We’re back with another video from INO.com, which is a site devoted to the needs of active investors and traders. As someone who’s highly interested in beefing up my education in the investment realm, I enjoy checking out INO’s trading videos which demonstrate the use of their Market Club tool; it shows how a trader or investor can interpret stock market trends through charts.
Candlestick Charts, Trading Signals Help You Evaluate The Stock Market
In past trading videos, we’ve covered how market trends can be interpreted through charting techniques like the Fibonacci retracement process. The experts from INO have been watching the stock market diligently and have analyzed various signals (e.g. what they call their “trading triangles”) to make an educated prediction about where the market is headed.
You can watch the video by clicking on this link or the image below.
The investment video covers the movements of the S & P index during 2009. The narrator (Adam Hewison) discusses why despite the market’s surprising move to the upside over the last several weeks, he still expects the stock market rally not to last. Here’s what he says:
I have been scratching my head wondering why the market (in this case the S & P) has moved so high for little or no reason. The economy still appears to be very much on the defensive with unemployment rising and the business environment still on a slippery slope.
I think you will find it interesting that my observations may conflict with the current market trend. With the Obama honeymoon coming to an end, we are going to see how the markets move without government influence. There has never been a government that was able to dodge a major business cycle… and this one sure is a doozy.
Some interesting points made about the current stock market using the Market Club charting tool:
1. The technical indicators are at odds with fundamentals.
Some technical trading signals are flashing “green” based on past market activity. Adam (our stock trading expert) has an interesting name for the March through May 2009 rally we’re seeing so far: he calls it the “Obama honeymoon rally”. Yet our nation hasn’t exactly resolved its debt problem (and won’t be doing so overnight) and companies remain mired in toxic assets. So there’s much doubt here that there will be anything long lasting about the market pops we’ve seen so far. As it is, the economic fundamentals remain weak and will be so for a while.
2. Many investors and traders expect a retest of the stock market lows.
Again, Fibonacci trading techniques, the MACD indicator and economic fundamentals are showing that the current S & P rally may be getting long in the tooth. With no changes to the fundamentals, stock traders continue to anticipate a retest of the stock market bottom at S & P 680 or thereabouts. The downward pressure on the market is mounting.
3. Consider the current market environment as a trading environment.
This simply means that if you’re going to play or stay in the market right now, that it should be with the understanding that we’re still riding a roller coaster. There will continue to be volatility as the market see saws without making much progress and without any indication of a strong break to the upside. It appears that there will continue to be sideways movement in the indexes, so if you’re a trader, then take your profits when you can, and if you’re a long term investor, prepare to sit tight since things will be choppy and indecisive for a while.
Free Investment and Trading Tools
If you’re interested in the Market Club trading tool, you can certainly sign up for a free trial, but keep in mind that ultimately, it’s a paid subscription. However, you can still avail of some great material from INO.com, which are entirely free of charge. Their Trend Analysis tool and INO TV free videos can be used and reviewed at absolutely no cost to you.
Whether you’re a long term investor like me or an active trader like Adam Hewison (INO.com’s President and spokesperson), you can benefit from trading and investing tools like the ones shown here. Hopefully, these tools are able to help you assess your investment strategies and financial plans going forward.
For more informative trading videos from INO.com, check these articles:
- Stock Market Index Analysis: Predicting An S & P Reversal
- Investing In The Stock Market? Rules To Help You Sleep At Night
- Trading The Market: What Market Trends Are Stock Traders Riding On Recently?
- Technical Trading Indicators Predict That The Stock Market Rally Won’t Last
- A Stock Trading System For Shorting Stocks: How To Short Estee Lauder
- S & P Index and Crude Oil Market Trends: Next Steps?
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