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February 2011

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Akamai Meets Tsunami Selling

February 28, 2011 – Comments (0)

Akamai Technologies Inc.(NAASDAQ:AKAM) is one of the worlds leading providers of accelerating and improving the delivery of content and applications over the internet. The stock has declined sharply since February 9, 2011 when it reported earnings that were not received well by investors. The stock is trading lower again today by $2.08 to $37.40 a share. AKAM stock will have intra-day support around the $36.70 level. Aggressive day traders can look for bounce around that area. 




Nicholas Santiago
InTheMoneyStocks.com  [more]

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Oil And Light Volume Dominate The Market Action

February 28, 2011 – Comments (0)

As oil declines the major stock market indexes catch a bid and trade higher. Spot crude has now become just like the U.S. Dollar Index was. A weaker U.S. Dollar Index would help inflate the major stock market indexes. Now, since the crisis in the Middle East and North Africa it is the high oil prices that are stalling the stock market rally. The magic number that crude can reach is $100.00 a barrel before panic sets in on the stock market.

Spot crude seems to be consolidating just under the psychological $100.00 level.Should crude at some point rally or surge above that level it would be prudent to expect a declining stock market. Today, oil for April delivery ended the session on the NYMEX at $97.10 a barrel. Every trader and investor has one eye glued on an oil chart as the stock market continues to trade inverse to oil.

The small rally in the stock market today is rather unimpressive for a couple of reasons. The Dow Jones Industrial Average(DJIA) is leading all of the major indexes today trading higher by nearly 70.00 points. However, the S&P 500 Index is just trading higher by 3.50 points, and the NASDAQ Composite is trading lower by over 9.00 points on the session. Therefore, the DJIA is not really painting the entire picture of today's jittery market. The trading volume is also very light today and that will usually favor the upside for stocks. Should better volume resume tomorrow we shall get a better picture of the overall stock indexes.




Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Classic Retrace In Progress

February 28, 2011 – Comments (0)

The markets are fading off the highs of the day as lingering global fears persist. In addition, this is a classic retrace back higher after the major drop last week. A retrace states that after a significant two or more day move, the market or stock making the move will jump in the opposite direction but stay inside the original move. After the retrace completes, the market or stock heads back in the original direction.

After putting in a major pivot top last week, the markets fell for two or more consecutive days. After a bounce on Friday and initially today, the markets have started to slowly fall again. Is this a classic retrace over the last two trading days? Is the market going to start to move lower again? It is possible.

There are some major stocks showing weakness today. Amazon.com, Inc. (NASDAQ:AMZN) is dropping sharply, trading at $172.31, -4.93 (-2.78%). In addition, the financial sector has turned to the negative side, leading the markets off their highs. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $164.27, -0.50 (-0.30%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $46.52, -0.16 (-0.34%).

The next few days will be pivotal in terms of seeing if this retrace back up is just a setup for another move lower. Continue to watch the 52 week highs on the S&P 500.

Gareth Soloway
InTheMoneyStocks.com

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Will Silver Go Higher Or Collapse Again

February 28, 2011 – Comments (1)

Last Thursday, silver collapsed. After hitting a high of $33.00 the previous day on the iShares Silver Trust (NYSE:SLV), it dropped to a low of $30.96.  This did some major technical damage to the chart. However, between last Friday and today, silver has roared higher, surging through the $33.00 level. The SLV is currently trading at $33.07, +0.51 (+1.57%).

The big question must be asked, will silver now break higher or collapse back down, utilizing a double top as resistance. The answer will be given based on the closing price of the SLV today. Should the SLV close below $33.00, the bearish case is still on the table. If the SLV closes above $33.00, there is a strong likelihood silver is going higher in the short term.

Silver is extended on most chart time frames but global instability and the perception of a massive global recovery is giving it life. Watch closely in the coming two days to see which direction this goes.  Gold remains strong with the SPDR Gold Trust (NYSE:GLD) trading at $137.82, +0.44 (+0.32%).

Gareth Soloway
InTheMoneyStocks.com

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The Keys To The Next Market Move

February 28, 2011 – Comments (0)

The markets are having their second straight bounce day on the back of light volume and continued semi calm in the Middle East and Northern Africa. Libya continues to be in a civil war but overnight China began putting pressure on Moammar Gadhafi to step down. This helped drop oil back to the flat line which pushed the futures higher. The key to oil and the markets remains, whether or not the unrest spreads to Saudi Arabia.  The United States Oil Fund LP (NYSE:USO) is currently trading at $39.46, -0.22 (-0.55%).

After a major drop early last week, Friday brought a change in direction. The markets bounced sharply. Today, we are seeing further gains, though smaller in the indexes. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.88, +0.55 (+0.42%). While the markets are bouncing for the second consecutive day, they are still below the $134.69 pivot 52 week high. As of now, this is called a classic retrace higher. The next few days will be extremely key to whether or not the markets will break out or turn down again. With confirmation to the downside, intelligent traders are starting to look for a secondary move lower. Traders will continue to look for this starting at today's highs at $133.32, as long as the SPY does not take out the $134.69, 52 week high.  Should the market take out the highs again, then traders will look for further upside.

This maneuvering is based on technical pivots and the understanding of price pattern and time. By using these methods traders will see exactly when momentum switches and price changes from bullish to bearish or bearish to bullish.

Gareth Soloway
InTheMoneyStocks.com

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Oil Services Holders Trust Under Pressure

February 28, 2011 – Comments (0)

The Oil Services Holders Trust(NYSE:OIH) is a basket of the leading oil services stocks. This morning the OIH has come under some pressure trading lower by 41.90 to $161.35 a share. Short term traders can watch for intra-day support around the $160.75 area. This is where an intra-day  short term bounce is likely to occur.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Silver And Gold Remain In Bull Mode This Morning

February 28, 2011 – Comments (0)

This morning both silver and gold are trading higher and remains near 52 week highs. The iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.54 cents to $33.10 a share which is a new 52 week high. The SLV looks to have some minor intra-day resistance around the $33.25 level. Should the U.S. Dollar Index continue to decline the SLV could see higher prices.

The SPDR Gold Shares(NYSE:GLD) are trading higher by 0.59 cents to $137.99 a share. The all time high for the GLD was made on December 7, 2010 at $139.54 a share. Short term traders can look for the GLD to have intra-day resistance around the $138.50 level. As long as the U.S. Dollar Index continues to decline gold and silver could continue to climb higher.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Americans Just Lost Some More Of Their Buying Power

February 28, 2011 – Comments (0)

The U.S. Dollar Index has declined sharply again this morning. The U.S. Dollar Index is trading lower by 0.47 cents to $76.79. This is the lowest the U.S. Dollar Index has traded since November 4, 2010 when the index traded as low as $76.17. On January 10, 2011 the U.S. Dollar Index was trading as high as $81.63, however, since that time the U.S. Dollar Index has declined lower by $4.80 to trade at this morning's low. The next major support level will be around the $76.00 level which is the double bottom area from November 2010.

Retirees and people on fixed incomes are being directly effected from the weak U.S. Dollar Index. When the U.S. Dollar Index trades lower most of the major stock and commodity indexes will inflate higher. Remember, most every commodity is traded in U.S. Dollars, therefore, commodities and dollars usually trade inverse to each other. Many traders and investors have bought hard and soft commodities to try and defend against a weak U.S. Dollar Index. This morning the PowerShares DB US Dollar Index Bullish(NYSE:UUP) is trading lower by 0.11 cents to $22.07 a share. Most leading commodity stocks are trading higher this morning. Stocks such as U.S. Steel Corp.(NYSE:X), and AK Steel Holdings Corp.(NYSE:AKS) are both trading higher off of the weaker U.S. Dollar Index.

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Pre-Market Movers And News

February 28, 2011 – Comments (1)

This morning the personal income and spending numbers were released. The income and spending numbers were just a slight bit better than economists had expected. The S&P 500 Index e-mini futures(ES H1) were already trading higher this morning by 6.50 points to 1325.25 on a the back of a pullback in oil. Right now the stock market only seems to care about crude oil reaching $100.00 a barrel. When light sweet crude trades around $100.00 a barrel the stock market indexes seem to retreat and pullback. Should crude rally back up toward the $100.00 level traders and investors would be prudent to expect the major stock indexes to decline and sell off.

Last night the Asian markets rallied higher. The rally in Asia came on the back of China and Russia putting pressure on the Libyan ruler Muammar Qaddafi to step down from his post. This action caused oil prices to decline and hence a stock market rally in Asia. We shall see how long this decline or pullback in crude shall last since it is dictating every move in the stock market.

Traders and investors should know that when the Asian stock markets rally it is usually a positive for most commodity stocks. Therefore, commodity stocks such as Freeport McMoRan Copper & Gold Inc(NYSE:FCX), Cliffs Natural Resources Inc.(NYSECLF), and Southern Copper Corp.(NYSE:SCCO) could be in play this morning. However, should crude start to catch a bid higher and near that psychological $100.00 level the commodity stocks would likely retreat and trade lower. One eye must be kept on oil at all times this morning.




Nicholas Santiago
InTheMoneyStocks.com
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Silver Roars Back, How To Trade It

February 25, 2011 – Comments (0)

After a massive 5% drop yesterday, silver surged higher again today by 3.5%. The iShares Silver Trust (ETF) (NYSE:SLV) is trading at $32.28, +1.08 (+3.48%). The drop yesterday was a major signal that silver may be near a short term top. Technically speaking, the drop tells traders that the retrace higher can be shorted as long as the 52 week high is not breached. The 52 week high on the SLV was $33.00. Gold is also trading higher today with the SPDR Gold Trust (ETF) (NYSE:GLD) trading at $137.44, +0.96 (+0.70%).  Gold had a much smaller decline yesterday and did very little damage to the uptrend on a technical basis.

The key to the silver trade is two faceted. Not only is silver a store of safety against inflation and global unrest but it is also a production metal. If oil remains high, it is possible to see global economies hurt. Should this happen, the production metal side of the trade would suffer, thus bringing silver in slightly.

Gareth Soloway
InTheMoneyStocks.com

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Volume Matters

February 25, 2011 – Comments (0)

Today the major stock market indexes are rallying sharply higher. Traders should take notice that the trading volume is extremely light today. In the prior three trading sessions the volume in the stock market was much more heavier than today and that resulted in a decline in the major stock indexes. It is prudent to always remember the old market adage that states, "never short a dull market." Dull market means a light volume market and today is very light especially compared to the prior three trading sessions.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Research In Stalled Motion

February 25, 2011 – Comments (0)

Research In Motion Ltd.(NYSE:RIMM) is one of the weaker technology stocks today. RIMM stock is trading lower by 0.03 cents to $65.76 a share. Traders can watch the $65.40 area aa near term intra-day support. The next important intra-day support level will be around the $65.00 level. Both support spots could see small bounces intra-day.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Trading With The Best

February 25, 2011 – Comments (0)

The popular United States Natural Gas Fund(NYSE:UNG) is finally catching a bid higher today. This popular ETF has been in the dog house for almost two years. Today is the first sign that this ETF could be making a major move. The natural gas futures contract is also moving higher today. The problems in the Middle East might just be the excuse the politicians need to push the natural gas agenda. The United States has unlimited natural gas reserves that are untapped.



Nicholas Santiago
InTheMoneyStocks
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Traders Up The Ante on Casino Stocks

February 25, 2011 – Comments (0)

The leading casino stocks are in rally mode today along with the major stock market indexes. Wynn Resorts Ltd.(NASDAQ:WYNN) is considered the best of breed casino name at this moment. The stock is trading higher this morning by $3.23 to $122.52 a share. Recently, the stock has declined sharply lower over the past four trading days by over 10.00 points and below the daily 20 moving average. However, today WYNN stock is bouncing back above the 20 moving average. Trader must watch the $124.00 area as important intra-day resistance. There will be minor intra-day resistance around the $122.50 level.

Las Vegas Sands Corp.(NYSE:LVS) is making a move higher this morning. The casino giant is trading higher by 0.70 cents to $45.68 a share. Traders should watch for important intra-day resistance around the $46.10 and $47.00 levels. Pullbacks from both areas are likely.

