Why Shareholders Should Fear the Hasty Corporate Marriage

By Dennis Miller

I never understood why Sears bought Kmart. Sears was a giant retailer, the dominant tenant in shopping malls throughout the US. Kmart was the spawn of S. S. Kresge’s dime stores. They served different consumer groups—different strata. When they came together, they combined a lot of the same merchandise in their stores, and they both lost their identities. I don’t see either surviving much longer.

Instead of allowing two companies to die, some embarrassed management teams settle on divorce, selling off the scraps for a fraction of what they paid—and leaving angry stockholders to ruminate over how management could have spent the cash better (think dividends).

How can titans of industry capable of earning and retaining billions of dollars also lose billions seemingly overnight in a bad acquisition?

To help answer that question, I’m going to focus on companies that merge with the intention of truly melding into one. They may continue to operate under separate names; however, management thinks the companies’ synergy will make both stronger—a true marriage.

How Three Strata of Consumers Buy

In my first career, companies hired me to improve their market share and gross profit margins. My team and I would start by surveying a client’s good customers, asking: “What criteria do you use to select a supplier, and how do you rank those criteria?”

The answer was always the same: service, quality, and price, and in that order. For individual consumers, though, the order of that answer varies.

There are three general strata of consumers. The first is the “carriage trade,” comprised of affluent people who live in expensive neighborhoods and might shop at Neiman Marcus. In the ‘50s and ‘60s, these folks drove Cadillacs. When we re-collated out our survey results by stratum, this group ranked quality first, service second, and price third.

If your business serves the carriage trade, you focus on product improvement, serving the customer better, and maintaining your profit margin. That’s how you beat your competition.

The next consumer stratum encompasses the middle class. Think Buicks and Oldsmobiles. These consumers rated service first, quality second, and price third. They could be swayed by a good sale occasionally, but it had to be a heck of a good deal.

Consumers in the third stratum want only one thing: the lowest possible price. These consumers clip coupons and are willing to drive several extra miles to save money. This is why Walmart stores have much larger trading areas than their competition. Walmart does a great job in this stratum by advertising price as the primary reason to shop at its stores.

If you do business in the third stratum, you look for every possible opportunity to cut your costs so you can beat your competitor by offering lower prices while maintaining your margins.

As an investor, if the strata of two merging companies don’t line up, be cautious of any hype. If you don’t think it’s a good fit, move on to the next potential investment.

Culture Conflict Brews Animosity

Conflicting corporate cultures should also send up a huge red flag in investors’ minds. The unwritten rules within any company that dictate its internal and external behavior matter, and they don’t change easily.

Think of any married couple you know with conflicting beliefs and values. Those marriages always struggle; daily life becomes a constant negotiation, and that can go on for decades. The couple quibbles over how to spend money, how to discipline children, which other couples to socialize with, and just about everything else. Frugal Fred throws a fit each time Spending Sally comes home from the store. He thinks Sundays are for football, while she wants to spend the day antiquing. She’s dead set on sending their kids to private school, and he thinks it’s a waste. Ultimately, one partner has to adjust his or her core values, or these conflicts will foster resentment… and often end in divorce.

Similar conflicts take place in the corporate world. If the unwritten norms, beliefs, and values of the merging companies don’t synch, they’re heading down a rocky path, possibly to Splitsville.

Dominating a Stratum Develops a Culture

When a company dominates a stratum, a distinct culture emerges. Think of Apple, which dominates the high-end computer sector. It’s constantly looking for ways to improve and innovate its product lines so the company can raise prices and increase its margins. I just bought my first Apple computer, and I’ve found that its customer service is far and away the best.

Contrast the attitude of Apple’s employees with those at Walmart. Walmart’s corporate employees focus on negotiating better prices from vendors and cutting costs anywhere possible. Walmart passes those savings along to customers, and its in-store employees, in turn, offer minimal assistance.

Apple and Walmart are both profitable, but their corporate cultures are worlds apart and could never produce a happy marriage.

