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January 2012

Recs

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Intra Day Support And Resistance Levels On The QQQ

January 31, 2012 – Comments (0) | RELATED TICKERS: QQQ , AMZN

The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) made a new 52 week high by $0.06 today. This minor high is also known as a classic double top. The technology index fell sharply off that level and is now trading near the lows of the day. The chart below shows the key support and resistance levels on an intra day basis. In addition, the chart shows the 20, 50 and 200 moving averages on a 10 minute time frame. Amazon.com, Inc. (NASDAQ:AMZN) reports earnings today after the market closes. This will have an impact on technology stockst tomorrow.

Gareth Soloway
InTheMoneyStocks.com

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Multi-Year Market Trend Line And Hype Is Key To Top

January 31, 2012 – Comments (0) | RELATED TICKERS: SPY , DHT , BOM

After an impressive recovery yesterday, the markets opened nicely higher today. These light volume floats in the market are normal in 2012 and have helped keep stocks near their 52 week highs. However, major technical issues are showing themselves and downside looks unavoidable.

After the markets opened higher, a reversal took place. The selling has continued into the lunch hour which is a change in character. The key to the top on this market was a hit of the $133.30 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was a major gap fill from July. Even more importantly, if you connect the highs from 2007 and 2011, the trend line runs directly into the $133.30 level. Note the chart below.

If these reasons mentioned above were not good enough, CNBC has been pumping a golden cross on the daily chart as a signal the markets were going to surge higher. Taking the contrary view, which everyone should do when dealing with any media outlet that hypes the market, it was a sell signal.

Yesterday, DHT Holdings Inc (NYSE:DHT) hit its target for a 36% gain. Today, Powershares DB Base Metals Double Short ETN (NYSEARCA:BOM) hit its swing trade target for a 10% gain.

Gareth Soloway
InTheMoneyStocks.com

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Mirror Opposites

January 31, 2012 – Comments (0) | RELATED TICKERS: UUP , UDN , SPY

The chart below basically says it all. The green and red bars represent the U.S. Dollar Index futures (DX H2), the black and white bars represent the S&P 500 Index e-mini futures (ES H2). Traders can easily see the inverse relationship between these two leading indexes. We can all forget the news and simply follow this chart. This critically important chart tells us the direction of the stock market. At this time, the stock market cannot trade higher with a stronger U.S. Dollar Index. The only time that the stock market rallies is when the U.S. Dollar Index deflates and trades lower. All traders must keep an eye on the U.S. Dollar Index at all times. It is really the only chart that matters.

Nicholas Santiago
IntheMoneyStocks.com

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Can The Markets Defy Gravity Again?

January 31, 2012 – Comments (0) | RELATED TICKERS: SPY , DIA , VXX

Nearly every trading day the major stock indexes will decline before the noon hour. This decline in the major stock market indexes usually leads to a light volume rally that lasts into the close. For example, yesterday the major stock indexes dropped sharply lower at the open only to find a low after the first hour and trade basically unchanged by the closing bell. This type of activity occurs nearly every trading day since December 19, 2011 when the Dow Jones Industrial Average (DJIA) traded as low as 11,231.56. Today, the DJIA is trading around the 12,700.00 level which is close to a six month high.

The catalyst for the stock markets is the cheap money by the central banks and the better news out of the European Union. In my opinion, the falling U.S. Dollar Index is the real catalyst for a higher stock market. You see, the U.S. Dollar is the world's reserve currency, therefore, if you live in China and want to buy oil or copper you must use U.S. Dollars to buy it. When the U.S. Dollar declines everything that people use such as oil, copper, silver, rice, and other commodities will inflate and trade higher. Just look at a chart of the U.S. Dollar Index when it trades higher and you will see the stock and commodity markets tumble lower. Perhaps one day this inverse relationship between the equity markets and the U.S. Dollar will change, however, I would not bet on that happening anytime soon.

The major stock indexes are overbought and extended in the near term. The trading volume has been nothing short of pathetic during this rally. The poor trading volume could be problematic down the road as this signals a lack of real conviction. This type of action tells us that traders should enjoy the inflation rally while it lasts. Remember, nothing goes up forever, or in a straight line. The markets can only defy gravity for so long.

Nicholas Santiago
InTheMoneyStocks.com

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Light Volume Stock Market Float

January 30, 2012 – Comments (0) | RELATED TICKERS: SPY , AMZN , AAPL

Light volume is saving the day once more. After an ugly gap lower, the markets are floating back towards the flat line. This is classic behavior for a market without volume. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.10, -0.63 (-0.48%).

Earnings continue this week with Amazon.com, Inc. (NASDAQ:AMZN) reporting Tuesday after the market close. This is highly anticipated after Apple Inc. (NASDAQ:AAPL) reported blockbuster results.  In addition, Friday, Wall Street gets the Non Farm Payroll and Unemployment Report. This will be looked at closely but big players, waiting to buy or short the market.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Proprietary Stock Market Levels Bring Profits

January 30, 2012 – Comments (0) | RELATED TICKERS: SPY

Stocks opened sharply lower to start the week. The drop was driven by issues bubbling up out of Europe once again. While these European issues came up early Monday morning, a master target had been achieved late last week in the markets. This level was $133.30 on the SPDR S&P 500 ETF (NYSEARCA:SPY) and had been given to members weeks in advance. As the proprietary analysis proved again, knowing these levels can make you millions. Members shorted the market last Thursday when the SPY hit $133.30. Since then, profits have swelled. 

Gareth Soloway
InTheMoneyStocks.com


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Recs

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Retail Under Early Pressure

January 30, 2012 – Comments (0) | RELATED TICKERS: WMT , NKE , TGT

Most of the leading retail stocks are coming under early selling pressure. The Market Vectors Retail ETF (NYSEARCA:RTH) is trading lower by $1.31 to $116.25 a share. This tells us that the majority of leading retail stocks are declining at the start of the day. Traders can watch for intra-day support around the $115.50, and $114.25 levels.

Some leading retail stocks that are actually trading positive this morning include Nike Inc (NYSE:NKE), Target Corp (NYSE:TGT), and WalMart Stores Inc (NYSE:WMT). It is important to note that all of these stocks are just slightly positive on the day. Most other leading retail stocks are declining lower this morning.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

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Can The Dollar Dip Enough To Save The Day?

January 30, 2012 – Comments (0) | RELATED TICKERS: UUP , RIO , SCCO

This morning, the U.S. Dollar Index futures (DX H2) are trading higher to start the day. As we should all know by now, when the dollar starts off strong the major stock indexes will usually be weak. That is certainly the case this morning as the major stock indexes come under early selling pressure. Very often, the U.S. Dollar Index will decline once the opening bell rings at the New York Stock Exchange. If the dollar begins to decline intra-day the major stock indexes will trade off of the morning lows. Even this morning, once the stock market officially opened at 9:30 am EST the U.S. Dollar Index dipped off the morning highs helping all of the major stock indexes to catch a small bid. Traders must remember when the stock markets trade higher it will most always mean that the U.S. Dollar is losing value and trading lower. This inverse relationship between the U.S. Dollar and the major stock market indexes has occurred for over 10 years now.

Some leading stocks that will trade inverse to the U.S. Dollar Index will include Southern Copper Corp (NYSE:SCCO), Exxon Mobil Corp (NYSE:XOM), and Rio Tinto Plc (NYSE:RIO). All of these leading stocks are declining lower today on the back of the stronger U.S. Dollar. Traders should expect these stocks to remain under pressure as long as the U.S. Dollar Index continues to be strong.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Commercial Real Estate, Here Is The Trade

January 30, 2012 – Comments (0) | RELATED TICKERS: IYT , SPG , VNO

The commercial real estate sector has been on fire since October 4, 2011. At that time, the iShares Dow Jones Real Estate ETF (NYSE:IYT) traded as low as $46.70 a share. Last week, the important IYR closed at $60.78 which is a new six month high. This rally has been nothing short of sensational for the entire sector. The IYR is now overbought and extended in the short term on the daily chart. Traders must begin to look for a pullback or at least some consolidation in the near term. The near term resistance levels for the IYR are around the $62.00, $70.00, and $74.50 areas. Should the IYR decline from its current price traders should watch for near term support around the $57.30, $56.10, and $55.00 levels.




Simon Property Group Inc (NYSE:SPG) is considered the best of the best when it comes to the commercial real estate stocks. This stocks has surged higher by more than $30.00 since October 4, 2011 when SPG was trading around the $103.50 area. Last week, SPG closed at a new all time high at $136.69 a share. The stock remains in a very strong uptrend by trading above all of the major moving averages. The only problem with SPG stock at this time is that it is a bit overbought. Traders should watch for near term daily chart resistance around the $138.00, and $143.00 levels. Should this market leading stock pullback or decline from its current price traders should watch for support around the $129.00, and $123.00 levels. SPG will report earnings on February 3, 2012.