The next major casino stock that is making a move higher this morning is MGM Resorts International(NYSE:MGM). This stock has been one of the lagging casino stock for quite a while. Today the stock is trading higher by 0.42 cents to $14.04 a share. Traders must watch the $14.20 and $14.60 levels as important intra-day resistance levels. Pullbacks from both levels are possible.




Nicholas Santiago
InTheMoneyStocks.com  [more]

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Oil Services Stocks Rebound

February 25, 2011 – Comments (0)

The Oil Services Holders Trust(NYSE:OIH) is trading higher by $1.08 to $159.78 a share this morning. This is a slight up-tick today after a three day slide from the $165.00 high made on February 22, 2011. Traders can watch for intra-day resistance around the $160.50 and $161.80 levels. Both areas could see intra-day pullbacks.

Schlumberger Ltd.(NYSE:SLB) is trading trading higher this morning by $1.08 to $90.73 a share. This stock should have intra-day resistance around the $91.75 level. Traders should watch for an intra-day pullback around that level.

Halliburton Co,(NYSE:HAL) is moving higher this morning by 0.42 cents to $45.97 a share. This stock should face intra-day resistance around the $46.50 area. Trader must watch for an intra-day pullback from this level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Pre-Market Movers And News

February 25, 2011 – Comments (0)

This morning the S&P 500 E-mini futures(ES H1) are trading higher by 7.75 points at 8:30 am EST. The stock market seems to be reacting positive as oil is pulling back below $100.00 a barrel. This morning, April crude is trading around $96.85 a barrel. Crude remains the driving force behind every stock market move. Yesterday afternoon when oil prices pulled back below the $100.00 level the stock market indexes actually rallied higher off of its intra-day lows.

Traders and investors will have no choice but to follow oil closer than ever now as the Middle East and North Africa remain in turmoil. The situation in Libya seems to be expanding to other nations in the region. Iraq is reported to have protesters beginning to question the newly formed government in that country. Iraq is the third largest oil producer in the Middle East. Should Saudi Arabia see an uprising or protest by their citizens it would be prudent to expect another oil spike. At this time Saudi Arabia has been tame.

The Asian markets rallied higher last night. The Hang Seng Index(Hong Kong) traded higher by 1.81 percent. The Nikkei 225 Index(Japan) traded higher by 0.72 percent. The Sensex Index(India) ended higher by 0.39 percent. The highly followed Shanghai Index(China) ended the trading session unchanged. When the Asian markets trade mostly higher this is usually a positive for the U.S. stock markets.

At 8:30 am EST the fourth quarter gross domestic product(GDP) was revised lower by the government to 2.8 percent from the originally reported 3.2 percent growth rate. This revision has not had any effect on the future markets.

Stocks that will be in play today will be Boeing Co.(NYSE:BA). Boeing Co. received a $35 billion dollar contract from the U.S. government this morning. Salesforce.com Inc.(NYSE:CRM) is trading higher this morning after beating earning last night. The stock is trading higher by $12.00 to $147.00 a share ahead of the opening bell. Other cloud computing stocks could trade higher in sympathy to Salesforce.com. Traders should watch stocks such as VMWare Inc.(NYSE:VMW), Citrix Systems Inc.(NASDAQ:CTSX), and F5 Networks Inc.(NASDAQ:FFIV) for sympathy plays.

Today is a Friday and rarely do we see or expect a large decline on a Friday. For some magical reason the stock market indexes are usually flat to slightly higher by the closing bell at 4:00 pm EST.


Nicholas Santiago
InTheMoneyStocks.com
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Oil Makes The World Go Around

February 24, 2011 – Comments (0)

The late session drop in spot crude has saved the stock market indexes from breaking down lower today. Right around 2:00 pm EST spot crude began to decline sharply lower before closing and settling at $97.30 a barrel on the New York Mercantile Exchange at 2:30 pm EST. In electronic trading crude has declined a bit further breaking below the $97.00 levels.

This morning we had mentioned that crude and the major stock indexes were and are trading inverse to each other. Many traders and investors will follow and trade the United States Oil Fund(NYSE:USO). This oil tracking ETF will have some minor intra-day support around the $39.00 level and more support around the $38.50 area.

The United States Gasoline Fund(NYSE:UGA) also staged a sharp reversal this afternoon after making a new 52 week this morning. The UGA will have intra-day support around the $46.50 and $46.00 levels. Please remember oil and gasoline are reacting on the geopolitical events that are taking place around the world. Both the USO and the UGA are extended on the daily charts.



Nicholas Santiago
InTheMoneyStocks.com
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Hewlett Packard Looks For Support

February 24, 2011 – Comments (1)

Hewlett Packard Co.(NYSE:HPQ) has been decimated on the charts after reporting earnings two days ago. The stock will have some short term intra-day support around the $41.95 area. This is not a long term bounce area. Stocks that sell off so sharply after news or earnings can remain weak for extended periods.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Why Agriculture And Solar Sectors Are Strong

February 24, 2011 – Comments (0)

The markets are lower today but some sectors remain strong. The agriculture and solar sectors are particularly strong in an otherwise dismal market. Why would these sectors be so strong in the face of the markets third consecutive sell off? The answer is simple. While oil has run up and people fear the demand for goods and services may diminish, individuals still have to eat. As the worlds population continues to grow, people will continue to require food. In general, populations do not reduce their food consumption when energy spikes, instead they stop going to movies, buying TV's and having parties. For good reason then, after a sell off over the last few days, agriculture stocks are finding support.  Stocks like Potash Corp./Saskatchewan (NYSE:POT) hit a low yesterday of $163.23 before rallying back to its current level at $172.25. The same type of move was seen in The Mosaic Company (NYSE:MOS).

While agriculture stocks have bounced sharply in the last day, solar stocks have remained extremely strong as well. First Solar, Inc. (NASDAQ:FSLR) is trading at $165.44, +2.42 (+1.48%) while the overall market is at the lows of the day. The reason why solar is so strong is purely because it is an alternative to oil. As oil goes higher, alternate energies like solar are cheaper in relative terms. This means more people will consider installing solar instead of spending so much money on oil and gas.

Always look at the whole picture when it comes to one commodity. There are usually many angles to view in order to make the maximum amount of money possible.

Gareth Soloway
InTheMoneyStocks.com

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High Oil Hurts Silver

February 24, 2011 – Comments (0)

As oil continues to trade around $100.00 per barrel, silver has started to fade. The iShares Silver Trust (NYSE:SLV) is trading $32.26, -0.45 (-1.38%). The key with silver is that it is not just a safety net for inflation fears and global instability, it is a production metal. Being a production metal, silver moves sharply higher when the global economy is strong. That is a major reason why silver has been charging higher of late. The higher oil goes, the more pressure it puts on the economies of the world. It is said that for every $10 move higher in oil, GDP will suffer half a percent. Therefore, it makes sense that silver should sell off and is selling off with oil spiking higher.

Silver should continue to trade lower in the coming days, especially if oil remains around $100 per barrel. It is important to remember that gold is more of a pure inflation, safety play. Please note that gold is higher today while silver is lower. The SPDR Gold Trust (NYSE:GLD) is trading at $137.75, +0.24 (+0.17%). With silver down, it clearly shows that silver is influenced by growth while gold is all about inflation and a safety.

Gareth Soloway
InTheMoneyStocks.com

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Oil Fades As Panic Subsides

February 24, 2011 – Comments (1)

Fear and panic have driven the oil market sharply higher over the last few days. Just last week crude oil was trading at $85 per barrel. Overnight, spot crude hit $103.00 per barrel. This massive spike was all on the back of unrest in the Middle East. Libya is now in what appears to be a civil war but the biggest fear on Wall Street is whether or not it would spread to Saudi Arabia. There have been rumors, panic and much more but as of now, it seems it is subsiding. After hitting $103.00 overnight, oil has faded to the flat line on the day.

Oil stocks had jumped on the price spike in crude but are now falling sharply on its retreat. Exxon Mobil Corporation (NYSE:XOM) is trading at $86.04, -1.03 (-1.18%) while ConocoPhillips (NYSE:COP) is trading at $77.76, -0.81 (-1.03%). However, Chevron Corporation (NYSE:CVX) is bucking the trend, trading at $103.15, +0.88 (+0.86%).

The markets are moving on the flat line today, very muted considering the risks and swings in oil. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.92, -0.10 (-0.08%).

The markets will remain focused on oil and the Middle East. In addition, key economic data was released today. At 8:30am ET Jobless Claims were reported to have dropped 22,000 to 391,000. This was a slightly bullish number for the markets. However, Durable Goods minus Transportation fell 3.6%. Then at 10:00am ET New Home Sales were reported down 12.6%.

The markets will begin to look at economic news again, especially with the Non Farm Payrolls number coming next Friday.

Gareth Soloway
InTheMoneyStocks.com

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Government Motors Makes New Low Intra-day

February 24, 2011 – Comments (0)

General Motors Co.(NYSE:GM) opened for trading on November 18, 2010 at $35.00 a share. The stock traded as low as $32.75 intra-day making a new all time trading low for the popular government financed company. The $33.00 area is short term support for the stock.



Nicholas Santiago
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Oil Is Now The Driving Force Behind Every Market Move

February 24, 2011 – Comments (0) | RELATED TICKERS: USO , OIL

Oil has now replaced the U.S. Dollar Index as the driving force behind every market move. In the past, when the U.S. Dollar Index sold off or declined the major stock market indexes would inflate and trade higher. These days since the Middle East is in turmoil, higher oil prices have caused the stock markets to deflate and decline. When oil pulls back or declines now the major stock market indexes rally and trade higher.

Today the popular United States Oil Fund(NYSE:USO) is trading higher by 0.33 cents to $40.16 a share. The USO is getting a bit stretched on the daily chart, however, that does not mean it cannot trade higher. Normally, a pullback or consolidation would be in order from the current pattern on the charts. There just may be too much uncertainty in the Middle East to see a meaningful pullback at this time. The USO will have intra-day support around the $39.70 area and more around the $39.25 level. Please remember oil is very sensitive to geopolitical events.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Commodity Stocks Rebound Early. Will It Last?

February 24, 2011 – Comments (1) | RELATED TICKERS: CLF , FCX

This morning some of the leading commodity stocks are trading higher. The move higher in the commodity stock complex comes as the U.S. Dollar Index trades lower by 0.35 cents to $77.05. The Shanghai Index also rallied higher last night by 0.50 percent and this usually helps to lift commodity stocks short term.

Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is the leading copper stock in the world and is followed by most traders and investors as an economic barometer. Today the stock is trading higher by $1.02 to $52.03 a share. FCX stock will have some intra-day resistance around the $52.20 and $53.00 levels.

Cliffs Natural Resources Inc.(NYSE:CLF) is the leading iron ore pellet producer in the world. The stock has declined sharply over the past three trading sessions along with the major stock indexes. This morning the stock is trading higher by $1.37 to $93.34 a share. CLF stock will have intra-day resistance around the $94.15 area and more resistance around the $95.00 level. Short term traders can watch for minor pullbacks at both levels.

Southern Copper Corp.(NYSE:SCCO) is another leading commodity stock that is trading higher today. SCCO stock is trading higher by 0.30 cents to $42.00 a share. This stock will have intra-day resistance around the $42.10 area and more around the $42.60 level. These are two levels where the stock may see pullbacks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Pre-Market Movers And News

February 24, 2011 – Comments (1)

This morning April oil is trading over $100.00 a barrel and that is front and center for the stock markets. The S&P 500 e-mini futures(ES H1) are trading lower by 5.25 points to 1300.25 before the opening bell at the New York Stock Exchange. S&P 500 Futures have now declined by 42.00 points in just three days. The catalyst for the market sell off is the continued tension and protests in the Middle East and Northern Africa. Libya is taking over where Egypt left off as a revolution looks to be occurring against Moammar Gadhafi. Oil is trading higher from this news and can spike higher if the situation worsens in the region and spreads into Saudi Arabia.

