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GarethSoloway
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Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial... More
My company:
InTheMoneyStocks.com
My blog:
Pro Traders Rant & Rave Blog
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  • This Is Why Stock Market News Is Garbage

    (this article was originally posted on 11/30/11 and still applies today - learn & earn!)

    For the average person who invests or trades, saying the news is garbage is a sin. However, it is proven over and over again to be the case. The news is nothing more than a way to take money from the bottom 99% and distribute it to the top 1%. Those at the top control the news and release it to cause certain reactions. Those reactions are carefully calculated to achieve certain goals. Those controlling these avenues and directing the markets are the Federal Reserve banks around the world and the top institutions. Today, the markets are surging once again, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.64, +4.08 (+3.53%).

    Last week, the media was pushing doom and gloom. TV stations like CNBC were bullying the average investor to sell or short the market. This past Monday, the markets ripped higher on a "mention" of a possible Euro bond from Angela Merkel, the head of Germany. Tuesday, the markets paused and many traders started to wonder if the move up was a one hit wonder. After the bell, news hit the markets that many banks like Bank of America Corp (NYSE:BAC) had their credit rating downgraded. This sent more shorts into the market and investors running for cover. Today was destined to be a bloodbath, or so the average investor though. Yet, here the markets sit, the Dow Jones Industrial Average up over 400 points.

    Investors and traders are lost because they listen to the news. One day the markets collapse, the next day they rally, one hour there are credit rating downgrades and a near collapse in Europe, the next the Federal Reserve and other Central Banks are saving the day. It is virtually impossible to trade off of news. The news is garbage and cannot be used to make money consistantly these days.

    So what is the answer?

    The answer is the charts. The charts never lie and always dictate the future. To give examples, lets talk about last week. Just last week, as the doom and gloom hit its highs, average traders were selling and shorting the market. However, InTheMoneyStocks members were accumulating longs based on the charts hitting major support and a proprietary time count. The market was clearly going to bounce. This allowed for long alerts on the Semiconductor HOLDRs (NYSEMKT:ETF) (NYSEARCA:SMH) and JPMorgan Chase & Co. (NYSE:JPM). In addition, a long was given and triggered on the SPDR S&P 500 ETF (NYSEARCA:SPY) at a price of $117.65. Today, the SPY hit a high of $124.50. That is a monster gain of $6.85 in less than five trading days.

    The S&P 500 had a pause day yesterday. After a huge move on Monday, a pause day is known as a bullish signal. If you looked closely at the 60 minute S&P 500 chart, an amazing bull flag had formed as well. All signals were pointing to another monster up day. After the bank credit rating downgrades, the average traders once again thought the downside was obvious. However, if you just followed the charts, you would have been on the right side of the markets and made money.

    Never be a bull or bear, be an neutral investor and trader who trades based off the charts; doing so will enable you to eliminate the noise and gain a clear view on the future direction on anything you are looking to trade or invest in. Join InTheMoneyStocks, take our seven day free trial to the Research Center and Intra Day Stock Chat, view every swing trade we have given members and will provide in the Research Center, also day trade the markets live intra day with myself and Nick in the Intra Day Stock Chat. We look forward to having you join the ranks of our thousands of members who control their financial freedom.

    Gareth Soloway

    Chief Market Strategist

    InTheMoneyStocks.com

    Jun 03 3:28 PM | Link | Comment!
  • The Federal Reserve Vs. Investors

    As the Federal Reserve has back-stopped the market for six years with massive quantitative easing, the upswings have gotten more robust. On the other hand, the collapses have become more epic as well in the past few decades with Federal Reserve intervention. Just look at the tech collapse in 2000-01 and the financial collapse in 2008-09. Federal Reserve intervention was not as robust as it has been in the last six years but the markets still had epic collapses. As an investor and trader, the swings test the best in the business and ultimately mean the charts must be read constantly. While no investor or trader nails the exact bottoms or tops every time, the best traders will consistently pick close to those key points. In addition, the best traders and investors are the ones that do not let emotion take control EVER. Emotion is the one thing that will cause more losses than anything else when investing. While the average investors will chase markets up and down, the pros have that ability to hold back, waiting for the perfect technical setup.

    As investors and traders try and navigate this market, remember to follow the charts and never let emotion take control. The future promises to be wild as we all will see the results of the massive money printing done by the Japanese Central Bank, European Central Bank and Federal Reserve.

    Gareth Soloway

    Originally posted on InTheMoneyStocks.com

    Nov 20 1:27 PM | Link | Comment!
  • Japanese Shocking Recession Should Freak You Out

    Japans Prime Minister Shinzo Abe has had his country printing more money than the Federal Reserve. In fact, the amount they have printed has made the Federal Reserve look like they barely print at all. Japan did this all to try and stimulate their economy through consumer spending. How? Let me explain. The idea of global Federal Reserve banks has been to create inflation. By creating inflation you increase prices. If the consumer knows that prices will be higher in the future, they will buy today. That is the theory at least...

    Just days ago, Japan announced that instead of over 2% growth, their economy had shrunk by over 1%. This was a shock and should truly freak you the f^*k out. If the country that printed more money than anyone else just slipped into recession, what chance does Europe or the United States have? To take it a step even further, if printing that much money did not stimulate continued long term growth, does printing money even work? That may be the bigger thing to freak out about. Has the global Federal Reserve policy of printing money done anything but set us up for a major catastrophe. Time will tell and unfortunately, we all will find out and suffer the consequences if their 'theories' were wrong.

    Gareth Soloway

    Originally posted on InTheMoneyStocks.com

    Tags: Japan, Recession
    Nov 19 12:15 PM | Link | Comment!
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