Vornado Realty Trust (NYSE:VNO) is another leading commercial real estate company based out on New York City. Traders must understand that while this stock has been rallying higher over the past month it is still trading below its November 2011 high. This tells us that the stock is weak relative to the rest of the commercial real estate sector. Traders should watch for near term resistance around the $83.00, $85.00, and $89.50 levels.  Should VNO pullback from its current price there should be short term daily chart support around the $77.60, 76.20, 74.70, and $73.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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It's A Dollar Story

January 27, 2012 – Comments (0) | RELATED TICKERS: UUP , FCX , BHP

For over ten years now the major stock indexes have traded inverse to the U.S. Dollar Index. That inverse relationship is back in full force today. Anyone can easily see how the S&P 500 Index e-mini futures (ES H2) jumped off the morning lows as soon as the U.S. Dollar Index tumbled lower. All traders and investors should have a chart of the U.S. Dollar Index futures (DX H2) up at all times. If traders do not have the U.S. Dollar Index chart available the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) will mimic the action in the dollar.

Most leading commodity stocks will trade inverse to the U.S. Dollar Index. Leading stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Cliffs Natural Resources Inc (NYSE:CLF), and BHP Billiton Ltd (NYSE:BHP) will usually all rally when the U.S. Dollar Index declines. These stocks have more to do with the movement in the U.S. Dollar Index than anything else. Traders should expect all of the commodity stocks to trade higher if the U.S. Dollar Index declines throughout the day. The bottom line, it is a dollar story and until that correlation changes it will be for quite some time to come.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

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Small Biotechnology Stocks Roar, Profit Now

January 26, 2012 – Comments (0) | RELATED TICKERS: ILMN , AGEN , OXGN

Talk about large pharmaceutical companies buying small biotechnology firms is all the rage. The idea behind this talk is large companies have almost no pipeline of drugs and a tiny growth rate. They need to buy smaller companies with good drug pipelines to increase shareholder value.

A great example of this would be the hostile bid for Illumina, Inc. (NASDAQ:ILMN)  by Roche.

Small biotechnology firms have started to jump over the last two days. Today, stocks like Agenus Inc. (NASDAQ:AGEN), OXiGENE, Inc. (NASDAQ:OXGN), EntreMed, Inc. (NASDAQ:ENMD)  are all charging higher.

While these have already made a move, charts of Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) and ADVENTRX Pharmaceuticals, Inc. (NYSEAMEX:ANX) both look attractive. ADVENTRX is trading at one-half cash value.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

1

Markets Hit Master Level, Correction Coming

January 26, 2012 – Comments (0) | RELATED TICKERS: SPY , AAPL , UUP

The markets pushed into the master $133.30 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was given to members weeks ago as the probable short term top on the market. Sure enough, this level was hit early in the trading day and the markets reversed immediately. Obviously, shorts were taken and are in the money already. A negative close today would solidify a short term market top.

The crescendo of jubilation in the media and the public coincided perfectly with this top. After Apple Inc. (NASDAQ:AAPL)  reported stellar results, the Federal Reserve came out with positive comments on what equates to QE 2.5. These two set in motion a party in the media and amongst retail investors like nothing seen in years. This gives the institutions a chance to sell into the average investor and put in a market top.

Commodities are higher on a weaker Dollar. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.09, -0.08 (-0.36%). 

Gareth Soloway
InTheMoneyStocks.com
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Recs

4

Don't Believe The Hype

January 26, 2012 – Comments (1) | RELATED TICKERS: GLD , SLV , IAU

Nearly everyday since December the media reports how good things are getting in the economy. This report was better than expected, that report is better than expected and everyone is working again. While the economy might be healing in some way investors must ask themselves why the Federal Reserve is continuing to promote low rates until late 2014. The central bank is clearly dangling the carrot in front of the institutions to buy equities and inflate this market higher. Gold is the ultimate barometer of inflation and yesterday gold soared. The SPDR Gold Shares (NYSEARCA:GLD) rallied by nearly $5.00 after the Federal Reserve announcement yesterday afternoon.

Investors must think for a minute, if things are really getting so much better why would the central bank signal further stimulus and an extremely low rate policy. After all, many investors can argue that it was the low rate policy that caused the housing and credit bubbles just a few years ago. Come to think of it, many can even argue that low rates caused the dot-com bubble in the late 1990's. Sure, low rates help to create inflation, however, the federal funds rate has been at zero to a quarter percent since December 2008.

The people that get hurt the worst from this type of monetary policy are the elderly and those on fixed incomes. These people rely on interest income from bonds and their savings account. Neither of these investment vehicles produce any meaningful yield. Have you looked at what the interest is on a savings account lately? It is basically zero. Low interest rates also cause prices in everything that people need to rise. Just look at the food and energy inflation after the Federal Reserve implemented QE-2 in late 2010, prices rocketed higher. Food and energy are the most important goods that anyone can spend their money on. If and when another round of quantitative easing does come inflation will surge through the roof. If things were so rosy in the economy the central bank would not keep these rates so low. Remember, this is the month of January which is usually a bullish month. Don't believe the hype that this economy is in such good shape just because the stock market is moving higher at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

6

Falling U.S. Dollar Inflates Markets

January 25, 2012 – Comments (1) | RELATED TICKERS: JJC , UUP , GLD

This afternoon, the Federal Reserve Bank announced that they will keep the fed funds rate at zero to a quarter percent until the end of 2014. This statement by the central bank has caused the U.S. Dollar Index to plummet intra-day. As we all know by now, when the dollar dips the markets flip. Everything in the market has rallied higher. Gold, silver, copper, oil, and just about every other commodity has soared since the announcement. The SPDR Gold Shares (NYSE:GLD) have jumped higher by $4.19 to $166.21 a share. Gold is the ultimate barometer of inflation and it will usually lead the stock market.

As long as the U.S. Dollar Index continues to decline these markets are likely to inflate. Should the U.S. Dollar Index eventually find a low and rebound that is when the stock and commodity markets will pullback and decline lower. Until that time the inflation rally is alive and well.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Weakness After AAPL Signals Coming Sell Off

January 25, 2012 – Comments (1) | RELATED TICKERS: AAPL , SPY

You could hear the cheer from CNBC commentators as Apple Inc. (NASDAQ:AAPL) reported monster earnings. This truly was a great earnings report. The jubilation started in the media and spread to the little investor. Proclamations of 1380 on the S&P 500 were constant along with "tomorrow" will be a monster up day in the markets.

However, here the S&P 500 sits on the negative side. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.28, -0.18 (-0.14%). The NASDAQ is only slightly higher on the day. Most major technology companies are selling off today while Apple is responsible for the gains alone.

One thing to learn is to ignore the Wall Street hype and focus on the charts. By focusing on the charts, it was clear that the markets were overbought and there was little if any upside left. The euphoric state of the media is used to coax the small investor into the markets. As they buy, the institutions sell. This is classic and marks the top of the market in the short term. Remember, when the markets are at their highest point of happiness and the media is pumping the strongest, sell your longs and go short.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Integrated Energy Out Of Fuel This Morning

January 25, 2012 – Comments (0) | RELATED TICKERS: XOM , COP , CVX

The leading integrated energy stocks are all coming under some early selling pressure this morning. Exxon Mobil Corp (NYSE:XOM) is now the second largest company by market capitalization behind Apple Inc (NASDAQ:AAPL). This leading energy stock is trading lower by $1.00 to $86.17 a share. Exxon Mobil stock has been very strong as of late on the daily chart and today's pullback is rather healthy for the energy heavyweight. This giant energy company will have intra-day support around the $85.85 area.

Chevron Corp (NYSE:CVX) is another leading integrated energy stock that is trading lower this morning by $1.16 to $105.57 a share. ConocoPhillips (NYSE:COP) is trading lower by 0.30 cents to $70.30 a share. All of the stocks mentioned are leading components of the Dow Jones Industrial Average (DJIA).

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Financial Stocks Are Dipping Early

January 25, 2012 – Comments (0) | RELATED TICKERS: JPM , GS , BAC

This morning, the leading financial stocks are coming under some early selling pressure. Since December 19, 2011 nearly every morning decline in the financial stocks has been bought in the latter part of the trading day. Last night, President Obama said that the banks would not be bailed out again and they would not be allowed to gamble the way they have in the past. This statement by President Obama could be having a negative effect on the financial stocks today.

Some leading financial stocks that are falling lower today include J.P. Morgan Chase & Co (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS), Citigroup Inc, and Morgan Stanley (NYSE:MS). Traders should follow JPM stock very closely as this stock seems to be the most important financial stock at this time. JPM stock will have intra-day support around the $37.00, and $36.50 levels.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Steel Stocks Refuse To Bend

January 24, 2012 – Comments (0) | RELATED TICKERS: X , NUE , AKS

This afternoon, all of the leading steel stocks are holding up very well. The strength in the steel sector is partly coming from a weaker U.S. Dollar Index. All traders should remember that anything that contains a metal will benefit from a weak dollar. Leading steel stocks such as U.S. Steel Corp (NYSE:X), Nucor Corp (NYSE:NUE), AK Steel Holdings Corp (NYSE:AKS), and Steel Dynamics Inc (NASDAQ:STLD) remain strong on the daily charts. These stocks look as if they could have a little more upside in the near term.

