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January 2011

Recs

2

Gasoline Flirts With New 52 Week High

January 31, 2011 – Comments (0)

The United States Gasoline Fund(NYSE:UGA) made a new high for the year today by 0.25 cents to $43.50 a share before pulling back below to $42.95. The oil crisis in Egypt is having a direct impact on the price of gasoline. As we all know by now high gasoline prices are a direct tax on the users which is practically every consumer. The chart on the UGA remains strong at this time by trading above of all the major moving averages. There is still some minor daily chart resistance around the high of the session. Should the UGA rally higher the next important daily chart resistance level for UGA will be around the $45.00 level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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USO Rockets Higher

January 31, 2011 – Comments (0)

Spot crude closed the day higher by nearly 3.00 points as the Suez Canal waterway in Egypt remains closed. This closed waterway causes the major oil ships to have to take a different route in order to deliver crude. The popular United States Oil Fund(NYSE:USO) is trading higher by $1.13 to 38.71. This is a 3.00 percent rally in the popular oil ETF. The USO will have intra-day support around the $39.00 level and a bit more around $39.25. Remember spot crude is closed for the day on the New York Mercantile Exchange and the USO will usually not trade as actively as it does when spot crude is open.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Alert: Walmart Approaching Buy Level

January 31, 2011 – Comments (1)

Wal-Mart Stores, Inc. (NYSE:WMT) has fallen sharply over the last two trading days. The stock had been on a recent spike for two straight weeks. This pull back offers a solid short term swing trading long opportunity.  This level is the 20 moving average on the daily chart.  WMT should see a 1-2 day bounce off this level and be good for some gains. The 20 moving average can been seen in the chart below and is an approximate level of $55.40.

Gareth Soloway
InTheMoneyStocks.com

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Alert: Steel Plays To Watch

January 31, 2011 – Comments (0)

U.S. steel companies have been on fire over the last week, soaring on optimism and other key factors. Today, United States Steel Corporation (NYSE:X) is jumping higher again, trading at $57.21, +1.41 (+2.53%). As long as large cap steel companies stay strong, eyes must be leveled on small cap steel plays. This is a standard sympathy play which is used my many smart traders and investors. The key here is to put these small caps on watch and not pull the trigger until the large cap plays break recent highs.

The three small cap plays are all Chinese. With growth in China continuing, their valuations are very interesting at current levels. The first is China Precision Steel, Inc. (NASDAQ:CPSL) which is trading at $1.67. The second is General Steel Holdings, Inc. (NYSE:GSI) trading at $2.55 an the last is Sutor Technology Group Ltd. (NASDAQ:SUTR), trading at $2.05. All are trading at attractive valuations with intense possible growth ahead.  The key again is to watch for the right signals. At this time these are just on watch.

Gareth Soloway
InTheMoneyStocks.com

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Sucking : Life Pulled Out Of The Markets

January 31, 2011 – Comments (0)

After a wild, huge volume day on Friday, the markets returned to "normal".  The volatility of Friday has been sucked out, volume dry and the drama ancient history. The Middle East and Northern Africa continues to be caught up in riots and protests but the U.S. markets seem to be shrugging it off as key stocks lead the market higher and the Dollar drops.  Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.25, +0.53 (+0.41%).

It continues to be amazing to watch this market be controlled. So quickly the sellers vanish and the light volume allows for the market to float higher. Earnings from Exxon Mobil Corporation (NYSE:XOM) helped as they beat on revenue and earnings per share. The one small hiccup was their tax rate, which came in much lower than expected, increasing earnings per share. However, the stock is trading nicely higher today at $79.77, +0.78 (+0.99%).

After a strong Dollar move on Friday, it has fallen back sharply. The Dollar was up on Friday as scared investors ran to it because of the problems in Egypt. As said earlier, that is a distant memory and as the Dollar drops, the markets float higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.36, -0.13 (-0.58%).

The markets await major news later this week on jobs.  The Unemployment Rate and Non Farm Payrolls will be reported on Friday, February 4th, 2011 at 8:30am ET.  This will be something the markets will look to for direction.

While things are quiet today, smart investors and traders must be constantly watching Egypt and the whole region.  Egypt is key because they control the Suez Canal.  This is a major shipping route for the whole region and much of the world. Should things get dramatically worse, fear would boil over again and cause the Dollar to spike, sending the markets down again. Longs or shorts are available in this market. However, to do this right, each trader or investor must truly understand the chart dynamics.

Gareth Soloway
InTheMoneyStocks.com

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1

China Pop Lifts Commodity Stocks

January 31, 2011 – Comments (0)

Last night, the important Shanghai Index(Chinese market) rallied higher by 1.38 percent. This type of rally in the Chinese markets will often help lift the popular commodity stocks. This morning many leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF), are all trading sharply higher.

It is also very important to note that the U.S. Dollar Index is trading sharply lower today and this will usually help to inflate most of the leading commodity stocks higher. Should the U.S. Dollar Index find support and rally the leading commodity stocks could pullback or deflate lower.

Short term traders can watch for short term intra-day resistance on FCX around the $109.35 level intra-day. Should the U.S. Dollar Index decline further FCX stock could trade higher. The opposite would be likely occur if the U.S. Dollar index rallies as traders should look for a decline in FCX.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Major Market Mover Report

January 31, 2011 – Comments (0)

As we all have been seeing in the nightly news there has been a lot of turmoil erupting around the world as of late. Food riots began occurring about a month ago in Tunisia, and Algeria. This week massive riots and protests in Egypt erupted as the government in that country is in complete disarray. Many investors and traders are now pointing to the extremely high inflation levels in the world as the cause for all this turmoil. Many of the emerging stock markets have already rolled over and began selling off sharply as these growth nations now try and fight inflation by raising interest rates. Everyone knows that when a country is forced to raise rates in order to fight inflation growth will slow as the easy money and credit come to a halt. This week we shall focus on the top three emerging markets that must increase interest rates in order to curb the out of control inflation that is effecting the world.

First let us take a look at iShares MSCI Brazil Index (ETF) (NYSE:EWZ). This leading emerging market ETF topped out on November 4th, 2010 at $79.21 a share. The popular emerging market ETF closed at $72.55 on January 28, 2011. That is a 9.0 percent correction since the November 2010 highs. On January 19th, 2011 the Brazilian central bank raised its key interest rate to 11.25 percent from 10.75 percent in order to fight inflation. Imagine the United States raised its benchmark Fed funds rate by three quarters of a point, or 0.75 percent from its current zero percent rate, the U.S. stock market might crumble. Inflation in Brazil is being reported at 5.91 percent and is expected to remain above 5.00 percent for the remainder of 2011. The EWZ will have some daily chart support around the $71.00 level. However, the stronger weekly support levels are around the $68.00 area and ultimately the $64.00 level.  Make clear note of these levels on your charts, trade accordingly as the stock will react.




India is the second largest populated emerging market around the world. Many traders and investors will follow or trade The India Fund, Inc. (NYSE:IFN). This leading emerging market fund has declined sharply since topping out on November 8th, 2010 at $40.94 a share. As of January 28th, 2010 the IFN closed at $29.40 a share. The decline from the November 2010 high is nearly 29.0 percent. A decline of 20.0 percent or more in an index is considered bear market territory. Leading Indian stocks such as Tata Motors Limited (ADR) (NYSE:TTM) have been under pressure since late November 2010. The IFN will have some daily chart support around the $28.50 level. The weekly chart support will be around the $26.00 area.




China is the most populated country in the world with over 1.3 billion people. This country is now the second largest manufacturer and economy behind the United States. China also owns the largest amount of U.S. debt of any single nation at 7.5 percent or nearly $1 trillion. The iShares FTSE/Xinhua China 25 Index ETF(NYSE:FXI) topped out on November 8th, 2010 right along with the other emerging market funds at $47.99 a share. On January 18th, 2010 the FXI closed down by $1.11 to $42.03 a share. This is a 12.0 percent decline from the November 2010 highs. China has recently raised its benchmark interest rate in late December 2010 by 25 basis points to 5.81%. The People's Bank Of China (central bank) also increased bank reserve requirements to try and curb its hot real estate market. The central bank has even gone so far as to now require a 60 percent deposit or down payment for buyers in order to purchase a second home in China. The popular FXI will have some daily chart support around the $42.00 level. The weekly support levels are $39.50 and ultimately $36.00.  Again, take special note of these levels. These are key levels in that money making opportunities will be presented if/when price should reach them. At that point you will need to know which side of the market the higher probability presents itself.



Inthemoneystocks.com
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Qualcomm Under Some Pressure. Watch These Levels.

January 31, 2011 – Comments (0) | RELATED TICKERS: QCOM

Qualcomm Inc.(NASDAQ:QCOM) is a leading tech stock in the communication equipment space. The stock is trading slightly lower this morning by 0.36 cents to $53.38 a share. The Nasdaq 100 is also under some slight pressure and this could force QCOM stock lower. The stock will have some short term intra-day support levels around the $52.45 area and more support around the $51.90 level. Both support levels could see small intra-day bounces.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Is The Friday Sell Off A Thing Of The Past?

January 31, 2011 – Comments (0)

This morning the major stock market indexes are all starting the session higher to begin the day. The talking heads in the media are now saying how everything is fine once again in the world with the exception of Egypt. The Asian markets traded mostly lower last night with the lone exception of the Shanghai Index which was higher by 1.38 percent. We all know the market loves to see the Chinese market higher because many economists believe the Chinese economy is the growth engine of the world. All in all it looks as if the media has forgot the bloodbath market that took place before the weekend on January 28th, 2011.

Rarely will the major stock market indexes such as the S&P 500 Index, the NASDAQ Composite, and the Dow Jones Industrial Average decline sharply ahead of the weekend. However, the market declined sharply on higher volume last Friday. Traders and investors should not write that type of decline off so fast. This is a market that is being inflated every single day by massive cash reserves from the Fed's quantitative easing program. Traders have been buying almost every dip on a daily basis. Eventually, stock markets need to have pullbacks. If stock markets do not pullback at some point they will simply be on a collision coarse when the manipulation stocks. Look what happened in 2007 and later in 2008 to all the major indexes.

This morning Alpha Natural Resources Inc.(NYSE:ANR) has bought out Massey Energy Co.(NYSE:MEE). This news should be bullish short term for the coal sector in the market. Traders should keep an eye on stocks such as Peabody Energy Corp.(NYSE:BTU), James River Coal Co.(NASDAQ:JRCC), and Patriot Coal Corp.(NYSE:PCX). These stocks could trade higher in sympathy to the Massey Energy takeover. The Market vectors Coal ETF(NYSE:KOL) can also see a positive reaction to the news and may very well trade higher today.

As for the overall market indexes it is prudent to allow this market to prove itself. Anytime markets sell off from highs on volume traders should expect that the selling may not end so quickly. Therefore, despite this mornings sharp gap higher the early rally may not last very long. There is usually a bigger reason for declines in the market when they occur on heavy volume.



Nicholas Santiago
InTheMoneyStocks.com

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Microsoft Stock Jumps On Early Earnings Release

January 27, 2011 – Comments (0)

Microsoft stock jumped higher on a mistaken early earnings release. The tech giant was scheduled to release after the closing bell today, however, the earnings release occurred during market hours. As we are writing this post the stock has reversed lower and is now declining sharply. There is some intra-day support around the $28.55 level.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

CTXS Has Major Fade From Open

January 27, 2011 – Comments (0)

Citrix Systems Inc.(NASDAQ:CTXS) has been one of the leading tech stocks of 2010. Since December 8, 2010 the stock has been under pressure. Today CTXS started the morning sharply higher in sympathy to the positive Netflix Inc(NASDAQ:NFLX) earnings. Citrix System stock has sold off sharply today from the gap higher open. The stock will have very good intra-day support around the $64.00 and $63.50 levels. Both areas could see small intra-day bounces.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Do Not Scalp Until You Have Read This

January 27, 2011 – Comments (1)

If there is one thing that we here at InTheMoneyStocks have said for a long time, it is to never short a dull market. This saying is an old market adage that fits well for the current times. Nearly every single trading day the market will pullback on heavy volume and once the light volume begins or takes over, all of the major stock indexes will rally higher. Should the heavy volume come back into the market place then the market will usually decline, however, that is a very rare event these days. Most scalp traders can sell short stocks in the early part of the day when the volume is relatively high. Once the volume drys up or begins to decline the major indexes go into helium mode and float higher.




Nicholas Santiago
InTheMoneyStocks.com    [more]

Recs

0

AT&T Approaches Support Levels

January 27, 2011 – Comments (0)

AT&T Inc. (NYSE:T) is being hammered today on the back of earnings that did not meet Wall Streets expectations. The stock is trading at $27.87, -0.86 (-2.99%). While it is being hammered, there are significant support levels just below the current price that may yield a bottom. The first level is at $27.70.  This is the pivot low from January 11th, 2011 and would act as a double bottom for the stock on the daily chart. In addition, at $27.15, the stock would hit the daily 200 moving average. This would be another major support.

