Last week we gave you a Trade Triangle alert to exit the gold market on the long side. Since that alert was issued gold has dropped significantly.

In today’s short video I bring you up to date with our thoughts on what we think is going to happen next to gold.

As always our videos are free to watch and there are no registration requirements. I would really like to hear back from you in regards to your thoughts on this video.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

It’s been a while since we did a video on the euro/dollar relationship. This relationship may be reversing again based on recent price action. In today’s short video I point out some of the changes we see happening in this market.

This week could be shaping up to be an extraordinary week in the markets. I strongly recommend that traders everywhere take precautionary measure measures to protect capital.

As always our videos are free to watch and there are no registration requirements. I would really like to hear back from you with regards to your thoughts on this video.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

This week could be shaping up to be an extraordinary week in the markets. I strongly recommend that traders everywhere take precautionary measure measures to protect capital.

While the S&P 500 made new highs for the year last week, it did not do so in a very convincing manner. In today’s short video I show you some of the elements that I think should be cause for concern.

As always our videos are free to watch and there are no registration requirements. I would really like to hear back from you with regards to your thoughts on this video.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Our FREE report reveals why the FDIC guarantee is just an "illusion"
March 12, 2010

By Nico Issac

• So far in 2010, the number of US bank failures has reached 25, a rate of two per week. This compares to 25 total bank failures for ALL of 2008, and three for 2007.
• The benchmark KBW Bank Index still stands 60% below its 2007 peak, while one-third of all US banks reported a net loss for 2009.
• The FDIC’s list of "problem" institutions rose from 552 to 702 from Q3 to Q4 of 2009.
• And each new day could bring a new, personally addressed letter to announce the name change of your financial institution.

Yet — no matter how grave the data gets, few people imagine the corporate banking crisis trickling down to average Joe or Jane and their lollipop-dispensing drive-through bank tellers.

It’s not naive to think that, either. The agreement is understood: Money goes into the bank as liquid capital, and comes out as a loan certificate. Practically speaking, your account balance is only as secure as the loans the bank makes with its depositors’ money. The trust in that exchange reflects two main beliefs:

1) Banks know best how to allocate their clients’ money so as to ensure the greatest risk-to-reward ratio.
2) Banks are guaranteed by the Federal government, via the Federal Deposit Insurance Corporation.

Well, as the latest report from our complimentary Club EWI service reveals — neither one is as it seems. This 15-page exclusive compiles the most groundbreaking insights from various collected works of EWI president Bob Prechter himself, including: the best-selling book Conquer the Crash and previous Elliott Wave Theorist publications. Off the top are these riveting thought-burners:

How are banks using your money? Not wisely. "At latest count, US banks report $6.942 Trillion in deposits, and $6.945 Trillion in loans. In other words, the average bank in the US has lent out 100% of its deposits."

Where is your money going? For the most part, it’s tied up in mortgage-backed securities. Last count: One in every 418 U.S. homes have filed for foreclosure, while the rate of default on commercial mortgages doubled in Q4 of 2009. See the problem?

What about the trusted sticker in the front window of US banks assuring that the FDIC guarantees to refund depositor’s losses of up to $100,000? Well, as the Club EWI report reveals, this sticker is merely a "symbol of confidence," NOT a certainty of it. The piece goes on to add:

"Did you know that most of the FDIC’s money comes from other banks? When the FDIC rescues weak banks by charging healthier ones higher ‘premiums,’ overall bank deposits are depleted, causing the net loan-to-deposit ratio to rise. Ultimately the federal government backs the FDIC, which sounds like a sure thing. But if tax receipts fall, the government will be hard pressed to save a large number of banks with its own diminishing supply of capital. Huge illusions can melt away in a flash if the system fails."

Where then is a bank I can trust? Here, the Club EWI report provides a list of the Top 100 highest-rated banks in America by state based on third-quarter 2009 data. The publication also reveals the global jurisdictions that "provide wealth preservation service as opposed to interest income and daily transaction conveniences."

Inside the revealing free report, you’ll discover:

• The 100 Safest U.S. Banks (2 for each state)
• Where your money goes after you make a deposit
• How your fractional-reserve bank works
• What risks you might be taking by relying on the FDIC’s guarantee

Please protect your money. Download the free 10-page "Safe Banks" report now.

Learn more about the "Safe Banks" report, and download it for free here.

Nico Isaac writes for Elliott Wave International, a market forecasting and technical analysis firm.

Paper trading is only useful for the testing of your methodology.
March 11, 2010

By Editorial Staff

This is an excerpt from Elliott Wave International’s free Club EWI resource, "What a Trader Really Needs to be Successful" — a classic Special Report by EWI’s president Robert Prechter.

