We’ve had a number of requests to do a video on crude oil, so here it is. This market has been largely trapped in a broad trading range with support coming in around $70/barrel and resistance around $80-85/barrel.

Watch the video here.

In this new video, I show you some of the other factors that could tip this market one way or the other.

As always our videos are free to watch and there is no need to register. I hope you enjoy the video and please leave your comments.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

In today’s short video, we look at two important aspects of the market – one
is an intraday technique which I will show you how to use to determine where
markets will turn, and the other is the infamous "death cross".

Watch the video here.

The death cross does not occur that often, in fact, in the last 2 1/2 years
we’ve only seen this happen three times. The most recent occurred just last
week and is something that every investor and trader should pay close attention
to. I believe that this video will help you understand what the death cross is
and how you can construct it and use it in your own trading. A lot of traders
and investors watch this very closely so you should too.

As always our videos are free to watch and there’s no need for registration.

All the best,
Adam Hewison
President of INO.com

In today’s short video we look at Amazon, not the river, but the stock. Yesterday (6/28/10) I spotted some market action that I wanted to bring to your attention. Unfortunately, I could not release this video any sooner because of scheduling.

Watch the video here

Amazon is in a whole lot of trouble in my opinion. Not only are our "Trade Triangles" negative, but also an important technical element for Amazon was breached. This one element is one of the simplest, yet most powerful technical tools you can use in trading.

I think you’ll enjoy this very simple approach as it has worked consistently over the years.

As always our videos are free to watch and there are no registration requirements.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

Does this one chart line spell doom for the markets?

Make no mistake about it, last week was a very important week for the stock market. Looking on the weekly equity charts, you will see one of the most powerful Japanese candlestick lines. This one line on the chart indicates that there could be some major problems ahead for the stock market.

Watch the video here.

In my new video I explain what this line is and how it can play out in the short and longer-term time frames.

As always our videos are free to watch and there is no need for registration. I would really like to get your feedback on this powerful formation and what you see for the markets ahead.

All the best,
Adam Hewison
President of INO.com
Co-creator of MarketClub

In the market there are two types of market divergences that can occur: a bullish divergence and a bearish divergence. Both of these divergences are important and you need to know how they work and how you can benefit from this knowledge.

In this short educational trading video, I will show you the tools I use to spot market divergences. We will be using the Relative Strength Indicator (RSI) and the Moving Average Convergence Divergence indicator (MACD) which was developed by a friend and mine, Gerald Appel.

As always our videos are free to watch and there are no registration requirements.

Watch the video here.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

June 14, 2010

By Elliott Wave International

Some people like to get outside on the weekends, maybe playing tennis or working in the yard. Some people like to visit their friends or cook a big meal or go out to see a movie. And some people who are passionate about their work — such as Elliott Wave International’s futures analyst Jeffrey Kennedy — like to stare at hundreds of price charts on their computer screen to find patterns that point to trade setups.

We used to worry for his health but not anymore, because he’s been doing it for years and he comes up with some neat stuff. A case in point is his discovery of a two-bar pattern that he named the Popgun. Find out more in this excerpt from the Club EWI eBook, called How to Use Bar Patterns to Spot Trade Setups.

* * * * *
Excerpted from How to Use Bar Patterns to Spot Trade Setups by Jeffrey Kennedy

The Popgun
I’m no doubt dating myself, but when I was a kid, I had a popgun – the old-fashioned kind with a cork and string (no fake Star Wars light saber for me). You pulled the trigger, and the cork popped out of the barrel attached to a string. If you were like me, you immediately attached a longer string to improve the popgun’s reach. Why the reminiscing? Because “Popgun” is the name of a bar pattern I would like to share with you this month. And it’s the path of the cork (out and back) that made me think of the name for this pattern.

The Popgun is a two-bar pattern composed of an outside bar preceded by an inside bar. (Quick refresher course: An outside bar occurs when the range of a bar encompasses the previous bar and an inside bar is a price bar whose range is encompassed by the previous bar.) In Chart 1 (Coffee), I have circled two Popguns.