It is important for traders to realize that U.S. Steel Corp (NYSE:X) is the leading stock in this industry group. This stock should have important daily chart resistance around the $30.00 level. Short term traders can watch for intra-day resistance around the $28.90, and $29.30 levels.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Alert: Sympathy Play To SBSA Is ROIAK

January 24, 2012 – Comments (0) | RELATED TICKERS: SBSA , ROIAK

Spanish Broadcasting System Inc (NASDAQ:SBSA) is up another 20% today. The stock has soared over 100% in the last four trading days after reporting better than expected earnings. This run is a combination of solid earnings and an epic short squeeze. While this stock is too extended to play, Radio One, Inc. (NASDAQ:ROIAK) is the obvious sympathy play. The chart is hovering near the 52 week lows and is in the same sector as SBSA. This makes sense on many levels but lacks the volume to get attention. Watch for a volume surge and then momentum traders to pile in. Upside potential is north of $1.50 if this gets started.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Small Investors Keep Market Up As Institutions Enjoy

January 24, 2012 – Comments (0) | RELATED TICKERS: SPY , AAPL

The markets are hovering slightly lower on the day. Overnight, more worries crept out of Greece causing the futures to fall and the Dollar to pop. However, once the market opened, the light volume float was back on. This has been the common theme of late and is likely to continue as long as volume remains light. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.26, -0.32 (-0.24%).

All eyes are on Apple Inc. (NASDAQ:AAPL). They report earnings after the closing bell today. This will be a major report for the technology sector and likely a market mover.

The markets keep inching lower early in the day when volume is highest, then floating higher later on. This tells the top traders that the market is overbought but the little investor continues to be caught in the hype and buy. The lack of volume means that big players are not buying but allowing the small investor to push things higher. Essentially, this is the little investor getting long before the bottom falls out.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Cloud Stocks Are Rising

January 24, 2012 – Comments (0) | RELATED TICKERS: VMW , CRM , CTXS

This morning, all of the leading cloud computing stocks are trading higher despite a slightly weaker stock market. Leading cloud computing stocks such as VMWare Inc (NYSE:VMW), Salesforce.com Inc (NYSE:CRM), Riverbed Technology Inc (NASDAQ:RVBD), and Citrix Systems Inc (NASDAQ:CTXS) are all sharply higher at the start of the trading session. It is important to note that these market leaders are coming into short term daily chart resistance.

Short term day traders can watch CRM stock for intra-day resistance around the $117.00 and $119.00 levels. The stock will have daily chart resistance around the $121.00 area.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Transports Ship Markets To The Downside

January 24, 2012 – Comments (0) | RELATED TICKERS: IYT , FDX , UPS

Many traders and investors will follow the transportation index very closely. When the transport stocks trade higher it is usually considered a sign of expansion and economic growth. On the flip side, when the transport stocks decline or sell off it is usually a sign of economic contraction and slower economic growth. This morning, the iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is trading lower by $1.57 to $91.86 a share. This is a 1.60 percent decline for this leading and highly followed sector. Short term traders can watch for some intra-day support around the $91.50, and $91.00 levels.

Some of the leading transport stocks that are declining lower this morning include FedEx Corp (NYSE:FDX), CSX Corp (NYSE:CSX), and Union Pacific Corp (NYSE:UNP). All of these leading stocks will usually trade right in line with the S&P 500 Index which is also trading lower to start the day.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

Will The Volume Ever Return To This Market?

January 23, 2012 – Comments (0) | RELATED TICKERS: SPY , DIA , VXX

These days the trading volume is extremely light. The three month average trading volume on the SPDR S&P 500 Index (NYSE:SPY) is around 202 million shares a day. The trading volume on the SPY since December 19, 2012 has been around 125 million shares a day. Normally, the daily volume will decline around the holiday period, however, the volume will usually pick up around the corporate earnings season. So far, the trading volume on the SPY and the major stock indexes has not increased at all during this earnings season. Light volume will generally favor the upside in most markets. All traders and investors should remember the old market adage that states, a trader should never short a dull market. Well, light volume is the word that should be used instead of the word dull.

This afternoon, at 3:00 pm EST the trading volume on the SPY is around the 98 million level. Once again, the SPY floats higher throughout the day after a minor intra-day decline. All traders must respect the upside when the markets have this ridiculously light volume day after day. If corporate earnings and European news cannot bring volume into this market perhaps it will remain this way for a little while longer.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

3

Natural Gas Bottom In Place

January 23, 2012 – Comments (0) | RELATED TICKERS: CHK , UNG

Natural gas staged an impressive reversal this morning. Chesapeake Energy Corporation (NYSE:CHK)  said they would shut down some of their natural gas production based on the current price of the commodity. This is a clear indication that natural gas has reached a bottom. Why? Because traders now have a firm price level where companies are going to cease natural gas exploration and production. At its level, natural gas is not profitable to companies. This means production will eventually fall and supply will meet demand. The bottom is in for natural gas. Eventually, as natural gas is used more widely, price will rise.

Prior to this announcement, natural gas was trading at $2.25. Once it hit the wires, natural gas spiked dramatically higher. To give you a sense of the price spike, the United States Natural Gas Fund, LP (NYSEARCA:UNG) was trading at $4.89. After Chesapeake made the announcement, it spiked to $5.55 and is currently trading at $5.32, +0.22 (+4.31%).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Weaker Dollar Is Lifting Commodities Higher

January 23, 2012 – Comments (0) | RELATED TICKERS: JJC , UUP , GLD

The U.S. Dollar Index is still the driving force behind every commodity move. This morning, the U.S. Dollar Index futures (DX H2) are trading lower by 0.53 cents to $79.69 per contract. When the U.S. Dollar Index declines it will usually mean that most every commodity will trade higher. That is certainly the case this morning as oil, copper, soybeans, wheat, rice, gold, and silver are all on the rise.

Traders can easily see the price of the iPath Dow Jones-UBS Copper Subindex Total return ETN (NYSE:JJC), SPDR Gold Shares (NYSE:GLD), and United States Oil Fund (NYSE:USO ) are all trading higher this morning. Pullbacks for these commodities are likely to occur if the U.S. Dollar Index can strengthen or bounce during the trading day. The JJC will have intra-day resistance around the $49.25, and $49.75 levels.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Oil Services Slide Early

January 23, 2012 – Comments (1) | RELATED TICKERS: OIH , SLB , HAL

This morning, all of the leading oil services stocks are declining lower. Earlier today, Halliburton Co (NYSE:HAL) reported earning that were below investors expectations. The stock is trading lower by $1.30 to $34.91 a share. Short term traders should watch for intra-day support around the $34.50 and $33.85 levels. The stock could see short term intra-day bounces from this area.

Traders that want to follow the entire oil services sector can follow the Market Vectors Oil Services ETF (NYSE:OIH). The OIH will have short term intra-day support around the $121.00 and $120.00 levels. Should the OIH trade higher this morning traders should watch for intra-day resistance around the $123.05 area.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Copper Finally Pulls Back

January 20, 2012 – Comments (0) | RELATED TICKERS: JJC , FCX , SCCO

Copper has been in rallying mode since December 15, 2011. At that time, the iPath Dow Jones Copper Subindex Total return ETN (NYSEARCA:JJC) was trading as low as $42.64 a share. This morning, the JJC is trading lower by 0.57 cents to $48.56 a share. Short term traders can watch for intra-day support around the $48.40, and $47.85 levels.

Southern Copper Corp (NYSE:SCCO), and Freeport McMoRan Copper & Gold Inc (NYSE:FCX) are also two leading copper producers that are declining lower with the industrial metal. SCCO stock will have intra-day bounce support around the $35.00, and $34.25 levels. FCX stock will have intra-day support around the $43.00, and $42.50 levels. It is important to note that copper and the copper stocks will usually trade inverse to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Transports Are Sending Mixed Signals

January 20, 2012 – Comments (0) | RELATED TICKERS: IYT , FDX , UPS

Yesterday, the Dow Jones Transportation Index ETF (NYSE:IYT) closed sharply higher making a new five month high. The IYT has rallied higher by $23.00 since the ETF traded as low as $70.81 a share on October 4, 2011. Short term traders can watch the IYT to have intra-day support around the $93.75 and $93.00 levels.

This morning, FedEx Corp (NYSE:FDX) is trading lower by $1.22 to $91.82 a share. This leading transportation stock is finally pulling back a little from an overbought condition on the daily chart. FDX stock will have intra-day support around the $91.75, and $91.00 levels.

NIcholas Santiago
InTheMoneyStocks.com

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Recs

0

NASDAQ 100 Double Tops Prior To Big Tech Earnings

January 19, 2012 – Comments (0) | RELATED TICKERS: QQQ , GOOGL , MSFT

The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)  is trading at $59.96, +0.47 (+0.79%). This happens to be a double top from July 2011 and multi year high. Generally, this would be considered resistance on the charts. In addition, one must find it very interesting to notice this level getting tagged prior to major earnings from tech companies. After the markets close today, earnings from Google Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), International Business Machines Corp. (NYSE:IBM) are scheduled to be reported. Perhaps this level of resistance is actually telling something about earnings today.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

3

Short Squeeze: THQI Ready To Blow

January 19, 2012 – Comments (0) | RELATED TICKERS: THQIQ

THQ Inc. (NASDAQ:THQI) has over 20% of the float shorted. This is a whopping 12 million shares. To find out whether or not a short squeeze will soon occur one must look closely at the details of the company. First, the market cap sits at $47 million while cash sits at $51 million. This shows us a company trading below cash value. While hemorrhaging money, the company still does revenues of around $800 million.