Gareth Soloway
InTheMoneyStocks.com

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Recs

4

Economic Collapse Part II

January 27, 2011 – Comments (0)

The economy is roaring back, or so it would appear from much of the economic news being published almost every day. The stock market since the March 2009 low is up almost 100%. People feel better about the economy as the Federal Reserve has pumped trillions of Dollars into the system, inflating asset prices. As people feel richer, they spend more and spending helps the economy. The big question is, can it last?

This is a becoming a major concern for the Federal Reserve. Their massive stimulus is pushing the economy slightly higher but not to the extent that it could last without the stimulus. Housing is still at the dead lows, jobs continue to be scarce and not growing.  The Federal Reserve is stuck between a rock and hard place. If they stop pumping money into the system, the U.S. and possibly the world will fall back into a deep recession and if they continue non stop pumping money, inflation will rip higher. There is no easy answer here and they are in trouble. Do they continue with QE-3, QE-4 and so on? Do they stop pumping the money into the system and have the market fall back down and consumers stop spending?

Talk about a mess and a half. The bottom line is this, as swing traders, we will be playing this market thousands of times in each direction over the next few years.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

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Small Bank Stocks Roar On Hanmi

January 27, 2011 – Comments (0)

Hanmi Financial Corp (NASDAQ:HAFC) returned to profitability. Those headlines surged across the screen this morning. The stock jumped, soaring to $1.50, +0.33 (+28.21%). The company reported net income of $5.3 million, or 4 cents a share. This was major for a beaten down small cap financial stock and set other small cap financial firms roaring higher. Shorts in these stocks began to cover and buyers inched in. Hopes that other small cap financial firms will perform as well started growing. With this optimism, so came share price increases.

Other small cap financial firms jumping on the HAFC news were Banner Corporation (NASDAQ:BANR) which is trading at $2.45, +0.25 (+11.36%) and BankAtlantic Bancorp, Inc. (NYSE:BBX), trading at $1.05, +0.14 (+15.38%). Others are inching higher as well. The bottom line is this, investors are looking for good news out of these beaten down small financial companies. The earnings from HAFC shed some positive light on all of them.

One interesting small cap bank stocks to watch in the sector are Central Pacific Financial Corp. (NYSE:CPF) which is down from $2.52 on January 12, 2011 to its current level of $1.60. I do not own any at this time.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Markets Stall At Dow 12000, Here Is Why

January 27, 2011 – Comments (0)

The markets have been hammering at Dow 12,000 now for three straight days. This is getting exciting and interesting at the same time. In the past three months, since this up leg has gone into motion, the market has never hammered on a level for so long and not broken though. The SPDR S&P 500 ETF (NYSE:SPY) are trading at $129.55, -0.12. They have fallen over the last thirty minutes as the U.S. Dollar caught a bid, the Dow Jones Industrial Average again retreating from the 12,000 level.

The reasons behind this resistance comes in multiple parts. First, the markets are overbought and have not had even a minor pull back in three months. Around Thanksgiving, the SPY sat at $117.75. That would mean an approximate 10.5% move straight up. In addition, from the 2010 lows, the SPY is up 28%. That is truly an amazing move. While the markets seem tired, the Federal Reserve is tirelessly pumping liquidity into the system. There now seems to be an epic battle between the reality of a correction needed and the Federal Reserve propping.

Some of the biggest movers today are stocks that reported earnings. Caterpillar Inc. (NYSE:CAT) reported stellar growth and earnings numbers and is trading higher at $96.03, +0.28 (+0.29%).  The stock made a new 52 week high today at $97.79. However, the weakness now hitting the markets has brought it in.  Amazon.com, Inc. (NASDAQ:AMZN) is also surging higher ahead of earnings today, after the market closes. They are expected to report earnings between $0.88 and $0.95 per share.

As the market drops, the driver is the Dollar as it pushes up.  As the Dollar pushes up, commodities and commodity stocks are pulling back. Gold and oil are both nicely lower on the day.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Scalpers Trade Lesson: Know The Intra-day And Daily Chart Trend

January 27, 2011 – Comments (0)

Many traders and investors have simply been buying the dip every time the stock market declines. This method has worked because the daily chart trend is up. As long as the daily chart remains up the buying the dip method will work. However, day traders or scalpers must deal with two trends and this makes day trading a much more skillful endeavor. Day traders or scalpers must watch and know the daily chart trend plus the trend of the intra-day time frame that they may be using to find support or resistance.

The day trader should know that a bounce is very likely at strong intra-day support levels despite the intra-day trend being down as long as the daily chart trend is up. As a scalp trader or day trader we can buy the strong intra-day support level for the small bounce. However, it is important to remember as a scalper we just look to take a small bite or chunk out of the stock. Once we are in the money on the trade we move our stop loss to break even to protect against a loss. We never want to get greedy when trading unless we are in the money and have already secured a gain.

If the daily chart trend is down then the scalper must be much more careful trying to trade the intra-day bounce area. In fact, the scalper might be better off trying to sell the bounce short if the trend is down on both the daily and intra-day charts. Scalpers must also always know where the stop loss area will be just in case the stock does something unpredictable. Remember the old market adage, “markets can do anything at anytime.”






Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Oracle Starting To Dip. Watch This Spot.

January 27, 2011 – Comments (0)

Oracle Corp.(NASDAQ:ORCL) is trading slight lower this morning. The stock is trading lower by 0.29 cents to $32.26. Recently, the stock is made fresh new nine year highs. The next important support area for Oracle stock will be around the $31.95 area. Traders can look for a small short term intra-day bounce around that level. Please remember that it is always prudent to watch the intra-day trend as support levels will not hold or last very long if the trend is down.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Lam Research Gets Slammed. Watch This Support Area.

January 27, 2011 – Comments (0)

This morning Lam research corp.(NASDAQ:LRCX) is trading lower by $1.60 to $52.43 a share. The stock is coming under pressure after reporting weaker Q3 earning outlook. The stock will have near term intra-day support around the $51.50 area. This is where traders can look for a short term intra-day bounce in the stock.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Oil Services Stocks Roar Higher

January 26, 2011 – Comments (0)

All of the oil services stocks are surging higher today. All a trader has to do today is simply take a look at the Oil Services Holders Trust(NYSE:OIH). The OIH is trading higher today by $6.84 cents making a new 52 week high for the EFT.

Some of the major components in the Oil Services Holders Trust are Baker Hughes Inc.(NYSE:BHI), Halliburton Co.(NYSE:HAL), and Schlumberger Ltd.(NYSE:SLB). All of these stocks are trading sharply higher today. While the group looks strong today it is important to note that Baker Hughes stock is starting to get extended on the daily chart and should face some near term daily resistance around the $67.50 level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Violent Intra-day Dollar Action

January 26, 2011 – Comments (0)

This has been one of the more lackluster FOMC announcements as the Federal Reserve Bank did not say anything unexpected. Rates remained unchanged at zero to a quarter percent. The Federal Reserve Bank's statement was unchanged. What did move in erratic fashion after the Fed was the U.S. Dollar Index. Rarely if ever will the U.S. Dollar Index make 0.20 cent swings from one ten minute candle to another. As we all know by now when the dollar is lower it is much easier for the market to trade and inflate higher. 

Many traders and investors are looking for the market to close above the psychological 12,000 level on the Dow Jones Industrial Average. This 12,000 headline on the DJIA is expected to get the small retail trader back in the market. Remember, since the May 6th, 2010 flash crash the retail trader and investor has disappeared from the market. This can easily be seen in the daily chart of the major indexes with the extremely light trading volume.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

UAL Takes Off

January 26, 2011 – Comments (0)

United Continental Holdings Inc.(NYSE:UAL) is trading sharply higher today after reporting earnings. The leading airline stock is trading higher on the session by $1.78 to $25.88 a share. UAL will have intra-day resistance around the $26.50 level. Should the stock rally further the next important resistance area will be around the $27.00 level. Please keep in mind that the Dow Jones Transportation Index EFT(NYSE:IYT) is very strong today and this should help to keep UAL stock strong for the session.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Steel Stocks Roar Higher, Here Is The Target

January 26, 2011 – Comments (0) | RELATED TICKERS: X , AKS

Steel stocks like United States Steel Corporation (NYSE:X) and AK Steel Holding Corporation (NYSE:AKS) are jumping again. These stocks have been on a three day surge which has taken many by surprise. Regardless of surprise, one must study the chart to find the level where they will hit target and possibly reverse. This level is clear based on the path both these stocks are taking.

The key level to watch on both these stocks is their previous double top. Note the vertical move on U.S. Steel in the chart below. Should it run into double top, it should stall and pull back. The same things applies to AK Steel. If a smart swing trader were to play the double top, they should understand that this would be a short term pull back only, a retrace. After a day or two of a pull back, the money would be taken.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Best Setups For A Toppy Market

January 26, 2011 – Comments (0) | RELATED TICKERS: AAPL , SPY , CVX

The market has been on a one way path for months now, each sell off being negated by another move higher a day later. Yesterday, the markets were selling sharply into the 3:00pm ET time frame, only to have massive buy programs hit to push the markets back higher into the State of the Union address. Today, the markets have inched higher ahead of the Federal Reserve policy announcement on interest rates at 2:15pm ET. While the market seems so resilient, there are cracks in the ice beginning. From yesterdays activity, it was clear the markets wanted to sell off, however, instead the markets were propped up into the close. The SPDR S&P 500 ETF (NYSE:SPY) are currently trading at $129.64, +0.47 (+0.36%).

When this market finally does pull back, it is important to be on board with the correct plays.  In addition, it is even more important to find the perfect levels that will maximize your profits on any drop. Apple Inc. (NASDAQ:AAPL) has been one of the hottest stocks in recent years. Their products are number one and spreading throughout the world. However, Steve Jobs has now left the company and people fear competitors will take market share away. The stock level to watch for a pull back at is $350.00.  This would be a meager cross of the previous high made just weeks ago. It also represents an even number that will be monumental based on technical analysis. If AAPL should reach $350.00, reward to the short side is at its highest.

Oil has stalled out in the last week, pulling back off recent highs. However, two market leading stocks have continued to push higher. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) have almost propped this market up all by themselves. They have moved higher relentlessly.  These are now both high velocity trades in terms of being extended and ready to short. For XOM, anything around $80.00 looks primed for a $2.00-$3.00 pull back and for CVX, $95.00 is the pull back level. This could be good for up to $5.00 on a retrace. In addition, CVX will report earnings this Friday morning before the market opens while XOM will report Monday, before the market opens. At current levels, it is hard to imagine earnings being able to support the price of these stocks much higher.

Watch the Federal Reserve today at 2:15pm ET. My personal guess is the markets close over 12,000 on the Dow Jones Industrial Average.  Then look for a pull back starting late this week or next week.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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U.S. Dollar Index Decline Helps Keep Markets Up

January 26, 2011 – Comments (0)

As we all know by now when the U.S. Dollar index declines the stock market indexes inflate higher. Today that certainly looks to be the case. However, the opposite effect is true if the U.S. Dollar Index begins to rally the stock markets will come under pressure.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Toyota Motor Dips On Recall News

January 26, 2011 – Comments (0)

Toyota Motor Corp.(NYSE:TM) has been plagued by recalls. Today the stock is trading lower again as the company announces another round of auto recalls. The stock is trading lower by $1.38 to $82.47 a share. There will be short term intra-day support for Toyota stock around the $82.00 level. This is an area where traders can look for a small intra-day bounce. Please remember if the overall stock market starts to decline it will take weak stocks lower than their near term support levels.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

VIsa Fails To Participate

January 26, 2011 – Comments (0)

Visa Inc.(NYSE:V) is one of the leading credit card processing companies. The stock is not rallying today with the rest of the major stock indexes. Visa stock has been in a sideways range since December 17th, 2010 when the Federal Reserve changed the debit card fee structure. The stock will have intra-day support around the $71.00 area. This is a level where traders can look for a small intra-day bounce in the stock.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

One Down One To Go

January 26, 2011 – Comments (0)

Last night, President Obama gave his State of the Union speech to the American people. The speech was more like a high school football coach talking to his team at half time. President Obama referenced the strong stock market rally as a major accomplishment. However, he never referenced that the money that is propping the stock market higher must be paid back with interest and the U.S. debt is becoming unsustainable. He never mentioned that the United States needs to borrow money just to pay its debt service. President Obama never mentioned the food riots that are taking place in various nations around the world due to the inflation that is being caused by the Federal Reserve Bank. If he only knew the cost of artificial growth. Most Americans voted for change and simply got more of the same. I think the American people want their change back.

