Category: MarketClub Techniques, Tips & Talk

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

How To Trade Apple's Earnings Today

Posted on by The INO.com Team

After the close of business today Apple, Inc. (NASDAQ:AAPL) will report its fourth quarter earnings. I thought it would be interesting to go back and look at the last three years to see how you would have done if you just used this simple trade strategy.

The premise is simple, when both the weekly and monthly Trade Triangles are in sync, i.e. when they are both in the same direction, you would take a position on the close in the direction the Trade Triangles were indicating. You would then exit this position the following day on the close.

So here's what is needed to make a trade in Apple before today's earnings report is released. The position is taken the day Apple, Inc. (NASDAQ:AAPL) releases its earnings report, i.e. today.

(1) Both the weekly and monthly Trade Triangles are in sync.

(2) Take a position on the close in the direction the Trade Triangles are indicating.

(3) Exit the position the following day on the close.

These are simple, straightforward instructions. As an old mentor of mine used to say, "They don't pay you any more for making it complicated."

So how has this worked in the past? Continue reading "How To Trade Apple's Earnings Today" →

Anatomy Of The Gold Market

Posted on by The INO.com Team

Well it was quite a weekend here on the East Coast with a record-breaking blizzard that closed down Washington DC today and made digging out from the 30-some inches of snow quite an interesting challenge. For those of you who live on the East Coast like us, we hope that you and your loved ones were all safe over this dangerous storm.

Now let's take a look at the gold market. This market has been in a bear market for the last four years, almost the exact opposite of the equity markets that have been going up for the last six years. It appears technically that gold is once again coming into style as more investors are becoming leery of the equity markets and the value of their holdings and money in general.

A great deal of this uncertainty has been created by the Federal Reserve Board and the European Central Bank which seemed to have run out of ideas and tools. It appears to this observer that in the last few years these two central banks have literally been winging it on a hope and a prayer. I hope I am wrong on the one as it will make 2008 look like a walk in the park.

8 year daily chart of gold

CHART 1

Looking at the long-term chart of gold, you see a MAJOR LONG-TERM SUPPORT TREND LINE that supported gold for several years before it was broken (see figure 1 on the chart). After breaking below the support line, the gold market again tried to rally, but failed (you can see this in figure 2), which created a TWIN MOUNTAIN TOP. Once through (figure 3) the PIVOT POINT, it was all over for gold as it moved into a major bear market that has now lasted just over four years.

The big question is … has the bear market in gold come to an end? Continue reading "Anatomy Of The Gold Market" →

Saving The Best For Last

Posted on by The INO.com Team

I have two important lessons for you today. The fifth and sixth lessons in the Traders Whiteboard series are perhaps the most overlooked aspects to successful trading. Lesson 5 delves into how important it is to have a game plan for all your trades. Look upon a game plan as you would look upon a compass to guide you through a forest. The use of a game plan in trading is extraordinarily important and this lesson will show you why.

Lesson six explains how the markets really work and how moves are formed and developed. I call this lesson "The Irrefutable Laws Of The Market". I want this lesson to be the last lesson in this 6 part series simply because I thought the other five lessons were more important to master before understanding a more esoteric view of the market. Continue reading "Saving The Best For Last" →

What To Do In Any Market Scenario

Posted on by The INO.com Team

Hello traders everywhere. It would appear as though the holidays are already here with very thin trading and very little action in yesterday's market. Sometimes when markets are in this mode, you have to be extra careful because volatility can kick in at any moment and drive a market sharply higher or lower because of lower trading volume.

I'm going to continue the same theme today as yesterday with two more trading lessons from the "Traders Whiteboard Series".

Let's take a look at what you're going to learn in today's lessons. In lesson 3, I am going to share with you the type of technical tools you should be using to trade in markets that are moving up, down or sideways. I think you will find this lesson very helpful in quickly showing you which technical tools to use and when.

In lesson 4, I am going to be looking at money management and stops. Recently the New York Stock Exchange announced that they would no longer accept stop orders to protect capital. I think this is a big mistake, however I think it was implemented because of the high frequency trading that has been hitting on all the orders. Personally I think it is a mistake to deprive investors of a way to protect their capital, however there are many other exchanges that do accept stop loss orders to protect your capital. You will also learn about the art of money management in lesson 4.

Here are today's two featured lessons: Continue reading "What To Do In Any Market Scenario" →

UPDATE: 12 Stocks Making New 52-Week Highs

Posted on by The INO.com Team

I wanted to do this update to share with you exactly what would have happened had you followed everything I said in last Friday’s video.

One of the important elements to look for when a stock is making a 52-week high is that it closes very close to its highs for the day. An example of this would be Home Depot, which closed very close to its highs last Friday. That's the type of stock you should be looking for to go home long over the weekend.

Of the 12 stocks that I showcased last Friday, only three made the cut and matched that criteria and they are, Alphabet Inc., Home Depot and the Goodyear Tire & Rubber Company.

Let's now look at those stocks individually and how they closed last Friday and opened today. Continue reading "UPDATE: 12 Stocks Making New 52-Week Highs" →