On the other hand, consider Beats, the manufacturer of headphones and speakers that Apple purchased for $3 billion. There’s controversy as to whether Apple overpaid, and only time will tell.

The two companies’ cultures seem to be a good fit, though. Beats products are expensive, and every technician I ask recommends them. Apple stores sell several brands of expensive, high-quality headphones, but Beats’ headphones will be in Apple stores soon, designed specifically for Apple products and Apple customers. Many of the other brands will probably disappear.

Miller’s Money Chief Analyst Andrey Dashkov adds that, “Synergies tend to materialize when the customer base and approach to the market are the same between the two parties. Kraft’s acquisition of General Foods is a good example.”

He agrees that the Apple/Beats deal looks good for many of those reasons.

When Management Doesn’t Fit the Mold

There are dozens of other invisible aspects of corporate culture. One past client of mine was a corporate travel agency. It priced its services by rebating part of the commissions the airlines paid travel agents. My client didn’t want to get caught up operating on razor-thin margins, so it looked for ways to bring extra value to its clients to justify its pricing.

One of the company’s potential clients was a very profitable member of the Dow 30 Index—let’s call it the Big Name Company. My client secured its business after making a presentation to the corporate vice president of sales by asking, “Are you aware that over 90% of your sales people are traveling between 9:30 a.m. and 3:30 p.m. Monday through Friday?”

The vice president was shocked. Face-to-face selling time in front of customers is gold. My client pointed out that Big Name Company was losing potential sales time to travel, and it was costing the company.
I asked my client why he’d done that analysis. Turns out, he had a friend who worked for the competition, and every time it hired a salesperson from Big Name Company, the company ran into difficulty. The new employee couldn’t adapt to its culture of working 50-60 hours a week.

The focal point of management is another key aspect of company culture. Some companies micromanage the smallest details from the corporate level. These companies haven’t developed managers who are risk takers and independent thinkers. If such a company merges with a decentralized company, the transition can be particularly difficult. In these situations, it’s not unusual for top managers to leave shortly after the merger because they just don’t fit the mold.

Investment Implications

As an investor, I only consider betrothed companies as investment candidates when they have similar cultures and values and operate in the same market stratum. When you read about a potential merger or acquisition, look beyond the hype. If companies are a good fit, there are a lot of hidden synergies which can lead to pleasant earnings surprises. There are terrific opportunities out there for folks who crunch the numbers and evaluate strata and corporate culture.

For more commonsense financial insight and timely investment news, sign up to receive your free copy of our e-letter, Miller’s Money Weekly, every Thursday.

The article Why Shareholders Should Fear the Hasty Corporate Marriage was originally published at millers money

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How Much Will a 15% Hair Cut Cost Your Investment Capital?

Over the past few weeks I have been watching the DOW and Transportation index closely because it looks and feels like the Dow Theory may play out this year and the stock market could take a 15% haircut.

But what if you skipped on the haircut and opted for a 40% refund?  What? Keep reading to find out how.

Keeping this post short and sweet, I think the U.S. stock market is setting up for a sharp selloff. And it will look a lot like the July 2011 correction. If my calculations are correct this will happen in the next 3-9 weeks and we will see a 15% drop from our current levels. Only time will tell, but I have a way to hedge against this with very little downside risk to you ETF portfolio.

The Dow Theory Live Example for ETF Portfolio

The daily chart of the SP500 index below shows our current trend analysis with green bars signaling an uptrend, orange being neutral, and red signaling bearish price action. Currently the bars are green and we can expect prices to have an upward bias.

The Dow Theory could be  in play. When both the Transports (IYT) and the Dow Jones Industrial Average (DIA) cannot make higher highs and start making lower lows, according to the Dow Theory the broad stock market is topping.

We are watching the market closely because they have both made lower highs and lows.  This rally could stall in the next couple weeks and if so we expect a 15% correction.







Take a look at the 2011 Stock Market Crash



The chart above shows how fearful traders have a delayed reaction to moving money from stocks to a mix of risk-off assets.