The major stock market indexes are all trading slightly higher this morning. This small gap higher open in the market is common after all State of the Union speeches. Last night the Chinese government made a new rule that requires all citizens that want to buy a second home must put a 60 percent down payment on the home in order to qualify to buy the property. Wow, it is amazing how much the Chinese have learned from the mistakes made by the United States. The Shanghai Index actually rallied higher last night by 1.17% on the news. The iShares FTSE/Xinhua China 25 Index ETF(NYSE:FXI) is trading higher by 0.5 percent this morning. Recently, China, India, and most other emerging countries have began to increase interest rates to curb the high inflation that these countries are experiencing.

This afternoon the Federal Reserve Bank will announce their interest rate policy. Really this FOMC meeting looks to be a waste of time since they are not expected to make any changes to the current Fed funds rate which is at zero percent. The Fed funds rate is the overnight lending rate to the large major banks such as J.P. Morgan Chase & Co.(NYSE:JPM), Bank of America Corp.(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). Most other banks that borrow from the Federal Reserve Bank must borrow from the Fed discount window which is 0.75 percent. In any case the Federal Reserve is not expected to say anything negative about the economy.

The State of the Union address is over and next up is the FOMC announcement this afternoon. The stock market in the United States continues to trade higher nearly everyday as the Federal Reserve Bank continues to pump billions into the market everyday via it's $600 billion quantitative easing program. Stay tunes as markets usually get very volatile and interesting after these meetings.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

IBM Super Spike

January 25, 2011 – Comments (2)

IBM has been the leading stock in the price cap weighted Dow Jones Industrial Average. This stock has soared higher ever since reporting earnings on January 18, 2011. Today IBM had a fake print up to the $164.35 level. This spike in the tape is being sited as the reason for the strong move higher in the major stock indexes off the intra-day lows. Ironically, the $164.00 level is where the stock should have daily chart resistance next.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Climb Aboard The U.S. Dollar Index Roller Coaster Ride

January 25, 2011 – Comments (0)

What is going on today? Every time the powers that be drop the U.S. Dollar Index the major stock market indexes catch a bid higher. Today the U.S. Dollar Index has been up, down, and all around trading in a very wild and unusual manner. If the U.S. Dollar Index declines further will this help to lift the weak commodity sector?

Earlier, around 11:00 am EST, the U.S. Dollar Index declined and many of the leading commodity ETF's such as the SPDR Gold Shares(NYSE:GLD), and iShares Silver Trust(NYSE:SLV), caught intra-day bids higher. The major stock indexes all rallied higher as well when the U.S. Dollar Index declined. However, despite the roller coaster action in the U.S. Dollar Index and major major stock indexes remain under pressure this afternoon. Often, over the past few months since the Federal Reserve Bank began it's QE-2 program the major stock market indexes rarely end down on the day. Can the market finish deep into negative territory or will it rally into the close as it does nearly everyday?




Nicholas Santiago
InTheMoneyStocks.com       [more]

Recs

0

Alert: Markets Saved, Duh!

January 25, 2011 – Comments (0)

The markets have had a wild session today, opening lower, shooting higher on consumer confidence numbers only to get slammed and make a dramatic move to new lows. The SPDR S&P 500 ETF (NYSE:SPY) $128.30 support level was nailed perfectly, called in the Intra Day Stock Chat. Since then, the markets have roared back, now just holding slightly to the negative side.  Should any of us be surprised that the markets have made their way back towards the flat line? Absolutely not! There was no way in hell that the markets were going to have a big down day today, ahead of President Obama's State of the Union speech tonight. Let's be real folks, all of you should be smart enough by now to realize the amount of propping going on in the markets means they would never let it fall sharply into a major address to the nation by the President.  They have propped the market higher day after day for months with Federal Reserve creating the artificial wealth effect. Of course they would not stop today of all days. The key is to be a manager of your own money. Who cares what the markets do? Just trade it. That is the true key. Prop the markets up, we make money, let them fall, we make money. That is how everyone needs to be. In addition, the markets are waiting for the Federal Reserve's policy statement on interest rates tomorrow at 2:15pm ET. 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

2

Alert: Gold Setting Up For A Three Day Bounce

January 25, 2011 – Comments (0)

Gold has been hammered over the last couple weeks, after making all time highs.  The SPDR Gold Trust (NYSE:GLD) has fallen from an all time high of $139.54 to a low today of $129.07.  This fall has been categorized by bearish flag pattern after bearish flag pattern playing out to the downside. It has been classic.  While gold has fallen sharply, it now is entering a level where it may find some solid support. In addition, many gold stocks have fallen to their 200 moving averages on the daily charts. This also tells us there may be a bounce in the short run.  Just to make it clear, this is not a long term bounce, just a bounce over a few days that may start today or tomorrow.

As discussed above, some gold stocks are hammering into major support on the daily charts. Not the charts of Yamana Gold Inc. (NYSE:AUY)  and Barrick Gold Corporation (NYSE:ABX).  Both have fallen dramatically in recent weeks but now sit on the 200 moving averages.  In addition, the fact that gold now sits on solid support, things seem to be in order for a bounce. The GLD has major support at the $129.00 level, hit today.

Gold is a tricky commodity to figure out. It relies on two major factors for its pricing. The first is the easy one, the U.S. Dollar. When the Dollar moves up, gold usually drops. The second factor is bearish sentiment. When investors and traders get extremely bearish on the markets, money runs into gold for safety. This recent drop has been headed by market optimism, rather than a move higher in the U.S Dollar.  

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

BP Prudhoe Bay Hammered But May Bounce At The 200 Moving Average

January 25, 2011 – Comments (0)

Oil has been hammered over the last week causing some oil plays to sell off sharply. One of those major sellers is BP Prudhoe Bay Royalty Trust (NYSE:BPT). It has dropped significantly today, and looks like it is going to hit the 200 moving average. This could be a high risk bounce play. The buy area would be at $101.00, on a cross of the 200 moving average.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

0

U.S. Dollar Index Gets Whipped Around Intra-day

January 25, 2011 – Comments (0)

This is some of the wildest intra-day action that we have seen in the U.S. Dollar Index in quite some time. It is very unusual to see 0.40-0.50 cents swings intra-day in this index. This looks a lot like manipulation by someone with a lot of money. As we know by now when the U.S. Dollar Index declines it usually helps the stock market to inflate and trade higher. The U.S. Dollar Index is trading lower by 0.2 cents to $78.03 as of 10:45 am EST. We can only guess where the U.S. Dollar Index will be at the end of the day.

 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Commodity Stocks Get Rocked

January 25, 2011 – Comments (0) | RELATED TICKERS: SCCO , FCX , GOLD

Ever since the Asian nations began to raise interest rates most leading commodity stocks and ETF's have come under severe pressure. Last night India raised their key interest rate by another 25 basis points in effort to curb the high inflation that the country is facing. China has been raising bank reserves and also raised interest rates by 25 basis points last month. Thailand, Vietnam, and other countries in Asia have all raised interest rates in order to fight high inflation.

Southern Copper Corp.(NYSE:SCCO) is a leading copper producer that has declined sharply ever since the inflation in Asia began to increase sharply. The stock topped out on January 1st, 2011 at $50.35 a share. Today Southern Copper stock is trading lower by $1.56 to $43.09 a share. This is a 14.0 percent decline in less than a month's time. The stock will have some daily chart support around the $42.00 level.

Cliffs Natural Resources Inc.(NYSE:CLF) is one of the leading iron ore pellet producers in the world. The stock had been holding up surprisingly well until last week when it staged a sharp reversal on January 19th, 2011. On that day the stock made a new high for the year at $91.41 a share. This morning Cliffs Natural Resources stock is trading lower by $2.54 to $80.42 a share. That is an 11.0 percent decline in just five trading sessions. Cliff Natural Resources stock will have daily chart support around the $78.00 level and more around the $76.50 area.

Other leading commodity stocks that are trading lower today are Silver Wheaton Corp.(NYSE:SLW), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Randgold Resources Ltd.(NASDAQ:GOLD). The catalyst for the decline in the commodity complex is due to the tighter money supply that is taking place in the Asian region. As long as Asian central banks continue to raise interest rates most commodity stocks should remain under pressure.




Nicholas Santiago
InTheMoneyStocks.com


  [more]

Recs

0

VMware Gets Smacked

January 25, 2011 – Comments (0)

VMware Inc.(NYSE:VMW) has been a leading technology stock ever since it was spun off from EMC Corp.(NYSE:EMC). This morning the stock is under pressure after reporting earnings. The stock is trading lower by over 5.0 percent. VMware stock will have some short term intra-day support around the $81.45 level. Traders can look for a small intra-day bounce around this level. Should the stock decline below the $81.45 support area the next support level will be around the $80.00 area.




Nicholas Santiago
InTheMoneyStocks

  [more]

Recs

0

BHP Billiton And other Commodity Stocks Stage An Afternoon Pullback

January 24, 2011 – Comments (0)

BHP Billiton Ltd.(NYSE:BHP) is one of the largest natural resources companies in the world. Today the stock is trading higher by $1.39 to $89.60 a share. Intra-day the stock failed to break above the $90.00 resistance level and has pulled back throughout the afternoon. The stock will have short term intra-day support around the $89.00 area. This is a spot where traders can look for an intra-day bounce.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

NetApp On Pause

January 24, 2011 – Comments (0)

NetApp Inc.(NASDAQ:NTAP) is one of the leading data storage companies in the tech heavy NASDAQ Composite. The stock is trading slightly lower on the trading session today. NetApp Inc. stock has sold off sharply over the past four trading days losing about 5.0 points from its recent 52 week high of $59.79. The stock will have strong intra-day support around the $55.00 level should the stock decline further this afternoon. Traders can watch this area for a small intra-day bounce.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The Light Shines On Solar, Where To Buy

January 24, 2011 – Comments (0)

The heavens, sun, moon and stars appear to be shining on solar stocks today after Goldman Sachs Group, Inc. (NYSE:GS) put First Solar, Inc. (NASDAQ:FSLR) on its conviction buy list with a new price target of $165.  While these price targets do little to coax a seasoned investor into the stock, they do create a sector wide move higher than can be played for profits.  Stocks across the sector are running higher. LDK Solar Co., Ltd. (NYSE:LDK) is soaring, trading at $14.46, +1.31 (+9.96%) while others are making great moves as well.

The key now appears to be to find other solar stocks that have been forgotten. This usually happens in the small caps. The two solar small caps that look attractive are Ascent Solar Technologies, Inc. (NASDAQ:ASTI) and Hoku Corporation (NASDAQ:HOKU).  The recent moves in the large cap solar players should trickle down to the small ones eventually.

The inflation picture is a direct catalyst for solar stocks. As inflation and the global markets rebound, the price of energy rises.  The higher oil prices go, the more attractive it is to buy solar panels. With long term energy prices expected to continue to rise, solar stocks look attractive on pull backs. Small cap solar stocks at the lows of the chart look attractive now for the short term.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

1

Beaten Down Stocks Get Big Bounces

January 24, 2011 – Comments (0)

Many recently beaten down areas of the market are seeing a positive move today on the back of a slightly weaker Dollar.  The markets are floating higher as volume is about as light as imaginable. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.96, +0.59 (+0.46%). Rare earth stocks and other metal plays are getting a bounce today. It was alerted on this very blog last week that Molycorp, Inc. (NYSE:MCP) was going to the 50 moving average on the daily chart at around $40.00. Today it hit the 50 moving average perfectly and from there took off to the upside, now trading back at $45.06, +2.07 (+4.82%).

Other commodity plays are bouncing.  United States Steel Corporation (NYSE:X) is rising nicely today, trading at $54.68, +1.39 (+2.61%), while agriculture plays are also inching back up.  The Mosaic Company (NYSE:MOS) was crushed last week, hitting the 50 moving average. Since then, it has bounced nicely, including the move today.  MOS is currently trading at $76.21, +3.01 (+4.11%).

The markets are floating higher on two main factors. These two main factors are light volume and a weaker U.S. Dollar. Both are positive for the markets.  Today is a rare pause from the wild trading of last week. Later this week, things will get wild again as earnings and economic news hits. In addition, on Wednesday, the Federal Reserve will release their policy statement. This will be key in the markets and likely to cause a Dollar reaction.  The Dollar has fallen sharply over the last two weeks.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

TBT Is Trading Lower. Watch This Support Area

January 24, 2011 – Comments (0)

The ProShares UltraShort 20+ Year Treasury ETF (NYSE:TBT) is trading lower this morning by 0.27 cents to $38.71. This ETF will generally trade with the yields and not the price of the bond. Therefore, when a trader believes yields will rise the TBT could be a way to play that move. Traders can watch for the TBT to have intra-day support around the $38.50 area.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

The Fed Wants Dow 12,000

January 24, 2011 – Comments (0)

The Federal Reserve Bank has been pretty clear that they want higher asset prices and will do whatever they need to do to get it. The Federal Reserve Bank chairman, Ben Bernake, has been pretty clear that if people see their retirement accounts rising they will feel better about the economy and begin to start spending money again. After all, U.S. consumer spending accounts for 70.0 percent of the gross domestic product in the United States. Is Chairman Bernanke right about the way people will feel if they see their 401k, and other retirement plans increase?