Weekly jobless claims declined by 22,000 to 391,000 new claims. This news is simply noise today as oil is front and center. Traders must keep an eye on oil and really nothing else. The U.S. Dollar Index has also declined over the past week and is testing the $77.00 support level. Rarely, have we seen the stock market and the U.S. Dollar Index both decline at the same time. Retirees and people on fixed incomes have just lost more of their purchasing power this morning. The U.S. Dollar Index has usually rallied whenever a crisis erupted around the world and that is not occurring this time around. This is a definite change in character. Investors and traders are now running into gold and silver as the one true reserve currency.

Last night the Asian markets sold off sharply. The Nikkei 225(Japan) and Hang Seng Index(Hong Kong), traded lower by a little over 1.00 percent. The highly followed Shanghai Index(China) traded higher by 0.56 percent. The Indian Sensex Index declined by 3.00 percent and this is a large decline. Traders in the U.S. must watch stocks such as Tata Motors Ltd.(NYSE:TTM), India Fund(NYSE:IFN), and other India related companies to be in focus and likely under pressure. India has already been plagued with high inflation and the oil spike is certainly taking its toll on that economy.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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TJX In Play

February 23, 2011 – Comments (0)

TJX Companies Inc.(NYSE:TJX) is a popular discount retail company The stock declined sharply this morning after the opening bell, however, TJX stock has rallied off the intra-day lows with the market this afternoon. Traders should now watch the $49.00 area as the next important intra-day resistance level. The stock is likely to pullback from this resistance area.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Natural Gas Must Be On The Radar

February 23, 2011 – Comments (0)

Everyone is watching the world protest over high food prices. Oil prices are the driving force in the stock market today as the geopolitical events in the Middle East become front and center news. Today spot crude reached $100.00 a barrel before pulling back into the close at the New York Mercantile Exchange. Can the world handle $100.00 crude?

Gasoline and heating oil have really no choice but to increase in price when oil climbs. High energy prices are a direct tax on the U.S. consumer and that can be figured out by my three year old. The big question that we must ask ourselves is when natural gas will finally get the nod as the next big energy choice. This action in oil today is likely going to be the excuse or catalyst that the politicians have been looking for in order to push the natural gas agenda.

Natural gas has been one of the worst performing commodities since the inflation rally began in March 2009. Even today the natural gas futures contract closed at $3.92 which is still near the all time lows. Natural gas is certainly going to have its day in the sun if this type of activity continues in the Middle East and Africa.

Exxon Mobil Corp.(NYSE:XOM) and other leading energy companies have made substantial investments in natural gas over the past year. These companies run the world, they are not stupid. Chesapeake Energy Corp.(NYSE:CHK) stock price is up over 50.0 percent since late August 2010. Devon Energy Corp.(NYSE:DVN) is another leading natural gas stock that is trading at new 2 year highs. Natural gas the commodity must be on the radar now for traders as a long term investment.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Second Day Of Selling A Rarety

February 23, 2011 – Comments (0)

The markets continue to sell today with the SPDR S&P 500 ETF (NYSE:SPY) trading at $130.68, -1.15 (-0.88%). Libya is on the verge of civil war and the markets continue to worry that the unrest and protests will spread to Saudi Arabia. Oil continues to run higher today, the United States Oil Fund LP (NYSE:USO) is trading at $40.03, +1.54 (+4.00%). Should Saudi Arabia see massive protests and violence, oil could go to $150.00 per barrel very quickly.

The price of oil is currently the biggest obstacle to the Federal Reserve in terms of the global and domestic recovery. A large spike in oil will cause all economies to slow, stalling the rebound. The Federal Reserve has used massive amounts of money to stimulate the economy. 

The markets are lower for their second consecutive day. This has not happened in months and maybe a larger signal of a market top. All eyes continue to be on the Middle East. 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Oil Runs Again, Driving Big Oil Higher

February 23, 2011 – Comments (0)

As oil continues to run higher on unrest in the Middle East and Northern Africa, big oil companies are enjoying larger profits in the short run. Chevron Corporation (NYSE:CVX) is trading at $103.52, +3.20 (+3.19%) while Exxon Mobil Corporation (NYSE:XOM) is trading at $87.22, +1.78 (+2.08%). These companies surged dramatically higher yesterday on oils strength and are doing so again today.

While higher oil does mean more profits in the short term, it is not that way in the long term. As oil and gas prices rise, global demand will start to wane. If oil prices continue to rise, global instability is going to increase as inflation continues to move higher. Eventually, as consumers recoil from the massive surge in energy, demand for oil will drop and profits for big oil may start to drop.  The big question will be, at what price does this occur. Many believe it may start at $100.00 oil and others believe at $115.00. In 2008 oil reached $150.00 per barrel. The global economy was much stronger then and it still collapsed into the financial crisis we have seen.  What will happen this time?

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Not Falling Off A Cliff Yet

February 23, 2011 – Comments (0)

Cliffs Natural Resources Inc.(NYSE:CLF) is a leading iron ore pellet producer. The stock is trading higher today by $1.81 to $94.55 a share. The move higher comes as the U.S. Dollar Index has sold off sharply and many commodity stocks are catching a bid higher today. Short term traders should watch the $95.20 and $96.00 levels for intra-day resistance. Pullbacks from both resistance areas are likely.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Is The U.S. Dollar No Longer A Safe Haven?

February 23, 2011 – Comments (0)

Anytime the global market markets have come under pressure the U.S. Dollar has rallied higher as a safe haven trade. Investors will usually run and buy U.S. Dollars as a form of security. After all the dollar is the world's reserve currency. However, since the protests and riots began in the Middle East over a month ago the U.S. Dollar Index has declined lower. This is very uncharacteristic of what we have seen over the past 10 years. Usually, when the U.S. Dollar Index declines the stock market indexes and most commodities will increase and rise in price. However, that is not happening at this time.

Many investors believe that the U.S. Dollar is being forced lower by the Federal Reserve Bank as they continue to flood the market with cash reserves in order to create inflation. Essentially, they are diluting the U.S. Dollar on a daily basis. As the U.S. Dollar declines against the other major currencies of the worlds emerging markets countries such as China, and Brazil have openly spoke out against the Federal Reserve Bank's actions. These nations are facing massive inflation and higher interest rates. Whenever nations face higher interest rates their economies will slow down dramatically. 

Currently, the United States has had a zero percent interest rate policy since December 2008. When rates are this low the economy will usually stimulate and create a higher gross domestic product(GDP). However, when the economy becomes too hot and creates a bubble as it always does then the rate hike that must follow will usually deflate the economy. It is a pick your poison type of system for the Federal Reserve when you have a weak U.S. Dollar Policy.

Right now the U.S. Dollar Index has some support around the $77.00 level. If that low level is broken to the down side the next daily chart support area for the U.S. Dollar Index will be around the $75.50. Most traders and investors should realize that a weak and declining U.S. Dollar means higher prices for goods and services for every consumer. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Is An Oil Super Spike On The Horizon?

February 23, 2011 – Comments (2)

This morning the United States Gasoline Fund(NYSE:UGA) is trading higher by 0.93 cents to $45.87 a share. This is a new 52 week high for the UGA which continues to trade higher with oil. When gasoline prices increase at the pump it is a direct tax on the U.S. consumer. 

The United States Oil Fund(NYSE:USO) is trading higher this morning by 0.73 cents to $39.22 a share. The move higher in crude comes as the oil producing nations such as Libya are on the verge of a revolution. Saudi Arabia has told the United States that it can produce the lost oil from Libya's disruption. Many traders and investors are now wondering when the people may revolt against the Saudi Arabian ruler-ship. Should Saudi Arabia come under civil unrest oil could see a super spike. Everyone should still remember the super spike in oil in July 2008 and its effect on the economy.



Nicholas Santiago
InTheMoneyStocks
  [more]

Recs

0

Pre-Market Movers

February 23, 2011 – Comments (0) | RELATED TICKERS: AKS , X

This morning the S&P 500 futures(ES H1) are trading higher by 2.25 points to 1316.75. The small up-tick in the market comes after yesterday's high volume broad based sell off. Often after a large rally or large decline the following trading session is much more subdued.

Libya and other nations in the Middle East and Africa have continued to revolt against the current governments. The economic problems in the European Union are also being overshadowed by the Middle East uprising. Traders and investors must follow the global markets very closely as each economy effects the other these days.

Last night the highly followed Shanghai Index traded higher by just 7.0 points. However, the Hang Seng Index(Hong Kong), Nikkei 225(Japan), and the Sensex(India) all finished lower by less than 1.00 percent. This type of action should not effect the leading commodity stocks as it has over the past few sessions.

Some commodity stocks that will be in play today are AK Steel Holdings Corp.(NYSE:AKS), and U.S. Steel Corp.(NYSE:X). Both companies reported their annual 10-K form and these stocks are trading slightly higher before the opening bell at the New York Stock Exchange.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

NASDAQ 100 Loses Nine Days Of Gains In A Single Session

February 22, 2011 – Comments (0)

The Popular PowerShares QQQ Trust(NASDAQ:QQQQ) loses nine days of gains in a single trading session. Could this be the start of further declines or just a one day panic? That remains to be seen. 

 

Recs

1

Gasoline At New Highs For The Year

February 22, 2011 – Comments (0)

Today the United States Gasoline Fund(NYSE:USO) hit a new 52 week high trading at $45.40 a share. At some point high energy will be a drag on the economy and the U.S. consumer. Gasoline prices at the pump are averaging $3.17 a gallon according to AAA. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Will The Banks Buy The Dip?

February 22, 2011 – Comments (0)

Nearly every trading day since late August 2010 the dip in the stock market has been bought. Many professional traders and investors suspect that the large major banks buy the major stock indexes just before the Federal Reserve Bank initiates their daily permanent open market operation (POMO). It is suspected that often the large major banks such as J.P. Morgan Chase and Co.(NYSE:JPM), Bank of America Corp.(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C) simply buy the market leading stocks such as Apple Inc.(NASDAQ:AAPL), Exxon Mobil Corp.(NYSE:XOM) and others which help to inflate the stock markets and cause rallies nearly every trading day. 

Traders and investors should also realize that the large major banks have not taken a trading loss in months. This has made trading very profitable for these large major institutions. These large financial giants can also borrow capital or cash from the Federal Reserve Bank at zero percent. It has also been rumored in the trading world that these institutions are also using very high leverage for trading that is comparable to the pre-financial crisis levels back in 2007 and 2008. When you think about it, what risk are the large banks really taking? They will just be bailed out by the government if something went wrong.

The big question that many traders and investors are asking today is will the banks buy the dip again? The down trend in this stock market today is severe and very sharp. The decline is broad based and many market leaders have dropped sharply. The financial stocks which have lead the stock market indexes higher since late November 2010 are selling off violently. Today does not look as if the stock market will stage a comeback, however, if there is one thing that we have seen in this market it is that anything can happen at anytime. 


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

3

Silver Topping, Here Is Why

February 22, 2011 – Comments (4)

In the short run, silver appears to be topping. The iShares Silver Trust (NYSE:SLV) traded as high as $32.68 before pulling back to its current level at $32.20. Silver opened sharply higher on global worries along with gold. The SPDR Gold Trust (NYSE:GLD) opened at $136.92 and has since pulled back as well.  The key to the silver trade being ready to correct is that it is an industrial metal as much as it is a store for safety.

As instability jumps and oil prices rise, GDP all over the globe will take a hit. The higher oil and gas prices go, the bigger hit to growth across the globe. Think of oil prices as a tax on companies and people. This limits their spending thus slowing global growth. The slower global growth, the weaker demand for silver as an industrial metal. In addition, many silver company charts have surged into major double tops. A great example would be Silver Wheaton Corp. (NYSE:SLW). The double top level hit today was $41.85 - $42.35. Silver may not pull back much but could see a fall on the SLV back to $30.00 in the short term. 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Markets Tumble As Chevron And Exxon Rally

February 22, 2011 – Comments (0)

While the markets are being slammed on the back of Libya, Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are spiking dramatically higher. This is a clear reaction to a major spike higher in oil. Libya is the largest producer of oil in North Africa and accounts for about 2% of the worlds output. In addition, fear continues that the revolts all over the Middle East and Northern Africa could spread to more important countries like Saudi Arabia. Should this happen, oil would skyrocket even higher. Exxon and Chevron are both enjoying the higher price of oil thus far.