So what’s so special about the Popgun? It introduces swift, tradable moves in price. More importantly, once the moves end, they are significantly retraced, just like the popgun cork going out and back. As you can see in Chart 2 [not shown], prices advance sharply following the Popgun, and then the move is significantly retraced. In Chart 3 [not shown], we see the same thing again but to the downside: prices fall dramatically after the Popgun, and then a sizable correction develops.

How can we incorporate this bar pattern into our Elliott wave analysis? The best way is to understand where Popguns show up in the wave patterns. I have noticed that Popguns tend to occur prior to impulse waves – waves one, three and five. But, remember, waves A and C of corrective wave patterns are also technically impulse waves. So Popguns can occur prior to those moves as well.

As with all my work, I rely on a pattern only if it applies across all time frames and markets. To illustrate, I have included two charts of Sirius Satellite Radio (SIRI) that show this pattern works equally well on 60-minute and weekly charts. Notice that the Popgun on the 60-minute chart [not shown] preceded a small third wave advance. Now look at the weekly chart [not shown] to see what three Popguns introduced (from left to right), wave C of a flat correction, wave 5 of (3) and wave C of (4).

There’s only one more thing to know about using this Popgun trade setup: Just be careful and don’t shoot your eye out, as my mom would say.

In this comprehensive collection, Jeffrey provides each pattern with a definition, illustrations of its form, lessons on its application and how to incorporate it into Elliott wave analysis, historical examples of its occurrence in major commodity markets, and ultimately — compelling proof of how it identified swift and sizable moves.

Best of all is, you can read the entire, 15-page report today at absolutely no cost. You read that right. The "How To Use Bar Patterns To Spot Trade Setups" is available with any free, Club EWI membership.

This article was syndicated by Elliott Wave International. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts lead by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

MarketClub, is opening up their  premium service for a no cost 2 week trial!

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You know I’ve been a big fan of Adam Hewison and the MarketClub team, and now is your chance to gain access to the powerful tools, unlimited email and phone support, and Adam Hewison himself!

If you watched his videos you know Adam knows what he’s talking about, and today you can use the tools he uses and get started on your way to becoming a successful trader!

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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 my new short video I show you the exact levels that I 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 I show you  today, are broken.

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.

Your comments are welcome on our blog.
All the best,

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

How a 3-in-1 chart formation in cotton foresaw the January selloff
February 26, 2010

By Nico Isaac

For Elliott Wave International’s chief commodity analyst Jeffrey Kennedy, the single most important thing for a trader to have is STYLE– and no, we’re not talking business casual versus sporty chic. Trading "style," as in any of the following: top/bottom picker, strictly technical, cyclical, or pattern watcher.

Jeffrey himself is, and always has been, a "trend" trader; meaning: he uses the Wave Principle as his primary tool, along with a few secondary means of select technical studies. Such as: Bar Patterns. And, of all of those, Jeffrey counts one bar pattern in particular as his absolute, all-time favorite: the 3-in-1.

Here’s the gist: The 3-in-1 bar pattern occurs when the price range of the fourth bar (named, the "set-up" bar) engulfs the highs and lows of the preceding three bars. When prices move above the high or below the low of the set-up bar, it often signals the resumption of the larger trend. The point where this breach occurs is called the "trigger bar." On this, the following diagram offers a clear illustration:

For a real-world example of the 3-1 formation in the recent history of a major commodity market, take a look at this close-up of Cotton from Jeffrey Kennedy’s February 5, 2010, Daily Futures Junctures.

As you can see, a classic 3-in-1 bar pattern emerged in Cotton at the very start of the new year. Then, within days of January, the trigger bar closed below the low of the set-up bar, signaling the market’s return to the downside. Immediately after, cotton prices plunged in a powerful selloff to four-month lows.

Then February arrived and with it, the end of cotton’s decline. In the same chart, you can see how Jeffrey used the Wave Principle to calculate a potential downside target for the market at 66.33. This area marked the point where Wave (5) equaled wave (1), a common relationship. Since then, a winning streak in cotton has carried prices to new contract highs.

What this example tells you is that by tag-teaming the Wave Principle with Bar Patterns, you can have a higher objective chance of pinning the volatile markets to the ground.

To learn more, read Jeffrey Kennedy’s exclusive, free 15-page report titled "How To Use Bar Patterns To Spot Trade Set-ups," where he shows you 6 bar patterns, his personal favorites.

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