In 2001, Alan Greenspan, who was the chairman of the Federal Reserve Bank at that time did all the things that Ben Brnanke is doing today. He lowered the Fed funds rate which is the overnight lending rate to the large major banks to 1.00 percent. Ben Bernanke has lowered the Fed funds rate to zero percent. The rate has been this low since December 2008. In five to six years Chairman Greenspan helped to create the greatest housing and credit bubble that the United States and most of the world has ever seen. Will the current Federal Reserve Bank leader, Ben Bernanke, cause an even larger bubble?

Chairman Bernanke said that he is 100 percent certain that the Federal Reserve can tighten rates when he thinks that problems are emerging from all this cheap and loose cash reserves that are being created. Didn't Allan Greenspan say the same thing. After all, Alan Greenspan did raise the Fed funds rate by 25 basis points all the way up to 5.00 percent. However, the bubbles were already made and the pop was heard around the world. Recently food riots have been breaking out around the world because of the increased and manufactured inflation. Higher inflation is obviously a direct cause of the central bank's QE-2 or as it also called, quantitative easing. Regardless of what Ben Bernanke says, he wants higher asset prices and that is a fact. As the Federal Reserve has always done they will deal with the problem when it occurs and hits home. Until then, enjoy the inflation rally and save those 401K statements.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Still Polar Opposites

January 24, 2011 – Comments (1)

This morning is another day where the major stock market indexes such as the Dow Jones industrial Averages and the S&P 500 Index are trading inverse to the U.S. Dollar Index. Before the opening bell at  the New York Stock Exchange the U.S. Dollar index was trading slightly higher to start the day. This rise in the dollar caused some slight pressure on the major stock indexes, however once the U.S. Dollar Index began to decline and trade lower the major stock indexes caught a bid higher. This inverse relationship between the U.S. Dollar Index and the major stock market indexes is still very much in effect.

Recently many investors in the media have said that the stock market and the U.S. Dollar Index will trade higher together. While that has occurred once in a while it usually occurs when the trading volumes are extremely light. This rare phenomenon occurred also in December 2009 and early January 2010 which is when trading is light due to the holidays. Remember most institutional traders do not want to ruin or hurt their bonuses by trading actively during the holidays and that is the reason why the trading volumes are low at the end and at the start of a year. Traders should keep a chart of the dollar up at all times and watch how the stock market indexes will trade inverse to the U.S. Dollar. 




Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Target Starts Lower. Watch This Level For A Bullseye

January 24, 2011 – Comments (0)

Target Corp.(NYSE:TGT) is starting the morning by trading lower on the session. The stock is lower by 0.69 cents to $55.05 a share. Target Corp. stock has been under pressure since the start of the first trading day of 2011. Often most retail stocks will struggle in the month of January and that certainly looks to be the case with Target Corp. and other major retail stocks. Target Corp. will have intra-day support around the $54.50 area. This is a level where scalp traders can look for a small bounce in the stock.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

The Perfect Level: Rare Earth Alert

January 21, 2011 – Comments (0)

The mineral trade has been one for the ages. Stocks like Molycorp, Inc. (NYSE:MCP) doubled in value in the month of December, soaring to an all time high of $62.80. Rare earth metals and minerals were the place to be as rumors surfaced out of China that they may lower the amount allowed for export. A rocket ship move was an understatement for stocks like MCP and Rare Element Resources Ltd. (AMEX:REE). In addition, small cap China mineral plays soared, moving hundreds of percentage points. China Shen Zhou Mining & Resources Inc. (AMEX:SHZ), China GengSheng Minerals, Inc. (AMEX:CHGS) and Qiao Xing Universal Resources, Inc. (NASDAQ:XING), just to name a few.
These stocks topped out at the end of December and have since sold sharply. MCP has fallen from its high of $62.80 to a low today of $44.74. This massive drop may seem like a real buying opportunity but a true investors and trader must use the charts. The charts allow for exact entries and exits. This maximizes profits. Let's analyze MCP to discover the ideal entry.

The chart of MCP is getting attractive from the buy side but has yet to hit the key support that a true investor would want to see. That price is clearly the $39.50 to $40.00 level. Why? There are two technical levels at that same price. These two signals confirm a major support and a huge bounce opportunity. First, the daily 50 moving average sits at $40.00. In addition, the last pivot high was made in late October at $40.00 as well. These two major levels coincide and signal a buy. Note the chart below.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

5

Stock Market Trouble As Weakness Shows

January 21, 2011 – Comments (2)

Earnings from the big name companies cannot seem to keep the markets floating any longer. By 10:00am ET, the SPDR S&P 500 ETF (NYSE:SPY) hit a high of $129.17. Since then, they have fallen all the way back to new lows of the day at $128.30. This is extremely unusual for a light volume market on a Friday and must peak ones interest. Over the last three months, the markets have floated non stop higher, especially on Fridays and even more so when the U.S. Dollar is weaker, like it is today. So what gives?

Other signals that the market is near a top are amazing earnings, being released by such companies as Apple Inc. (NASDAQ:AAPL), International Business Machines Corp. (NYSE:IBM) and Google Inc. (NASDAQ:GOOG). All three of these mega market movers reported stellar results, all of them gapped higher but only IBM held the gains for the entire day. In addition, even IBM could not push the markets higher as we have seen a stall out.

The problem here is simple. The markets are up over 20% in the last few months. Even the best earnings, perfection on all levels cannot justify the recent gains. Institutions are looking to sell for now, take profits and evaluate their positions. This is creating a market that looks much different than what was seen just a week ago. In addition, let's not forget options expiration and the sneaky institutions wanting to push some key stocks lower, to have the plethora of calls they sold expire worthless. When options expire worthless, the institution enjoys the entire premium as a pure profit.

Bottom line is, this market is acting differently these last few days. This must be watched as a top could be near.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

U.S. Dollar Index Starts Lower = Higher Market

January 21, 2011 – Comments (0)

This morning the U.S. Dollar Index has started the day sharply lower. The U.S. Dollar Index is trading lower by 0.46 cents this morning to $78.36. The U.S. Dollar Index is now on a 10 day losing streak and has now declined by nearly 3.00 points since its January 10, 2011 high. A 3.00 point decline in the dollar is a lot of meat and potatoes in the currency world.

It is important to note that in the past a lower U.S Dollar would have boosted most precious metals and commodities. These days the precious metals have all turned down as the Asian growth countries are now being forced to raise interest rates to fight and counter the high inflation that the Asian countries are now facing. China, India, Thailand, Brazil, and Vietnam are just some of the countries facing major inflation. Food riots have recently broke out in various countries around the world due to high food inflation. It is important to remember that hard and soft commodities are traded in U.S. Dollars and the weak U.S. Dollar Index is certainly the leading cause of this inflation.

If the weak U.S. Dollar Index begins to fail to inflate the stock markets higher there could be problems in the markets down the road. The entire stock market rally since March 2009 has been on the back of  a weak U.S. Dollar Index.




Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Walmart Pauses After Yesterday's Surge

January 21, 2011 – Comments (0) | RELATED TICKERS: WMT

Walmart Stores Inc.(NYSE:WMT) is a leading retail stock that is trading slightly lower today. This is common action after a strong surge that Walmart made yesterday. The stock will have short term intra-day support around the $55.50 level. This is a spot where traders could look for a small intra-day bounce in the stock.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Options Ex Concludes: What You Should Know Next Time

January 21, 2011 – Comments (1) | RELATED TICKERS: FFIV , MOS

Options expiration week is always a very volatile and sometime violent trading week. This is a time period when the institutional money will bully stocks around like a nerd on the playground. It is always important to realize that the institutional money(hedge funds, bank prop firms, mutual funds) will try and move stock prices away from the popular strike price that the retail investor or trader is betting on. It is always important to note that most retail options traders usually play options because they do not have the cash to actually by the stock, therefore, they will buy calls or puts as a cheap way of playing the stock market and settle their trades before or during the week of expiration. That is why this is such a very difficult week to trade stocks. Then when you add earnings season into the mix it is really only the true professional trader that can take advantage of the short term opportunities in the market during the week of options expiration.

Look at some of the wild and violent action in the market this week. F5 Networks Inc.(NASDAQ:FFIV) declined by 30.0 points yesterday after reporting earnings. I could only wonder how many retail options traders had calls on the 150 strike price. A call option is a bet that the stock will reach a certain price by a specified time. Oh well, I guess all those traders that bet on FFIV are just out of luck this week. Another leading stock name that was punished this week was Mosaic Co.(NYSE:MOS). On January 18, 2011 Mosaic stock was trading at $85.00. Yesterday the stock was trading down to $72.00 a share before bounce a little higher. Just think about how many retail options traders were betting on Mosaic stock to reach the $90.00 strike price. Apple Inc.(NASDAQ:AAPL), Goldman Sachs Group Inc.(NYSE:GS), and VM Ware Inc.(NYSE:VMW), all had sharp, violent action away from the popular strike prices.

Commodity stocks also joined into the options expiration tornado. Just a week ago copper, and oil were making new highs for the year and right as options expiration week began these leaders just fell off a cliff. Remember the retail options trader is usually the Average Joe or often called John Q Public. It is very difficult for the retail options trader to try and beat the institutional money that can certainly move any stock that they see fit for five trading days. The lesson here is to always trade only the best chart patterns during options expiration week and have stops on all positions.




Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Options Expiration Whipsaw

January 20, 2011 – Comments (3)

Tomorrow is options expiration and if you watched the action in the market this week it is nothing short of wild and volatile. This is the one week of the month when institutional money will shake the markets both ways in order to shake out the small retail options trader. Look at the action in stocks such as Apple Inc.(NASDAQ:AAPL), Netflix Inc.(NASDAQ:NFLX), and F5 Networks Inc.(NASDAQ:NFLX) this week. These stocks have been all over the map this week trading in choppy fashion, and sometimes making violent swings in both directions. 

Many investors will say that this action in the market is due to corporate earnings and that certainly is partially true. However, if you have followed us over the years you will have noticed that this type of action that we are seeing this week occurs every month during options week. Just look at the intra-day swings today and any trader will have to admit the action is down right violent. It is important to remember that most retail options traders play options because they do not have the capital to actually purchase the stock. Therefore, these options traders usually look to settle their options before the actual expiration date for a premium gain or loss.

This is a week to trade only the best chart setups and protect profits when you get them with a stop in the money or at break even. This is not the week to get cute and look for the home run trade. Money management is essential during this week when trading the market. 



Nicholas Santiago
IntheMoneyStocks.com  [more]

Recs

0

If You Need A Rally Drop The Dollar

January 20, 2011 – Comments (0)

This morning the U.S. Dollar Index was in rally mode. As the dollar rallied higher the major stock indexes in the United States sold off sharply. Around 11:00 when the U.S. Dollar Index traded around the $79.10 area it reversed and sold off. As we all know by now when the dollar dips the market flips. The Dow Jones Industrial Average has reversed and early 80.00 point decline and is now trading in positive territory. Nothing has changed when it comes to the dollar. Please see the early blog post titled, 'U.S. Dollar Index Gets A Bid' for more on the early action this morning. Please notice the identical inverse relationship in the dollar and the Dow Jones Industrial Average in the chart below.



Nicholas Santiago
InTheMoneyStocks.com


  [more]

Recs

0

Alert: Metal Stocks May Bounce

January 20, 2011 – Comments (0)

The markets are getting hit again, though beginning to move off their lows of the day. There has been a key move to the upside in United States Steel Corporation (NYSE:X). While an analyst upgraded the price target also a massive support was hit at the lows today. These have triggered a solid reversal.  The move up has started. Note the chart below. While U.S. Steel has already started its strong move higher, Cliffs Natural Resources Inc (NYSE:CLF) may be next.  After trading in a ridiculous uptrend, CLF fell sharply the last two days. The stock has crashed all the way down to the 20 moving average on the daily chart. In the short term, this could give a supportive bounce and should be watched.  The support level is $83.00 and was kissed today. Since then, the stock has stopped falling and started to inch off the lows.

Many commodity stocks have been rocked in the last two days. Agriculture companies like Potash Corp. Saskatchewan (NYSE:POT), all the way to oil stocks and gold stocks like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Are these stocks a good buy?