These factors all point to a possible buyout. With so many shorts, any sort of pop will set off a mass short squeeze. An upside move could easily be above a Dollar per share. Keep this stock on your watch list.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Cloud Stocks Fly

January 19, 2012 – Comments (1) | RELATED TICKERS: VMW , CRM , CTXS

All of the leading cloud computing stocks are surging higher this morning. The catalyst for the rally in the popular cloud computing stocks is due to the strong positive reaction to the F5 Networks Inc (NASDAQ:FFIV) earnings. This morning, FFIV stock is trading higher by $12.30 to 120.70 a share. This rally is helping to lift the entire sector. FFIV stock is very strong today, traders should watch for short term intra-day resistance around the $121.00 area

Leading cloud computing stocks such as VMWare Inc (NYSE:VMW), Riverbed Technology Inc (NASDAQ:RVBD), Salesforce.com Inc (NYSE:CRM), and Citrix Systems Inc (NASDAQ:CTXS) are all trading higher in sympathy to the FFIV news. These stocks all remain strong on the charts at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

How Much Fuel Is Left In The Oil Services Stocks?

January 19, 2012 – Comments (0) | RELATED TICKERS: OIH , SLB , HAL

The oil services sector has been very strong since December 19, 2011. The Market Vectors Oil Services ETF (NYSE:OIH) is trading higher again this morning. The OIH is climbing higher by $1.73 to $122.91 a share. Traders must watch for upside resistance on the daily chart around the $124.75 level. Short term traders can watch for intra-day resistance around the $123.50 and $124.00 levels.

Some leading oil services stocks that are trading higher at the start of the day include Halliburton Co (NYSE:HAL), Baker Hughes Inc (NYSE:BHI), and Schlumberger Ltd (NYSE:SLB). All of these leading stocks could have a little more upside potential on the daily charts, however, when the OIH pulls back most of these stocks will likely follow.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Cloud Stocks To The Moon Ahead Of FFIV Earnings

January 18, 2012 – Comments (1) | RELATED TICKERS: FFIV , ARUN , RVBD

This afternoon, F5 Networks Inc (NASDAQ:FFIV) will report earnings after the closing bell. The leading computer networking stock is trading higher by $1.88 to $108.19 a share. One never knows how the market will react to the earnings release, therefore, trading ahead of earnings is always very risky. Some leading cloud computing stocks that are surging higher today include Riverbed Technology Inc (NASDAQ:RVBD), Salesforce.com Inc (NYSE:CRM), and Aruba Networks Inc (NASDAQ:ARUN). Please remember if the street reacts negative to the FFIV earnings this afternoon these stocks could trade lower in sympathy. Earnings season is always a wild card as a stock can do anything after the earnings release.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Double Top Alert On Lowe's

January 18, 2012 – Comments (0) | RELATED TICKERS: HD , LOW

Lowe's Companies, Inc. (NYSE:LOW) has made a major move on the daily chart into a double top from 2011. This level should be significant resistance and a good shorting opportunity. The double top level is at $27.50. The stock made a low in August 2011 at $18.07. Since then, it has jumped 50%. A pull back is likely at this double top.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Gold Fails To Shine

January 18, 2012 – Comments (0) | RELATED TICKERS: GLD , GDX , AUY

The SPDR Gold Shares (NYSEARCA:GLD) have rallied sharply higher since December 29, 2011 when the highly popular ETF traded as low as $148.27 a share. This morning the GLD is trading lower by 0.67 cents to $159.85 a share. Short term traders can watch for intra-day support around the $159.60, and $159.00 levels. Traders can watch for quick intra-day bounces around these levels. Should the GLD continue to decline below these support areas the next important level for an intra-day bounce will be around the $158.25 area.

Many of the leading gold mining stocks are also trading flat at the start of the trading session. The Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading lower by 0.02 cents a share. Traders can watch for intra-day support around the $52.50 area.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Integrated Energy Under Early Pressure

January 18, 2012 – Comments (0) | RELATED TICKERS: XOM , COP , CVX

This morning, leading integrated energy stocks such as Chevron corp (NYSE:CVX) and Exxon Mobil Corp (NYSE:XOM) are coming under early selling pressure. Short term traders can watch for intra-day support on CVX around the $105.20 level. XOM stock will have intra-day support around the $85.00 area. It is important to note that these energy giants remain very strong on the daily chart, therefore, support levels can usually be bought.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

China Data Causes Third Straight Tuesday Gap

January 17, 2012 – Comments (0) | RELATED TICKERS: SPY , C , JPM

The stock market opened higher for the third straight Tuesday in 2012. The SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $130.03, +1.02 (+0.79%). Since the new year, it seems the up days come on Tuesday and then consolidation floats the markets neutral the rest of the week. We will watch and see if this pattern continues to play out.

Last night, China reported better growth than expected. The market rejoiced as the fear of a hard China landing faded into the distance. As of now, China and Europe are the keys to the U.S stock market. U.S. economic numbers mean almost nothing.

The market is in a melt up period. The volume remains light which tells intelligent traders that institutions are not buying but definitely not selling. Eventually, the market will break dramatically lower, but the charts are not saying it will happen in the short term.

Financial stocks are the weakest sector following earnings from Citigroup Inc. (NYSE:C) this morning. Last Friday, JPMorgan Chase & Co. (NYSE:JPM)  also reported earnings that disappointed Wall Street. These stocks are pulling back today but not hurting the markets much.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Transports Fail To Participate In Rally

January 17, 2012 – Comments (0) | RELATED TICKERS: IYT , FDX , CSX

There is one important stock sector that is failing to participate in today's early rally, it is the transportation sector. This sector is followed closely by many traders and investors as an indication of economic expansion when it rallies and economic contraction when it declines. After all, products must be shipped and delivered, therefore, this is usually a leading indicator. This morning, the iShares Dow Jones Transportation ETF (NYSE:IYT) is declining lower by 0.50 cents to $91.74 a share. This decline comes on a trading session where the Dow Jones Industrial Average (DJIA) is trading higher by over 1.00 percent. The IYT is showing weak relative strength this morning. Short term traders can watch for intra-day support around the $91.50, and $90.85 levels.

Some of the leading transports stocks that are not participating in today's stock rally include FedEx Corp (NYSE:FDX), United Continental Holdings Inc (NYSE:UAL), CSX Corp (NYSE:CSX), and Union Pacific Corp (NYSE:UNP). It should be noted that all of these stocks continue to remain strong on the daily charts, therefore, today's action must be monitored closely over the next few sessions. Strong stocks should always be watched when they fail to rally in a strong market as it could be a sign of things to come.

Nicholas Santiago
InTheMoneyStocks.com




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Recs

0

Keep The Semiconductors On The Radar

January 17, 2012 – Comments (0) | RELATED TICKERS: SMH , NVDA , ARMH

This morning, the Market Vectors Semiconductor ETF (NYSEARCA:SMH) is trading higher by 0.21 cents to $31.80 a share. The semiconductor sectors continue to struggle around the daily chart 200 moving average. This tells us that this important sector is showing weak relative strength when compared to the major stock market indexes. Major stock indexes such as the Dow Jones Industrial Average (DJIA), S&P 500 Index, and the NASDAQ Composite are all trading nicely above the important daily chart 200 moving average. The problem with the semiconductor sector is that they should normally lead the markets higher, that is obviously not the case at this time as they are lagging the major stock indexes.

Some of the leading semiconductor stocks that continue to trade below the daily chart 200 moving average include Broadcom Corp (NASDAQ:BRCM), Nvidia Corp (NASDAQ:NVDA), Cree Inc (NASDAQ:CREE), and ARM Holdings plc (NASDAQ:ARMH). All of these stocks mentioned were former stock market leaders and are now weak relative to the major stock indexes. These stocks could lead the markets lower after this current stock market rally concludes.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Home Building Stocks Approach The Ceiling

January 17, 2012 – Comments (0) | RELATED TICKERS: DHI , PHM , KBH

Believe it or not, the home building stocks have been surging higher since October 4, 2011. Since that time, this sector has climbed  higher by 50 percent. Many leading home-builder stocks have rallied even higher. On October 4, 2011 the SPDR S&P Home-builders ETF (NYSE:XHB) was trading as low as $12.21 a share. Last week, the XHB closed at $18.43 a share. This is a terrific rally for a sector that is supposed to be depressed. This week we shall examine three leading home-builder stocks and find the near term resistance levels.

D.R. Horton Inc (NYSE:DHI) is one of the leading U.S. home-builders based out of Fort Worth, Texas. This stock was trading as low as $8.03 a share in early October. Last week, the stock closed at $13.91 a share. Traders must watch for very important chart resistance around the $15.00 area. The stock is now reaching short term overbought and extended levels. Traders that are looking to own DHI stock should now wait for a pullback, or a consolidation pattern to form on the charts. Should the stock pullback from the current levels traders can look for daily chart support around the $12.00 area.
 




