Category: MarketClub Techniques, Tips & Talk

Tips and trick from traders on how to become a better trader.

Time To Buy Gold

Posted on by The INO.com Team

Yesterday, the spot gold market flashed a major trend change to the upside. Major trend changes do not occur that often and when they do I like to pay close attention to them. The signal came in at $1,331.45, and even though gold is now lower than that point, it is still a valid signal.

With all the Trade Triangles now positive and the fact that we are seeing a pullback today in gold (FOREX:XAUUSDO), this may be an ideal time to get long gold in the ETF SPDR Gold Shares (PACF:GLD), a leveraged ETF, or in futures.

The current pullback on the intraday 15-minute chart puts this market back into a Fibonacci support area which should offer good support. With the long Fourth of July weekend, I do not expect anybody will want to be short this market going in to the weekend. I expect to see some recovery later today from the lows seen this morning.

There are no guarantees in trading, but with all of the Trade Triangles positive on gold, I feel this is a fairly low risk trade on the upside. As always, you should protect your position with money management stops. If you'd like to learn more about money management stops, you can read about them here.

Chart Legend: Continue reading "Time To Buy Gold" →

How To Avoid Dead Fish In Q3

Posted on by The INO.com Team

One of the most important tools that a trader possesses is his or her mind. Attitude can either make or break you as a trader.

To become a successful trader, it begins with believing in yourself and having a winning attitude. Everyone wants to be a winner, at least they think so. Unfortunately, most are not willing to perform the tasks necessary to become a consistent winner.

Winners generally achieve success by being focused on a goal. Being focused allows winners to remain committed to the tasks at hand. Most winners perform a lot of hard work, including a willingness to deal with sometimes mundane duties. Most of all, winners perform with an "I am responsible for both my failures and successes" attitude.

So, where does the would-be trader start to become a success? Continue reading "How To Avoid Dead Fish In Q3" →

Is This Stock Ready To Pop?

Posted on by The INO.com Team

I was looking over the charts this past weekend and noticed one stock that I wanted to bring to your attention. There are two reasons why I think this stock is worth a look.

1. There was a new monthly Trade Triangle signal on June 27th at $48.04.

2. I like the formation. This chart has a "W" formation, which normally occurs at the bottom of a move and signals a reversal. In this case, it would look as though once we close over $48 a share, we could see a quick pop up to $50.

The stock I am referring to is Coca-Cola Enterprises Inc. (NYSE:CCE), traded on the New York stock exchange. This is a large company and has been around for a long time. While not usually considered a hot stock, the formation is undeniable. As with any position, you should always be using money management stops.

Another part of this formation I like is the classic Fibonacci retracement of 60%, that was again tested on June 13th and it held. Continue reading "Is This Stock Ready To Pop?" →

What's Brewing In The Coffee Market?

Posted on by The INO.com Team

One of the many things I enjoy about MarketClub is interacting with our members and discussing the markets. One of our members recently asked about the coffee market and what I thought about it.

"Would love to see your analysis of coffee as a special situation. Know it is currently in a pullback. Monthly is still green. Sounds like the shortage is expected to continue and increase. That should mean prices will go even higher. The question is where to get back in. I have been using the ETF JO to play it. Have had a good run with in and outs following TT's, RSI, and other. Expect we could all benefit from a right time buy and proper trailing stop and just following it for a while?"

As you can see, Harold is pretty smart investor and a valued member of MarketClub. He's also taken some nice profits out of the coffee market.

So without further ado, here are my thoughts on the July Coffee (NYMEX:KT.N14.E) market. Now remember, Harold is trading the ETF Ipath DJ-UBS Coffee Trust Sub-Index (PACF:JO). This ETF pretty much mimics what the coffee market is doing.

Chart Code
1. Trade Triangles
2. Price negative divergence
3. RSI negative divergence
4. Fibonacci support area

When trading in the futures markets, we are relying on the weekly Trade Triangle for the trend and the daily Trade Triangles for timing. It's also important not to forget the monthly Trade Triangle, as it shows the longer-term trend. Continue reading "What's Brewing In The Coffee Market?" →

Never Bet Against This Chart Formation

Posted on by The INO.com Team

I was skimming through my portfolios in MarketClub and noticed that Hewlett-Packard Co. (NYSE:HPQ) had three green Trade Triangles, indicating a very strong trend to the upside. I decided to take a look at the chart to see what was making this stock show three green Trade Triangles while the rest of the market was falling.

When I opened the chart on Hewlett-Packard Co. (NYSE:HPQ), I was immediately drawn to a classic technical formation known as a "head and shoulders bottom." This is the same as a "head and shoulders top," only the reverse.

Continue reading "Never Bet Against This Chart Formation" →