Gareth Soloway
InTheMoneyStocks.com



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Recs

1

Markets Sell Again, What You Must Know

January 20, 2011 – Comments (2)

The markets sold for the second straight day, dropping sharply as commodities took the brunt of the sell off. The SPDR S&P 500 ETF (NYSE:SPY) opened slightly lower on the day and then collapsed, much like yesterday. The SPY is trading at $127.40, -0.85 (-0.66%).  The key to the drop today was continued fear from China. The Shanghai Index has dropped approximately 7% this week amid fears that China will continue to raise interest rates. Just last night, China reported stronger than expected GDP.  This continues to fuel the fears that they will continue to cool off their economy. Oil, Gold and all other commodities are getting smacked today.  The Dollar is higher as well.

Commodity stocks are taking the brunt of the sell off. The Mosaic Company (NYSE:MOS) is down another 5% on the day after dropping over 10% yesterday. On Tuesday, the stock traded to a high of $85.45. Today, the low is $72.19. While it has been hit hard, there is a possible swing trade bounce play at the 50 moving average on the daily at just under $72.00. Other stocks are dropping sharply as well. The strongest stocks for the last couple months have been Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).  These two stocks have propped up the indexes by themselves. Today, they are dropping sharply.  XOM is trading at $77.12, -1.12 (-1.43%) while CVX is trading at $91.88, -1.09 (-1.17%).

The biggest question is, has this market topped?  Right now, the markets are set to confirm a pivot turn to the downside in the short term. However, extreme caution must be used because this is options expiration week. During options expiration week, institutions will push the markets in the opposite direction from where they have been going to get options to expire worthless. The amateur, uneducated investors are usually the ones that buy the options from the institutions. Therefore, it is common to see the bigger, more powerful institutions manipulate the market to get those options to expire worthless, thus the institutions retains the full premium which is pure profit.

Assuming this market ends near the lows of the day, one must believe a short term top is in. However, my personal short positions are smaller in this down turn than usual because of the options expiration influence.  This is called smart and disciplined trading. It is the key for any swing trader or investor.

Gareth Soloway
InTheMoneyStocks.com
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0

Yields Jump In The 10 And 30 Year T-Notes

January 20, 2011 – Comments (1)

Yields in the 10 and 30 year T-Notes are climbing higher today. The yield in the 10 year T-Note is higher by 0.07 to 3.41%. The 30 year T-Note is climbing higher by 0.06 to 4.58%. When yields climb on these bonds traders can look to buy the ProShares UltraShort 20+ Year Treasury ETF(NYSE:TBT), or theProShares UltraShort 7-10 Year Treasury ETF (NYSE:PST). These ETF's will rally with higher yields.

When yields decline or trade lower on the 30 year T-Note traders can look to buy the iShares Barclays 20+ Yr Treasury Bond ETF (NYSE:TLT).



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

U.S. Dollar Index Gets A Bid

January 20, 2011 – Comments (0)

The U.S. Dollar Index is catching a bid higher today. The U.S. Dollar Index is trading higher by 0.30 cents to $78.94. This is the first bounce higher in the U.S. Dollar Index in over eight trading sessions. As we all know by now when the U.S. Dollar Index rallies the major stock markets around the world will usually deflate and trade lower. That is exactly what is taking place today as the markets come under pressure. Should the U.S. Dollar Index pullback or decline intra-day many commodity stocks may see a small bounce. The Euro has traded directly inverse to the U.S. Dollar Index for quite some time now. Traders and investors can look for that inverse relationship between the U.S. Dollar Index and the Euro to continue. 



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Sandisk Dropping With Most Other Tech Leaders

January 20, 2011 – Comments (0)

Sandisk Corp.(NASDAQ:SNDK) is a leading technology stock and major part of the Nasdaq 100. The stock comes under pressure today along with most other semiconductor stocks. Sandisk Corp. is trading lower by $1.27 to $50.23 a share. The stock will have some short term intra-day support around the $49.90 area. This is a possible short term intra-day bounce area for the stock. Please remember that  the market is under pressure today and support levels may not hold very long.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

China Plummets Again

January 20, 2011 – Comments (0)

Last night the Shanghai Index declined by nearly 3.00 percent again. Since November 8th, 2010 the important Shanghai Index has declined lower by nearly 15.0 percent. The decline comes as the Chinese economy reported a stronger than expected gross domestic product(GDP) of 9.8 percent. The Chinese consumer prices Index(CPI) was reported at 4.6 percent. The CPI number was actually in line with expectations, however, inflation continues to surge in the country.

Many investors are now blaming the Federal Reserve Bank's quantitative easing program for the spike in Asian inflation. You see all commodities are traded in U.S. Dollars, which makes the dollar the worlds reserve currency. When the Federal Reserve Bank creates massive cash reserves by purchasing U.S. Treasuries this causes most commodities to inflate. Copper, gold, oil, corn. wheat, soybeans, and most other commodities are now beginning to pullback after recently making new highs for the year. The reason for the commodity decline is because most Asian countries are now forced to raise interest rates in order to fight the high inflation that these countries are experiencing. Recently, there have been food riots breaking out in various countries around the world due to the high inflation. Even in the United States the American people are complaining about higher gasoline and food prices. Inflation is simply everywhere now.

Leading commodity stocks are under pressure today due to the expected increase in Asian interest rates. Southern Copper Corp.(NYSE:SCCO) is trading lower by $1.31 to $45.38 a share. Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading lower by $5.16 to $110.07 a share. Investors can see how copper is declining just by following these two leading copper stocks. Cliffs Natural Resources Inc.(NYSE:CLF) is a leading iron ore pellet producer that is trading lower by $2.55 a share to $84.91. This tells us that many industrial commodities around the world are declining today. Gold and silver are also declining sharply this morning.

The iShares FTSE/Xinhua China 25 ETF(NYSE:FXI) is declining today by 1.74 percent this morning. This highly popular ETF follows the Chinese market and could come under further pressure in the near term. 




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Rare Blood Bath For the S&P 500 Index And Nasdaq Composite

January 19, 2011 – Comments (1) | RELATED TICKERS: QQQ , SPY

The S&P 500 Index and the NASDAQ Composite are declining very sharply today. The catalyst for the decline today could be the weak financial stock earnings or perhaps just a very overbought stock market. Please realize the S&P 500 Index has increased higher by over 20.0 percent since Ben Bernanke announced his quantitative easing or as it is called, the QE-2 program. This is when the Federal Reserve buys U.S. Treasuries nearly everyday in order to create cash reserves which inflate commodity and food prices around the world. Great job Ben! Since that announcement of QE-2 in late August the markets have rallied higher on every dip or intra-day decline. Food riots have also broke out around the world recently. Countries such as China, India, Brazil, and other are facing major inflationary pressures in their economies. People in the United States are now paying over $3.00 for a gallon of unleaded gasoline. Great job Ben.

Oh, we should remember that the Dow Jones Industrial Average is not down very much today. This is the index that the public follows when they turn on the evening news. The Dow Jones Industrial Average(DJIA) is a price cap weighted index and not a market cap weighted index like the S&P 500 Index and the NASDAQ Composite. You see, IBM is trading higher today by $5.29 to $155.90 a share which is a new all time high. This stock is also the largest stock in the price cap weighted DJIA. Therefore, a single stock that is trading higher such as IBM can keep the entire Dow Jones Industrial Average from selling off sharply. Today the DJIA is trading lower by just 0.18 percent, meanwhile, the S&P 500 Index and the NASDAQ Composite are trading lower by more than 1.00 percent. 




Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Two Stocks Nearing A Buy

January 19, 2011 – Comments (0)

These two stocks are nearing a level where they will finally become attractive to the buy side. Both have fallen sharply in the last month after making new 52 week highs almost daily. The first is Target Corporation (NYSE:TGT) which just crossed the 200 moving average to the downside today. This is generally bearish but it appears in this specific case, it is reaching for a gap fill at $53.75. In addition, as always stated, a move below the 200 moving average is only bearish if it confirms. This is a key methodology point revealed in the Research Center.  Should TGT hit $53.75, the long will trigger for a bounce back to $55.00 in the short term.

The next stock which is getting close to a buy level is Tata Motors Limited (ADR) (NYSE:TTM). TTM was trading at $37.65 just a couple months ago and now finds itself at $26.05. One more good flush and TTM will head to the 200 moving average on the daily chart. at  $23.30.  This will trigger a buy alert for a bounce back to $25.75.

Both these stocks should be watched in the next week or two for a possible buy at the trigger level.

Gareth Soloway
InTheMoneyStocks.com




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Exxon Refuses To Give Up, Could Prop Markets Higher Off Lows

January 19, 2011 – Comments (1)

The biggest market cap stock continues to refuse to give up and fall. Exxon Mobil Corporation (NYSE:XOM) is back to the flat line on the day trading at $78.71, 0.00 (0.00%).  This is impressive to say the least as the stock was down earlier but has come back strong. XOM is a major component of the Dow Jones Industrial Average and often looked at is a barometer for the markets. When XOM rallies, the markets often rally.  Today, the markets are down but as XOM has moved to the flat line, the markets have started to move up. It is often said that the Federal Reserve uses XOM to prop up the stock market on down days. This may be starting today.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Classic Retailer Top Around Christmas, Duh!

January 19, 2011 – Comments (1) | RELATED TICKERS: TIF , COH

As the optimism over retail sales soaring hit its high in late 2010, so did almost all of the retail stocks. Tiffany & Co. (NYSE:TIF), Coach, Inc. (NYSE:COH), AnnTaylor Stores Corp. (NYSE:ANN) and Macy's, Inc. (NYSE:M) all put in their tops December, 2010. This was classic as the economy and hype reached levels not seen in years over consumer, retail spending. Since December, just before Christmas, these stocks have all fallen sharply back down.

While the run up was mainly due to the hype created by a weak Dollar and a very strong stock market making people feel richer, it also makes sense that during the height of the Christmas shopping season, these stocks would make their highs. It also makes perfect sense how after the big shopping season concluded, these stocks would see sellers and profit takers.

The future of consumer spending is very cloudy.  The markets ran higher as the Federal Reserve has inflated all asset prices including the stock market.  The dramatic rise in the stock market pushed people into stores as the fake wealth effect took hold. While this has kept people buying, the question must be asked, how much higher can the markets go?  Last year alone, from the lows in July, the markets were up close to 25%. Can the Federal Reserve inflate the stock market another 25% in 2011? If so, how low will the Dollar have to go?  These are all important questions that must be asked and will be answered in 2011.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Copper Stocks Lose Some Ground

January 19, 2011 – Comments (0) | RELATED TICKERS: SCCO , FCX

Two of the leading copper stocks are trading lower this morning as the major stock market indexes all decline. Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is selling off by $1.68 to $116.94 a share. FCX will have short term intra-day support around the $116.50 and $115.00 levels.

Southern Copper Corp.(NYSE:SCCO) is trading lower today by 0.93 cents to $$46.58 a share. This stock should have short term intra-day support around the $46.40 and $45.50 levels. Both areas could see small intra-day bounces. 

Many traders and investors follow copper very closely as it has been a sign of economic conditions around the world. Recently, due to the weak U.S. Dollar Index, copper prices and most other commodities have soared higher. Some investors will even say that the commodity index is being artificially inflated.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Juniper Networks Hits The Skids

January 19, 2011 – Comments (0) | RELATED TICKERS: JNPR

Leading computer networking stock Juniper Networks Inc.(NASDAQ:JNPR) is declining lower this morning by 0.42 cents to $37.49. The stock should have minor intra-day support around the $37.50 area. However, their should be very good short term intra-day support around the $37.00 level. This is an area where traders can look for an intra-day bounce in the stock.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Oracle Under Early Pressure

January 19, 2011 – Comments (0) | RELATED TICKERS: ORCL

Oracle Corp.(NASDAQ:ORCL) is trading slightly lower this morning by 0.18 cents to $31.35 a share. The stock comes under some selling pressure as the NASDAQ Index starts the morning in the red. Oracle stock will have some short term intra-day support around the $31.20 area and more support around the $31.05 area. Traders can watch these levels for small intra-day bounces.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The Dow Jones Industrials Rally Again

January 18, 2011 – Comments (0)

This was another trading session where the major stock indexes seemed to find a low right after the opening bell. The SPDR Dow Jones Industrial Average is trading higher today by 0.59 cents to $118.28. The Dow Jones Industrial Average made another new two year high today and is now trading at 11,852.00. The blue chip index of 30 stocks is now just 150.00 points from reaching the psychological 12,000 level.

The leaders in the Dow Jones Industrial Average include International Business Machines Corp.(NYSE:IBM), Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX), and Boeing Co.(NYSE:BA).



