You are moments away from viewing free trading videos on INO TV... Please sign up using the quick form to the right:

INO TV is designed to take your trading to the next level by providing you with educational resources to help you recognize and capitalize on these trends. To gain access to your educational videos, training resources, and recent market forecasts from VantagePoint and INO.com, sign up now.

Now Playing

Choppy Action and a Dead Cat Bounce

Adam Hewison - MarketClub

Sign up for instant access

This week has been one for the history books and it's not over with yet, we still have today's action to contemplate. So what has the market really accomplished this week? Well, it has frustrated both the bulls and the bears, that's for sure. It's hard to believe that after all of this chop that the Dow is only up 1.18% for the week if it closes where it is currently trading (and less than that on the S&P 500). 

What does all of this choppy action mean? Has the market topped out? Is this a "dead cat bounce"?

Let's just let all the dust settle and see what is going on in the major indices for the week and the month. 

Last week the major indices closed at:

DOW : 16,459.75 down -5.82% for the week.	
Close 8/27: 16,654.51
+ 1.18%

S&P500 : 1970.89 down -5.76% for the week.	
Close 8/27: 1,987.66
+ 0.85%

NASDAQ : 4717.16 down -6.53% for the week.	
Close 8/27: 4,810.92
+1.98%

Last month the major indices closed at:

DOW : 17,689.86	
Close 8/27: 16,654.51
- 5.85%

S&P500 : 2103.84	
Close 8/27: 1,987.66  
- 5.52%

NASDAQ : 5132.10	
Close 8/27: 4,810.92 
- 6.25%

Looking at the hard weekly and monthly numbers, it is very difficult to make a bullish case for stocks. Right now the weekly and monthly Trade Triangles are RED indicating the major trend is down for the DOW, S&P 500 and the NASDAQ. The rally that we witnessed on Wednesday and Thursday, in all likelihood, is a "dead cat bounce" and really no more than a counter-trend move against the prevailing downtrend, in my opinion. 

One thing many professional traders will be watching today is where the market closes. The close today and on Monday could well be the most important closes for the year.

I have said this before and I cannot overemphasize this point - stay disciplined and don't get suckered into the rallies unless they are confirmed by MarketClub's Trade Triangles or another technical tool that you use for making trading decisions. 

Presently this market is trading on perception and whatever the "sentiment du jour" is for the moment.

MarketClub Videos

MarketClub Video

Choppy Action and a Dead Cat Bounce

Adam Hewison - MarketClub

MarketClub Video

Beware Of Dead Cats

Adam Hewison - MarketClub

MarketClub Video

It's Over

Adam Hewison - MarketClub

MarketClub Video

Three Ways To Trade This Market

Adam Hewison - MarketClub

Trader Education

Trade School

Trade Like A Pro - Volume 4 (90:00)

Mark Cook

For the first time ever on videotape, professional trader Mark Cook has agreed to reveal the methods he used to win the 1992 U +

S Trading Championship with an incredible 536% return! During the last several years, these strategies have been shared only with a small group of traders in the high-priced seminars Mark holds at his farm

Trade School

The Dynamics of a Trader's Mindset (90:00)

Mark Douglas

In this presentation, Mark Douglas explains the dynamics of the trader's "mindset" at a very fundamental level +

You will gain a comprehensive understanding of how you must first learn to think like a trader before you can fully utilize your technical or analytical abilities

Trade School

Applying Breakthrough Trading Tools (86:00)

Cynthia Kase

These simple probability studies can help you dramatically increase your trading profits +

Do you want to get back to the basics without reverting back to outdated techniques? In this fast-moving video, you'll learn the latest and greatest new computerized trading techniques that employ the four basics of trading - trend, momentum, patterns and stops - reformulated and updated using higher mathematics

Trade School

Optimizing the ABC Charting Formation (90:00)

Ron Ianieri

The ABC Charting Formation is one of the most basic and frequently occurring charting patterns that exist +

Watch how this basic chart can be turned into a big payday with the use of options

About

About INO TV, INO.com, and VantagePoint—In today’s fast-paced global economy, education is the key to gaining enhanced opportunity in the markets. INO.com and VantagePoint have teamed together and are committed to providing traders with the tools and resources to do just that. INO TV provides users with educational resources and videos from INO and VantagePoint’s market experts—showing detailed examples and trend trading strategies in real market scenarios. INO.com provides traders worldwide with a continuous information services of quotes, charts and news, and is the #1 internet site for futures and options traders worldwide.