The choppy market condition during August and September clearly helped in frustrating investors and created more uncertainty. This helped prices of this ETF portfolio fund rally long after the initial selloff took place. This is something I feel will take place again in the near future and subscribers of my ETF newsletter will benefit from this move.

Because we have a Dow Theory setup, our risk levels are clearly defined as to when to exit the trade if it does not play out in our favor. But with the potential to make 40% and the downside risk only being 4%, it’s the perfect setup for a large portion of our ETF portfolio. And just so you know this is not a precious metals trade as we are already long that sector and up 10% in that position already.

Get My Daily Video Forecasts & ETF Trades Today

Chris Vermeulen
The Gold & Oil Guy.com

Why has it been hard to make money as a trader?

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Don’t Underestimate Yesterday’s Market Action

Yesterday’s action in the equity markets is a grim reminder of just how fragile the economic and financial system is globally. We would not dismiss the market action as just another pullback in the market.

The sharp down move should not be ignored, in my opinion. We are looking at a key support level on the S&P 500 at $1220. A close below that level will accelerate the decline to the next key level of support, which is $1180. That move may have to wait until Friday as traders jockey for positions today. For the year, the S&P at the moment is down, the NASDAQ is flat, and the DOW is barely higher with gain of 3%.

The copper market gave a pretty strong negative signal yesterday, as it moved below the $3.50 level. The copper market is telling us that demand is just not there for this industrial metal. For some time now, we have been discussing the trials and tribulations of Europe and all the drama that has become a Greek tragedy. The fact that they have a new prime minister in Greece does not change one thing, in my opinion.

Italy is now the star of the show, and we are not convinced that Prime Minister Berlusconi is going to step down off his pedestal anytime soon. Politicians still have a “quick fix” mentality and are counting on that to solve this mega financial mess. The reality is, there is no quick fix. It is going to take years for this mess to be cleaned up, and in all likelihood it will get ugly.

The best thing a trader can do at the present time is to watch the market action, as it will tell you exactly what to do. We believe the rest of this week is going to be a very important one, particularly where we close tomorrow. If we have a negative close on Friday below $1220 on the S&P 500, we would then expect to see this index move lower for the balance of November.

Now let's take a look at our trend analysis for the SP 500........

The massive move down in this index yesterday cannot be ignored by this observer. We still believe that the $1220 level holds the key for the S&P 500. With a Chart Analysis Score moving between -65 and -75, we may just be on the brink of an emerging downtrend. That still needs to be confirmed basis our weekly Trade Triangle indicator. Intermediate traders should be on the sidelines waiting for a new Trade Triangle short signal. Long-term traders should either be in cash or continue to hold short positions in this index.


Get your favorite symbols' Trend Analysis TODAY!

J.W. Jones: The SP 500 and the Dollar Ahead of the Fed Meeting

The Federal Reserve is holding a two day meeting Tuesday and Wednesday of this week. Market participants are expecting the Federal Reserve to prop up financial markets yet again with some grand new plan. The fact is the Federal Reserve is running out of bullets.

Interest rates cannot move much lower in terms of the Federal Funds rate, additional quantitative easing seems redundant since Treasury yields are close to all time lows, and finally a twisting of maturities will do little to alter the current economic conditions. The Federal Reserve is just repeating practices which have proven over a long term do little to create jobs or get the economy moving in the right direction. A stock market rally does not help a person looking for a job!

It is possible that even if the Federal Reserve proposes additional stimulus the market could sell off. I have been trading less in this environment and have been focusing on looking for trade setups that could work regardless of price action. For now I am sitting predominantly in cash waiting to see how price action reacts to the news flow tomorrow.

