It's The Market Nobody Loves

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Monday, the 25th of November.

As we start off this shortened Thanksgiving trading week, the bulls have a lot to be thankful for. This has been a very profitable year for trading stocks from the long side.

It would appear as though a great many well-known money managers have missed being fully invested during the stock market's latest move for one reason or another. Are these same money managers going to jump into the market before year's end? And if they do, is that going to improve their returns for their funds? So will they or won't they jump into a market that nobody loves?

The beautiful thing about technical analysis, is that it really doesn't pay any attention to the fundamental picture. And right now this market is being driven by the technicals and market perception that stocks are headed higher. The fundamentals are really a distant third.

What I mean by that, is there are three key parts to any market. There are the fundamentals of supply and demand, earnings, and so forth. Then there are the technicals, chart formations, moving averages, Trade Triangles and so forth. And then there is perception.

Perception is the one element that is perhaps the most powerful and in our minds really does move and drive the markets. As the Dow and the S&P have moved to all-time highs, it is difficult for anyone to be bearish.

There is nothing worse than being on the sidelines, like those money managers mentioned earlier, watching a market move higher every day and not being in it. That is why I think that some of the hedge fund and money managers who have been holding out buying stocks for whatever reason, will eventually cave and start buying stocks so they don't miss out on the move and get criticized by their shareholders and investors.

Today I will be looking at the major indices and major markets that I am following during this shortened holiday trading week. Look for volume, which has been low all year, to trickle down into Wednesday as most traders and investors head off to enjoy the Thanksgiving holiday with friends and family.

I will also be covering three stocks that hit new monthly highs. Merck & Co. Inc.(NYSE:MRK), Express Scripts Holding Company(NASDAQ:ESRX), Cubist Pharmaceuticals Inc.(NASDAQ:CBST)

As always we appreciate your feedback and are happy to answer any questions you may have on the markets mentioned in today’s video. Feel free post a comment and interact with us below.

Thanks, and every success in the market.

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

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

13 thoughts on “It's The Market Nobody Loves”

  2. Hello mates, its wonderful article regarding educationand completely explained, keep it up all the time.

  3. David, where did I criticise women? Absolutely nowhere. I commented because when I heard the news last night I cringed because I felt it was a politician complaining about other people's tastes and what is popular.

  4. It's hard to love a market that requires an almost willful avoidance of what got us to these lofty levels. But, that's a bit abstract for a technically-oriented site like this. So, I'll just point out some meaningful divergences that should give intelligent folks pause. 1. Stock prices ever-levitating, without meaningful correction, on decreasing volume. 2. Rising interest rates on the 2-yr. since June, despite massive QE. 3. A limping real economy that is increasingly divorced from the sprinting stock market. 4. Massive, unprecedented money printing as the gold price falls. 5. Inflation stats (i.e. CPI)that don't recognize the growing price inflation that everyone KNOWS is out there. Eventually, these crucial divergences will mean something. They always do. Always.

    1. Kevin,

      I could not have said it any better, thank you for sharing your ideas with fellow members.

      I agree with all the points you make but remember when trading money and as long as the Fed keeps pumping dollars into bonds each month the markets will likely to go still higher.

      I'm confident that our Trade Triangles will catch the down swing when it arrives, and it will arrive. Like you say "Eventually, these crucial divergences will mean something. They always do. Always.".

      Appreciate your feedback and input.

      Every success,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  5. What happens when all that .5 percent interest money dries up overnight and your stock isn't worth the paper it's printed on? The T-Bond bubble is the mother of all bubbles, and when it pops your "gains" will be worth zero......better buy gold and silver soon. This bubble can't last much longer.

    1. As long a company produces goods, that are needed and are being maketable, owning a stock will never be "worthless".

    2. Sonargodoz,

      Thanks for contributing to the conversation, much appreciated. I have a special gold report coming out tomorrow that you may want to check out.

      All the best,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  6. DEAR ADAM,

    THANKS FOR A GOOD RIGHT-UP, REALLY WORTHWHILE TO UNDERSTAND "MARKET"

    i AM FULLY AGREED WITH YOUR OBSERVATION ABOUT " PERCEPTION" AND ACCORDINGLY, I WOULD LIKE TO ADD SOME MORE STUFF, FIRST THING IS NOBODY WANT TO STAND FIRST OR EARLIER IN "Q" AND SECOND ONE IS THERE ARE THREE FACES "BULL PERCEPTION - "BEAR PERCEPTION" AND THE MOST DANGEROUS, QUITE DIFFICULT TO UNDERSTAND, AND SEMI UNPREDICTABLE THIRD ONE IS "NO-PERCEPTION"

  7. How can i invest money to make more money on this traders site. Im tired of working dead end jobs with very little money coming in.

    1. Use the triangle technology. That works fine, at least for more than 50% of your trades beeing succesful, and I would say even more than 70% of trades will close green.

      1. Stefan,

        Could not have said it any better, thank you for sharing your ideas with Michelle.

        Cheers,

        Adam Hewison
        President, INO.com
        Co-Founder of MarketClub.com

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