How To Be Positioned In A Volatile Market

The last few weeks have been very volatile in the markets, with triple digit swings seeming to be the norm in the Dow. The question is, how can you position your portfolio and reduce your risk in a market like this?

Well in some ways, it's easier than you can imagine. Here at MarketClub, we always advocate diversification and spreading the risk. An example of that would be MarketClub's Internet portfolio that we make available to all members on a daily basis.

Presently, this portfolio has only a one position in the market. This means that we have 80% of our capital safely on the sidelines. With 20% of our capital working in the marketplace, it is easy to sleep at night and not have to worry about these giant up and down swings. Using the Trade Triangles, much of the guess work is taken out of the equation.

Here are the 5 stocks in the Internet portfolio: Continue reading "How To Be Positioned In A Volatile Market"

How To Trade Like A Billionaire

Wouldn't it be nice if you could look over the shoulder of a billionaire to see exactly what they are doing to make the kind of profits they make?

Well, now you can.

It’s no secret we've had some fantastic moves in 2014. The question is, are they going to continue? The short answer is, some will and some won't. Today I want to share with how five well-known billionaires traded in one particular stock. I am going to put our Trade Triangles to the ultimate test to see how they performed against these billionaire traders.

The five billionaires are Jorge Lemann, Leon Cooperman, Ray Dalio, Daniel Loeb and David Einhorn. We know, thanks to SEC filings, that these five super traders hold positions in the stock of Andarko Petroleum Corp. (NYSE:APC).

I am going to show you about where they entered the market and their average price. I'm also going to show you where our Trade Triangles entered and exited the market. I believe the trend has changed for APC and while these billionaires are holding on, MarketClub's Trade Triangles are signaling a sidelines position.

Based on what we are seeing it is going to be an interesting fourth quarter.

This is where our five Billionaires are positioned right now: Continue reading "How To Trade Like A Billionaire"

Smart Scan Can Keep You On Track In Any Market

MarketClub's Smart Scan technology contains an amazing amount of information that you can use to help trade with the trend. Smart Scan can also alert you to changes in the bigger picture for the general market.

Let me share with you and example of how that would work. Looking at the graph below, you'll see a series of numbers, 1 through 4. I've illustrated the graph with these numbers to showcase what's going on right now in the general market.

1. "Long-Term Trend Up +90 (178)" - This means only 178 stocks have a +90 reading or higher.

2. "Long-Term Down -90 (832)" - This means 832 stocks are trending down and have a reading of -90 or lower. The number of stocks in a strong downtrend clearly outweighs the number of stocks in an uptrend over 4:1.

3. Looking at the stocks making "52-Week Highs," we see only 35.

4. The number of stocks making "52-Week Lows" is 646, which far outweighs the number of stocks that are making new highs.

At this point in time, I think it's clear to say that negative trend is winning out and in the majority.

In each of the 24 scans found in Smart Scan, it can really tell the story of the market. I highly recommend you spend some time looking at Smart Scan to see how you can successfully incorporate some of these scans into your own trading approach.

I find I constantly go back to this tool, not only to find stocks that are making new highs and trending higher, but also to see what's making new lows and what opportunities there are to short the market.

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

Is This The Best Indicator In The World?

It's hard to believe that the third quarter of the trading year is coming to a close today. It has been quite a quarter, especially the last week of September when the market volatility has been picking up.

One of the tools I love looking at in MarketClub is the quarterly charts on all the markets. These charts were created to show you the big picture, as we know that investors can get sucked into short-term thinking and trading and "cannot see the forest for the trees." The biggest stand out feature for quarterly charts is their ability to clearly show the direction of the big trends. And that is really how you make the big money in trading by staying with the big trends.

Day trading can be looked upon as "very sexy," but it's not where the big money is. Arthur Cutten, a well-known trader and investor in the 20s and 30s, was asked how he made so much money trading and he answered the question this way, "By sitting." Continue reading "Is This The Best Indicator In The World?"

If You Want To Know What's Going On In The Markets...

If you want to know what's going on in the markets, just look in the mirror. In one moment, investors are bullish and the next moment, very bearish. It just shows you the skittish nature of the market that we are in.

How do you feel about the market? Leave a comment below and tell us how feel.

Despite last week's wild gyrations, the markets closed lower for the week. This is the big picture you really want to watch and pay attention to. Looking at the S&P 500, as it represents a broad swath of the markets, this index closed out last week at 1,982.85, down 1.3% for the week. This was the lowest close in this index in over six weeks, not exactly a stellar picture. Again, when you look at the bigger picture, a clearer picture emerges of what's going on.

The same dismal story can be applied to the NASDAQ that closed down 1.44% for the week, closing at 4,513.44. Last week's close represents the lowest close for this index in six weeks, again not a good sign.

The Dow also closed lower for the week but still managed to have its third-highest weekly close in history. This morning the DOW gave its first serious indication that things are beginning to come apart as it joined the same picture as both the NASDAQ and the S&P 500. A weekly Trade Triangle flashed a exit and sideline position for this index. Now, just like the S&P 500 and the NASDAQ, the DOW is indicating that you should be out of market at the present time and on the sidelines.

In other markets... Continue reading "If You Want To Know What's Going On In The Markets..."