S&P 500
If I had to guess, I continue to believe that the S&P 500 will get back to test the key 1,250 – 1,280 price level. While this resistance level is apparent, Mr. Market will be able to tear up traders if price jams into that resistance zone. Mr. Market loves nothing more than to shake people out of positions. If price works higher I would expect the 1,250 – 1,280 price range to offer just enough risk / reward to get investors and traders involved in a choppy trading environment. The key upside levels on the S&P 500 are shown below on the daily chart of the S&P 500 Index ($SPX):



The flip side of that argument would see the S&P 500 jamming into recent resistance around the 1,230 price level. If prices rolled over and momentum picked up, a test of the recent August lows would likely transpire and could produce a breakdown and a lower low.

When looking at recent price action, the S&P 500 Index has put in a series of higher lows which is a bullish signal, however the S&P 500 has a long road ahead to break out above the 2011 highs. If the S&P 500 carves out a lower high on the S&P 500 Index at 1,230, 1,250, or even 1,280 and subsequently takes out the August lows then the secular bear will be back. The weekly chart of the S&P 500 Index ($SPX) shown below illustrates key support levels:



For now I am just going to sit in cash and wait for Mr. Market to provide me with some better clues. The trading range is pretty wide going from around 1,100 to 1,280. What I will be watching for is a strong move supported with volume that pushes price out of this range. As of the close today, price action was trading around the middle of this range but depending on how price action reacts to the news that comes out Wednesday it is possible that in coming days we could see a breakout in either direction.

Dow Jones Industrial Average
It will likely surprise long time readers that I am actually going to comment on the Dow. I will keep this brief, but I wanted to point it out to readers as I have not heard much mention of this pattern in the main stream financial media.

Over the weekend I was looking at some longer term charts and I accidentally stumbled across this head and shoulders pattern on a weekly chart of the Dow Jones Industrial Average. I rarely pay much attention to the Dow as I monitor the S&P 500 closely. However, I could not ignore what I was seeing. I also noted that a similar pattern also exists on the S&P 500.

I am generally not the kind of trader who tries to predict where price action will arrive in the distant future. However, I am not going to ignore clear chart patterns that I recognize regardless of the time frame I am looking at.

For those not familiar with a head and shoulders pattern, it is a very ominous signal. Head and shoulders patterns are generally topping formations that if triggered result in violent selloffs. On this chart the pattern is obvious and if the pattern were triggered the forthcoming price action would be decisively negative for domestic equities. The long term monthly chart of the Dow is shown below:



If the pattern is triggered on an undercut of the March 2009 lows, the head and shoulders formation would produce selling pressure that would target the 3,800 – 4,000 level on the Dow. Yes, you read that right! I want readers to recognize that this pattern is not a given and it could play out over a long period of time. The pattern would suggest that a test of the 2009 lows is possible, but I will leave the likelihood of that test up to Mr. Market.

I view this pattern as a potential warning signal for long term equity positions. Consequently, it is far too early to jump into a plethora of short positions or sell every equity position owned simply because of this pattern. While I do not know where price goes from here or if this pattern will ever trigger, I think market participants should be aware of its existence.

It would take the perfect concatenation of events to push prices down to the March 2009 lows, but unfortunately the condition of social mood paired with all of the risks facing financial markets is notable. The recent selloff in August came on the heels of a head and shoulders pattern that was triggered. We all know how August played out, but this pattern on the Dow Jones Industrial Average has a long way to go before it can even trigger. Time will tell, but readers should at the very least put this chart pattern on your radar!

U.S. Dollar Index
The U.S. Dollar Index has ripped higher by more than 5% since August 29th. The strength in the Dollar has likely been precipitated by fear based on the European sovereign debt and banking crisis. While the Dollar certainly has long term flaws, it may simply be the best of the worst.

If the situation in Europe begins to break down further based on any number of events it could likely push the U.S. Dollar Index considerably higher. My trading partner Chris Vermeulen has been riding this strong impulse wave with his subscribers Swing trading the UUP etf and thinks there is big potential still if  Euro Land fears continue to rise.