Pulte Group Inc (NYSE:PHM) is a leading U.S. home-builder that is based out of Bloomfield Hills, Michigan. This stocks was trading as low as $3.29 a share on October 4, 2011. Last week, the stock closed at $7.62 a share, this is a gain of more than 100 percent in just three months. Traders must watch for important near term daily chart resistance around the $8.00 level. Should the stock trade above and through that area the next important resistance point will be around the $8.50, and $9.10 levels. Should PHM decline from current levels the stock will have very strong daily chart support around the $6.00 area.


 

KB Home (NYSE:KBH) is another leading U.S home-builder stock that has soared over the past three months. KBH stock has surged higher by nearly $4.00 since early October 2011. At that time, the stock was trading as low as $5.02 a share, last week the stock closed at $8.83 a share. The stock is approaching the weekly chart 50 moving average at $9.42 which is going to be near term resistance. Should the stock continue to climb above that important resistance level the next resistance area will be around the $11.00 level. It is important to remember that the stock is already trading into important resistance and may need to pullback first before climbing higher. Should the stock decline from current levels there will be good near term support around the $6.75 level.

All traders should remember that the corporate earnings season is upon us. Therefore, traders should always check for earnings when looking to trade a stock during  this time. It is always very risky trading ahead of earnings.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

European Debt Crisis Starts To Erupt Again

January 13, 2012 – Comments (0) | RELATED TICKERS: EWG , EWQ , EWP

This morning, the problems in the European Union are starting to surface once again. Recently, all of the major stock indexes have been floating higher steadily each and every day on extremely light volume. Often, stock rallies that lack volume and conviction can lead to sharp sell off days. At this time, there are reports that Greece may have to default and this could trigger a domino effect in many European credit default swaps (CDS). A credit default swap is basically an insurance policy on the debt. Should this occur it will be problematic for the entire Euro-zone.

According to news reports, France is likely to be downgraded by the credit rating agency Standard and Poors. This downgrade is somewhat expected by many investors and traders, however, it will affect bond yields in France and Europe going forward.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Transports Go South Side Early

January 13, 2012 – Comments (0) | RELATED TICKERS: IYT , FDX , CSX

This morning, the iShares Dow Jones Transportation ETF (NYSE:IYT) is trading lower by $1.13 to $91.77 a share. Since December 14, 2011 the transportation index has been rising steadily higher. This is the first trading day of 2012 that the important index has come under some selling pressure. Short term traders can watch for intra-day support on the IYT around the $91.50, and $90.85 levels.

Some leading transportation stocks that are trading lower this morning include FedEx Corp (NYSE:FDX), United Parcel Service Inc (NYSE:UPS), CSX Corp (NYSE:CSX), and Union Pacific Corp (NYSE:UNP). All of these stocks were trading near important resistance levels or nearing short term overbought conditions, therefore, a pullback in these stocks is not uncommon.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Shipping Stocks Wake Up

January 12, 2012 – Comments (0) | RELATED TICKERS: DRYS , GNK , EGLE

As things in Europe remain quiet and no new defaults look imminent, the global economy is starting to look better. Economic news in the United States has been strong and China appears to be lifting economic restrictions to offset European issues. This all equates to a global economy that is on the rise. If the global economy is inching up, shipping stocks are the next plays to run.

Shipping stocks have been at their dead lows for years. They are starting to wake up. DryShips Inc. (NASDAQ:DRYS), Genco Shipping & Trading Limited (NYSE:GNK) and Eagle Bulk Shipping Inc. (NASDAQ:EGLE) are all names that should continue higher as long as Europe remains quiet.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Mixed Data As Markets Ready For Next Major Move

January 12, 2012 – Comments (0) | RELATED TICKERS: SPY , UNG , USO

The stock markets are flat today after mixed data across the globe. Overnight, China gave the futures a push after reports showed inflation cooled slightly. The consumer price index rose 4.1% in December in China. Overnight, the Dow Futures had been higher by over 100 points. This morning the ECB disappointed the markets when they held interest rates at 1%. Traders had been hoping for a more dovish ECB. At 8:30am ET, Jobless Claims were reported at 399,000. This was a jump from last week and back to that scary 400,000 level. The futures dropped back to the flat line which is where the markets are trading now. The SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $129.01, -0.24 (-0.19%).

This is the second flat day in a row after the Tuesday rally. The SPY is still stuck below the resistance level of $129.50. While into resistance, this light volume action and consolidation still speaks of another push higher.

Natural gas continues to be pounded. The United States Natural Gas Fund, LP (NYSEARCA:UNG) is down another 3% on the day. This dramatic fall continues with no bottom in sight. Oil on the other hand continues to grind higher. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $39.25, +0.35 (+0.90%). It is very rare to see this major divergence in energy commodities. At some point there will be a snap back in natural gas. It is most likely nearing. Watch for news out of the government on incentives to switch to natural gas. It has long been talked about and most likely near.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Talk About Getting The WYNN Knocked Out Of You

January 12, 2012 – Comments (0) | RELATED TICKERS: LVS , MGM , WYNN

This morning, the leading casino and resort operator Wynn Resorts Ltd (NASDAQ:WYNN) is trading sharply lower. The stock is trading down by $6.64 to $105.25 a share. This stock is trading below all of its important daily chart moving averages which puts the stock in a confirmed downtrend. The stock will have some minor short term support around the $100.00 level. WYNN stock will have some short term intra-day support around the $102.00 level. Earlier, it was reported that Wynn Resorts is being sued by its vice chairman over a $135 million donation made to the University of Macau and other matters.

Other leading casino stocks that are declining today include Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM). These leading gaming stocks look to be trading lower in sympathy to the sell off in WYNN.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Metals Pop On Dollar Weakness, Can They Hold?

January 12, 2012 – Comments (0) | RELATED TICKERS: FCX , BHP , RIO

All of the major leading industrial metal producers are trading higher this morning. The catalyst for the move higher in these stocks is the weaker U.S. Dollar Index. These days the inverse relationship between the U.S. Dollar and the major stock indexes has decoupled due to the light volume in the market, however, a weak dollar still helps to inflate commodities.

Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is the world's leading copper producer. This stock has surged sharply higher since December 19, 2012 when it traded as low as $35.65 a share. This morning, FCX is trading higher by 0.43 cents to $42.08 a share. The stock should face some very important short term resistance around the $42.50 area on the hourly chart. Should the stock pullback during the session there will be some intra-day support around the $41.65 and $41.25 levels.

Other leading industrial metal stocks that are trading higher today include Teck Resources Ltd (NYSE:TCK), Cliffs Natural Resources Inc (NYSE:CLF), and Rio Tinto plc (NYSE:RIO). All of these stocks mentioned are now trading into important resistance areas on the charts and could be due to pullback very soon.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

4

Natural Gas Stocks Have No Steam

January 11, 2012 – Comments (1) | RELATED TICKERS: SWN , DVN , CHK

This afternoon, the price of natural gas declined to another new 52 week low. This decline in natural gas comes despite the winter season being upon us. While the price of natural gas is extremely low, it is now affecting the natural gas stocks. Leading natural gas stock such as Chesapeake Energy Corp (NYSE:CHK), Devon Energy Corp (NYSE:DVN), and Southwestern Energy Co (NYSE:SWN) are all declining sharply lower. These stocks look as if they could have further downside in the near term.

Southwestern Energy Co is the weakest of all the natural gas companies according to the charts. This stock just made a new 52 week low today. SWN stock is trading lower by $2.41 to $30.10 a share. Should this current $30.00 area fail to hold as support the next important support level will be around the $27.50 level. Natural gas continues to remain in a sharp downtrend and also looks as if further downside is in the cards for the near term.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Stock Market Update: Understanding The Charts

January 11, 2012 – Comments (0) | RELATED TICKERS: UNG , SPY

Yesterday, the markets surged higher hitting the key SPDR S&P 500 ETF (NYSEARCA:SPY) $129.50 level. This resistance level was solid and sure enough the markets are pausing today. Volume remains amazingly light in this new year. In addition, even with a strong Dollar the indexes have continued to hold near their multi month highs. This tells intelligent traders there is likely another surge higher coming. Once the $129.50 level is taken out, $132.00 - $133.00 is the next stop.

Natural gas is collapsing today. The United States Natural Gas Fund, LP (NYSEARCA:UNG) is trading at $5.95, -0.38 (-6.00%) . This massive drop is being fueled by over supply of natural gas. While long term the outlook for natural gas is promising as the cheap energy will attract users, short term the bottom is unknown.

Gareth Soloway
InTheMoneyStocks.com
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Recs

4

Solar Stocks Surge, Other Alt Energy Plays On Watch

January 11, 2012 – Comments (0) | RELATED TICKERS: TSL , HSOL , FSLR

Solar stocks are surging today. The leaders are Chinese firms that have been trading at all time lows. The Shanghai Index finally woke up this week, surging 5%. That triggered the party as shorts ran for cover.  China solar player Trina Solar Limited (ADR) (NYSE:TSL) is trading at $8.87, +1.57 (+21.51%) while Hanwha Solarone Co Ltd (NASDAQ:HSOL) is trading at $1.60, +0.35 (+28.05%). In addition, American solar maker First Solar, Inc. (NASDAQ:FSLR) is trading at $42.89, +4.12 (+10.62%). This is a classic short covering rally.