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Recs

1

Las Vegas Sands Gets Dealt A Bad Hand Today

January 18, 2011 – Comments (0)

Las Vegas Sands Corp.(NYSE:LVS) is trading lower today despite the major stock indexes trading higher. Las Vegas Sands stock is trading lower by 0.80 cents to $47.23 a share. The stock has steadily declined throughout the day after a small gap higher open. LVS will have short term intra-day support around the $46.50 level. This level is a spot on the chart where traders can look for a small intra-day bounce in the stock.

Wynn Resorts Ltd.(NYSE:WYNN), and MGM Resorts International(NYSE:MGM) are the other other two leading casino stocks in the gaming sector. Both of these stocks are trading slightly lower on the day.




Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Google Inc. Breaks Out On The Daily, It Is Headed Here

January 18, 2011 – Comments (0)

Google Inc. (NASDAQ:GOOG) blasted through the key $630.00 resistance today as it looks to have finally broken out to the upside. Since late 2009, Google has been stuck between the $630.00 level and the 2010 lows at $430.00.  Finally, after running into $630.00 late in 2010, it appears Google has broken out.  The next question is, where will the next stop be?  The first major resistance on Google is $655.00. This will most likely coincide with a small pull back in the very least.  After that level, the stock may head to $700.00, a major resistance point. This looks to be a powerful breakout, follow it closely.  As long as it stays above $630.00, the break out holds.  Should it close back below $630.00, the breakout has failed. 

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Exxon And Chevron Power Markets, IBM Earnings On Tap

January 18, 2011 – Comments (0)

While they are two of the most extended stocks on Wall Street, Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) continue to power higher today. Both stocks are trading up about 0.75% on the day, adding to massive recent gains. While both stocks look extended and ready to short, in this light volume environment, they show no signs of stopping.  Many major leaders in the Dow Jones Industrial Average are continuing to power higher over key levels. International Business Machines Corp. (NYSE:IBM) reports earnings today and has moved above the major $150.00 level.  The stock is currently trading at $150.90, +0.90 (+0.60%).  IBM is expected to report earnings of $4.15. Earnings should meet or beat expectations but much of this is already factored in.  The stock has a high chance of selling off on earnings today but caution must be used. Apple also reports earnings today. These should be very good, especially after Steve Jobs announced he was taking a leave of absence.  AAPL would have never released this news the day before earnings unless earnings were going to be spectacular.

Through all this mess of earnings, economic news and Federal Reserve propping, the markets are holding slightly higher with a weak Dollar. All eyes are now on earnings and will react accordingly.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

RIMM Fades From Open

January 18, 2011 – Comments (0)

Research In Motion ltd.(NASDAQ:RIMM) has faded lower from a sharp gap higher open. The stock is a direct competitor to Apple Inc.(NASDAQ:AAPL). Yesterday Apple announced that its power CEO, Steve Jobs, would be taking another medical leave. RIMM stock will have intra-day support around the $64.70 and $64.00 levels. Traders may want to watch for small bounces around both support areas.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Exxon Mobil and Chevron Corp. Lead Markets

January 18, 2011 – Comments (0)

Exxon Mobil Corp.(NYSE:XOM) is the leading integrated energy stock in the stock market. This stock has been soaring higher ever since breaking out in mid-December when the stock closed above the $72.00 level. This morning Exxon Mobil stock is trading higher by 0.67 cents to $78.50 a share. The stock will have some short term intra-day resistance around the $79.00 area. Please note that Exxon Mobil has the largest market capitalization in the stock market.

Chevron Corp.(NYSE:CVX) is trading sharply higher this morning by 0.80 cents to $93.64 a share. This stock is trading very similar to Exxon Mobil Corp. by making new 52 week highs today. Chevron Corp. will have short term intra-day resistance around the $93.70 area. The next important intra-day resistance level for the energy giant will be around the $94.00 area.

Most integrated energy stocks are trading higher this morning. This sector is helping to keep the S&P 500 Index and the Dow Jones Industrial Average from declining today. Should these energy giants reverse and begin to trade lower it would be prudent to expect the major stock indexes to follow since this is where the strength is this morning.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

IBM Helps To Lift The Dow Jones Industrials

January 18, 2011 – Comments (0)

International Business Machines Inc.(NYSE:IBM) is trading higher today by 0.68 cents to $150.67 a share. This is a new all time high for the tech giant. IBM is a major Dow Jones Industrial Average(DJIA) component. It is important to realize that the Dow Jones Industrial Average(DJIA) is just 30 stocks. The DJIA is also a price cap weighted index. Therefore, IBM will carry more weight at $150.00 a share in the index than a stock such as Disney Corp.(NYSE:DIS) which trades at $39.20 a share. The NASDAQ and the S&P 500 Index are market cap weighted indexes. IBM will have short term intra-day resistance around the $151.00 area.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Showdown at the White House

January 18, 2011 – Comments (0)

President Obama will meet with the Chinese President Hu Jintao in Washington today. Recently, President Hu Jintao said that the U.S. Dollar is no longer the worlds reserve currency. Many politicians in the United States have stated that China must allow their currency called the Yuan to be traded in the open market and no longer peg itself to the U.S. Dollar. China currently allows a small percentage of their currency to float in the open market.

China makes a very good argument for not allowing their currency to float openly. First, the Chinese own nearly $1 trillion of U.S. Debt. Second, the Chinese continue to state that the Federal Reserve Bank continues to try and drive the U.S. Dollar lower by creating massive cash reserves via quantitative easing and U.S. debt purchases. This time around the United States politicians that want China to float their currency seems to be stuck between a rock and a hard place. It is important to remember that American consumers buy most of the products that the Chinese make. If the Chinese currency becomes more expensive their products would become more expensive in the United States. At this time it really looks like a stale mate between the U.S. and China when it comes to trade policy. Both countries seem to need each other. The Chinese need to sell their goods to the United States. The United States needs China's cheap products and they also need China to continue to fund the U.S. debt which is now $14 trillion.

This morning the U.S. Dollar Index is declining again by 0.42 cents to $78.91. Last week the U.S. Dollar Index Index declined by over 2.00 full points. Folks, that is a lot of meat and potatoes in the currency world. Since 2001, the rallies that have occurred in the U.S stock markets have taken place on the back of a declining U.S. Dollar Index. In 2001, the U.S. Dollar Index traded as high as $121.03. Investors can trade the Powershares DB U.S. Dollar Index Bullish Fund(NYSE:UUP) if they believe the dollar will increase in price. Investors can also trade the Powershares DB U.S. Dollar Index Bearish Fund(NYSE:UDN) if they believe that the U.S. Dollar Index will decline in price.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

Trade Lesson: McDonald's Shakes The Weak, Profits To The Smart

January 14, 2011 – Comments (0) | RELATED TICKERS: MCD

McDonald's Corporation (NYSE:MCD) saw a dramatic fall in recent weeks. The stock has been pounded over sales fears.  Yesterday, I discussed the 200 moving average long play and the probability of a bounce on my Rant and Rave blog. Today, the stock opened lower, shaking out the weak amateurs only to roar back to the upside, now trading at $73.73 +1.06 (+1.46%). This is a huge reversal and an engulfing handle on the daily chart.  The daily chart has now recaptured the 200 moving average and the bullish call from yesterday is paying off handsomely.

This morning, I told my Intra Day Stock Chat Room to buy McDonald's within the first few minutes of the trading day.  The entry alerted was $72.23. The reasoning is key here and I will do my best to explain it for those of you that wish to learn. First, we know the chart slammed into the 200 moving average yesterday and is solidly over sold. Secondly, charts will often move below their 200 moving averages to shake out the weak traders and investors and coax on amateur shorts.  This allows the institutions to maximize profit as they take the money from the weak on the move back up. In addition, the key confirmation signal would ONLY be triggered today to the downside IF we closed below yesterdays low. The confirmation signal is proprietary technique I teach our members. Per the entry, we were trading below that low.  My thought process was this. Buying it on the gap down meant, if it did not rally back up today, I would sell and take the loss by the time the market closed today. However, downside risk on an already oversold stock with another gap down was minor.  Maybe $0.25 or so. On the other hand, he upside was huge.  Should MCD rally back and close above yesterdays low, it would likely continue higher and move back above the 200 moving average. This meant that the upside reward was in the range of $1.00 to $2.00 while downside risk was only $0.25. With all these factors, it was an obvious long play.  The signal to buy went out at $72.23.  The home run was hit. The stock is now trading at $73.72 and those that took the trade are in the money by a whopping $1.50. Congrats to those in the Chat Room that took it.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Alpha Natural Resources Under Pressure

January 14, 2011 – Comments (0)

Almost every commodity related stock has been under pressure today. The declines in many of the leading commodity stocks come as the Asian countries continue to fight high inflation with rate increases. Alpha Natural Resources Inc.(NYSE:ANR) is one particular stock that is declining today by $3.88 to $60.25 a share. The stock should have some short term intra-day support around the $60.00 level and much more around the $57.80 area should it decline further.




Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Bank Stocks Lead Again

January 14, 2011 – Comments (0) | RELATED TICKERS: JPM , C , WFC

The leading sector in the stock market is now the banking stocks. Since late November 2010, this industry group has surged to the upside. Ironically, this sector began to surge higher once an arrest warrant was issued by Interpol on December 1st, 2010. Since that time Bank of America Corp.(NYSE:BAC) has surged higher by 40.0 percent. That is quite a dramatic move higher in six weeks time.

This morning J.P. Morgan Chase & Co.(NYSE:JPM) reported earning that were slightly better that expected. The stock is trading higher by 0.61 cents to $45.06. This is a new nine month high for the stock today. The stock has risen higher by 20.0 percent since early December 2010.

Other financial stocks that are trading higher this morning are Wells Fargo & Co.(NYSE:WFC), Goldman Sachs Group Inc.(NYSE:GS), and Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C). The regional banks are also climbing higher this morning. That can easily be seen by looking at the SPDR KBW Regional Banking ETF(NYSE:KRE) which is trading higher by 0.22 cents to $26.37.

Please remember that the large major banks can borrow money from the Federal Reserve Bank at zero to a quarter percent. Therefore, as long as interest rates do not surge too high these stocks should benefit for a steepening yield curve.




Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

The Fed, China, and Friday

January 14, 2011 – Comments (0) | RELATED TICKERS: SPY , SCCO

This morning was another day filled with economic news across the globe. Last night the important Shanghai Index sold off by over 1.30 percent as China raised its bank reserve ratio by 0.5 point. This move by the People's Bank of China(Chinese central bank) comes as the country tries to bring down its high inflation rate. India is also facing extremely high inflation as their inflation rate rose to 8.4 percent in December. Other nations such as Thailand have recently raised interest rates to to try and further cool off the high inflation levels.

The rate increases in the Asian markets are certainly one of the major catalyst for the recent sell off in gold, silver, and copper. This morning spot gold is trading lower $22.00 to $1365.00 and ounce. The highly popular SPDR Gold Shares ETF(NYSE:SPY) is trading lower by 0.89 cents to $133.15. This decline in the GLD comes after a sharp decline yesterday afternoon. Southern Copper Corp.(NYSE:SCCO) is also trading lower by just 0.6 cents to $46.31. Copper stocks all declined sharply yesterday afternoon and could be under pressure again today.

The important consumer price index(CPI) was released this morning in the United States. The CPI was 0.5 percent. The core rate was up just 0.1 percent. It is important to realize that the core CPI excludes food and energy. What else is there besides food and energy in the real world? In any case there are food riots going on around the world and this report is telling us differently. It might be time to get a better economic gauge for the economy. In any case the Federal Reserve Bank's $600 billion quantitative easing program could certainly be part of the blame for the rising food prices around the world. Well, as long as our CPI does not get too hot I'm sure they won't even notice or address it.

Next up, today is a Friday. As many of our loyal readers know by now we rarely experience a sharp decline on a Friday. This is usually because the power that be do not want a bad headline before the weekend. You see, the weekend is when most of the U.S. consumers will spend money. If the Fed's quantitative easing program is going to work for a while it will require the U.S. consumer to spend money. Please realize that consumer spending accounts for 70.0 percent of the gross domestic product(GDP) in the United States. The second reason that we rarely see a sharp Friday decline is so that the Asian markets will not panic on Sunday night when they open. You see Asia is now financing the European debt markets lately by purchasing debt from countries such as Portugal, and Spain. It's a global economy and the game of hot potato is being played by every major country at this time. As for today look for a flat trading session.




Nicholas Santiago
InTheMoneyStocks.com


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Recs

8

Copper Collapse

January 13, 2011 – Comments (2)

This afternoon almost every leading commodity stock or ETF is selling off sharply. Leading copper stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Southern Copper Corp.(NYSE:SCCO), are declining lower today by more than 2.00 percent. Southern Copper Corp. will have near term intra-day support around the $45.50 area. This is a possible intra-day bounce level that day traders can watch for.