The daily chart of the Dollar Index futures is shown below:



Mid-Week Market Trend Conclusion
Wednesday will be filled with a variety of news and headlines. The Greek government is meeting and a news release regarding the conference will likely come out around the time domestic markets in the United States open. The news has the potential to move markets considerably.


In addition, the Federal Reserve is set to end its September meeting and market participants will be sitting on the edge of their seats waiting to hear from the Federal Reserve about any stimulus the central bank may provide.


Overall, the news and headlines on Wednesday will certainly impact the current conditions of financial markets. Right now I am pleased to be sitting primarily in cash. I have a few positions open, but for the most part the trades are not directional and are profitable based on time decay.

The one directional trade I have on presently is a remaining sliver of a position I have already taken profits from and stops are in place. While I have been risk averse the past few trading sessions, I am flush with cash and ready to accept new risk if high probability setups emerge.

However, the best trade can sometimes be no trade at all and I intend to remain patient. Risk is extremely high!

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How to Gauge the Equities Market so You Don’t Buy to Early!

From Chris Vermeulen at The Gold and Oil Guy......

Over the years I have found an indicator/trading tool which I find help spot intermediate trend reversals. I am going to quickly cover in this report. As most of you know the 20 simple moving average is a great gauge for telling you if you should be looking to buy the dips or sell the bounces. It’s an indicator I keep on the broad market charts like the SP500, Dow and NASDAQ.

The chart below shows the percentage of stocks trading above the 20 moving average. When this indicator falls below 20%, I make sure I start to protect my short positions with more aggressive protective stops and keep an eye on short term sentiment, volume ratios, options and price action as a bottom can take place at any time and very quickly. Bottoms tend to be more of an event happening quickly with a washout/panic selling day followed by a sharp rally, while intermediate market tops drag out taking weeks if not months to roll over and are very difficult to trade which is what we have been experiencing so far this year.

Mr. Jones once of my trading buddies who focuses strictly on Options Trading has been cleaning up with the current volatility making 21%, 50% and 67% returns on his last threes trades. This guy loves volatility and always seems to have an options strategy for every situation the market dishes out. Check out his service at OptionsTradingSignals.com

As you can see this indicator is currently trading in the lower reversal zone and I feel a bottom will form before March is over.

SP500 Daily Chart
The SP500 continued lower today, which is what I mentioned, would most likely take place in my pre market video this morning. The trading session was a roller coaster with news on Japans reactors causing large waves of buy and selling throughout the day. I have not seen traders follow the news so close like this in some time… Everyone has their fingers hovering over the buy and sell button these days.

Looking at the bottom indicator which is my gauge of panic selling within the market, it has yet to close above 15 which is the minimum number I typically look for before I start zooming into the intraday charts for a long entry (market bottom). We still could see much lower prices before we see that.

Gold 4 Hour Chart
This chart is the same one I showed in my Sunday night report, which explained why gold should test the $1380-1390 level in the coming days. We did see that unfold this week but now the chart is pointing to possibly even lower prices with a support range between $1360-1380 taking place this week. Keep an eye on it as it should be swift if it does occur.

Mid-Week Trend Report:
In short, we are finally getting the correction everyone has been waiting for and now that it’s started and we are short, we must start watching closely for a bottom because they can take place very quickly.

My focus is still on playing the short side but I have my antennas up just in case signs of a bottom start showing up.

If you would like to get my free weekly reports just Click Here to visit The Gold and Oil Guy.Com


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New Video: How A Japanese Chart Formation Could DOOM the DOW

It's déjà vu all over again". Is one of Yogi Berra's famous original quotes and the same can be said for the DOW right now.

The weekly chart on the DOW is flashing the same Japanese candlestick signal that it had earlier in April of this year. Back then the DOW dropped from 11,200 to 9,700 in the space of just 10 weeks!

If nothing else watch this video as this could be one of the most important weeks for the DOW and its future. The video runs three minutes. You will find it both interesting and educational from both a Fibonacci and Japanese candlestick point of view.

As always our videos are free to watch and there are no registration requirements needed. Please feel free to leave a comment and let us know what you think of the video and the future of the Dow and the markets in general.

