. Europe is the tail that is wagging the world economy.

Now, let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading ""I want a DIVORCE... ""

The Battle Continues Between the Bulls and the Bears - Weekend Video Update

Hello fellow traders everywhere. Adam Hewison here co-founder of MarketClub with your weekend update for the trading week ending on 9/16/11.

The battle between the Bulls and Bears continues in the equity markets. This past week the Bulls won with a very positive 5.35% return.

Out of the 6 markets that we track, only two closed with a positive gain for the week and they were the S&P 500 index and crude oil. We consider both of these moves counter trend rallies.

Both the silver and gold markets lost ground last week, with silver closing down 1.89% and gold dropping 2.36%.

The Dollar Index saw some profit taking and closed down .85% for the week.

The Reuters/Jefferies CRB Commodity Index also came under pressure and closed down 1.38% in line with the general trend.

Let's go take a look at the markets and see how we can preserve and protect and grow your capital in 2011.

Continue reading "The Battle Continues Between the Bulls and the Bears - Weekend Video Update"