If oil continues to rise, it will eventually knock demand in a major way.  Some thing that will occur when oil reaches $100 per barrel while others think that level may be near $115 per barrel. Either way, Exxon and Chevron are strong in an otherwise ugly market as their profits could soar. The stock prices are factoring in this increase in profits. If oil continues to move higher, both stocks may start to sell off as demand would suffer in a major way.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Airlines Stocks Descend

February 22, 2011 – Comments (0)

Airline stocks are coming under pressure this morning after the large spike higher in oil. Airline stocks are particularly sensitive to crude and energy prices. 

Delta Air Lines Inc.(NYSE:DAL) is one of the largest passenger carriers in the world. The stock is declining lower by 0.80 cents this morning to $10.68 a share. The stock will have short term intra-day support around the $10.50 level. The next important daily chart support level for Delta stock will be around the $10.00 level. 

AMR Corp.(NYSE:AMR) is the parent company of American Airlines. This stock continues to hold the $7.00 level on the daily chart. The next important daily chart support for AMR stock will be around the $6.50 level. Intra-day the stock will have some minor support around the $6.85 area.

United Continental Holdings Corp.(NYSE:UAL) is declining lower today by $1.71 to $25.24 a share. The stock will have some short term intra-day support around the $24.67 area. The daily chart will not have important support until the stock reaches the $24.00 area. 

Should oil pullback or decline from its highs this could help the airline stocks catch an intra-day bid. High oil at this time is dictating most of the pressure in the airline sector. 



Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Can The U.S. Dollar Index Decline Enough To Save The Markets?

February 22, 2011 – Comments (0)

The U.S. Dollar Index has now declined since 3:00 am EST when it traded as high as $78.31. Currently, the U.S. Dollar Index is trading around $77.70. As most of the trading world knows by now, when the U.S. Dollar Index declines most commodities and stock market indexes will inflate and trade higher. That scenario has been the case in the past and seems to be the case today as the Dow Jones Industrial Average has rallied higher by nearly 60.0 points since the low of the session. The S&P 500 futures have also rallied sharply off the lows of the session. At this time the 'buy the dip' mentality is still intact.

 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Retail Under Pressure

February 22, 2011 – Comments (0)

This morning many of the leading retail stocks reported earnings. The popular Retail Holders Trust(NYSE:RTH) is trading lower by $1.26 to $107.99 a share. The RTH looks to have some intra-day support around the $107.00 level should it trade down there. This is a level where traders can look for a small intra-day bounce.

WalMart Stores Inc.(NYSE:WMT) is trading lower this morning by $2.00 to $53.37 a share. This stock is declining after reporting earnings before the opening bell this morning. The stock appears to have some daily chart support around the $53.00 level. It is important to remember that most stocks are often very volatile after reporting earnings. Therefore, WalMart stock will be in play for most of the day.

Home Depot Inc.(NYSE:HD) is one retail stock that is trading higher this morning. The company reported earnings that are being well received by the market today. HD is trading higher by 0.50 cents to $38.98 a share. The stock is trading at a new 52 week high. The intra-day resistance area for HD will be around the $39.50 level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-Market Movers and Shakers

February 22, 2011 – Comments (0)

Last night, the Asian stock markets sold off sharply lower. The Hang Seng(Hong Kong stock index), and the Shanghai Index(Chinese stock index), both declined by more than 2.0 percent. The declines in the Asian markets will usually effect the leading commodity stocks that are traded in the United States stock markets. Copper stocks such as Southern Copper Corp.(NYSE:SCCO), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) are two leading commodity stock that will start the session on the weak side ahead of the opening bell. AK Steel Holdings Corp.(NYSE:AKS), and U.S. Steel Corp.(NYSE:X) are also starting the morning sharply lower before the opening bell at the New York Stock Exchange. Other leading commodity stocks will be in play today as well.

Traders should keep a close eye on the U.S. Dollar Index. Should the U.S. Dollar Index decline or pullback after the opening bell at 9:30 EST the commodity stocks could bounce or trade off of the pre-market lows. Remember when the dollar declines the stock markets inflate and usually trade higher. Traders that want to play the U.S. Dollar Index can use or follow the PowerShares DB US Dollar Index Bullish(NYSE:UUP).

Oil remains very strong today as the problems in Libya and the rest of the Middle East seem to expand by the minute. Anytime the oil producing nations in the Middle East face the chance of disruption this will effect the markets. Traders and investors must ask themselves what country is next to stage a protest and possible revolution. The popular United States Oil Fund(NYSE:USO) is trading above $39.13 a share after closing at $36.36 on February 18, 2011.

Gold and silver are rallying higher this morning as fear is striking the markets worldwide. These precious metals can be viewed as a form of currency against the fiat money systems used by the central banks. Silver made a 31 year high yesterday by briefly reaching the $34.00 level. Gold has not yet made new all time highs. The high for gold was made on December 7, 2011 at $1432.50 an ounce. Traders and investors can watch the SPDR Gold Shares(NYSE:GLD) and the iShares Silver Trust(NYSE:SLV) to be in play throughout the trading session today.

The S&P 500 Index futures(ES-H1) are trading lower by 15.50 to 1327.00. The Nasdaq 100 futures(NQ H1) is trading lower by 34.00 to 2361.00. Recently, the stock market has been in a sharp rally as every dip has been bought. We shall see if that buying trend by the large institutions continues today.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Alert: Target Hits Major Support, Could See Rise

February 18, 2011 – Comments (0)

Target Corporation (NYSE:TGT) has been crushed of late, dropping almost daily from the 52 week high, hit on January 3rd, 2011. This level was $60.97. From that pivot high, the stock has collapsed, dropping on sales fears and worries. As of today, Target Corp. hit a massive support level at $51.75. This coincides with a pivot double bottom from October 29th, 2010 at $51.75. The stock now turns from a bearish collapsing play to a mildly bullish mover, with upside potential in the short term.  

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Alert: Silver Squeezes

February 18, 2011 – Comments (0)

The commodity silver is surging today, making new 52 highs. Not only is silver a store of value during inflationary times, but more importantly, it is used in many products and the production of products. Therefore, it makes sense that it is running higher ahead of gold due to the solid economic outlook.  The iShares Silver Trust (ETF) (NYSE:SLV) is jumping, hitting a new 52 week high at $32.08. This chart is extremely extended and could see a solid pull back.

The markets are floating higher as the Friday Effect is in full swing. Generally, Fridays are higher, especially ahead of a three day holiday weekend. Today looks to be following this logic. The SPDR S&P 500 ETF (NYSE:SPY) are trading at $134.51, +0.26 (+0.19%). As the markets float higher, the Dollar is continuing to drop. The markets and the Dollar move in opposite direction. As the Dollar falls, the markets move higher and vice versa. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.32, -0.09 (-0.40%).

The three day weekend brings into focus the global picture. Over the weekend, traders will be watching for any new riots or events out of the Middle East. In addition, traders are also watching Europe very closely as there are new rumblings starting to brew.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Everything Silver Remains Hot

February 18, 2011 – Comments (0)

The iShares Silver Trust(NYSE:SLV) is trading higher again today by 0.30 cents to $31.33 a share. This is a new multi-year high for the precious metal. The SLV as climbed higher by 20.0 percent since January 25, 2011. Problems continue to erupt in Europe, and the Middle East on a daily basis. Silver and gold are both considered true forms of currency and will often rally when fear enters the market place. The SLV will have some minor intra-day resistance around the $31.50 area and more around the $32.00 level.

Silver Wheaton Corp.(NYSE:SLW) is the leading silver streaming stock in the world. This stock will usually trade higher when the commodity itself trades higher. This morning Silver Wheaton stock is trading higher by $1.25 to $38.02 a share. Silver Wheaton stock will have minor intra-day resistance around the around the $38.40 area.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Simon Property Group Under Pressure

February 18, 2011 – Comments (0)

This morning the leading commercial real estate stock, Simon Property Group Inc.(NYSE:SPG,) has faded from its gap higher open. The stock started the trading session at $108.50 and is now trading at $107.50. Short term traders can watch for intra-day support around the $107.00 area. This level is a likely intra-day bounce area for the stock. 

The iShares Dow Jones US Real Estate ETF(NYSE:IYR) is trading higher by 0.09 cents to $59.48 a share. The popular IYR will usually trade in tandem with Simon Property Group stock, however, today that is not the case. The IYR should have short term intra-day support around the $59.35 area.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

USO Catches A Bid

February 18, 2011 – Comments (0)

United States Oil Fund(NYSE:USO) is trading higher this morning by 0.40 cents. The highly popular USO found good daily chart support around the $35.50 area. The USO has bounced from that daily chart support level. This morning short term scalp traders should watch the $36.50 level as some minor intra-day resistance. The next intra-day resistance area for the USO will be around the $36.75 level.

Most leading energy stocks are trading slightly lower. Stocks such as Exxon Mobil Corp.(NYSE:XOM), and ConocoPhillips(NYSE:COP) are two of the major integrated energy stocks that are under some slight selling pressure this morning. It is important to note that these two leading energy stocks have lead the markets higher recently and still remain very strong on the daily charts.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-Market Movers & News

February 18, 2011 – Comments (0)

Last night, the People's Bank of China(Chinese central bank), raised its bank reserve requirements by 0.50 percent. This put pressure on the Shanghai Index which closed lower by 0.92 percent. Over the past week the highly followed Shanghai Index has been bouncing higher. As we should all know by now when the Shanghai Index declines or sells off the leading commodity stocks such as U.S. Steel Corp.(NYSE:X), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF) could be under some selling pressure. 

This morning around 7:00 am EST the U.S. Dollar Index sold off sharply as the European Central Bank(ECB) hinted at raising interest rates. This caused the Euro currency to increase sharply higher. Traders and investors can follow or trade the CurrencyShares Euro Trust(NYSE:FXE) as this ETF will certainly be in play today. Generally, when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher.

Today, is also options expiration, therefore, it is prudent to expect some volatility during the first hour or two of the trading session. Usually, after the first couple of hours the market will become very quiet. Monday is the President's Day holiday in the United States. Many traders and investors will often leave the trading session early on a Friday before the holiday. Friday's are often a flat to slightly higher trading session and that is what we shall expect today as trading volume should be very light. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Trading Volume Below Summer Doldrum Levels

February 17, 2011 – Comments (0)

Wow, can the volume get any lighter? The average volume this month(February) is below the summer doldrums of August 2010. Recently, news reporter Bob Pisani, from CNBC has been reporting that mutual fund inflows have been surging. However, traders and investors fail to see any increase in volume. As we all know by know light volume markets favor the upside. Remember the old market adage, "never short a dull(light volume) market." This is as light as I have ever seen in the past five years. Oh well, maybe this is a sign of the times. Stay with the trend as long as the volume remains light.



Nicholas Santiago
InTheMoneyStocks.com       [more]

Recs

0

Silver Is On Fire

February 17, 2011 – Comments (0)

The iShares Silver Trust(NYSE:SLV) has show exceptional strength since January 25, 2011 when it traded as low as $26.00 a share. The SLV has now rallied higher for three consecutive weeks without having more than a two day pullback. Today the SLV is making a new 52 week high. The daily chart is now starting to get a little extended and may need to take a breather soon by pausing or pulling back. Intra-day the SLV will have some short term resistance around the $31.25 and $31.50 levels.

The SPDR Gold Shares(NYSE:GLD) is also trading higher today by $1.00 to $135.09 a share. The GLD has shown strength since late January when it traded around the $128.00 area. However, the GLD is still trading below its early December all time high of $139.54 a share. Please note that the SLV is signaling better relative strength than the popular GLD at this time. The GLD will have intra-day resistance around the $135.50 level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Alert: Mastercard Pulls Back Off Key Level

February 17, 2011 – Comments (0)

After a solid move higher in the markets yesterday, the S&P500 is slightly higher again today.  The grind continues up, as volume remains light and optimism continues to flow. While the market has been moving up over the last two days, MasterCard Incorporated (NYSE:MA) has fallen. The reason for the fall on Mastercard is simple. The stock retraced the entire mega move lower that occurred after the Federal Reserve eluded to curbing fees the credit card companies could charge. Prior to that announcement, the stock had been trading at $259.00. With three days, the stock hit a low of $215.00. This was a tremendous collapse for a stock which had been a leader. Since then, the stock has moved higher, grinding day after day, finally reaching its 100% retrace at $259.00. That my friends, is the shorting spot. It hit this level two days ago. Since then, the stock has fallen 7.00 points for a beautiful short. Learn these methods and you will achieve greatness in the trading world.

