NASDAQ gains could indicate a recovery of OTCBB liquidity

Today's guest is Stock_Analyzer from StockHideout.com, a micro cap community. Certain types of stocks have been hit harder than others lately; risky micro cap stocks have definitely taken a beating. Stock_Analyzer is going to explain the link between the NASDAQ and OTCBB and how he potentially sees some light at the end of the tunnel. Be sure to comment and let us know what you think.

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The financial crisis has caused stock markets worldwide to crash, sending them spiraling into a period of high volatility. As a result, a considerable number of banks, mortgage lenders and insurance companies have filed bankruptcy, spurring a loss of investor confidence in the capital markets and decreasing liquidity.

The dollar trading volume of a market is indicative of overall market conditions. It essentially shows how much money is entering or leaving the market.  It is well known that the markets are very cyclical in nature and that during the growth stages investors increase their investments, while recessions leave investors looking for exit strategies. Continue reading "NASDAQ gains could indicate a recovery of OTCBB liquidity"

The rate cut maybe too late for the baby boomers ...

The rate cut may be too late for the baby boomers ...

As many baby boomers are facing retirement, this recent meltdown in the stock market has put many in a precarious position. Money they had counted on for their golden years has quickly disappeared and will not likely return anytime soon.

To illustrate this point, a friend of mine recently sent me a chart which I would like to share with you. This charts shows that we may be going into a prolonged period of no growth in the overall stock market. The NASDAQ peaked at 5,132.52 on March 10th, 2000. The NASDAQ market is in many ways more important than the DOW, and should be considered more of a leading indicator. If that is truly the case, then we have been in a bear market for the last eight years.

If many stocks have lost 50% of their value, they must now go up 100% just to get back to where they were. If we are to assume that the stock market grows by 10% a year (and that is not a good assumption), then it's going to take at least 10 years for many of these stocks to reach the heights they once were at. Many stocks will never come back. I don't think we will ever see Yahoo trade anywhere close its all time intraday high of $500.13 (set January 4, 2000).

I expect to see a prolonged economic climate that is not conducive for stocks to move higher. However, there will be pockets of opportunity where certain markets and sectors will move higher.

All in all, this is not a rosy picture for either the US economy or the world economy. As I have said many times on this blog, these are trading markets and not markets to hold long-term. Witness our General Motors blog, and the fact that General Motors (NYSE_GM) is a scrambling to either avoid bankruptcy or to find a partner. The latest rumor is that they're looking at Toyota (NYSE_TM).

Trading throughout the balance of this decade and into the early part of the next decade is going to be the key to survival and for recovering the profits in your portfolio. We strongly recommend that you approach these markets with some level of expertise and knowledge of technical trading.

The future is going to be the future and we need to take advantage of every moment and prepare ourselves to be the very best we can be in whatever business or endeavor we are pursuing.

Every success in the future,

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

Never try and pick a bottom but look for the clues

Never try and pick a bottom but look for the clues

The action yesterday on the NASDAQ was particularly interesting as market movement resulted in a "gravestone doji," which is a Japanese Candlestick formation that often signals a turnaround.

What a "gravestone doji" means is that the buyers and sellers are in an evenly matched tug-of-war and potentially signals the first clues that the NASDAQ may be putting in an interim low.

Take a look at the chart and see what you think. If the NASDAQ market closes higher than yesterday's high point, which is 1,806, then there's a good chance that we'll see this market at least have what some traders call a dead cat bounce.

It is not profitable to try to pick the top or in this case a bottom. What you want to look for are clues that maybe, just maybe, the market is beginning to put in a low.

Japanese Candlestick charts are a fascinating form of charting as they represent both a visual and psychology view of the market.  If you're not familiar with this form of charting, INO.com will be happy to send you a e-book that explains most if not all of the major candlestick charting patterns. You can reach us at 1-800-538-7424, or email

se*****@in*.com











to ask for the candlestick e-book.

I know the e-book will help your trading as it did mine.

Every success in trading,

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