The Trend

Technical Analysis: Three of the Most Powerful Candlesticks to Use

When Munehia Homma first created candlestick charts in the 1700s, he had no idea it’d change the way we look at stocks 300 years later.

To him, candlestick charting was meant for the rice trade.

Now, when applied to technical analysis, it can help give us a clear picture of trader emotion.  

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OPEC Cuts: This Hasn’t Happened Since 2008

It happened.

For the first time in eight years, OPEC members agreed to cut production by 1.2 million barrels a day to 32.5 million. 

As a result, the price of oil soared 8.2% to $48.93 and could push higher to...

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The Thanksgiving Effect You May Not Be Aware of…

About 75% of the time since the end of World War II, markets have rallied over the Thanksgiving holiday. In fact, the Wednesday before the holiday and the Friday following have shown higher gains than your normal Wednesday and Friday.

This year was...

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Markets Could Fall 15%, If This Is True

By all accounts, the Fed Reserve is ready to hike rates.

According to the CME Group, there’s now a 95.4% probability the central bank could raise rates by 50-75bps on December 14, 2016.

If true, the markets could...

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The Marijuana Vote: Controversial or Not, It’s Worth Billions… to You

Talk of legalizing marijuana in the U.S. grew like a… well, you get where I’m going.

As controversial as the topic is, it’s also one of the most explosive.

Four states had already legalized its recreational use, expanding the market 17% to $5.4 billion in 2015.  In Colorado, marijuana sales exploded $996.18 million the same year.

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The Commodity Bear Market is Dead

Five years after it began, the commodities bear is dead.

The Bloomberg Commodity Index -- down as much as 56% since then – is now up 21% since 2016 began, a strong indication that...

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The Federal Reserve: To Hike or Not to Hike?

If you thought the chaos was bad leading up to the U.S. elections, wait until December.

That’s when the Federal Reserve is very likely to raise interest rates by a quarter point.  And if that happens, we could see a repeat of the incredible sell-off we saw in January.

The Fed is under the assumption that all is well in the economy.

And by some accounts...

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Gold: The One Clear Winner of the U.S. Election

Abysmal. Terrible. Confusing. Cluster… you get the idea.

These are just some of the words traders and investors have been using to describe the market in recent weeks. 

With the U.S. election next week, a disintegrating OPEC deal, and the Federal Reserve prepared to raise rates in December, there’s been a...

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Q3 GDP Growth: Thank You, Soybeans?

After quarters of 1% growth, we finally got the news we were hoping for.

The kick in the pants that would goose the markets, and the perception all is well.

The U.S. government reported that GDP expanded at a 2.9% annual pace in the third quarter of 2016 – a nice jump from the first half of the year when we grew by 1%.

It was also well ahead of consensus estimate for 2.5%.

But before you cheer the “great” news that comes just days ahead of elections, know this:

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The Chances of an OPEC Deal are Slim

When OPEC met the other month, there was a general sigh of relief.

Granted, all they did was agree to agree to potentially curb production in November. 

But it was a start.  And no one expected it.

Its part of the reason oil has...

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OPEC Oil Production: Why We Don’t Expect a November Deal

It’s an absolute mess.

After dipping to a low of $39 in August, oil rallied to a high of $51.19, on hopes that OPEC and non-OPEC countries can put aside their difference and curb oil production.

Even Russian President Vladimir Putin has said the country was ready to join OPEC efforts to curb supply. Unfortunately, there’s just one small problem with that...

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Where Has All the Market Volume Gone?

Low volume on the market is getting thinner by the day.

All thanks to fear surrounding the outcome of the U.S. Circus… sorry Elections, likely failure to reach an accord with OPEC and non-OPEC countries, and the very real possibility of an interest rate hike in December.

Just one wrong move with any of those catalysts could...

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The Election and the Markets: If Hillary Clinton Wins… Part I

Politics have no place in financial letters.

It really doesn't matter what I think of either candidate, and I’m not about to ruin our relationship by trampling on your politics.

What I do want to do is share some information that may be beneficial to your investing decisions whoever wins the White House.

This week, let’s begin with Hillary Clinton.

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A $175 Million Legend Rises Again

The first time something like this happened was 1983.

Two trading legends, Richard Dennis and William Eckhart were arguing over whether traders were born or were they made.

Dennis, who had turned his initial stake of $5,000 into over $100 million believed...

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OPEC: Why a Continued Oil Rally isn’t in the Cards

For the first time in eight years, OPEC agreed to cut oil output by November 2016.

Under the terms of the deal, OPEC said they would cut between 200,000 and 700,000 barrels a day from their current production of 33.2 million barrels.

In fact, it was the Saudis that threw up the white flag, softening its stance on output, as its own economy suffered under the weight of plummeting oil prices.  

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Why the Fed is in No Position to Raise Rates

There are renewed fears the Federal Reserve could move to raise interest rates at the December 2016 meeting.

It’s part of the reason that gold prices have slumped from $1,345 to $1,251 in recent weeks.

According to Fed Vice Chair, Stanley Fischer, the latest jobs report was “close” to ideal.

Unfortunately, what the Fed doesn’t understand is...

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Technical Analysis 101: The Bull v. Bear Flag Patterns

Trying to figure out why traders are selling or buying is tough enough. 

But once you begin to understand charting, you’re literally looking at a consolidated view of the very forces of supply and demand - the two key forces that drive...

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