… 3. Experience. Some people advocate "paper trading" as a learning tool. Paper trading is useful for the testing of methodology, but it is of no value in learning about trading. In fact, it can be detrimental, by imbuing the novice with a false sense of security in "knowing" that he has successfully paper traded the past six months, thus believing that the next six months with real money will be no different. In fact, nothing could be further from the truth. Why?

Because the markets are not merely an intellectual exercise. They are an emotional (and in extreme cases, even physical) one as well. If you buy a computer baseball game and become a hitting expert with the joystick while sitting quietly alone on the floor of your living room, you may conclude that you are one talented baseball player. Now let the Mean Green Giant reach in, pick you up, and place you in the batter’s box at the bottom of the ninth inning in the final game of the World Series with your team behind by one run, the third base coach flashing signals one after another, a fastball heading toward your face at 90 m.p.h., and sixty beer soaked fans in the front row screaming, "Yer a bum! Yer a bum!" Guess what? You feel different!

To put it mildly, you will find it impossible to approach your task with the same cool detachment you displayed in your living room. This new situation is real, it matters, it is physical, it is dangerous, other people are watching, and you are being bombarded with stimuli. This is what your life is like when you are actually speculating. You know it is real, you know it matters, you must physically place orders, you perform under the scrutiny of your broker or clients, your spouse and business acquaintances, and you must operate while thousands of conflicting messages are thrown at you from the financial media, the brokerage industry, analysts, and the market itself.

In short, you must conquer a host of problems, most of them related to battling powerful human emotions, in order to trade real money successfully. The School of Hard Knocks is the only school that will teach it to you, and the tuition is expensive.

There is only one shortcut to obtaining experience, and that is to find a mentor. Locate someone who has proved himself over the years to be a successful trader or investor, and go visit him. You will undoubtedly find that he is very friendly since his runaway ego of yesteryear, which undoubtedly got him involved in the markets in the first place, has long since been humbled. Observe not only what he does, but far more important, what he does not allow himself to do. This person does exist, but it is hard to find him. He will usually welcome the opportunity to tell you what he knows.

Read the rest of this important report, "What a Trader Really Needs to be Successful", now, free! Here’s what you’ll learn:

4 more items on Prechter’s list of requirements for successful trading
Why "You can’t go broke taking a profit" is not a universal rule
Why other trading adages are often completely contradictory to each other
More

Learn more, and download this free report here

Elliott Wave International (EWI) is the world’s largest market forecasting firm. EWI’s 20-plus analysts provide around-the-clock forecasts of every major market in the world via the internet and proprietary web systems like Reuters and Bloomberg. EWI’s educational services include conferences, workshops, webinars, video tapes, special reports, books and one of the internet’s richest free content programs, Club EWI.

Gold’s safe-haven status is based on hype, not history
March 9, 2010

By Nico Isaac

As I sat down to watch the Oscar pre-show on Sunday night, March 7, one word was repeatedly used to describe the celebrity starlets and their designer duds: GOLD. Gold bustiers and gold lame skirts, shiny gun-metal dresses and glittery sequined gowns all basking in the golden shadow of the final golden statue.

Everywhere you look, from the Red Carpet to Wall Street, gold is definitely in "fashion." As for why, one word comes to mind: safe-haven. See, according to the mainstream financial experts, the more unstable the global economy, the greater the appeal for the precious metal.

And, with a staggering 17% unemployment rate in the United States, alongside slumping real estate sales, Eurozone weakness, the Greece debt debacle, and so on — the only thing going up is gold’s supposed disaster premium. Here, take these recent news items for example:

• "Bullion Sales Hit Record In Stampede To Safety." (Financial Times)
• "Gold Ticks Higher On Safe Haven Buying. The risk trade is resuming." (AP)
• "Gold Rose to 6 ½ Week Highs as the metal benefits from fears over financial instability in general. The market is looking for some security with gold." (Reuters)
• "Gold Rush: This is a new round of safe haven buying." (Bloomberg)

There’s just one problem: The correlation between a falling economy AND rising gold prices is based solely on hype, NOT history.

Download Robert Prechter’s FREE 40-Page Gold and Silver eBook. Is gold a simple buy-and-hold at today’s prices? The independent insights in this valuable ebook deliver Prechter’s complete analysis and help you decide how to – and how not to – incorporate gold and silver successfully into your own investment strategy. Learn more, and download your Gold and Silver eBook here.

Case in point: In the March 2008 Elliott Wave Theorist (republished in his 40-page Gold and Silver eBook), Elliott Wave International President Bob Prechter presents an indisputable case AGAINST the safe-haven status of gold.

The first piece of evidence: The following table showing gold’s performance during the 11 officially recognized recessions beginning in 1945.

Prechter also plotted the Dow Jones Industrial Average into the same period and made this startling discovery: The average total return for the Dow during recessions since 1945 is 6.89%. Taking into account modern transaction costs, the Dow actually beats gold with a 6.87% return.