The other credit card players are mixed today. Visa Inc. (NYSE:V) is trading at $76.27, +0.31 (+0.41%) while American Express Company (NYSE:AXP) is trading at $46.00, -0.86 (-1.84%). 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Alert: Gap Lower, Turn High. Rinse, Repeat

February 17, 2011 – Comments (0)

The markets once again opened lower today, only to have the standard buy the dip kick in. Almost every trading day the markets open lower, then rally slowly up throughout the day, closing neutral to higher. The SPDR S&P 500 ETF (NYSE:SPY) opened at $133.46. This was a drop of 0.39 from the close yesterday. The SPY is now trading at $134.05, the highs of the day.

The reasons for the float are multiple. First, volume drops to a snails pace which enables the markets to grind higher. Light volume always favors the upside when the markets are in an upswing. Positive sentiment makes this so and retail money inches in, believing in the rally. Secondly, the Federal Reserve continues to buy treasuries from the banks, infusing the banks with massive amounts of capital each day. This is part of the QE-2 program. The banks take this money and use some of it to buy the markets. Add this with light volume and the markets are always going to grind higher. Last but not least is the U.S. Dollar. Most days, the Dollar opens neutral to higher and then starts dropping throughout the day. A move lower on the Dollar during market hours has a continued effect on the markets to the upside. A weaker Dollar is still good for U.S. stocks.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.40, -0.07 (-0.31%).

All these factors together make for a market that is unlikely to sell off sharply unless a global event occurs that increases volume and sends panic in the air. Egypt caused a one day sell off two weeks ago.  That gives an example of what must occur. Note how that was a one day sell off. To see a bigger sell off in the markets, a multi day sell off, there must be something even more drastic than Egypt.

Apple Inc. (NASDAQ:AAPL) is on the move today, dropping to $358.10, -5.03 (-1.39%).  This is rare with the markets higher but rumors and fears of Steve Jobs' health continue to persist. 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Auto Outlook

February 17, 2011 – Comments (1)

Since early January 2011, the U.S. auto makers have been under pressure. Stocks such as Ford Motor Co.(NYSE:F), General Motors Co.(NYSE:GM), and even Tesla Motors Inc.(NYSE:TSLA), have been under pressure. Please note that the decline in all of these leading U.S. automakers came after general Motors was upgraded by most major Wall Street firms in December 2010. We can only wonder who was selling those stocks into the new year?

Ford Motors stock remains weak on the daily chart at this time. The stock will still have daily chart support around the $15.25 area. This is a level where the stock bounced in early February and this level should still be respected as an important support area. Should the Ford stock fail to hold and trade above the $15.00 area the stock could decline down to the $14.00 level which is the next major support level on the daily chart.

General Motors stock traded as high as $39.48 a share on January 6, 2010. The stock has steadily traded lower over the past six weeks and is now trading around the $36.50 area. Traders and investors should watch the $35.00 area as being the next important daily chart support level. This is an area on the chart that has been tested a few times as resistance and later as support, therefore, it should be a solid support level in the near term.

Tesla Motors stock topped out in early December 2010 at $36.42 a share. The stock has declined sharply lower from that high made two and a half months ago. Traders and investors will have support for this stock around the $22.50 and $20.00 areas. Should the stock rally or bounce higher from its current level traders should watch the $26.50 and $28.00 levels as strong daily chart resistance. 



Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Cotton and Coffee Continue To Soar

February 17, 2011 – Comments (0)

This morning cotton has made a new all time high on the trading session. Cotton futures(CT H1) is once again higher by 7.00 points to $204.45. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN(NYSE:BAL) is trading higher $3.47 to $107.43 a share. BAL has increased higher by 200.00 percent since mid-July 2010.

Coffee is also rallying higher this morning. Coffee futures(KC H1) are trading higher by $3.40 to $262.05. The iPath Dow Jones-UBS Coffee Subindex Total Return ETN(NYSE:JO) is trading higher 0.38 cents to $70.16 a share. JO is now trading higher by nearly 100.00 percent since June 2010.

These higher commodity prices are certainly signs that inflation is in this market despite what the Federal Reserve says. Traders and investors must be prepared for possibly higher prices in the short term as these two soft commodities remain very strong on the charts at this time.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Don't Get Swallowed Up During Options Ex

February 16, 2011 – Comments (0)

The Wednesday before options expiration is usually the most volatile trading session of the week. Very often major events, rumors, and even political announcements will occur during this highly volatile trading week. Today, we heard the news about two Iranian warships sailing into the Suez Canal. This news caused quite a stir in the markets as the SPDR Dow Jones Industrial Average ETF(NYSE:DIA) declined lower by 0.50 cents in less than ten minutes this afternoon. Since that time the major indexes have rallied higher on the typical light volume trading action that we are used to seeing. 

During this entire week leading up to options expiration, which is always the third Friday of the month, we see very volatile moves in many of the popular stocks. For example, today Deere & Co.(NYSE:DE) sold off sharply intra-day after starting the morning sharply higher at the open. These are the typical moves that traders can expect during this week.

The week is a time for institutional game playing. Once options expiration is over most stocks and indexes will go back to trading in their normal ebb and flow. Please remember that most small retail options traders will never actually exercise the options that they hold. They will usually try and settle them long before Friday's expiration for a premium gained or lost. Most of these small retail options traders simply do not have the cash to buy or sell stocks and options are a cheaper way for them to play the market. Remember the institutional traders know this and they will take advantage of this options expiration week every month. Always respect the power of the killer whale (institutional trader). You don't want to be the seal (small retail options trader) that gets swallowed up this week.


Nicholas Santaigo
InTheMoneyStocks.com
  [more]

Recs

2

Panic: Inflation At All Levels, Will The Market Drop

February 16, 2011 – Comments (0)

The markets are higher today after Dell Inc. (NASDAQ:DELL) and Deere & Company (NYSE:DE) reported better than expected earnings for the latest quarter. However, we have seen some massive selling bringing the markets sharply off their highs. Prior to the markets open, the futures were up nicely. At 8:30am ET, the Producer Price Index (PPI) was released. This economic signal gives the market an idea on inflation at the producer level. The PPI came in at 0.09. This number included food and energy which the Federal Reserve says does not count. However, the Core PPI which excludes food and energy came in at 0.05. This was a shockingly high number, showing inflation is creeping into all things now on the producer level.

Why is this a negative? For many reasons but namely it is bad because the costs to produce all products are rising for corporations. This means margins will decline and profits will shrink. On a secondary level, it also means that inflation will probably pick up at the consumer level as the producers pass on some of the costs. In addition, rising inflation at a faster pace than the Federal Reserve had thought, tells us there is little chance of QE-3, once QE2 is done.  The markets have been rallying non stop of late because of the massive stimulus of QE-2.  Without the drug in the future, it is likely the markets will go into withdrawal and panic. Keep a close eye on the markets in the coming weeks for signals. This could get very bumpy.

While the markets are higher today, earnings are only half the reason.  Since the markets opened, the Dollar has been falling sharply. This initially helped the markets remain positive but now seems to be having a negative effect.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) were higher at the open but are now trading at $22.49, -0.11 (-0.51%).

Analyzing the current market activity, one must begin to wonder whether or not the markets are not starting to look at that PPI inflationary number and starting to panic. The markets are starting to sell here, though still positive. 

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Alert: Major Double Top Hit On JPMorgan

February 16, 2011 – Comments (0) | RELATED TICKERS: GS , JPM , WFC

JPMorgan Chase & Co. (NYSE:JPM) surged higher this morning on the back of a strong market. JPMorgan Chase found itself trading at $43.30, +1.48 (+3.16%). Other financial stocks were mixed as Wells Fargo & Company (NYSE:WFC) dropped sharply to $32.86, -0.82 (-2.43%) and Goldman Sachs Group, Inc. (NYSE:GS) moved higher, trading at $168.76, +0.85 (+0.51%).  While JPMorgan Chase was clearly the leader and exceptionally strong today, it slammed into a major double top from the highs of 2010 at $48.30.

The $48.30 level will be a major resistance point on JPMorgan Chase per the technical levels. In addition to being a major double top from the pivot high in 2010, the stock is also extended on the daily chart. Look for resistance in the short term on JPMorgan.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Whirlpool Going Down The Drain

February 16, 2011 – Comments (0)

This morning Whirlpool Corp.(NYSE:WHR) is declining lower by $1.01 to $83.12 a share. The stock has been declining over the past five trading sessions. WHR will have some short term intra-day support around the $82.80 area and much more around the $82.00 level. Short term scalp traders can watch for small intra-day bounces around both of these levels.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Cotton Keeps On Flying

February 16, 2011 – Comments (0)

This morning cotton futures(CT H1) are soaring to new multi-year highs. This is a sign that inflation is soaring around the world. Traders and investors can follow or trade the iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE:BAL) which is higher by another $6.01 to $103.79 a share. As mentioned yesterday, consumers will be paying a lot of money for cotton products this year.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Transports Make New 10 Month High Intra-day

February 16, 2011 – Comments (0)

This morning the highly followed Dow Jones Transportation Index is making a new 10 month high. Often when the transportation index makes a new high traders and investors will view this as a sign of economic strength. While the new high for the transports is occurring intra-day it is more important to see the index close at a new high on the daily chart. Should the transport index fail to close at a new high or reverse lower it would be considered a possible failed move. Often this would then be viewed as a bearish sign for the transport index. Traders and investors can trade the index by using the iShares Dow Jones Transportation Index ETF(NYSE:IYT).

Leading stocks in the transportation sector include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and United Continental Holding Inc.(NYSE:UAL). All of these leading transport stocks appear strong at this time, however, FedEx Corp. and UAL are starting to look tired on the daily chart and may need to pullback soon.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Chinese Internet Stocks Under Pressure

February 16, 2011 – Comments (0)

This morning before the opening bell at the New York Stock Exchange the leading Chinese internet stocks seem to be under some pressure. Sina Corp.(NASDAQ:SINA) is trading lower this morning by $3.43 to $89.91 a share. Yesterday Sina Corp. stock made a new high for the year trading as high as $94.98 a share.

Sohu.com Inc.(NASDAQ:SOHU) is also trading lower this morning by $1.33 to $86.21 a share. This leading Chinese internet stock made a new 52 week high just three trading days ago at $90.47 a share. 

At this time it appears that these stocks are experiencing some profit taking after such a sharp rise. Traders and investors should also take note that this coming Friday is options expiration. Often the institutional money will shake out the short term retail options traders that may have calls on the popular strike price. 



Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

2

Will The Trading Volume Ever Return

February 15, 2011 – Comments (0)

If you look at the chart below you will see that the SPDR Dow Jones Industrial Average Trust(NYSE:DIA) will trade just about 4.5 million shares today. This is terrible volume when you consider that the DIA average over 8 million shares in August 2010 which is considered the lightest trading month of the year. The winter season which is what we are currently in is supposed to be the heaviest trading volume of the year. Thank goodness that the banks continue to buy the market or we may not have any volume. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Agriculture Stocks Take A Nosedive

February 15, 2011 – Comments (0)

Since early July 2010, the agriculture sector has lead the major stock market indexes higher. Most other sectors did not begin to rally until the Federal Reserve Bank announced its quantitative easing program in late August 2010. The leading agriculture stocks have all been steadily advancing higher until today. Is today's decline just an options expiration hiccup or is this the start of a major correction for the agriculture sector?

Potash Inc.(NYSE:POT) is the agriculture stock that most traders follow closely. This stock has soared higher by more than 50.0 points since mid-December 2010. Today the agriculture giant is declining by $6.53 to $183.39. Potash stock still remains in a strong daily chart uptrend, therefore, today's downward action could be just an options expiration shakeout. 

