Tag: Trading Tips & Techniques
Can the U.S. survive $80 crude oil?
Can the U.S. survive $80 crude oil?
For the first time since September of 2007, the crude oil (NYME_CL) market has flashed a positive signal that it is headed higher. This is the first buy signal that we have seen in over 18 months in the energy markets.
The big question is, if crude oil is headed higher, how much of a price increase can the US economy afford and withstand?
Here is a raw commodity that is used by everyone and the US has no control over it. This key commodity to commerce just happens to be in areas that are normally hostile to the US. If we see a hiccup in the supply chain that changes this market dynamic, even for a short time period, we could see oil move back to the $80/barrel range in a heart beat.
So how will this affect the US equity markets? If crude oil heads back to the $75-$80 range, I expect that the major indices will head south. I call it the 551 syndrome. 5000 on the Dow, 500 on the S&P 500, and finally 1000 on the NASDAQ.
In this short video I will share with you the potential target zones we could see in the next 6 to 12 months in
crude oil.
So with the trend in crude oil in a positive trajectory and the trend in the US equity markets in a negative trajectory, I think the two will feed off themselves. Look for traders and hedge funds to move aggressively in both these areas with abandon.
Lastly with no reinstatement of the up-tick rule, expect stocks to once again get pummeled to oblivion.
Enjoy the video and all the best in trading,
Adam Hewison
President, INO.com
Co-founder, MarketClub
P.S. We welcome your comments and feedback on this and all the posts we make on this blog.
Five Stocks To Look At Right Now
Early this morning, I was looking through MarketClub's Smart Scan tool for some stocks that I could buy. Yes, that's right... I said buy. I came across five stocks that I thought looked very interesting and these stocks met all the requirements I look for when I want to go long in the market.
These five stocks all received positive scores from the weighted set of criteria we look for from upward trending stocks. Given today's economy, it remains to be seen how successful these picks will be.
You may have watched my video, "Trading From A Desert Island." If you haven't, I sincerely recommend that you watch that video as well. The premise of the video is that market action is more important than news.
Often times the markets tells us what they want to do months before the events pan out in the news. I've discussed this many times before on our blog and I expect this to be a regular topic in the future.
Take a look at this video and I'll explain why these stocks fall into the category of upward trending stocks. I'll also explain how MarketClub can help find stocks that fit your own trading style and also have the mathematical backings to be winners. Enjoy the video.
Best regards,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The #1 Predictor of Inflation or Deflation.
There is an indicator which has been around since 1957. It has accurately forecasted every inflationary and deflationary cycle since.
This is my number one indicator for large cyclic trends. You may want to watch this index carefully should you want to invest in certain stocks and commodity related markets.
Over the last half-century, this index has seen some remarkable moves both on the upside and more recently on the downside. I believe that this is the indicator that everyone should watch. If you trade stocks or futures and are interested in world trade trends, this is the indicator to track.
The tenth revision of this index renamed it the Reuters-Jefferies CRB Index (NYBOT_CR) You can easily track this indicator everyday using MarketClub.
You can learn more about this index from our Trader's Blog
Here is a list of the 19 markets that are included in the RJ/CRB index as implemented in the 2005 revision:
Metals: aluminum, copper, gold, nickel, silver
Energies: crude oil, heating oil, natural gas, unleaded gas
Grains: corn, soybeans, wheat
Food & Fiber: cocoa, coffee, cotton, orange juice, sugar
Livestock: lean hogs, live cattle
Take a few minutes to watch this short video and see how you can benefit from this indicator. There is no fee and there is no registration required.
Enjoy the video in every success in the markets,
Adam Hewison
President, INO.com
Co-creator, MarketClub
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The Biggest Mistake I See New Traders Make Is This...
They Have No Game Plan!!!
This is an important element in trading and one that should not be brushed to the side. When you have a game plan it allows you to get in and out of the market in a non-emotional way.
So often I see new traders jump into the markets based on emotion, hearsay, and rumor. This is the worst possible way to trade and the quickest way to lose all of your money.
In my humble opinion, nothing is more important than a game plan and sticking with it.
By creating a game plan, you are setting yourself up to be prepared emotionally. No matter what happens to a particular stock or futures market, you have a pre-planned way to enter and exit the market. Having a successful exit strategy is enormously important.
With the kind of volatility that we are seeing in the marketplace today, having a game plan has never been as important as it is right now.
Creating a game plan is very easy and you can do in a matter of minutes. Here are the key steps to creating a very basic game plan:
1) Write down your reasons for buying or selling a particular market.
2) Write down your entry point for the market you're about to trade. Why are you getting in? Did you see a technical set up?
3) Write down when you are going to exit this market. Why and when are you going exit? Was your profit target reached, or were you stopped out?
4) Do not make market decisions during trading hours. It may sound easier said than done, but watching the daily ticks can cause your emotions to go haywire.
5) Review your game plan every day to see if things are going according to your plan. This allows you to adjust your money management stops and your target zones in a non-emotional way.
It couldn't be easier and it's only costs is a sheet of paper and some of your time.
So there you have it ... five easy steps that can both make you money and save you money in the future.
Every success in training and in life,
Adam Hewison
President, INO.com
Co-creator, MarketClub
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