The key is to keep an eye on other beaten down alternate energy plays. It does not matter if they are Chinese or other but rather at their lows just like the solar stocks in the previous few weeks. These could see major upside.

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

Three Reasons Why This Will Remain A Traders Market For Years To Come

January 11, 2012 – Comments (2) | RELATED TICKERS: EGPT , EWQ , EWP

If you happen to be in a diversified retirement fund you probably finished 2011 basically flat. Many of the popular hedge fund managers also underperformed the S&P 500 Index last year. This tells us that it must be tough out there if the so-called smartest people around cannot beat the market. It really seems that the only people who can make money in this type of environment are the savvy traders who play these up and down moves. This market has not been an easy endeavor for the average person who simply listens to the media in order to take trades. Whenever the stock market tries to recover from a major economic shock such as 2008 it usually takes years to recover. Now I shall list the three reasons why this will remain a great traders market and not the typical buy and hold market that is preached by many on Wall Street.

1. Many people in the world resent Wall Street and the investment bankers at this time. Just look at the uprising that has occurred recently. The Occupy Wall Street movement is not going away. Ordinary people have lost faith in the investment world. This has obviously happened before; however, it will take time for the investment bankers to regain confidence in the public. When jobs are lost, homes are foreclosed, and retirement and savings accounts free-fall; it will definitely cause a lot of resentment in the investing community. These problems did not just occur in the United States, they happened all over the world.

2. The public seems to be fed up with the politicians. In the United States many people now believe that there is very little difference between the Democratic and Republican parties. Many people have lost faith in most governments around the world. Just look at the Arab Spring movement in Egypt, Libya, and other countries. These rebellion protests are still going on to this very day around the world.

3. Consumer confidence continues to remain at lows around the world. The average person around the world continues to worry about the large debt that most countries continue to have. Countries such as Greece, Spain, Italy, France, and even the United States have huge debt. How are these countries ever going to pay this debt off? Perhaps at some point in time there will be debt forgiveness, however, that would require bankruptcy and these days the biggest get bailed out by more debt. You see, the average person has a hard time getting their head around this idea because they cannot run their household or small business like this. If any normal person operated in massive debt they would eventually have to go bankrupt at some point.

These are the main reasons why this will remain a traders market for years to come. Sure, there will be multi-month rallies and short term glances of a bull market from time to time. On the flip side, there will be deep declines and sell offs that will scare the pants off of the average investor. The days where the small investor looks at the fundamentals (i.e. P/E ratios, book value, EPS, and EBITA) are over for now. The technical trader is the one who has the advantage, as it is simply the study of money flow and human emotion. This savvy technical trader will be the one to recognize the optimal opportunities in the markets. Learn to read and understand the charts and it will serve you throughout the rest of your investing life.    

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Commodity Stocks Rally, How Much Is Left In The Tank?

January 10, 2012 – Comments (0) | RELATED TICKERS: RIO , SCCO , BHP

All across the media the headline reads that commodities are rallying on Alcoa's bullish forecast. Alcoa reported a loss for the fourth quarter in case people did not see. Rarely, if ever does Alcoa even move the markets these days. More important than the poor Alcoa earnings report was the fact that the Shanghai Index (China) finally caught a bid over the past two trading sessions. That two day rally in China was also good for about 5.0 percent to the upside. This is the catalyst for the move higher in many of the leading commodity stocks today.

Some leading commodity stocks that are trading higher today include BHP Billiton Ltd (NYSE:BHP), Rio Tinto plc (NYSE:RIO), Southern Copper Corp (NYSE:SCCO), and Cliffs Natural Resources Inc (NYSE:CLF). If China tries to inflate its economy this certainly is bullish for most of the world's leading commodity stocks. The problem is that these stocks still look weak on the charts. The near term upside for all of these stocks is very limited should they continue to rally from the current levels. This sector is also still trading significantly below the important daily chart 200 moving average. This tells us that the industrial metal sector is very weak relative to the S&P 500 Index which is trading above its daily chart 200 moving average.

The commodity stocks had a very tough time in 2011 and outside of the January effect they could be very vulnerable in 2012. Traders will often see a favorable January, however, this month has a tendency to be very tricky. All traders and investors should remember that the leading commodity stocks are holding up well today, however, that could change very soon as they are severely lagging the major stock indexes.

Nicholas Santaigo
InTheMoneyStocks.com


  [more]

Recs

0

Target Achieved As Market Spikes Higher

January 10, 2012 – Comments (0) | RELATED TICKERS: AA , SPY , STPFQ

The markets spiked higher today as good news poured out of Europe and China. China appears willing to ease interest rate policy to offset issues in Europe. In addition, earnings from Alcoa Inc. (NYSE:AA)  were solid. These positives pushed the market higher into the master $129.50 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was given over the last week multiple times. The charts clearly pointed to this level as a target. Sure enough, the level hit and profits were made.

Chinese stocks are on the rise today. After a two day rally in the Shanghai Index, beaten down China plays are surging. Today, key moves are being seen on China solar stocks. Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) and ReneSola Ltd. (ADR) (NYSE:SOL) are both inching higher off their 52 week lows.

After this master level was achieved on the SPY, all Wall Street players are wondering if the market has any further upside. The answer is yes, quite possibly. As volume remains light, upside is likely to the SPY $132 - $133.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Casino Stocks Now Trade With The Chinese ADR's

January 10, 2012 – Comments (0) | RELATED TICKERS: WYNN , LVS , MGM

All of the major casino stocks are now trading along with the Chinese stock market. You see, a large amount of the casino revenue comes from the very important Macao region. Recently, the Chinese stock market has been in a significant downtrend. This same trend is also very noticeable in the large casino stocks. Over the past two trading sessions the Shanghai (China) stock index has rallied higher by over 5.0 percent.

Today the large casino stocks such as Wynn Resorts LTD (NASDAQ:WYNN) , Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM) are all rallying higher. These stocks are certainly being helped by the bounce in the Chinese stock market.

Nicholas Santiago
IntheMoneyStocks.com

  [more]

Recs

1

Forget Supply And Demand, Trade The Central Banks

January 10, 2012 – Comments (1) | RELATED TICKERS: USO , UGA , XLF

Does supply and demand even matter any longer? Just think about it for a minute, it is really the central bank's policy that really moves the market. Just look at Alcoa (NYSE:AA) today, the company missed its earnings estimate and the stock is still inflating higher after the Chinese government basically said that they will push investors to buy stocks. This stuff can't be made up. This action by the Chinese government comes as the Shanghai Index was plummeting throughout most of 2011. Last night, the Shanghai Index rallied higher by nearly 3.0 percent, this important stock index has rallied higher by more than 5.0 percent in two trading days. The point is that the central banks can move the markets almost at will.

The central bank that controls the monetary policy of the United States is called The Federal Reserve. In late 2008 this central bank initiated a massive bond purchasing programs called quantitative easing. That has helped to inflate and revive stock and commodity prices over the past three years. It is important to note that the key overnight bank lending rate called the federal funds rate has been held at zero percent since December 2008. That means that the large financial institutions such as J.P. Morgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), Bank of America Corp (NYSE:BAC), and Citigroup Inc (NYSE:C) can borrow money at zero percent. Who would not like to have free money available to them? These banks can buy stocks, bonds, commodities, and even operate a high interest rate credit card business. This low rate is the reason why interest rates on a savings account are so low. Once again, the central banks move the markets and supply and demand is having less and less effect.

The European Central Bank (ECB) has now created a new lending facility for the struggling and European banks. The ECB is now lending the banks money at 1.00 percent for three years. This is another way to help keep these banks afloat. Once again, failure has been avoided by throwing more capital (money) at the problem.

On the surface it seems that the central banks could simply just keep artificially inflating the markets. The problem with this method is that it creates inflation. This morning, the price of light sweet crude is around $103.00 a barrel. Food prices soared sharply higher around the world in 2010 after the Federal Reserve implemented its $600 billion quantitative easing program. Simply put, inflation is created by all of this easy money creation. Perhaps this is the trade off that the central banks believe we all need in order to have a functioning economic system.

The one thing we must always remember is that for every action there is an equal but opposite reaction. For the time being, we shall enjoy the inflation rally. In my opinion, these days it seems that it is better to forget supply and demand and actually trade the action by the central banks around the world.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Earnings To Propel Stock Market

January 09, 2012 – Comments (0) | RELATED TICKERS: SPY , AA , JPM

Stocks are trading around the flat line once again today. Following the big rally on January 3rd, 2012, the markets have gone into hibernation mode. Volume has been light and market direction muted. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $127.67, -0.15 (-0.12%). This action continues to tell of further upside. It is called bullish consolidation and the upside price target remains $129.50 - $130.00 on the SPY.

The likely cause of further upside will be earnings. Alcoa Inc. (NYSE:AA) reports today after the close. They are expected report a profit of $0.01 per share. In addition, big names such as JPMorgan Chase & Co. (NYSE:JPM) and Apple Inc. (NASDAQ:AAPL) will be reporting over the next couple weeks. This may be the catalyst for one final move up in the markets.