Watch How A Japanese Chart Formation Could DOOM the DOW

Want to trade like Adam? Click here for FREE lessons.

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Technical Analysis Video: The Line Is Drawn In the Sand In the Equity Markets?

To many technicians, it is very clear where the equity markets will reverse, and for those folks who don't follow the technicals, this is a key reversal area in the S&P 500, the NASDAQ, and the Dow.

In our new short video we show you the exact levels that we think will reverse this market, if in fact it's ever going to reverse to the downside.

Currently the major trend remains positive for all the indices and we would only become negative on the these markets should the key levels we show you today, are broken.

As always our videos are free to watch and there are no registration requirements. We would really like to hear your thoughts on this video and the markets, so please feel free to leave a comment.


Technical Analysis Video: The Line Is Drawn In the Sand In the Equity Markets?



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SP 500....Caught Between Two Trend Lines

The SP 500 index is caught between two trend lines that are
the dominant technical indicators right now for this market. If either gives way, it will point the direction of the next major swing.

You can view this new video with our compliments.


Let us know what you think of the video and please feel free to leave a comment!


Today’s Stock Market Club Trading Triangles

The Bank Stress Test....Do you Believe It?

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.

We made this video before the stress test was announced and suspect that all of the stress test leaks have already being discounted by the market.

Our new video is a follow up to our April 14th video. If you have a few minutes, please take the time to view it. I think you will find it interesting that our observations may conflict with 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.

As always, the videos are available with our compliments. There is no registration required.


Please feel free to leave us a comment on where you think this market is headed!


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How Much Are You Paying Per Trading Course?

Even in these tough economic times companies are still trying to exploit people’s desire to expand their trading knowledge!

They are charging hundreds and even thousands of dollars for access to 2-3 hours’ worth of mediocre education. If anyone has actually paid for the education, they quickly realize that in order to continue and get the “expanded education” they need to continue to spend even more! It’s a vicious cycle to separate you from your hard earned money without actually providing you with worthwhile material.

There is only one place where you have access to over 150 experts and 500 hours of seminars, for one price and that’s INO TV. INO TV gives its 30,000 members access to massive amounts of educational material that has been handpicked to provide you with the most for the least. If you’ve been misled in the past, here is your way to get back at those companies… learn something and stretch your dollars!

Visit the education page of INO TV to learn more

Full access to INO TV will not cost you thousands, not even hundreds of dollars. A full year subscription is only 99.95. Yes, access to the world’s top experts, streaming on demand, and new authors being added monthly, will not cost you a month’s salary.

It’s important that you continue to refine your trading methods, and with INO TV you can do that with access to hundreds of experts who have done it before and want to show you their strategies.

Learn more about INO TV and see if you’re ready to refresh your knowledge base


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Could There Be A Gold Conspiracy?

In the short term, the precious metals, especially Gold, are trading counter to the stock market, but we have also seen precious metals rally along with stock market during the 2003 and 2008 bull cycle. Regardless, in the long term, precious metals should rally because of currency debasement and the resulting inflation which follows. I have recently inaugurated the VR Gold Letter (which covers most other metals as well) to focus on the unique opportunity ahead in the natural resource arena.

Heretofore, Gold has been rallying recently, even when the US Dollar Index rises, as investors seek its safety because both stocks and bonds are falling. A stock market rally and any greater intervention by ‘Helicopter’ (or is it ‘B-52′) Ben Bernanke could change this. Overall the bear market in stocks, huge budget deficits, increased government spending, and nationalization of the banking system has led many investors seeking the safety of gold. Ultimately, the objective here is to protect ourselves from fiscally irresponsible central governments, not to mention the risk of their bankruptcy. Gold will never go to zero and history shows Gold as the ultimate and longest lasting store of value - not worthless fiat currency. I want to be long on the day when gold gaps up $500 an ounce and you can’t buy it at any price.