The most powerful myth-debunking punch of all, though, came via the second chart of gold’s performance — this time during periods of financial growth.

In Prechter’s own words:

"All huge gains in gold have come while the economy was expanding… The idea that gold reliably rises during recessions and depressions is wrong. In fact, like most such passionately accepted lore, it’s backwards."

Now, this doesn’t mean that you shouldn’t own gold in a financial crisis. On the contrary: In chapter 22 of his Wall Street Journal business bestseller, Conquer the Crash, Prechter lists 5 reasons why "you should buy gold and silver anyway." Gold is "real money," after all! It’s just that, despite widespread beliefs to the contrary, you shouldn’t expect "huge gains in gold" when the economy contracts.

Download Robert Prechter’s FREE 40-Page Gold and Silver eBook. Is gold a simple buy-and-hold at today’s prices? The independent insights in this valuable ebook deliver Prechter’s complete analysis and help you decide how to – and how not to – incorporate gold and silver successfully into your own investment strategy. Learn more, and download your Gold and Silver eBook here.

Nico Isaac writes for Elliott Wave International, a market forecasting and technical analysis firm.

The move down in gold yesterday surprised many traders and flashed an exit signal based on MarketClub’s daily "Trade Triangle" technology. As we have mentioned before, we felt that gold was in a broad trading range and were not optimistic that it would shoot higher.

The action yesterday confirms that we have more of a two-way market. I expect we’ll see further selling on any rallies from this level.

In today’s video, I share with you some thoughts I have on gold based on one important element: how gold energy fields propel this market.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Today our partner MarketClub has opened the doors to one of their most popular videos housed within INO.com.

This video has been viewed by thousands of paying subscribers who want to expand their day trading knowledge with the help of renowned trading expert William Greenspan!

As a Tradingfives site member we have the opportunity to extend to you the chance to watch this video for free.

Visit the link below to start watching:

http://www.tradingfives.com/trendtv/

Often, basics is all you need to know.
March 5, 2010

By Editorial Staff

Understand the basics of the subject matter, break it down to its smallest parts — and you’ve laid a good foundation for proper application of… well, anything, really. That’s what we had in mind when we put together our free 10-lesson online Basic Elliott Wave Tutorial, based largely on Robert Prechter’s classic "Elliott Wave Principle — Key to Market Behavior." Here’s an excerpt:

Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it. …the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. In markets, progress ultimately takes the form of five waves of a specific structure.

The personality of each wave in the Elliott sequence is an integral part of the reflection of the mass psychology it embodies. The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure.

These properties not only forewarn the analyst about what to expect in the next sequence but at times can help determine one’s present location in the progression of waves, when for other reasons the count is unclear or open to differing interpretations.

As waves are in the process of unfolding, there are times when several different wave counts are perfectly admissible under all known Elliott rules. It is at these junctures that knowledge of wave personality can be invaluable. If the analyst recognizes the character of a single wave, he can often correctly interpret the complexities of the larger pattern.

The following discussions relate to an underlying bull market… These observations apply in reverse when the actionary waves are downward and the reactionary waves are upward.

1) First waves — …about half of first waves are part of the "basing" process and thus tend to be heavily corrected by wave two. In contrast to the bear market rallies within the previous decline, however, this first wave rise is technically more constructive, often displaying a subtle increase in volume and breadth. Plenty of short selling is in evidence as the majority has finally become convinced that the overall trend is down. Investors have finally gotten "one more rally to sell on," and they take advantage of it. The other half of first waves rise from either large bases formed by the previous correction, as in 1949, from downside failures, as in 1962, or from extreme compression, as in both 1962 and 1974. From such beginnings, first waves are dynamic and only moderately retraced. …

Read the rest of this 10-lesson Basic Elliott Wave Tutorial online now, free! Here’s what you’ll learn:

• What the basic Elliott wave progression looks like
• Difference between impulsive and corrective waves
• How to estimate the length of waves
• How Fibonacci numbers fit into wave analysis
• Practical application tips for the method
• More

Keep reading this free tutorial today.

You’ve heard the common trading advice: “Successful traders know how to control their emotions, instead of being controlled by their emotions.” I bet you’re thinking easier said than done, huh? As a trader, you’re bombarded with countless possibilities that can make decisive action a stressful hire wire act.  It’s no wonder your emotions can get in the way.

That’s where Elliott Wave International’s free report can help. You’ll discover how to manage your positions objectively – plus control your emotions – so you make the most of each high-confidence trade set-up.

Learn more and download your free report.

There’s even a bonus lesson included on “Protective Stops,” so you can learn critical exit strategies.

If you’re a trader or considering trading, this report is a must-read. Rid yourself of emotional trading and learn to objectively identify high-confidence trade set-ups. Visit Elliott Wave International to download your free report.