 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Commodities Tumble, However, Banks Are Steady Eddie

January 13, 2011 – Comments (0)

Today the major stock indexes are trading just slightly lower on the session. The declines in the market come as gold, silver, copper and oil all selling off today. The one sector that is holding up very well is the beloved large financial stocks that are 'too be to fail'. Major financial stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), Wells Fargo & Co.(NYSE:WFC), and Goldman Sachs Group Inc.(NYSE:GS) are all trading basically flat today. This tells us that the institutional money is still in the large financial stocks at this time. The financial stocks have been leading the markets higher since late November 2010. At this time the uptrend in the large major financial stocks remains intact.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Jobless Claims Shoot Back Up

January 13, 2011 – Comments (1)

Initial Claims for the first week of 2011 shot higher by 35,000, jumping to 445,000. This shocked the market slightly as many had hoped the jobs market had turned a corner. During the last couple weeks of December, jobless claims had dropped to the 400,000 range. The key to the previous low numbers was mainly due to the holidays. Many companies will wait to lay off employees until after the new year, not wanting the bad press of a Chistmas firing.  In addition, many newly unemployed workers will wait to file for unemployment until after the holidays, opting to spend time with their families.  This happens every year and in January, Jobless Claims shoot higher again.  This was no different in 2011.

While Jobless Claims were poor, after early selling, the markets recovered to the flat line.  This is common and something that has been happening since before Thanksgiving. Between the extreme, unnatural light volume and the Federal Reserve propping via POMO, the markets are unlikely to see much selling until something very negative happens.  Whatever occurs must be a shock to the system and something the Federal Reserve did not expect. If that happens, volume would shoot higher leaving the Federal Reserve unable to prop the markets up.

The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $128.58 with no change on the day.  The leaders today are the Nasdaq 100 stocks. Amazon.com, Inc. (NASDAQ:AMZN) has been strong from the start as well as Research In Motion Limited (NASDAQ:RIMM). Banks are mixed as they await JPMorgan Chase & Co. (NYSE:JPM) earnings pre market tomorrow.  The weakest stocks seem to be some of the highest flying commodity plays like Exxon Mobil Corporation (NYSE:XOM). 

Gareth Soloway
InTheMoneyStocks.com

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Chart Alert: McDonald's Corporation And Family Dollar Stores

January 13, 2011 – Comments (0)

Scanning the market for the perfect swing trade setup can be a tough task to handle. Thousands of charts, each one slightly different. Which chart will be the one that makes the investor a profit?  Today, there are two charts, almost identical in nature that look to be solid for a move to the upside in the coming days. The first, McDonald's Corporation (NYSE:MCD) has fallen sharply of late, over lagging sales and continued fears of the future. While the chart has taken a tumble, today it hit the daily 200 moving average and filled a key gap from August 31st, 2010. The combination of an oversold chart and these support levels makes it a high probability bounce play in the coming days.  The second chart setup is Family Dollar Stores, Inc. (NYSE:FDO). Yesterday, FDO fell into the 200 moving average on the daily. Already today, the stock is inching higher off that key support line. Both these stocks look solid in the near term and could see a good bounce for a week or so. Finding the chart setups is key to any profitable trader or investor.

Gareth Soloway
InTheMoneyStocks.com


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Halliburton Slips After A 3 Day Bounce

January 13, 2011 – Comments (0)

Halliburton Co.(NYSE:HAL) is declining today by 0.60 cents to $39.29 a share. Recently the stock has staged a small three day bounce and today could be just some small profit taking. Halliburton stock will have minor intra-day support around the $39.20 area. Should the stock decline further the $38.75 level should be the next important support level. Both support areas could see small bounces intra-day.

Transocean Ltd.(NYSE:RIG), and Schlumberger Ltd.(NYSE:SLB) are also trading fractionally lower on the session. This is indicating that the sector is somewhat weak during the session, however, Halliburton is the weakest name in the group today.



Nicholas Santiago
InTheMoneyStocks.com
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U.S. Dollar Index Gets Pounded

January 13, 2011 – Comments (0)

The U.S. Dollar Index has declined by over 2.00 points in four trading days. This is a sharp drop in the U.S. Dollar Index. The U.S. Dollar Index is measured against a basket of six leading currencies such as the Euro (57.6%), Japanese Yen (13.6%), British pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%), and the Swiss Franc (3.6%). Lately, the Asian growth countries such as China, India, and others have been raising interest rates in order to fight high inflation. Over the past two weeks there have been food riots breaking out around the world as the price of food has inflated to levels that are not affordable for many people. These are some of the negative effects of inflation.

The Federal Reserve Bank tells us that there is very little inflation in the United States. However, gasoline is now over $3.00 at the pump and this is directly felt by every U.S. consumer. In fact, spot crude is making new 52 week highs this morning and this will be felt by nearly everyone around the world.

The major stock market indexes are all still holding up fine. The major stock markets continue to rally nearly everyday. The Federal Reserve Bank continues to pump up cash reserves by buying U.S. Treasuries everyday via their quantitative easing program. In other words, the inflation rally lives on as all of this liquidity continues to prop the stock markets higher and higher.

Investors and traders at this time continue to go right along with inflation rally as the dips in the market seem to be bought up on almost every sector and index everyday. The volume trends remain at extremely light levels which tell us that there is very little participation by the public who always seems to arrive late to the party as they will usually buy the high.

Commodity ETF's and ETN's such as PowerShares DB Commodity Index Tracking Fund (NYSE:DBC), Dow Jones-AIG Commodity Index Total Return ETN (NYSE:DJP), iPath Dow Jones-AIG Softs Total Return Sub-Index ETN (NYSE:JJS), and others are all trading at or near all time highs. Higher commodity prices are one of the major effects of inflation and a weaker U.S. Dollar Index.
 
Nicholas Santiago
InTheMoneyStocks.com



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It's A Banker's World. We Are Just Living In It.

January 12, 2011 – Comments (1)

If you watch the nightly news or listen to any of the political talk shows you will hear that the major banks in the United States have paid back all the borrowed money from the Troubled Asset Relief Program(TARP) to the U.S. government. The media is now telling the American taxpayer that the government made a good investment and the overall cost was just $50 billion.

Are these people crazy when they say these things? It is true that the major banks did pay back the TARP money, however, it was with the taxpayer's money. It is very important to understand that the 'too big too fail banks' can borrow as much money as they need from the Federal Reserve Bank at zero percent. Essentially, this is free money that is created whenever it is needed. These same banks then go out and buy stocks, U.S. Treasuries, and other high yielding investments. They also operate a very profitable credit card business where they charge the average customer 16.75 percent. It's not a bad business when you think about it.

These banks also pay you, the customer, an average of less than 1/10 of 1.0 percent on your savings account money that you keep at the bank. They can then take your money and buy stocks, bonds, and other investments to make money on your capital. Hopefully, you have noticed that I have not mentioned the bank making a single loan yet. Loans are just a small part of the business and these days the major banks will barely make a loan to the average person. The bank will usually loan money to a major corporation such as International Business Machines Corp.(NYSE:IBM), or Microsoft Corp(NASDAQ:MSFT), just to use these companies as an example.

It is also very important to remember that the 'too big to fail banks' face less and less competition. In 2010, there were 157 bank failures in the United States. In 2011, there is expected to be another 150 failures across the county. Please realize that the major banks also bought out a lot of there larger competitors for pennies on the dollar. J.P. Morgan Chase & Co.(NYSE:JPM) which is considered the best of the 'too big to fail' banks bought the investment bank Bear Stearns Corp. for $10.00 a share. Originally, the price was just $2.00 a share. Later, J.P. Morgan Chase purchased Washington Mutual for just $1.00 a share. Wells Fargo & Co.(NYSE:WFC) bought Wachovia Corp. for $7.00 a share. Bank of America Corp.(NYSE:BAC) purchased Countrywide Financial for $5.00 and Merrill Lynch for $27.00 a share. The competition for these banks has simply dissolved through failures and consolidation.

What ever happened to all the toxic bank assets that they hold? The answer to this question is simply nothing. The banks still hold trillions of dollars worth of toxic assets. Some of the toxic mortgages that they hold they sell to the government agencies Fannie Mae, and Freddie Mac. Again the taxpayer foots the bill for these banks. These 'too big to fail banks' simply do not have to write the toxic assets down as liabilities any longer under the new FASB accounting rules. They can use Enron accounting as long as they see fit. It must be nice to have the rules changed whenever you need them to be.

The last point that must be made about these banks is how they are now imposing fees on almost every service depending on the amount that you keep with them. Many people are just going to start putting their money under their mattress as the banks continue to bully the customer. It is bad enough that the people with a savings account can't even get any interest on their money. Well, now you can see that it is a bankers world and we are simply just living in it.




Nicholas Santiago
InTheMoneyStocks.com
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Agriculture Stocks Stay Hot But Remain Over Bought

January 12, 2011 – Comments (0) | RELATED TICKERS: MON

Fear that food is becoming a rare luxury is sweeping the globe. Between floods, droughts, and overpopulation, agriculture stocks are the hottest thing since the Dot.com bubble. There are so many factors involved here. First, you have inflationary concerns as the Federal Reserve and most countries are printing massive amounts of money. This naturally drives up the price of food. Then you have floods, fires, droughts and over population. Emerging countries like China and India are having to squeeze every last bit of grain from each acre. This seems like an amazing bullish case for stocks like Potash Corp./Saskatchewan (NYSE:POT), Monsanto Company (NYSE:MON) and The Mosaic Company (NYSE:MOS) and in the long term it probably is. However, these stocks have soared to insane levels in the short term. In addition, grain prices have moved sharply higher causing farmers to plant more. This increases supply and in the short/mid term should bring prices back in check slightly. A smart investor would not go near these stocks until they have a solid pull back and correction. A good example would be Monsanto.  In October, Monsanto was trading at $47.07.  As of today, it hit a high of $75.09.  That is a surge of 60% in just three months. A pull back will come in the next month, be patient and be ready to pounce. A retrace to $63.00 would begin to look attractive. Always remember, the disciplined trader and investor make money.  The wild, chasing trader and investor, becomes the bag holder.

Gareth Soloway
.InTheMoneyStocks.com


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JPMorgan Chase Roars But Nears Resistance

January 12, 2011 – Comments (0) | RELATED TICKERS: JPM

JPMorgan Chase & Co. (NYSE:JPM) is spiking dramatically higher today, leading the Dow Jones Industrial Average. The stock is trading at $44.70, +1.10 (+2.52%) on the day after the CEO said it was likely a dividend hike would occur in 2011. While JPMorgan is soaring today, the stocks is near a double top from just days ago at $44.95.  This will work in the short term as resistance. In addition, the $45.00 - $45.50 level has been a major resistance point for months and should continue to be in the near future. Always remember, when good news breaks, the big institutions have already bought and are unloading it to the small investor, the bag holder. The charts keep people safe by telling them when a stock is nearing resistance or just breaking out. Other financial stocks are moving higher as well on the back of the JPMorgan news. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $171.58, +2.22 (+1.31%) while Bank of America Corporation (NYSE:BAC) is trading at $14.95, +0.26 (+1.77%).  The market believes that if JPMorgan says they will raise their dividend, then the other banks will follow as well.

Gareth Soloway
InTheMoneyStocks.com


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Markets Higher On Weak Dollar

January 12, 2011 – Comments (0) | RELATED TICKERS: UUP , SPY

The U.S Dollar dropped today, pushing the stock markets higher. The inverse relationship continues to hold true. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $23.16, -0.11 (-0.47%) while the SPDR S&P 500 ETF (NYSE:SPY) trades higher at $128.60, +1.17 (+0.92%).  The markets continue to have extremely light volume. At this point, the markets are waiting for the Federal Reserve's Beige Book at 2:00pm ET.

Commodities are leading the charge for the second day in a row. Chevron Corporation (NYSE:CVX) has hit a new 52 week high at $92.75 while Exxon Mobil Corporation (NYSE:XOM) has done the same.  These are two major Dow Jones Industrial Components and are both helping keep the markets nicely higher.

Gareth Soloway
InTheMoneyStocks.com


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Monsanto Growing Like A Weed Today

January 12, 2011 – Comments (0)

Monsanto Co.(NYSE:MON) is spiking higher today by over $2.41 to $74.93. The entire agriculture stock sector is trading higher across the board. Monsanto has increased higher by nearly 60.0 percent since early October 2010. The stock will have some minor intra-day resistance around the $75.00 level today. Monsanto is one of the stronger stocks today and it could rally further should the U.S. Dollar Index decline further. It is important to remember that the agriculture stocks often behave much like the commodity stocks.



