April 25, 2013
A Look at the AP Hack Crash
 The first article of mine that was picked up by the Sandusky Register was written in the late afternoon on May 6, 2010, as I put together the notes for our clients explaining the “Flash Crash,” what and how it had happened. Tuesday afternoon the Twitter account of the Associated Press was hacked and the following tweet was sent from their account, “Breaking: Two Explosions in the White House and Barack Obama is injured.” The stock market plunged one percent in less than three minutes. Within five minutes, it had returned to its previous level. Let’s take a look at some of the issues this brings to the trading table. The market is always the boss. Traders at their desks can employ a thousand models suggesting the market should move in a certain direction. However, anyone sitting at a trading (more)…
April 24, 2013
Small Cap Stocks: Is the Russell 2000 Looking Bearish?
 Knowing when to enter a short-biased trade seems to always have a bit more fear and trepidation with it than when on the long side. I know they are just two sides of the same coin. I know that with the right downside strategy (be it option protection or a stop loss setting), there really isn’t any difference between taking a position one way or the other. Oh, I know there are those who believe there is some kind of mystically bad karma associated with betting that the market or a company will move lower so that you can profit from it. That is just silly, of course. But, nonetheless, shorting does carry a bit more risk than being long. After all, in a long position, all you can do is lose everything; if you are short, however, there is (more)…
April 16, 2013
How to Trade This Gold Market: Long, Short, or Neither?
 Author’s Note: First of all, our hearts and prayers are with those who were hurt today in the Boston bombings, and their families; especially those families who lost loved ones today. Gold, silver, oil… all moving lower (in some cases, such as gold, a LOT lower). China reported slower growth than expected. Hard to figure how a miss of one-tenth of a point on data that no one believes is trustworthy anyway, would have such a huge push down on commodity prices. There are some who believe that the EU will require some member countries (Cyprus, Italy, Portugal, etc.) to liquidate state-owned gold to help pay down their debt. These and other not-so-obvious reasons are why gold selling has moved into a panic-driven fevered pitch. Fortunately, the CycleProphet forecasts for oil, gold and silver have all been bearish for weeks. Those forecasts have kept (more)…
Patience is Key for Investors and Traders Looking to Buy on Dips
 While investors and traders started with a rough day on the market Monday, facing weaker prospects of global economic growth, the tragic events that took place in Boston dominated headlines and fueled a deeper sell-off. In this week’s interview with Toni Turner of TrendStar Trading Group, we ask what her thoughts are on the possible effects of the horrible explosion, as well as her take on the ongoing sell-off. EQ: Wall Street, along with the entire country, was shocked and saddened by the Boston Marathon explosions that happened during the final hours of trading on Monday. The market itself almost seemed to reflect the type of chaos and panic of such a tragic event. Do you think this could have any longer term implications in regards to sense of stability among investors? Turner: The market did reflect what was happening (more)…
April 8, 2013
Investors Anticipate For What Comes Next for the Market
You know… I’m always intrigued when I see an advertisement that says something along the lines of, “We are rolling back prices to 2005 or 2003 or 2000…” I don’t know why I like that ploy, but there is something about buying anything new at the same price you would have paid for it years and years ago, that I like. I guess I am not the only person that thinks this way as that type of advertising does pop up now and then. In a way, that’s what happened on Friday when the unemployment numbers were released, but rather than be a good thing… it was stunningly bad and even harder to put into context… let me explain… Quote worth Quoting Again “Any people that would give up liberty for a little temporary safety deserves neither liberty nor safety.”… (more)…
April 2, 2013
What Should Traders and Investors Do Now After Breaking Through All-Time Highs?
 While the S&P 500 closed a climactic first quarter with a final push through record highs, investors and traders are now at a point in question of whether the market will continue to move higher, or if the long anticipated pullback will finally take place. In this week’s interview with Toni Turner of TrendStar Trading Group, we discuss what other levels warrant closer attention to determine the near-term direction for the market. EQ: The S&P 500 managed to close above the previous all-time high on the final day of the first quarter. What are your thoughts now that it has happened? Turner: It’s all well and good, but I’m not going to be truly impressed until the S&P 500 closes above its intraday high of 1576 logged back in October 2007. That is when I’ll be convinced that we’re going (more)…
March 28, 2013
How Investors Can Play a Market Pullback
 In this week’s interview with Toni Turner of TrendStar Trading Group, we discuss identifying opportunities in the case of a market pullback, and what pitfalls investors should avoid. EQ: Last week, you mentioned that the Cyprus bailout saga raised concerns that the euro crisis may be back at the forefront of the market. It sure seems like that may be the case now. Do you agree? Turner: It definitely is, and the markets will be watching what happens when the Cypriot banks in Nicosia open early Thursday morning. If there’s order, then the markets may end up brushing it off. But if there is chaos, and if the situation becomes more climactic, that will undoubtedly pressure our U.S. markets. Added to that, Italy’s political stalemate is coming into the spotlight again and Italian bond yields are starting to rise. Spain (more)…
March 27, 2013
Goldcorp and Other Major Gold Plays at a Technical Bottom?
 Gold prices are finding themselves stuck in a downward channel now since hitting $1798 per troy ounce in October 2012. A series of lower-highs and lower-lows has followed, forming a steady pattern as part of a longer-term trend since gold prices peaked at $1,923.70 per ounce in September 2011. In Wednesday trading, gold bullion was off by about half a percent at $1,598.10. Gold prices have only closed above the 50-day moving average (blue line on charts below) on three occasions since breaking back below it on September 23. Although prices have climbed all month, as they approached the key moving average again at the end of last week, prices are once again getting repelled downward. It looks like trying to push two like magnets together. If the slide continues, gold will find itself back down on a firm area (more)…
While Stocks Are Likely to Inch Higher, Investors Should Beware of Sell-Off
 The Cyprus event had me a bit spooked on Monday, which was a mistake on my part. My forecasts were telling me that the market was headed higher and had I listened to my technology instead of my fear of the seemingly ever present exogenous event that could cause this bull market to take a breather, I would have bought into that sell-off. Instead, I sat on the sidelines and missed out on Tuesday’s run-up. Maybe I’ll get a pull-back before the week is out so that I can buy into the dip. Take a look at the 90-day time-cycle forecast, below: If the forecast holds up (and they are generally accurate 62% to 72% of the time), then the market, as represented by the SPDR S&P 500 (SPY), could gain another +4.5% by mid-May. But… and this is important (more)…
March 26, 2013
Chart Room with Mark Arbeter: Near-Term Outlook For Gold Encouraging
 S&P Capital IQ Chief Equity Technical Strategist Mark Arbeter notes that while S&P Capital IQ has been cautious on the stock market from a near-term perspective, we have taken a somewhat constructive view of gold, at least for the near-term. For further technical comments from Mark Arbeter, please visit: http://advisor.marketscope.com/SP/msa/login.html
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