Tag: Facebook Inc. (NASDAQ:FB)

It Looks Like Indiana Changed The World Last Night

Posted on by The INO.com Team

Hello MarketClub members everywhere. Like many people around the world, I was watching the events unfold last night in Indiana.

The two big surprises to me were the fact that Ted Cruz suspended his campaign and that Bernie Sanders won the Democratic primary. So what does all of this mean and how likely will it affect the markets?

MarketClub's Mid-day Market Report

For some time now the market has been moving sideways and looks as though it's reflecting the lower growth rates that we are seeing. Occasionally you'll see it pop, but then the market just seems to fall back under its own weight. The stock market is a forward-looking vehicle which looks ahead 6 to 9 months into the future. I think it's predicting that the battle between the representatives of both the Democrat and Republican parties will get nasty. All of which will translate into negative news for the stock market in the interim.

Having said all that, I'm going to do what I always do and that is separate fiction from fact with the use of the Trade Triangles. What I mean by that is if everyone says a stock should go up, but the stock is going down, then you have to understand that the trend is down and not what everyone wishes it should be. Continue reading "It Looks Like Indiana Changed The World Last Night" →

Did Warren Buffett Just Shoot Down Negative Interest Rates?

Posted on by The INO.com Team

Hello MarketClub Members everywhere, Adam Hewison here, wishing you a happy and prosperous May. I believe this month is going to be a very pivotal one for the stock market.

In the back of many traders' minds is the old market adage, "sell in May and go away". Is that what is going to happen this May? It is perhaps a little too early to tell as there are many, many factors in play the least of which is, of course, the presidential election which has electrified and gripped the country in a way that I have never seen before. Like always, I'm going to rely on the Trade Triangles to tell me what is going on in the marketplace.

MarketClub's Mid-day Market Report

This morning, Warren Buffett indicated that he would take his money out of the banks if he had to pay them to keep his money. What he was referring to was negative interest rates. Berkshire Hathaway, which is the operation that Warren Buffett runs, is a conglomerate of companies and has about $60 billion in cash that it keeps in the bank. With the current low-interest rates, Berkshire Hathaway is earning about $600 million a year as opposed to the several billion of dollars it would earn in a more normal interest rate environment.

So in essence when one of the top investors in the world indicates that he would pull his money out of banks, he was saying to Janet Yellen, the head of the Fed, to back off the idea of negative interest rates. Way to go Warren - I think you win this one. Continue reading "Did Warren Buffett Just Shoot Down Negative Interest Rates?" →

How The Mighty Have Fallen

Posted on by The INO.com Team

Hello MarketClub members everywhere! You have heard me say this many times before, perception is an extremely powerful force in the markets. We see just how powerful this force is with the recent move down of Apple Inc. (NASDAQ:AAPL). Once the darling of the tech world, Apple's time may be over as Alphabet Inc. (NASDAQ:GOOG), Facebook Inc. (NASDAQ:FB) and the mighty Amazon.com Inc. (NASDAQ:AMZN) take over the leadership mantle.

MarketClub's Mid-day Market Report

It's Friday, the end of the week and the end of the trading month. Let's start by looking at how the major markets closed last month and last week. Continue reading "How The Mighty Have Fallen" →

Unlocking The Power Of Covered Call Writing – Applying Theory To Empirical Practice

Posted on by The INO.com Team

Introduction

Leveraging covered call options in opportunistic or conservative scenarios may augment overall portfolio returns while mitigating risk in a meaningful manner. In brief, options are a form of derivative trading that traders can utilize in order to initiate a short or long position via the sale or purchase of contacts. A call option is a contract which gives the buyer of the contract the right, but not the obligation, to buy the underlying security at a specified price on or before a specified date. The seller has the obligation to sell the underlying security if the buyer exercises the call option. A call option gives the owner (buyer) the right to buy the security at a specific price is referred to as a call (bullish); an option that gives the right of the owner to sell the security at a specific price is referred to as a put (bearish). In the event of a covered call, this is accomplished by leveraging the shares one currently owns by selling a call contact against those shares and collecting a premium. I will provide an overview of the theory vs. empirical practice based on my covered call activity during Q1 2016. Here, I’ll provide details focusing on optimizing stock leverage via covered calls. Emphasizing the ability to sell these types of options in an opportunistic, aggressive and disciplined manner to generate liquidity while accentuating returns and mitigating risk via empirical data.

A Few Characteristics To Keep In Mind For Covered Call Options Trading

Continue reading "Unlocking The Power Of Covered Call Writing – Applying Theory To Empirical Practice" →

A Member's Request

Posted on by The INO.com Team

Hello MarketClub members everywhere! Today I'm going to be looking at some well-known, household-name stocks at the request of one of our members. I will be analyzing AMZN, GOOGL, CMG, TSLA, IBM and FB, along with the usual suspects, in today's video.

Amazon.com Inc. (NASDAQ:AMZN) It's no secret Amazon wants to take over the world and they certainly seem like they're well on their way to doing that. Looking at the stock however, it is showing a mixed picture. The long-term monthly Trade Triangle continues to be red which is perhaps indicating a cap on this market for the moment. Both the weekly Trade Triangle and the PSAR are indicating more of a trading range. Amazon would have to move over the $638 level before everything was lined up and ready to go on the upside. I prefer the sidelines at the moment. Continue reading "A Member's Request" →