Nicholas Santiago
InTheMoneyStocks.com
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HPQ Stalling Out Intra-day. Watch These Levels

January 12, 2011 – Comments (0)

Hewlett Packard Co.(NYSE:HPQ) is a leading tech stock that is not participating in today's rally. The stock is trading lower by 0.16 cents to $45.31. Yesterday, HPQ made a new five month high and often after a new closing high the next trading day the stock could pullback or retrace some of the recent gains. HPQ will have short term intra-day support around the $45.12 area and more around $44.80 level. Both levels could see small intra-day bounces.




Nicholas Santiago
InTheMoneyStocks.com
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4

Inflate Until It Pops

January 12, 2011 – Comments (0)

This morning the U.S. Dollar Index is trading sharply lower by 0.37 cents to $80.46. As we have all learned by now when the U.S. Dollar Index declines most commodities will inflate and trade higher. Over the past ten years a weaker U.S. Index has been catalyst for the multi year rallies. If you look at the 2003 – 2007 stock market rally it was the declining U.S. Dollar Index that helped to inflate the stock markets around the world at that time.

The Federal Reserve Bank says that they are aiming for 2.0 percent inflation. Meanwhile, most leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading at a new 52 week high. The iPath Dow Jones UBS Copper Subindex Total Return ETN(NYSE:JJC) is trading just under it's all time high that was made last week at $59.63. The United States Gasoline Fund (NYSE:UGA) is trading at a new 52 week high this morning. Coffee, cotton, and other soft commodities remain at 52 week highs. Leading growth countries such as China, Brazil, and India, are complaining about inflation by having to raise interest rates yet the Federal reserve does not see inflation. There were food riots taking place in Algeria, and various other countries around the world over high food prices last week yet the Federal Reserve says there is no inflation. When is the Fed going to look at the real world and not at the reports that exclude food and energy? Perhaps never.

The major stock market indexes around the world have all rallied back sharply over the past 22 months when the stock market indexes made their March 2009 low. The rally higher across the globe comes as the Baltic Dry Index has been plummeting since June 2010. Here is the definition of the Baltic Dry Index according to Wikipedia. The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes. The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a time-charter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain". How can the stock markets inflate around the world without the Baltic Dry Index rising? In June, the Baltic dry Index was trading around 4250.00. Yesterday, the Baltic Dry Index traded as low as 1480.00. Something is wrong with this picture, however, the stock markets continue to inflate. Enjoy the rally it while it lasts. It won't last forever.




Nicholas Santiago
InTheMoneyStocks.com
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Energy Stocks Are The Leaders Today

January 11, 2011 – Comments (0)

Today most of the energy stocks are trading sharply higher today. The popular Oil Services Holders Trust(NYSE:USO) is trading higher by 3.11 to $140.59. Just yesterday the OIH was under pressure for most of the session. However, today spot crude is trading sharply higher by $1.93 to $91.18 a barrel. The rally in crude comes as there is a leak in pipeline in Alaska that had to be shut down. It is reported that the United States receives 15.0 percent of it's domestic oil from this area.

Other leading energy stocks that are trading higher today are ConocoPhillips(NYSE:COP), Devon Energy Corp.(NYSE:DVN), and Noble Energy Inc.(NYSE:NBL) just to name a few stocks. As long as the Federal Reserve Bank continues to create new cash reserves hard assets such as oil, energy stocks, and most other commodities may trade higher as investors look to replace the U.S. Dollar as the reserve currency.





Nicholas Santiago
InTheMoneyStocks.com
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Commodities Lead The Charge Higher

January 11, 2011 – Comments (0) | RELATED TICKERS: CVX , GLD , USO

Commodities are leading the market higher today. The United States Oil Fund LP (NYSE:USO) is higher by 1.60%, trading at $38.78, +0.61. In addition, the SPDR Gold Trust (NYSE:GLD) finds itself higher on the day, trading at $134.57, +0.45 (+0.34%). Last week, oil and gold took somewhat of a tumble. Key stocks like Chevron Corporation (NYSE:CVX) and United States Steel Corporation (NYSE:X) pulled back nicely. These stocks are now jumping back higher again, giving an extra push of life to the markets in this extreme light volume session.

Volume has yet to fully return to the markets in 2011. As long as things remain quiet on the global horizon, this is likely to continue. The S&P is hovering just below resistance at 1280. This this be taken out, another small leg up could begin. Should it fail to push through in the coming sessions, look for a pull back next week. Based on these levels, the markets are entering a pivotal period where a move will be forthcoming shortly.

Gareth Soloway
InTheMoneyStocks.com


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Sandisk Fades. Watch This Level

January 11, 2011 – Comments (0) | RELATED TICKERS: SNDK

Sandisk Corp.(NASDAQ:SNDK) has sold off today after starting the day slightly higher at the open. The stock made a new 52 week high yesterday and often after a new high a pullback or some profit taking will occur. While the daily chart still remains in an uptrend the intra-day chart is in a small downtrend. The stock will have short term intra-day support around the $51.90 area. This is where traders can look for a small bounce in the stock.




Nicholas Santiago
InTheMoneyStocks.com
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4

China to the Rescue

January 11, 2011 – Comments (0)

Many traders and investors believe that the global stock market rally is really nothing more than another deck of cards similar to what investors saw from 2003 to 2007. During the 2003 – 2007 rally the Dow Jones Industrial Average rallied nearly 90.0 percent in five years. The catalyst for that rally was low interest rates by the Federal Reserve Bank. As we all know this is the same catalyst for the current rally with a few extra doses of stimulus.

This time around the extra stimulus is the new accounting rules for the large major banks that are supposedly too big to fail. The FASB mark to market accounting is completely changed. The banks do not need to down its old liabilities. If it did they would all be insolvent. Then the Fed funds rate which is the overnight lending rate to large major banks such as J.P. Morgan Chase & Co.(NYSE:JPM), Bank of America Corp.(NYSE:BAC), Well Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C) is at zero percent, so the banks can borrow money basically for free from the Federal Reserve Bank. Then you have have the Federal Reserve Bank actually buying U.S. Treasuries everyday with money that is created out of thin air. Wouldn't we all like to do that? Plus there are countless government spending programs taking place everywhere. Do you remember the 'cash for clunkers' program or the $8,000 home buyer tax credit just to name a few. Point blank this is all unprecedented stimulus to basically rescue a broken and even broke economy.

Next we move this story to China and the rest of Asia. We the public have been sold that China is the growth engine of the world. Well, it is true that China and India can produce goods and services cheaper than anyone else to to it's low labor costs. China and India both know this and are enjoying their new found wealth. China even goes so far as to buy nearly $1 trillion in U.S. Debt. The reason that they do this is so that the United States continues to purchase their goods that they produce so cheaply. If the U.S. economy takes a nosedive who is going to buy all those fine Chinese trinkets? Remember, most goods that are invented or developed in the United States such as the I-pod or some other electronic gadget is manufactured in Asia. China needs the United States as much as the United States needs China. China and Japan are both now buying European debt.

The European debt problems are growing on a daily basis. One country after another seems to have rising record bond yields nearly everyday. Spain, Portugal, Belgium, and Italy are the countries that are most spoken about when it comes to debt, however, France should be watched closely too. What makes them exempt from the same problems as the other European nations when it comes to debt? Keep an eye on France and remember you heard it here.

Can China bailout the world in order for the world to continue to buy it's products? Is this not the same money revolving back to the nation. China lends to the United States and Europe so the U.S. and European consumer can continue to spend money on Chinese products. How long can this game of hot potato last? Well, the low interest game in the United States lasted five years from 2003 – 2007. This current game by the central banks around the world may last a while, however, this time the outcome could be much worst. Lets all enjoy the inflation rally while it lasts. It is a global economy, unfortunately, when it ends it might be a global collapse.





Nicholas Santiago
InTheMoneyStocks.com
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Markets Weak As Eyes Look For Next Catalyst

January 10, 2011 – Comments (0)

Today's trading session is simply a repeat of the trading action that we all saw this past Friday. On January 7, 2011 the major stock indexes such as the SPDR S&P 500 Index Trust(NYSE:SPY), and the SPDR Dow Jones Industrial Average(NYSE:DIA) all sold off during the first half of the trading day only to rally back on extremely light volume throughout the rest of the session.

This morning the Dow Jones Industrial Average was trading lower by nearly 100.00 points in the first twenty minutes after the opening bell. However, since that time the volume has faded and the major stock indexes floated higher as if they were a helium balloon. This type of action occurs nearly everyday. The Federal Reserve Bank completed another $7.9 billion in U.S. Treasury purchases today by 11:00 am EST and many traders and investors will simply front run the Federal Reserve Bank's POMO operation. That can be the only explanation for the repeating action that we see day after day in the major stock indexes.

The U.S. Dollar Index is also pulling back today which can and often helps the major stock averages inflate and trade higher. However, lately the light volume trading has been the catalyst for the move higher in these markets especially when the major stock market indexes start the session lower. Unlike a Friday where we usually look for a flat close, today is simply anyones guess. All I know is when the markets are this light it certainly makes for a dull market. We should all know by now the old market adage that states, 'never short a dull market'. Despite the light volume rise throughout the trading day this is one dull day.




Nicholas Santiago
InTheMoneyStocks.com
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Markets Weak As Eyes Look For Next Catalyst

January 10, 2011 – Comments (0) | RELATED TICKERS: SPY , AA

 The jobs number passed last Friday. It was a non event and somewhat of a disappointment. Just 103,000 jobs created in the month of December. While there has been plenty of positive data in the last couple months, the markets are not seeing the jobs growth they hoped for. This is keeping new buyers on the sidelines and is bringing in some profit taking. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $126.81, -0.33 (-0.26%). At this point, it is likely all eyes will be on earnings in the next couple weeks. Alcoa Inc. (NYSE:AA) kick starts earnings today after the market closes. They are expected to report between $0.19 and $0.22 per share. The stock has screamed higher in recent weeks as commodity stocks have taken off. In August, AA was trading at $10.00 per share. It has risen to a high today of $16.71. In the coming weeks watch the Dollar and commodity prices, along with earnings. These will be the driving forces.

Gareth Soloway
InTheMoneyStocks.com


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Apple Moves Higher Into Verizon Announcement

January 10, 2011 – Comments (0) | RELATED TICKERS: VZ , AAPL

Apple Inc. (NASDAQ:AAPL) is floating higher today in anticipation of tomorrows announcement by Verizon Communications Inc. (NYSE:VZ). Verizon is expected to announce the availability of the iPHONE.  Up until now, AT&T Inc. (NYSE:T) has had exclusive rights to the iPHONE. This has been long anticipated and seems to be coaxing buyers into Apple today. Apple is trading at $340.81, +4.69 (+1.39%).  Apple has a history of running up into announcements only to see some sellers come in after on profit taking. This may be happening today. It will be very interesting to see if the iPHONE has any bells and whistles or if it is the standard phone. Many analysts are talking about this pushing Apples share price far higher as it fuels earnings. While this may be somewhat true, the hype is usually always more than reality.


Gareth Soloway
InTheMoneyStocks.com


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Solars Shine As Predicted

January 10, 2011 – Comments (1)

The solar stocks continued to get a boost higher today after LDK Solar Co., Ltd. (NYSE:LDK) raised guidance for the fourth quarter in 2011.  Over the last couple months, solar stocks had fallen off their recent high levels as profit taking took place. Many of these stocks came in sharply and began to form amazing bases. This was mentioned in my article on January 6th, 2011 titled "Solar Stocks Start To Shine". The key stocks mentioned were Solarfun Power Holdings Co., Ltd. (NASDAQ:SOLF) and JA Solar Holdings Co., Ltd. (NASDAQ:JASO). Both stocks are up significantly in the last two days and could continue to move higher.  Again, the key was isolating the bullish charts, noticing positive money flow and other proprietary techniques. This alerted me that a move higher was likely in the coming days and to pile in on the long side.

Gareth Soloway
InTheMoneyStocks.com


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Oil Service Holders Trust Level To Watch

January 10, 2011 – Comments (0) | RELATED TICKERS: OIH

The Oil Service Holders Trust(NYSE:OIH) is declining sharply this morning. The OIH is trading lower by $2.70 to $136.55 a share. This comes on a day when many of the leading oil services stocks such as Halliburton Co.(NYSE:HAL), Transocean Ltd.(NYSE:RIG), and Schlumberger Ltd.(NYSE:SLB), are all trading lower by more than 1.0 percent on the session. The popular OIH will have short term intra-day support around the $135.50 level.




Nicholas Santiago
InTheMoneyStocks
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0

Energy Stocks Feel The Heat. Watch NBL

January 10, 2011 – Comments (0)

Most of the leading energy stocks are trading lower this morning. Noble Energy Inc.(NYSE:NBL) is a leading energy stock that is trading lower today by $1.33 to $81.77 a share. The stock will have short term intra-day support around the $81.00 level. Traders and investors should keep one eye on the U.S. Dollar Index. Should the U.S. Dollar Index decline most commodity related stocks will often catch a bid higher. 

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