Mosaic Co.(NYSE:MOS) is another leading agriculture stock that made a new 52 week high yesterday. This stock has rallied higher by more than 40.0 percent since mid-December. Today the stock is declining by $3.72 to $85.28 a share. Mosaic stock was getting extended and overbought on the daily chart, therefore, a pullback was in order. As long as Mosaic stock remains above the $81.25 level which is the daily chart 20 moving average the stock is still technically in a strong position and in an uptrend. At this time the decline today is nothing more than a minor pullback.

Monsanto Co.(NYSE:MON) is a leading agriculture stock that is declining sharply with the rest of the sector, however, the chart pattern on this stock is much worst than Potash and Mosaic. Today, Monsanto stock is declining by $3.52 to $71.58 a share. The stock is also forming an outside bar on the daily chart which is very bearish. Today's move lower puts price below the previous 10 trading session lows. Monsanto stock will have some minor short term daily chart support around the $70.00 and $67.00 levels. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Alert: Steel Stocks Break Out

February 15, 2011 – Comments (0)

Steel stocks are surging today on the back of renewed optimism for the global economy. China's inflation numbers overnight, showed signs that may halt the governments need to raise interest rates so aggressively. This is bullish for growth expectations in China. With growth comes commodity price increases. United States Steel Corporation (NYSE:X), Nucor Corporation (NYSE:NUE) and AK Steel Holding Corporation (NYSE:AKS) are all spiking higher. U.S. Steel is trading at $62.72, +2.37 (+3.93%).

Solid gains across the sector have broken key resistance levels on many steel stocks. Namely, U.S. Steel has broken out above the $61.00 level. The stock has been hammering on this level since the start of January. The gap higher today looks to have broken the barrier. The next major resistance level on U.S. Steel is at $66.40, followed by a major double top at $70.50. Both levels are now a possibility in the not too distant future. At this point, shorts on the stock would be foolish though longs must be very careful. The key would be to wait for consolidation to buy and then once the resistance levels hit, short.

Note the chart below. It shows the resistance level that was broken and the two upper new resistance levels.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Options Expiration Whipsaw Starts Up

February 15, 2011 – Comments (0)

After the lightest trading day of the year yesterday, the markets kicked it up a notch. They opened lower after retail sales came in below expectations. After an initial move higher from the gap down, the markets sold sharply as the Dollar gained. Then, as the lunch time volume kicked in, the markets moved back, heading towards the flat line. This is options expiration and Tuesday, Wednesday and Thursday could be very wild. The institutions will try and push stocks to certain price levels to have options expire worthless, thus capturing the premium of the option as pure profit. The SPDR S&P 500 ETF (NYSE:SPY) are trading at $133.04, -0.39 (-0.29%). This is close to the highs for the session.

One of the more amazing whipsaw swings in a stock can be seen on Exxon Mobil Corporation (NYSE:XOM).  The stock rose non stop yesterday, climbing over two-percent. Today, the stock has reversed, at one point negating the entire move higher yesterday. The games are definitely being played with XOM this week.

The leading group of the day is the financial sector. Within that sector, JPMorgan Chase & Co. (NYSE:JPM) is leading the charge. It is trading at $47.08, +0.54 (+1.16%). The agriculture stocks are among the weakest sectors on the day. Potash Corp./Saskatchewan (NYSE:POT) is trading at $184.02, -5.92 (-3.12%). These stocks have been the hottest of late on global food prices but are showing significant weakness today. They are due for a pull back.

This week is ruled by options expiration and the games that are played during. The markets are run by the institutions and they will do whatever they need to to make money. That includes whipping the markets to get options to expire worthless so they keep the full premiums.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Energy Stocks Retreat

February 15, 2011 – Comments (0)

The energy sector is leading this morning's decline in the the major stock market indexes. The decline is being lead by Exxon Mobil Corp.(NYSE:XOM) which is declining lower by $1.63 to $83.29 a share. Yesterday, it was the Exxon Mobil stock that lead the rally in the energy sector and today this market leading stock could be staging a complete reversal day on the charts. Exxon Mobil Corp. has the largest market capitalization at over $400 billion, therefore, this is the leading stock in the entire stock market.

Other leading energy stocks that are declining sharply lower today are Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP). Leading oil refiners which have been surging to new 52 week highs recently are also retreating this morning. TesoroCorp.(NYSE:TSO), Valero Energy Corp.(NYSE:VLO), and Sunoco Inc.(NYSE:SUN) are all under selling pressure this morning. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

BHP Under Early Pressure

February 15, 2011 – Comments (0)

BHP Billiton Ltd.(NYSE:BHP) is trading slightly lower this morning by $1.15 to $94.49 a share. The stock will have some minor intra-day support around the $94.20 area, however, the better intra-day support area should be around the $93.55 area. This is a spot where scalp traders can look for a quick intra-day bounce. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Silver And Gold In Play

February 15, 2011 – Comments (0)

This morning the iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.12 cents to $30.08 a share. The SLV has been in rally mode for the past three weeks. The daily chart of the SLV remains above the daily 20 and 50 moving averages which put the SLV in a strong technical position. Traders can watch for intra-day resistance around the $30.40 level.

Gold is also trading higher this morning. The highly popular SPDR Gold Trust ETF(NYSE:GLD) is trading higher by $1.02 to $132.99 a share. The GLD will have some minor daily chart resistance around the $134.00 level.

Most silver and gold mining stocks are rallying higher this morning. Silver Wheaton Corp.(NYSE:SLW), Newmont Mining Corp.(NYSE:NEM) and Agnico Eagle Mines Ltd.(NYSE:AEM) are the leading gold and silver stocks today.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Cotton, Coffee, and Other Soft Commodities Keep Surging

February 15, 2011 – Comments (0)

This morning is another day where commodities seem to be making new all time highs. Cotton futures(March contract) are surging higher this morning by another $4.70 to $190.75. This is another new high for the year. Coffee for March delivery is making another new 52 week high this morning soaring by another $3.75 to $262.40. 

U.S. consumers better stock up on bed sheets and cotton products now before these prices show up at stores such as WalMart Stores Inc.(NYSE:WMT), and Target Corp.(NYSE:TGT). These companies have really no choice but to pass on the high inflation costs on to consumers. 

Traders and investors that want to trade cotton can use the iPath Dow Jones-UBS Cotton Subindex Total Return ETN(NYSE:BAL). Traders and investors that would like to trade coffee can use the iPath Dow Jones-UBS Coffee Subindex Total Return ETN(NYSE:JO). Soft commodities continue to inflate at this time and this inflation is being felt in various nations around the world. Eventually, high inflation will be felt here in the United States. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

It's Not Just Exxon Mobil Today

February 14, 2011 – Comments (0)

Many traders and investors are looking at the incredible rally in Exxon Mobil Corp.(NYSE:XOM) today. Exxon Mobil Corp. has the largest market capitalization in the stocks market, therefore, when this stock rallies it will often lift the rest of the integrated energy stocks with it. Exxon Mobil Corp. is trading higher today by 2.52 percent. 

Chevron Corp.(NYSE:CVX) and ConocoPhillips(NYSE:COP) are the next two large integrated energy stocks that are surging higher today as well. Today, Chevron Corp. is trading higher by 1.42 percent. This is a good move higher in the energy giant, however, ConocoPhillips is actually the major winner today by trading higher by more than 3.20 percent. Needless to say, ConocoPhillips is a powerhouse stock in the integrated energy sector this afternoon. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Gold Miners Pullback

February 14, 2011 – Comments (0)

This afternoon the Market Vectors Gold Miners ETF(NYSE:GDX) has pulled back from its morning high. The GDX is still trading in positive territory this afternoon trading higher by 0.58 cents to $56.31 a share. Scalp traders can watch for a short term intra-day bounce around the $55.96 area. 

Other leading gold mining stocks that are trading higher today are Randgold Resources Ltd.(NASDAQ:GOLD), Yamana Gold Inc.(NYSE:AUY), and Goldcorp Inc.(NYSE:GG). Traders can watch for these leading stocks to bounce higher when the GDX bounces as well. The stocks in this  sector trade very close together or in sympathy with each other.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Analysis: Inflation Or Lack Of Profits

February 14, 2011 – Comments (0)

While the markets have soared almost every day on the back of QE-2, a smart investor must start taking note of one major issue. This issue is beginning to pop up in quarterly earnings announcements but has not caught the attention of the markets just yet. Inflation in commodities and growing input costs into goods sold to consumers has rocketed higher. Commodities have soared of late but inflation has remained in just food and energy. It has not yet spread to other consumer goods.

There are two paths this can take. As companies produce goods like TV's, plastics and such, their costs are skyrocketing as oil and other energies are used to produce these goods. Right now, these companies have not passed it onto the consumer because they fear the consumer is too weak to handle it. Thus, core CPI (Consumer Price Index) has remained low. This is starting to take a bite out of margins and thus profits. As commodities continue to rise, profits will start to drop more and more. The only way companies can combat this is by raising prices.

Just last Friday, PepsiCo, Inc. (NYSE:PEP) said this very thing in their earnings announcement. Costs are rising! Almost every company is at risk because producing anything, will intimately involve some sort of energy use. Plastics for instance are made with oil. Companies from Caterpillar Inc. (NYSE:CAT) to Apple Inc. (NASDAQ:AAPL) will be facing these head winds.

So that brings out the main point. Which one happens? Will inflation start to rocket higher as companies raise their prices to offset their rising costs? Will profits begin to diminish as they must eat the cost increases in the production of their goods? Most likely, the answer is a mixture of both. Companies will start passing on costs to the consumer. This will send the CPI higher. In addition, profits will start to stagnate as costs continue to rise.  There is no great outcome here. A smart trader or investor must monitor this situation closely.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Alert: Rinse and Repeat To Profits

February 14, 2011 – Comments (0)

Rewind and replay, that is the motto of the stock market each day. Stocks like Exxon Mobil Corporation (NYSE:XOM) gap lower, only to have the buy programs hit via the Federal Reserve's POMO QE-2. These stocks then move higher, minute after minute, keeping the markets floating in the neutral to positive direction. You can look back at XOM each of the last few days. This is a repeating pattern. XOM will gap lower, then go on a major move higher, keeping the markets from collapsing. Remember, XOM is the largest market cap stock and a major player in the Dow Jones Industrial Average which is made up of only 30 stocks. It is becoming somewhat of a joke between seasoned intelligent traders who are making money hand over fist as they play the Federal Reserve's POMO each day. “Buy the dip”, everyone screams. As of now, the markets are a casino and everyone is being paid out.

While Exxon Mobil is the most obvious case of propping, other stocks see it as well. Chevron Corporation (NYSE:CVX), a close relative, sees it almost as much as XOM as does International Business Machines Corp. (NYSE:IBM). The joke continues to be something to laugh at but also profit off of. Use it until you lose it, is the motto now. This means, play the Federal Reserve's propping until it stops working. When they can print money non stop, it makes for a positive bias for the markets, especially when the volume remains so low.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Gold and Silver Paint A Picture

February 14, 2011 – Comments (0)

Gold and silver are both trading higher today despite the U.S. Dollar Index trading in positive territory. Today, there is a lot of uncertainty developing in the Middle East. Protests and riots are now beginning to develop in various parts of that region. Egypt is still experiencing a large number of protesters despite the removal of Hosni Mubarak. Algeria, Saudi Arabia, and Iran, are all beginning to face protests from their citizens creating further turmoil in the region. 

Europe has not been mentioned much in the media today, however, the CurrencyShares Euro Trust(NYSE:FXE) is trading lower today by 0.67 cents to $134.32 a share. When the Euro currency trades lower it will usually indicate that the U.S. Dollar Index is trading higher. Last week the European Central Bank had to purchase Portuguese bonds in order to keep the rising yields contained. Traders should expect more of this type of action by the ECB in the coming weeks. These are all events that can cause gold and silver to rise in the near term. 