The world’s largest debtor nation is trying to solve its debt created crisis with more debt! The risk is on the table that our own US Treasury could default on debt and even greater risk that the rest of the world will not buy our debt realizing our country may never be able to pay them back. Skeptics says that is nonsense as they can always print more money. It is clear this cannot go on for long without paying the consequences for such irresponsibility. Once central governments (ours included) realize that running the printing press 24/7 debases currency and ultimately leads to significant if not ‘hyper’ inflation - the only solution is a Gold standard. Alan Greenspan himself has said that “You didn’t need a central bank when you were on a gold standard.”



The United States has the largest gold supply in the world, estimated to about 261 million ounces, unless there is another huge fraud being perpetuated on the American public at Fort Knox. I have gone out on the limb in the absolute belief the United States will return to the Gold standard which was abandoned back in 1971 by then President, Richard M. Nixon. If the United States allows the Gold price to rise (or drives it higher) and then pegs the US Dollar to an inflated Gold price, a great deal is accomplished. The ever-growing United States debt now has collateral. The national debt would now be on its way to being balanced. If the national debt is 10 trillion dollars and Gold is trading at $10,000 an ounce, the United States now has 2.6 trillion dollars in Gold or roughly a 25% backing. My belief is that the size of the United States Gold reserve is much greater than reported and what the United States doesn’t have it can easily confiscate either by demanding redemption of Gold from private holdings, or by creating a new North American currency (the rumored ‘Amero’) which would then include very valuable mineral resources of Canada and Mexico. Though the latter event currently.....Click Here For The Complete Story

How High Can Apple Go?

In this short video, we will take a look at Apple, Inc (NYSE_AAPL). I have to admit it seems like everyone loves Apple products. .

Click Here To Watch Video

But no matter what we think about their products, we tend to be fickle with the stock. Thanks to our “Trade Triangle” technology, we have fallen in love all over again with Apple’s stock. We had been looking for this market to move lower based on the economic conditions and the market action, however this proved to be a false indication as Apple has moved to its best levels in quite some time.

We just finished a new video on Apple, our first video on Apple in a while. Take a look and we’ll give you our thoughts and target zones for this very exciting stock.

The world has changed, it is not a buy and hold market anymore. You need to be nimble, trade with a game plan and be disciplined. Those are the key mantras of a successful trader.

As always, this video is with our compliments and there is no need to register to watch.

How High Can Apple Go Video

Good luck in the markets today!

The Fibonacci Tool Fully Explained

The Fibonacci tool fully explained in this video, it’s a technical tool that can make you rich.

You may have heard about Fibonacci, the man who discovered a set of numbers who that have a major affect on the market. So who is this Fibonacci fellow, and why are his findings so important in the market place?

The mathematical findings by this thirteenth century Italian man has yielded a useful technical analysis tool which is used in technical analysis and by scientists in a large array of fields. Born Leonardo of Piza, he is better known in the trading community as Fibonacci. Fibonacci’s best known work is Liber Abaci which is generally credited as having introduced the Arabic number system which we use today.

Fibonacci introduced a number sequence in Liber Abaci which is said to be a reflection of human nature. The series is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and on to infinity. The series is derived by adding each number to the previous. For example, 1+1=2 , 2+1=3, 3+2=5, 5+3=8, 8+5=13, and so on.

We use the Fibonacci series mainly for retracements (see today’s video) and to show us where support and resistance might come into the market. We also use this tool to enter or add onto a position.
In our new video, we show you these exact retracements and how they affected the market at that time.

Click Here To Watch Video

There is no need to register for this video and of course you can watch it with our compliments today.

New Dollar Yen Relationship Revealed

Do you love trading the Forex market. It’s one of the most exciting and most profitable markets in the world.

In today’s short educational trading video on the dollar/yen (usd/jpy), we explain step-by-step how to analyze the dollar and its relationship to the Yen. We will also show you exactly what we think is happening right now in this relationship. Watch the video and see specific target zones where we think this cross is headed in the future.

