Tag: MarketClub Techinques Tips and Talk

Did ISIS, Ebola, And The White House Crash The Market?

Posted on by The INO.com Team

Exactly 19 days ago, the Dow was trading at a new all-time high. So how did everything become unraveled in less than three weeks?

In my humble opinion, the complacency that was in most investors' minds was overcome with uncertainty and distrust.

It arrived in the form of three waves.

The first wave was ISIS and their rapid takeover of key areas in the Middle East. This uncertainty was exacerbated and emboldened ISIS further when the president of the United States stated on national TV that "we have no strategy" to deal with ISIS. It doesn't matter if you are a Democrat or a Republican - you do not expect to hear the president make a statement like that.

The second wave came with the news that Ebola had reached across West Africa to the shores of the United States. This scary news should not have been a problem, however it became a major problem with the conflicting stories about how a nurse who was in fully dressed in protected clothing contracted this deadly disease. To make matters worse, this morning we hear of another nurse who was diagnosed with Ebola. The Centers for Disease Control (CDC) so far seem ill-prepared. Not leveling with the American people about what is going on just adds another layer of uncertainty and distrust in government. Continue reading "Did ISIS, Ebola, And The White House Crash The Market?" →

The One Market Truth You Need To Know

Posted on by The INO.com Team

There's no question about it, the markets are a little jittery right now. With the S&P down almost 6% from its September highs, people are beginning to ask themselves, "is this the big one?"

Here is the one market truth you need to know:
No one knows for sure what's going to happen, except the market itself.

The market determines prices and when you are investing, how the market closes directly effects your bottom line. Whether you are in business or in the business of investing, the bottom line is what everyone looks at. You invest or trade to make money and how a market closes determines how much money you're making or losing at that particular point in time.

You can watch all the economists, all the talking heads, read all the blogs you want and you'll come away with 100 different views about what's going to happen to the market.

The only voice you really need to pay attention to is the voice of the market. The market itself tells you what it's going to do if you listen carefully. If you been following this blog for any length of time, you know that I have been out of market and on the sidelines since about the middle of September. If you take a look at Gold (FOREX:XAUUSDO), I have been either short or out of the market since July 13th. It is pretty much the same picture with Crude Oil (NYMEX:CL.Z14.E), where I have been either short this market on the sidelines since early July, with the exception of one fake out in late September.

Let the market tell you what it wants to do, rather than guessing or trying to pick a top or bottom.

In today's video, I will be listening to all the major markets. I am also going to share with you how the market actually talks, you won't want to miss that.

Every success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

One Way To Take Advantage Of This Difficult Period

Posted on by The INO.com Team

For some time now, I've been talking about the volatility of the markets and for the last three days, volatility has been front and center. So, what is an investor to make of this and what opportunities are there to make money?

One way to take advantage of this difficult period is to look at our Smart Scan technology. In today's graphic, you can see that the market is beginning to tilt more and more to the bearish side of the ledger.

You can see by the Smart Scan numbers, the "Long Term Down" stocks now exceed the "Long Term Up" stocks by almost 400. When you look at "Chart +100", which means there's a strong uptrend, you see just 140 stocks trending upward. The number of stocks trending down in "Chart -100" is over 1000!

There are many stocks that are close to or have just reversed to the downside and you should be either on the sidelines in these stocks or shorting them.

With this being the last day of a tumultuous week, I expect the market to be a little exhausted and do not expect to see a big move either way today. Having just made that statement, I'm going to hedge myself and say as this is Friday, markets can and do sometimes go into turmoil.

This could be a perfect weekend for utilizing the "52-Week rules". In this case, I would favor the "52-Week rules" on the downside of the market. If you are not familiar with the rules for shorting the market, here they are again. Continue reading "One Way To Take Advantage Of This Difficult Period" →

How An Egg Timer Could Improve Your Trading

Posted on by The INO.com Team

When I started my trading career in the early seventies, I worked under a guy named Gary, who was somewhat of a mentor to me.

Gary was an interesting guy and his trading style was just as interesting. Every time he made a trade, he would flip a large egg timer over and the sand would start running. The first time I saw him do this I asked myself, "what is he doing?"

Now you have to remember, I was new to trading back then and had never seen someone with Gary's unique approach and trading style. For all that I knew, having an egg timer on your desk and flipping it over every time you made a trade was a normal part of trading.

The idea is not as crazy as you may think.

Have you figured out why Gary was using an egg timer?

Was it because ...

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Continue reading "How An Egg Timer Could Improve Your Trading" →

Will Ebola Have A Lasting Effect On The Markets?

Posted on by The INO.com Team

Everywhere you turn, you see stories and videos about another Ebola outbreak. Major epidemics like the Ebola virus often create trends in healthcare, which can lead to major opportunities for investors.

Here is one stock that has been off the radar for most Wall Street firms, but is my favorite Ebola-related stock right now.

On July 30th of this year, this stock flashed a buy signal based on our Trade Triangle Technology - that was two and a half months ago! Do you remember seeing or reading about Ebola two and a half months ago? I expect not, as the Ebola virus was not front page news like it is now.

Chimerix To The Rescue

The chart below perfectly illustrates the upward trend of this stock. The green monthly Trade Triangle on the chart is where we were first alerted to the beginning of a bull trend for Chimerix, Inc. (NASDAQ:CMRX) on July 30th at $27.32.

Chimerix, Inc. (NASDAQ:CMRX) could have a great deal more room to go on the upside as a result of the Ebola pandemic. I do expect to see volatility in CMRX increase as it climbs a "wall of worry" from current levels. The more news that comes out about the spread or containment of the Ebola virus, the more volatility we could see. Overall, I do believe the trend for CMRX is on the upside and will remain that way for quite sometime. Always protect your capital with solid money management stops. Continue reading "Will Ebola Have A Lasting Effect On The Markets?" →