Today the SPDR Gold Trust ETF(NYSE:GLD) is trading higher today by 0.86 cents to $133.17 a share. The popular iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.69 cents to $29.90 a share. These precious metals will usually increase when there is conflict in the world or a devaluing of fiat money by central banks.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Gold and Silver Paint A Picture

February 14, 2011 – Comments (0)

Gold and silver are both trading higher today despite the U.S. Dollar Index trading in positive territory. Today, there is a lot of uncertainty developing in the Middle East. Protests and riots are now beginning to develop in various parts of that region. Egypt is still experiencing a large number of protesters despite the removal of Hosni Mubarak. Algeria, Saudi Arabia, and Iran, are all beginning to face protests from their citizens creating further turmoil in the region. 

Europe has not been mentioned much in the media today, however, the CurrencyShares Euro Trust(NYSE:FXE) is trading lower today by 0.67 cents to $134.32 a share. When the Euro currency trades lower it will usually indicate that the U.S. Dollar Index is trading higher. Last week the European Central Bank had to purchase Portuguese bonds in order to keep the rising yields contained. Traders should expect more of this type of action by the ECB in the coming weeks. These are all events that can cause gold and silver to rise in the near term. 

Today the SPDR Gold Trust ETF(NYSE:GLD) is trading higher today by 0.86 cents to $133.17 a share. The popular iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.69 cents to $29.90 a share. These precious metals will usually increase when there is conflict in the world or a devaluing of fiat money by central banks.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

NetApp Dipping Early. Watch This Level

February 14, 2011 – Comments (0)

NTAP is under some pressure this morning trading lower by 0.48 cents to $6013 a share. The stock will come into some intra-day support around the $59.96 level. This is just a quick short term intra-day bounce area for the stock. Should NTAP decline further traders should watch the $59.40 level as the next intra-day support level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Asia Rallies Overnight. Commodity Stocks In Play

February 14, 2011 – Comments (0)

Last night the Asian markets all surged sharply higher. The Japanese Nikkei 225 Index closed higher by 1.13%. The Hong Kong markets surged higher by 1.28%, as the Hang Seng Index rallied higher 292.00 points. Then the highly followed Shanghai Index, which represents the main land Chinese market, soared higher by 2.55%. The Chinese Market could be reflected today in the iShares FTSE/Xinhua China 25 Index ETF(NYSE:FXI). Last, but not least the Indian stock market called the Sensex Index, rocketed higher by 473.59 points or 2.67%. When the Asian stock markets rally it is usually favorable that the leading commodity stocks will rally higher the next morning. 

Traders can watch for stocks such as Cliffs Natural Resources Inc.(NYSE:CLF) to be in play this morning. This stock is a leading iron ore pellet producer and often trades higher when the Shanghai Index rallies. Southern Copper Corp.(NYSE:SCCO) is a leading copper producer in Mexico, Peru, and Chile. This stock usually catches a bid higher when the Asian markets are stronger or trading higher. Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) will also react positive to the strong Asian markets. Freeport McMoRan is one of the leading copper stocks in the world . 

Other popular commodity stocks that may be in play today will be U.S. Steel Corp.(NYSE:X), AK Steel Holdings Corp.(NYSE:AKS), and the iPath DJ-UBS Copper Total Return Sub-Index ETN (NYSE:JJC). Traders and investors must now watch the Asian markets closer than ever as they will have major impacts on our trading sessions in North America on a daily basis. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

It's Friday. What Else Could We Expect?

February 11, 2011 – Comments (0)

Nearly every trading day the market finds a low early in the session and rallies higher throughout the day. Today is no exception to the usual market action except that it is a Friday. Rarely, will the major stock market indexes decline sharply on a Friday. This is when U.S. consumers will begin their weekend and spend money. If someone saw the stock market down sharply ahead of the weekend they may think twice about spending their cash. Therefore, we call the end of the week the 'Friday Effect' and look to buy the dips.

  
Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Alert: Fertilzer Stocks Move Higher Again

February 11, 2011 – Comments (0)

Agriculture stocks jumped to new 52 week highs today as the cost of food continues to rise. This rising price of food has been one of the main drivers behind the protests and riots all over the world. Many poor nations with high unemployment spend a majority of their money on food. As inflation jumps, food prices rise as well. This is making more and more of the worlds poor unable to feed themselves. The unrest stems largely from that.

Agriculture stocks continue to rise. The Mosaic Company (NYSE:MOS) jumped to a new 52 week high today, trading at $87.78, +1.86 (+2.16%). In addition, Potash Corp./Saskatchewan (NYSE:POT) did the same. Other agriculture plays are also surging and nearing their 52 week highs. Monsanto Company (NYSE:MON) and Intrepid Potash, Inc. (NYSE:IPI) are both having solid days higher.

The key to the future will be inflation. There is little chance food will see significant declines because of the massive printing of money and the growing global population. This leaves the door open to more protests like those that engulfed Egypt. This has to be a concern to many governments all over the world. Should protests begin in countries like Saudi Arabia, the markets would take a harder hit because they are a larger oil producer.

It is hard to go long the fertilizer, agriculture stocks at these levels. However, strong pull backs should be great buying opportunities.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Markets Float Up As Egypt Issues Fade

February 11, 2011 – Comments (0)

The markets opened lower as worries over Egypt were rampant. Just yesterday afternoon, President Mubarak told his people he would not resign. The markets opened lower and then engaged their normal float higher on the back of standard propping. This propping continues to be lead by the Federal Reserve via QE-2. As the markets continued their float higher, news broke out of Egypt that Mubarak had stepped down. This sent the market spiking for a few minutes, then sellers met the buyers and the markets stalled just slightly higher on the day. The markets are already looking past this event and on to other issues facing the markets. Overall, the markets are higher and will most likely remain that way for the day.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.73, +0.41 (+0.31%).

Big winners today are found in the solar arena. First Solar, Inc. (NASDAQ:FSLR) is surging higher, trading at $164.90, +7.43 (+4.72%). All other solars are ripping too.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Transports Regain Momentum

February 11, 2011 – Comments (0)

On January 28, 2011 the highly followed Dow Jones Transportation Index closed below the important daily chart 50 moving average. Often when a stock or index closes below the daily chart 50 moving average it is viewed as a sign of weakness. It is important to note that since that time the Dow Jones Transportation Index has recaptured the daily 20 and 50 moving averages on the daily chart. This chart pattern that was weak in late January is now back in an uptrend and showing strength. Investors can trade Dow Jones Transportation Index by using the iShares Dow Jones Transport. Average ETF(NYSE:IYT). 

Other leading transportation stocks that continue to be strong are United Parcel Service Inc.(NYSE:UPS), CSX Corp.(NYSE:CSX), and FedEx Corp.(NYSE:FDX). As long as these leaders remain above their 20 and 50 daily moving moving averages the transportation sector could continue to climb. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Corning Inc Under Pressure. Bounce Levels Approaching

February 11, 2011 – Comments (0)

This morning the leading glass and ceramics manufacturer Corning Inc.(NYSE:GLW) is trading lower by 0.35 cents to $21.81 a share. The stock has been pulling back for about a week now. There will be short term intra-day support for GLW around the $21.60 level. This is an area where scalp traders can look for a quick bounce in the stock.



Nicholas Santiago
InThe MoneyStocks.com  [more]

Recs

1

Visa Under Pressure. Watch This Level

February 11, 2011 – Comments (0)

Visa Inc.(NYSE:V) is one of the leading credit card processing companies in the world. The stock is trading slightly lower by 0.32 cents to $74.39 a share. Traders can watch this stock and see if the $74.00 level gets tagged. The $74.00 area will short term intra-day support and a likely short term intra-day bounce area.



Nichola Santiago
InTheMoneyStocks.com  [more]

Recs

1

Does The U.S. Dollar Index Effect The Market Anymore?

February 11, 2011 – Comments (0) | RELATED TICKERS: AA , BAL

Recently, the U.S. Dollar Index has staged a small two week rally. The U.S. Dollar Index made a short term low around the $77.00 area on February 2, 2011. This morning the U.S. Dollar Index is trading higher by 0.33 cents to $$78.59. Usually, when the U.S. Dollar Index rallies higher the major stock market indexes and most commodities will deflate and trade lower. However, the rising U.S. Dollar Index has had very little effect on deflating the stock market over the past two weeks. All of the major stock indexes remain at new two year highs. Most commodities also remain at or near new 52 week highs despite the small rally in the U.S. Dollar Index.

Leading commodity stocks such as Cliffs Natural Resources Inc.(NYSECLF), and Alcoa Inc.(NYSE:AA), remain at new 52 week highs. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN(NYSE:BAL) made a new all time high yesterday and is nearing the psychological $100.00 level The BAL has rallied higher by nearly 200.00 percent since July 2010. The iPath Dow Jones-UBS Softs Subindex Total Return ETN(NYSE:JJS) remains near its all time high as well. Can a stronger U.S. Dollar Index deflate these commodities anymore?

It is important to remember that all commodities are denominated in U.S. Dollars. The U.S. Dollar is the world's reserve currency. However, the Federal Reserve continues to create cash reserves at the banks by purchasing U.S. Treasuries on a daily basis. The daily trading volumes on the major stock indexes have been so light that the small rally in the U.S. Dollar Index seems to have very little effect on the stocks market lately. Generally, the stock market will usually trade directly inverse to the U.S. Dollar Index. Traders can see yesterday and today that the U.S. Dollar Index was higher and the major stock markets are basically trading flat. Is the quantitative easing program by the Federal Reserve Bank that influential on the stock market? The answer to that question is simply YES.

From my observations of following and trading the U.S. Dollar Index over the past years tells me that over time a stronger U.S. Dollar Index will deflate this stock market. This can easily be seen if traders and investors look at a weekly, or monthly chart of the U.S. Dollar Index. In 2001, the U.S. Dollar Index traded around $120.00. Today, the U.S. Dollar Index is trading about 35.0 percent below that high. Keep the U.S. Dollar Index front and center as this is one of the most important charts to follow. Often when the U.S. Dollar Index starts the day strong or sharply higher it will usually fade from its morning high and that is when the stock markets will inflate higher. This will usually occur when the stock market trading volume is extremely light. We shall see it that happens today.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Goldman Sachs Is The Weak Link Financial Today

February 10, 2011 – Comments (0)

Goldman Sachs Group Inc.(NYSE:GS) is trading lower today by $1.01 to $165.00 a share. The stock has pulled back over the past two trading sessions and remains a little weak today. Traders can watch the $164.30 are for intra-day support. This is an area where scalp traders can look for a small bounce in this leading financial stock.



Nicholas Santiago
InTheMoneyStocks.com   [more]

Recs

0

J.P. Morgan Chase & Co. Holds Steady

February 10, 2011 – Comments (0)

J.P Morgan Chase & Co.(NYSE:JPM) and most of the other large major banks are holding up well today despite the wild rodeo action in the stock market today. The financial stocks have been the leading sector in the stock market since late November 2010. Short term traders can watch for intra-day support on JPM around the $45.05 - 45.00 area. This is a level that JPM stock may have a small intra-day bounce.

 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The Hand That Rocks The Markets

February 10, 2011 – Comments (0)

The markets reversed early losses and surged back to the flat line. Thank the Federal Reserve and their buy programs once again. QE-2 continues to be used on a daily basis in what is called POMO.  This stands for permanent open market operations. The Federal Reserve buys treasuries from the banks and the banks take that money and infuse it into the markets. This makes it virtually impossible for the markets to fall unless a major event takes place overseas that the Federal Reserve has not planned for.  Should that event take place, if it is big enough, a flash crash is 100% on the table.  That is scary to say the least. When a market continues to grind higher, regardless of poor earnings, worries in Europe or the Middle East, and it is solely on the back of an entity propping it up, if they lose control, one shudders at what could happen.

The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.26. -0.01 on the day. The SPY mirrors the S&P 500. Earlier today, upon the open, the SPY was trading at $131.30, -0.97.  It has been a classic come back once again. Overnight, futures sold off after the UK did not raise interest rates thus strengthening the Dollar. Worries started to creep up out of Portugal again in regards to debt and earnings from many companies disappointed.