Watch it with our compliments. You do not have to register to watch the video.

Click Here To Watch Video

If you have time, let us know what you think by leaving a comment.

Complimentary Trend Analysis For Stock, Futures, And Forex

The markets have been crazy lately. It’s hard to believe the DOW was over 14,000 at one point, but now it’s dropping hard and fast! But how are we able to tell which direction the market is going?

Just Click Here For Your Complimentary Stock Analysis

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

- Have we seen the Indexes bottom or top?
- Is a reversal in the near future?
- Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email in box. Analyze ANY Stock, Futures, or Forex symbol.

Free Instant Analysis

Happy trading and remember, trade the trend not the tips!

Is This A Bear Market Rally ...... Or a Serious Reversal?

Most of you know where I think this market is headed, this week's rally does nothing to change that. In this great video Adam has put together for us, he gives us some common sense analysis that puts this all into perspective. It's a free video and you don't have to sign up for anything, just check it out!

Click Here To Watch Video

Please feel free to comment, I would love to know where you think this market is headed.



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Is Something In The Markets Out Of the Ordinary? It Might Be Time To Act

Imagine you’re in your favorite restaurant enjoying a nice dinner. All of a sudden a beautiful young lady jumps up on the table and starts dancing even though there is no music.

Would that get your attention?

I know it would get my attention, not because it was a beautiful lady, but because it is out of the realm of normalcy for this restaurant to have anyone dancing on their tables.

The point we are making is this… sometimes markets act a little out of the ordinary despite what everyone is saying and thinking about them. When this happens you need to pay close attention to that market.

Why? Because that market maybe getting ready to do something totally contrary to prevailing sentiment.

Just Click Here To Watch The Video

For the first time in a long time we have received a signal that many would consider out of the ordinary and going against popular sentiment.

We have prepared a short video that I would like to share with you today.

Let me know how you enjoy the video and if you found it helpful please feel free to leave a comment.

Please feel free to leave a comment and let us know what you think.

Is It Time To Back The Dollar? Let's Go To The Chart

From Guest Blogger Adam Hewison......

I can't help it, “I love the forex markets.”

But what’s this?

Here we are going to hell in a hand basket in the US, yet everybody wants to own dollars. Go figure!

I have to say that the dollar may be the lesser of all evils in the financial world. Here’s what I mean by that statement: I heard that a Chinese businessman who lives in Hong Kong said that the stimulus plan would not work in China, simply because there is so much corruption.

I guess in the US we only have a few bad applies, while China it’s almost like they have orchards full of bad apples.

But I digress…

Let’s take a look at the US Dollar versus the Japanese Yen (USDJPY). A few weeks ago, we did a video outlining my predictions for this very cross.

Well, after being stopped out of our first position for a small loss, we had another signal based on our daily “Trade Triangle” technology, which issued another entry signal at a very good level. The level is clearly indicated on the chart and you’ll see this level in my new video for this cross.

The video, as always, is free of charge and there’s no need to register. This is an educational trading video to show you one of the most important technical chart formations and how to incorporate our “Trade Triangle” technology to come up with big winners.

This simple formation continues to show itself year after year.

Just Click Here To Enjoy The Video!

Enjoy the video, and please feel free to make your comments known on our blog. Before I forget, here’s the link to the first video we did on the USD/YEN cross a few weeks ago.

Click Here To Watch The First USD/Yen Video

Netflix Is Killing Blockbuster, Check Out This Free Stock Analysis Video

That's right, Netflix is killing Blockbuster and there might still be some upside left in Netflix stock. If you love the movies, then you’ve got to love this stock.

This stock has been acting very well lately as it seems to be able to shrug off all the negative news that we have been bombarded with lately.

In this short five minute video we explain in detail and take you step-by-step in what we think is happening to this particular stock. All of our indicators, including our trade triangles are pointed on the upside for this one market.

We are putting the video online so you can watch it with our compliments. There is no need to register and you can watch it right away.

Click Here To Watch Video