The charts continue to show a bullish angle. While upside is likely it will not last long. The key is to profit on the final upswing then position yourself for the down move.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Stock Chart Alert: CAAS Continues Surge, Watch SORL

January 09, 2012 – Comments (0) | RELATED TICKERS: CAAS , SORL

The Shanghai Index soared 64.33 (+2.89%) points overnight. The Chinese stock market may be turning an important corner. Over the last week, certain Chinese stocks have surged to the upside in dramatic fashion. China Automotive Systems, Inc. (NASDAQ:CAAS) is a good example of this surge. On the first trading day of 2012 the stock was at $3.33. It hit $5.00 today. This China automotive stock may give swing traders an opportunity to profit from other Chinese automotive stocks. The play that strikes the attention of most traders is Sorl Auto Parts, Inc. (NASDAQ:SORL). It is trading at $2.47, +0.02 (+0.82%). This China automotive play is still near the 52 week lows. With CAAS running hard, it is likely SORL will be picked up shortly. It should be on the watch list.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Gold Mining Stocks Must Be Traded

January 09, 2012 – Comments (0) | RELATED TICKERS: GDX , AUY , GG

There are so many traders and investors that believe that the gold mining stocks will automatically trade along with gold, the precious metal; this is not always the case. Every stock has its own set of issues that it will face. Very often the price of gold and the gold mining stocks will trade in tandem with each other, however, there will be times when the mining stocks will lag and other times when they will lead the price of gold. Each different gold mining stock must be followed and watched closely on an individual basis.

These days the Market Vectors Gold Miners ETF (NYSE:GDX) is beginning to form a sideways bullish base on the daily chart. This type of pattern could setup for another leg higher. The problem with the GDX is that it is still trading below the daily chart 50, and 200 moving averages. These important moving averages will be the next important daily chart resistance levels for the GDX. Short term traders can watch for intra-day resistance around the $54.25, and $54.65 levels.

Some leading gold mining stocks that are trading slightly higher this morning include Yamana Gold Inc (NYSE:AUY), Goldcorp Inc (NYSE:GG), and Royal Gold Inc (NASDAQ:RGLD). Traders must remember that these stocks will not always follow the price of gold and will trade according to their own cycle.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

The One Financial Stock That Everyone Should Follow

January 09, 2012 – Comments (0) | RELATED TICKERS: JPM , GS , BAC

Since late 2007, it is the large financial stocks that have moved the major stocks market indexes higher and lower. Traders and investors must remember that the problems facing the economy have been in the banking and financial sectors. The one financial stock that everyone must follow extremely close is J.P. Morgan Chase & Co (NYSE:JPM).

J.P. Morgan stock is probably the most important stock that anyone could follow at this time. This stock is one of the largest financial institutions in the world. When this stock trades higher the major stock indexes seem to follow. The opposite is true when this financial giant declines, the major stock indexes will usually sell off right along with JPM. Recently, JPM stock has been very strong on the daily chart, however, resistance levels are now beginning to come into play. This morning, JPM is trading higher by 0.01 cents to $35.37 a share. Short term traders can watch for some intra-day resistance around the $35.55, and $35.85 levels. Should the stock decline traders can watch for intra-day support around the $34.75 area.

Other financial stocks that are very important to follow include Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS), Wells Fargo & Co (NYSE:WFC), and Deutsche Bank AG (NYSE:DB).

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

The Semiconductor Sector Is Still The One To Follow

January 06, 2012 – Comments (0) | RELATED TICKERS: SMH , SNDK , INTC

These days the technology sector is predominantly dominated by Apple Inc (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), and Amazon.com Inc (NYSE:AMZN). When an investor wants to know if the tech stocks are trading higher they will usually just look at one of these market leaders; however, it is the semiconductor sector that is still the technology barometer. Traders can simply follow the Market Vectors Semiconductor ETF (NYSEARCA:SMH) for a good indication of the sector. When this sector breaks out, or breaks down it is likely that the rest of the sector will soon follow.

This morning, the SMH is trading lower by just 0.13 cents to $31.12 a share. The SMH has been rallying higher since December 19, 2011 when it was trading as low as $28.69 a share. The SMH will face important resistance around the $32.00 area. Short term traders can watch for intra-day support around the $31.00, and $30.75 levels. Traders should remember that Intel Corp (NASDAQ:INTC) is the largest holding in the SMH, therefore, this stock carries a lot of weight and will affect the sector.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Agriculture Stocks Are Stuck In The Mud

January 06, 2012 – Comments (0) | RELATED TICKERS: MOO , POT , MOS

This morning, most of the leading agriculture stocks are coming under early selling pressure. This industry group is trading into heavy resistance on the daily charts. The Market Vectors Agribusiness ETF (NYSEARCA:MOO) is a good way to track the agriculture sector. Today, the MOO is trading lower by 0.39 cents to $48.66 a share. This important ETF has a lot of daily chart resistance around the $50.00 level. Short term traders should watch for intra-day support around the $48.50, and $48.00 levels.

Some of the leading agriculture stocks that are declining this morning include Potash Corp Sask Inc (NYSE:POT), Mosaic Co (NYSE:MOS), and Agrium Inc (NYSE:AGU). All of these stocks look very similar on the daily charts. They are all struggling to trade above the important daily chart 50 moving average. Should they trade above that key moving average on the daily chart they will all face more chart resistance a bit higher. These stocks seem to be stuck in mud at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

3

Stock Market Update: Preparing For The Next Surge

January 05, 2012 – Comments (1) | RELATED TICKERS: SPY , DIA , QQQ

After the new year started with a substantial rally, the markets have been in sleep mode. Two consecutive days of flat action has the pros salivating over the likelihood of further upside. Today, the SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $127.56, -0.07 (-0.05%). Let's explore the bullish case on the market.

1. The market broke out of a triangular range on Tuesday. This is significant as the markets had been inside this range for months.

2. The last two days have seen selling early, only to have the market float back up to the flat line. This shows resilience.

3. The Dollar has surged the last two days. Usually, a strong Dollar pushed the markets sharply lower. The markets have held their ground.

4. The last two days of flat action, following the break out show a clear bullish consolidation trend. This likely will lead to higher equity prices in the short term.

The upside targets on the SPY are $129.50. Should that level get taken out, $133.00 would be next.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Has It Stopped Raining On The Cloud Computing Stocks?

January 05, 2012 – Comments (1) | RELATED TICKERS: VMW , CRM , CTXS

Many of the leading cloud computing stocks have come under some sharp selling pressure throughout the month of December. Cloud computing leaders such as Salesforce.com inc (NYSE:CRM) and VMWare Inc (NYSE:VMW) have been extremely weak. These stocks are holding up well today considering the major stock indexes are coming under some selling pressure this morning. CRM is still trading above its recent low that was made on December 21, 2011 at $94.09 a share. If this stock fails to hold this level on a closing basis it could signal that further declines are coming. CRM is trading below all of its important daily chart moving averages which puts the stock in a weak technical position on the charts. The chart of VMW is a little bit better at this time. VMW is trying to form a higher low pullback pattern on the daily chart, this is a short term bullish formation. The stock still has major overhead resistance around the $86.00 and $92.00 levels.

Some leading cloud computing stocks that are holding up well today include Citrix Inc (NASDAQ:CTXS), Riverbed Technologies Inc (NASDAQ:RVBD), and Aruba Networks Inc (NASDAQ:ARUN). All of these stocks still face many headwinds on the daily charts, however, they are all trading above the December 21, 2011 low. As long as they hold above this area they have a chance to bounce slightly higher in the early part of the new year.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Energy Stocks Run Out Of Steam

January 05, 2012 – Comments (0) | RELATED TICKERS: XOM , COP , TSO

This morning, all of the leading energy stocks are coming under some selling pressure. Leading stocks such as Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVS) have been exceptionally strong as of late, therefore, a pullback today is due. These market leaders are trading lower today by over 1.0 percent. Short term traders can watch for intra-day support on XOM around the $85.00 and $84.70 levels.

Some other leading energy stocks that are trading lower include ConocoPhillips (NYSE:COP), Devon Energy Corp (NYSE:DVN), and Tesoro Corp (NYSE:TSO). Most energy stocks still remain strong on the daily charts, therefore, it is possible that this decline is just a short term pullback. The strength in the U.S. Dollar Index is certainly causing the energy stocks to be weak today. Should the U.S. Dollar continue to remain strong it is possible to see lower prices in most of the leading energy stocks. On the flip side, if the U.S. Dollar Index declines these stocks will likely see a short term bounce intra-day.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Stock Market Action: Natural Gas On Radar

January 04, 2012 – Comments (0) | RELATED TICKERS: SPY , USO , UNG

After some early selling, the markets have floated back to the positive side. This is not surprising as light volume plays a key role in an up market. In addition, the S&P 500 broke out of a triangular range yesterday. This means further upside in the next week is likely. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $127.58, +0.09 (+0.07%). The action today is known as consolidation. This is also a bullish signal for the next week with an upside SPY target of $129.50.