Cisco Systems, Inc. (NASDAQ:CSCO) reported earnings that Wall Street scoffed at. Margins were poor and EPS missed analysts expectations. The stock is trading at $19.17, -2.87 (-13.02%). In addition, PepsiCo, Inc. (NYSE:PEP) reported earnings this morning. Their profits missed Wall Streets expectations. The stock is trading at $63.05, -1.37 (-2.13%). Other stocks reported poor earnings as well but have little impact on this market.  Akamai Technologies, Inc. (NASDAQ:AKAM) is getting crushed on earnings. Whole Foods Market, Inc. (NASDAQ:WFMI) is one of the few bright spots on earnings surging higher, trading at $60.75, +7.00 (+13.02%).

The bottom line is this. Regardless of poor earnings, a stronger Dollar, fear overseas in the Middle East or Europe, the markets have the hand of "god" under them.  This "hand" is known as the Federal Reserve. The only way this market is going to see a major decline is if something happens to shock massive selling volume in the markets. Should that happen, that and only that will be enough to over power the buy programs by the Federal Reserve and their minions, the big banks.

Gareth Soloway
InTheMoneyStocks.com

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Recs

2

Commodity Stocks Rally After Shanghai Bounce

February 10, 2011 – Comments (0)

Last night, the important Shanghai Index rallied higher by 1.59 percent. This rally in the Chinese market comes despite the Chinese central bank increasing the benchmark interest rate by 25 basis points on February 9th, 2011.  This rate increase was put in place to fight the high inflation that the country is experiencing. Historically, whenever a central bank has raised interest rates the economy usually slows down.

Traders and investors are now following the important Shanghai Index very closely. When the Shanghai Index rallies sharply higher most leading commodity stocks will catch a bid higher. This morning that is very evident as leading commodity stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) are trading higher.

Many leading energy stocks are also strong this morning after China's national energy company PetroChina just took a stake in a Western Canadian gas field for $5.4 billion. Recently, China took a large position in Chesapeake Energy Corp.(NYSE:CHK) in the United States. Therefore, many energy companies are catching a bid higher as the Chinese government continues to invest in North American energy companies.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Falling Knife

February 10, 2011 – Comments (0)

CSCO is what we call a falling knife stock today by declining more than 10.0 percent on the session and trading at fresh new lows on the day. This stock is under severe selling pressure. However, the $19.00 area is a very attractive area for a small intra-day scalp bounce. Should the overall market remain weak and decline further the weak stocks such as CSCO could trade lower.

 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Melting Gold. Watch This Level

February 10, 2011 – Comments (0)

This morning the popular SPDR Gold Shares(NYSE:GLD) are trading lower by 0.90 cents to $132.17 a share. The GLD looks to be taking a breather from its recent two week rally. The GLD will have some minor intra-day support around the $132.10 area. However, there will be more intra-day support around the $131.60 area for the GLD. This is a level where scalp traders can look for a small intra-day bounce.

Silver and gold mining stocks are also under pressure today. The ishares Silver Trust(NYSE:SLV) will have some short term intra-day support around the $29.00 area and more around the $28.60 level. Both areas could see quick short term bounces.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Akamai Gets Hit By A Tsunami

February 10, 2011 – Comments (0)

Akamai Technologies Inc.(NASDAQ:AKAM) is declining sharply this morning after reporting earnings last night. Akamai stock has been one of the leaders in the Nasdaq 100 for several years now. The stock is trading lower by $6.20 to $41.80 a share. This is a 13.0 percent decline for the tech leader. The stock will have short term intra-day support around the $41.00 area. This stock is a falling knife today and could trade below that level if the overall market remain weak.

Akamai Technologies provides services for accelerating and improving the delivery of content and applications over the internet, therefore, today's decline could effect many other leading internet stocks. Traders and investors should watch for reactions in stocks such as Ebay Inc.(NASDAQ:EBAY), Google Inc.(NASDAQ:GOOG), and Best Buy Inc.(NYSE:BBY), and Sony Corp.(NYSE:SNE). 



Nicholas Santiago
IntheMoneyStocks.com  [more]

Recs

1

A Joke Of A Bond Auction

February 09, 2011 – Comments (1)

Today, yields on the 10 and 30 year U.S. Treasury Note are declining sharply after the U.S Treasury auctioned off $24 billion in 10 year T-notes. Yesterday, the demand for the T-notes was nonexistent as yields spiked higher. Has anyone noticed that after a bad bond auction the very next day there is so much demand for T-notes in the next auction. Who is buying these T-notes today? According to reports today there was a huge indirect bid, roughly correlating to demand from overseas, led to the robust results. Indirect bids took 71.3 percent of the sale, the U.S. Treasury said. Are you kidding me? What a joke? Maybe it was Jean-Claude Trichet helping out his buddy Ben Bernanke.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Disney Is No IBM

February 09, 2011 – Comments (0)

Today the highly popular Dow Jones Industrial Average(DJIA) is under some pressure. This stock index has lead the stock markets higher since mid-January. The NASDAQ Composite, S&P 500 Index, and the Russell 2000 Index have all lagged the DJIA since that time. 

It is important for traders and investors to note that the DJIA consists of just 30 stocks that are price cap weighted. The other leading stock market indexes are all market cap weighted. Therefore, if the DJIA has a very high priced stock doing well on a particular trading session it can hold the entire DJIA up or keep it from declining very much on the trading day.  

The big winner in the DJIA today is Disney Co.(NYSE:DIS). Today Disney is now a $43.00 stock trading higher by $1.97 on the session. However, Stocks such as International Business Machines Corp.(NYSE:IBM), Exxon Mobil Corp.(NYSE:IBM), and Chevron Corp.(NYSE:CVX), are all trading sharply lower today. These stocks are priced much higher than Disney Co. and this is putting pressure on the DJIA. Always be careful when you follow the DJIA as it does not always tell the true story of the markets. 



Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Alert: Ag Stocks Higher, But Stall At Double Tops

February 09, 2011 – Comments (1)

Agriculture stocks are having a solid day. While the market is slightly lower, stocks like The Mosaic Company (NYSE:MOS) and Intrepid Potash, Inc. (NYSE:IPI) are higher. While these two stocks are higher, both ran into major double top resistance points and have stalled out. Less than a month ago, MOS hit a 52 week high of $85.99. After hitting that high, the stock collapsed in a bloodbath, dropping to a low two days later of $71.87. After inching higher almost every day since then, the stock reached the double top today, crossing it briefly. Since crossing it, MOS has pulled back. Note the chart below.

The same applies to Intrepid Potash. IPI topped out on January 18th, 2011 at $39.63. Within two days, it collapsed to a low of $33.90.  This level also coincided with the 50 moving average on the daily chart. After hitting this level, the stock rallied all the way back up to the double top high. After briefly crossing it today, it has pulled back.

This double top level should continue to be solid resistance in the short term on both stocks.

Gareth Soloway
InTheMoneyStocks.com 
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Recs

0

Amazon Rocks Into Gap Fill

February 09, 2011 – Comments (0)

Even in a weak market, Amazon.com, Inc. (NASDAQ:AMZN) is higher. However, it is hitting a master level known as gap fill. This gap fill is extremely significant because it is the level Amazon was trading at prior to releasing ugly earnings. On January 27th, 2011, Amazon closed the trading day at $184.45. After the close, they reported earnings that disappointed Wall Street and analysts across the board. The next day, AMZN hit a low of $166.90.  Since then, the stock has rebounded day after day. Today, it achieved its former price, prior to earnings. This is a major resistance area and should be watched.  It would not be shocking to see a solid drop off of this level. Should this level be eclipsed, the next pivot resistance point would be the all time high of $191.60.

The markets are currently lower on the day, dropping on the back of a spike in the U.S. Dollar. A nice bear flag has formed on the SPDR S&P 500 ETF (NYSE:SPY) on an intra day basis. If volume holds up, this could signal a move lower this afternoon. 

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Markets Drop Sharply, Dollar Spikes

February 09, 2011 – Comments (0)

The markets are having a rare late morning, pre lunch drop, as the Dollar has spiked higher. The trading day started much like all the rest. A small gap lower and a float back to the flat line on light volume. However, once the flat line was achieved, the markets started to drop at 11am ET.  Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.93, -0.64.

There were signals throughout the morning session that told of a possible drop. First, two of the main leaders were significantly lower. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) were down sharply even when the markets rallied back to the flat line. These two stocks have lead this market up and one must assume, they will lead the market down.  In addition, the leading financial stocks like Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) were also down all morning, never rallying to the flat line either. This should set bells ringing to Wall Street.

While the markets are lower today, the bigger question will be whether or not they can rally back by the close of trading? This is the usual move in the markets for any losses during the day. A late day buy program usually saves the day. Will it occur? If it does not occur, this may be a sign of further declines to come. 

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Silver Watch

February 09, 2011 – Comments (0)

Silver Wheaton Corp.(NYSE:SLW) is a leading worldwide silver streaming company. This stock will usually trade higher when silver the commodity trades higher. Silver Wheaton stock is coming under slight pressure today as the stock has faded from its intra-day high. Traders can watch the $34.82 area for short term intra-day support. This is an area where scalp traders can expect a small intra-day bounce for a day trade to the long side. 

The i-Shares Silver Trust ETF(NYSE:SLV) is trading slightly higher today by 0.04 cents to $29.68 a share. The SLV will have short term intra-day support around the $29.40 area. Scalp traders can watch this level for a small intra-day bounce.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

FXI Gets Smaked Again. Watch These Support Levels.

February 09, 2011 – Comments (0)

The iShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI) is trading sharply lower this morning. The FXI is declining by $1.00 to $41.58 a share. The FXI has been in a major down trend since early November 2010 when inflation began to really hit the Chinese economy. Traders can watch for short term intra-day support for the FXI around the $41.40 and $41.00 levels. Both areas could see small intra-day bounces. 



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Gasoline Remains In An Up-Trend

February 09, 2011 – Comments (0)

This morning the U.S. Gasoline Fund is trading higher by 0.26 cents to $43.24 a share. The UGA has been in a strong daily chart uptrend since early September 2010 when the Federal Reserve Bank announced its quantitative easing program. When gasoline increases this is a direct tax on the U.S. consumer. Please note that consumer spending accounts for 70.0 percent of the U.S. gross domestic product. The UGA will have short term intra-day resistance around the $43.50 area.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Financial Stocks Can Only Lead For So Long

February 09, 2011 – Comments (0)

Since late November 2010, it has been the large major bank stocks that have taken over as the leading sector. Stocks 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) have soared higher by more than 20 percent in less than three months. The steeper yield curve has certainly been one of the key catalysts for these giant financial institutions.

It is important for investors to remember that these banks can borrow money from the Federal Reserve Bank at zero percent. It has been this way since December 2008 when the Federal Reserve Bank lowered the key Fed funds rate to zero to a quarter percent. The large major banks can buy stocks, bonds, and operate their credit card business with this free money from the Fed . Did you know that they charge their customers an average of 16.75 percent on a credit card. It must be nice to be a banker these days.

Here is the problem and the reason why the banks free money program could be coming to an end soon. Since the Federal Reserve began its $600 billion quantitative easing U.S. Treasury purchasing program the interest rates or yields on the 10 year Treasury Note have surged higher. This is telling the world two things. First it is telling everyone that there is inflation being created everywhere. That is obvious as the emerging market countries rush to increase interest rates in order to fight high inflation. The food riots that are breaking out in the poorer nations around the world also tell us that inflation is here. The second reason that the banker's free money party could end soon because yields are surging despite the Federal Reserve Bank's effort to keep them artificially low. Rising yields tell us that the Federal Reserve bank is once again behind the curve and inflation is here in the U.S. despite it not showing up on the data that they use. How could inflation show up with 9.0 percent unemployment? However, every U.S. consumer can see it at the gasoline pump or at the grocery store. Therefore, the Federal Reserve bank will eventually be forced to end its quantitative easing program and even might have to raise rates later this year.

If the Federal Reserve Bank indicates a move toward tightening the free money bankers party is over. This will end the current bank rally in dead in its tracks. Remember the stock market usually leads the economy by three to six months. Traders and investors should be aware that the increase in bank stocks could last a bit longer, however, it won't last forever.



Nicholas Santiago
InTheMoneyStocks
  [more]

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