Syria shakes the market

  • 11 years ago
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Tuesday, the 27th of August.

Syria Shakes The Market
Reading the news this morning, I see that we're going to strike Syria with cruise missiles and bombs as early as Thursday. How nice of us to announce what we are going to do in advance. No one knows what is going to happen when and if these events occur. All we can go on is the collective judgment of the market.

Bill Ackman Surrenders
Bill Ackman finally surrenders and shows how you can lose $500 million on a trade. In my humble opinion, activist investors should not be getting into old-style retail marketing stores like JC Penney (NYSE:JCP).

Eddie Lampert made the same mistake with Sears (NASDAQ:SHLD). He initially made money by selling off some core real estate, but now he's stuck with a mundane business that he is forced to run and is not going anywhere.

I would imagine that Mr. Ackman is probably feeling somewhat lost and despondent this morning, but relieved that his nightmare with JC Penney is over. It took him long enough to admit his mistake, and as I have said in previous blog postings, money management is the key. It doesn't matter how much money you have, the principles are still the same.

Oil
This is a market I have been waiting for and want to watch very closely, as a close over some key technical levels will catapult crude oil into a higher velocity rally. Today, I will be conducting an in-depth analysis of crude oil in my video update.

Gold Jumps Over $1400
With the uncertainty in Syria, gold jumped over $1400 an ounce as concerned investors were worried about the destabilizing effects of the US entering into this quagmire of a conflict. I cannot envision anything good and positive coming out of this impending disaster.