Commodities are mixed today. Oil is slightly lower while gold is still moving higher. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $39.64, -0.05 (-0.13%)  while the SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading at $156.99, +1.07 (+0.69%).

The standout commodity of the day is natural gas. After collapsing almost daily, it is inching higher. A bottom is close if not already at hand. The United States Natural Gas Fund, LP (NYSEARCA:UNG) is trading at $6.63, +0.16 (+2.47%). This may be the commodity of 2012 as it is likely the U.S. government will create many new incentives for its use in cars and trucks. With the energy source trading around $3.00, the risk reward is very solid to the upside.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Coal Stocks Are Not Looking So Hot

January 04, 2012 – Comments (0) | RELATED TICKERS: KOL , BTU , ANR

This morning, all of the leading coal stocks are coming under some mild selling pressure. This sector continues to trade below the important daily chart 50 moving average, this puts the sector in a weak technical position. Traders can look at how the Market Vectors Coal ETF (NYSEARCA:KOL) has under-performed the major stock indexes and the rest of the energy sectors. Traders can watch for intra-day support on the KOL around the $33.20, and $32.25 levels.

Some leading coal stocks that are declining this morning include Peabody Energy Corp (NYSE:BTU), Alpha Natural Resources Inc (NYSE:ANR), and James River Coal Co (NASDAQ:JRCC). All of these daily charts still remain weak. Should these stocks rally in the month of January the upside should be limited.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

The European Indexes Still Look Ugly

January 04, 2012 – Comments (1) | RELATED TICKERS: EWG , EWQ , EWP

A couple of weeks ago the European Central Bank (ECB) created a new lending facility to the banks in Europe. The European banks could borrow capital from the ECB at 1.00 percent for up to three years. Since the program began there have been over 523 banks that have taken advantage of the lending facility. Many traders and investors expect this to help the stock markets in the European Union, however, the charts on these indexes still look very ugly.

The iShares MSCI Italy Index ETF (NYSEARCA:EWI) is probably one of the most important indexes that traders can follow. Italy is the third largest economy in the European Union. This index is still trading below the important daily chart 50, and 200 moving averages which puts the index in a weak technical position. The 52 week low on the EWI was made on September 23, 2012 at $10.88 a share. This morning, the EWI is trading lower by 0.26 cents a share to $12.24 a share. Traders can watch for major daily chart resistance around the $13.00 level. Until the EWI can trade solidly above that important resistance area the EWI is vulnerable to further declines. Short term traders can watch for intra-day support around the $12.20 and $12.00 levels.

Other leading European indexes such as the iShares MSCI Germany Index ETF (NYSEARCA:EWI), iShares MSCI Spain Index ETF (NYSEARCA:EWP), and the iShares MSCI France Index ETF (NYSEARCA:EWQ) all look very similar to the EWI daily chart. This tells us that the European Indexes are trading together. Traders must remain extremely cautious when looking to own these indexes as they remain very poor charts at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Oil Breaks Out And Is Positive For Stock Market

January 03, 2012 – Comments (0) | RELATED TICKERS: USO , XOM , CVX

The stock market continues to rejoice in the new year. The S&P 500, Dow Jones Industrial Average and NASDAQ are all sharply higher on the day. The upside is being fueled by optimism on the global economy. This is mainly stemming from Europe. As the Euro gains traction, the Dollar has fallen sharply. The weakness in the Dollar is helping commodities push higher. Oil is having a monster day with the United States Oil Fund LP (ETF) (NYSEARCA:USO) trading at $39.45, +1.34 (+3.52%). This big jump in oil is partly due to the weak Dollar and optimism on the global economy and also due to issues with Iran. Threats are continuing to be floated from the Iranian military over the Straights of Hormuz.

The higher oil price is actually helping stocks today. Dow Jones Industrial leaders like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX)  are sharply higher. They are key components of the Dow, thus helping the markets gain.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Oil Breaks Out And Is Positive For Stock Market

January 03, 2012 – Comments (0) | RELATED TICKERS: USO , XOM , CVX

The stock market continues to rejoice in the new year. The S&P 500, Dow Jones Industrial Average and NASDAQ are all sharply higher on the day. The upside is being fueled by optimism on the global economy. This is mainly stemming from Europe. As the Euro gains traction, the Dollar has fallen sharply. The weakness in the Dollar is helping commodities push higher. Oil is having a monster day with the United States Oil Fund LP (ETF) (NYSEARCA:USO) trading at $39.45, +1.34 (+3.52%). This big jump in oil is partly due to the weak Dollar and optimism on the global economy and also due to issues with Iran. Threats are continuing to be floated from the Iranian military over the Straights of Hormuz.

The higher oil price is actually helping stocks today. Dow Jones Industrial leaders like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX)  are sharply higher. They are key components of the Dow, thus helping the markets gain.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Stock Market Rally Could Be Seen On Charts Last Week

January 03, 2012 – Comments (0) | RELATED TICKERS: SPY , RENN , DANG

The triangle pattern broke to the upside on the S&P 500 today. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $128.21, +2.71 (+2.16%). This breakout was expected based on the bullish pattern formation seen last week. In addition, new money flow was likely to enter the market on light volume. The combination of all these factors spelled rally.

January Effect plays are starting to run. What is a January play? These plays are beaten down stocks that are trading near or at their 52 week lows. In December, tax loss selling keeps pressure on them. Once that pressure subsides, the January Effect takes place. They bounce back. A good example of these types of plays are Renren Inc (NYSE:RENN) which started its run last Friday.  E Commerce China Dangdang Inc (ADR) (NYSE:DANG) is another dead bottom China play that has seen a major rebound as tax loss selling has come to a close. Two other plays to watch are Smith Micro Software, Inc. (NASDAQ:SMSI) and THQ Inc. (NASDAQ:THQI). January Effect plays are great ways to start the year off right. The upside potential is huge on these.

Oil is having a big move today on continued concerns with Iran. In addition, global optimism is back in full force. The United States Oil Fund LP (ETF) (NYSEARCA:USO) $39.39, +1.28 (+3.36%).

Gareth Soloway
InTheMoneyStocks.com



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Recs

0

Semiconductor Stocks Are Sending Out Warning Flags

January 03, 2012 – Comments (0) | RELATED TICKERS: SMH , BRCM , SWKS

The semiconductor sector is a very important group of stocks that traders should follow closely. Often the semiconductor stocks will lead most technology stocks higher and lower. Since December 19, 2011 the Semiconductor Holders ETF (NYSEARCA:SMH) has rallied higher by $2.47 a share. This morning, the SMH is trading higher by 0.72 cents to $31.15 a share. Traders must watch for very important daily chart resistance around the $32.00 area. Since October and November 2011 this has been an important resistance level for the SMH. Short term traders can watch for intra-day resistance on SMH around the $31.40 level.

Some leading semiconductor stocks that are trading higher this morning include Intel Corp (NASDAQ:INTC), Broadcom Corp (NASDAQ:BRCM), and Skyworks Solution Inc (NASDAQ:SWKS). All of these stocks could have a little more upside in the cards, however, they will often trade along with the SMH.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

$100 Oil Will Eventually Hurt The U.S. Economy Again

January 03, 2012 – Comments (0) | RELATED TICKERS: UHN , USO , UGA

WTI oil has now traded above $90.00 a barrel since late October 2011. While high energy prices used to signal global economic demand and strength; it is still a direct tax on consumers. These days high oil is affected by geopolitical events, weather, and the obvious action in the U.S. Dollar Index. At this time, oil has a war premium built in due to the Iranian threats and sanctions in the Middle East. Since 2008, whenever oil has traded around the $100.00 level for any considerable amount of time it has caused problems for the economy and this time around should not be any different.

Many traders are now starting to watch the United States Gasoline Fund (NYSEARCA:UGA) very closely. This morning the UGA is trading higher $1.37 to $49.69 a share. The UGA has now rallied higher by nearly $5.00 a share since December 16, 2011. Most consumers that do not follow the stock and commodity markets do follow the price of gasoline. When gasoline surges at the pump the U.S. consumer will cut back their spending. It is important to understand that U.S. consumer spending accounts for roughly 70.0 percent of the gross domestic product (GDP) in the United States.

The winter season has just begun and many people will need to start to use more heating oil in order to keep warm. Traders may have noticed that the United States Heating Oil Fund (NYSEARCA:UHN) has begun to trade higher since December 19, 2011 when it traded as low as $31.40 a share. This morning, the UHN is trading lower by 0.08 cents to $32.87 a share. The daily chart on the UHN is forming a sloppy sideways base which could lead to higher prices in the near term for the UHN. Traders should watch the $35.00 level as important daily chart resistance.

High energy prices are a direct tax on all consumers and businesses. This morning, all of the leading energy stocks are rallying sharply higher with oil. While the stock markets are in jubilee mode at the start of the new year it has been high energy prices that ultimately cause the U.S. consumer to pull back on their spending. This economy has been dependent on the U.S. consumer continuing to spend and borrow over the past ten years. Traders and investors must beware that $100.00 oil is problematic for the economy. This morning, WTI oil is trading higher by $3.46 to $102.27 a barrel.  

Nicholas Santiago
InTheMoneyStocks.com

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