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March 2014

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Netflix, Inc. Declines Again: Buy It Here

March 31, 2014 – Comments (0) | RELATED TICKERS: NFLX

Netflix, Inc. (NASDAQ:NFLX) continues to decline today. The stock is trading at $351.62 -7.25 (- 2.02%). After topping out at $458 a share, the stock has fallen by 23% in a month. Many investors are too scared to go near it, just after they were buying at the all time highs so eagerly. Smart investors are starting to look for a great entry. The level for entry is a major gap fill along with the 200 moving average. This level is $334. Expect a strong bounce off this level for a week or two. 

Gareth Soloway
InTheMoneyStocks.com
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3 Ways To Protect Yourself In An Economic Collapse

March 31, 2014 – Comments (0)

Nearly every day there is some chatter about a catastrophic financial event taking place. Most of this talk is spread by doom and gloomers, but we know from the past that catastrophic events have happened before and will happen again at some point in time. Listed below are three important steps to protect yourself in case of a major stock market crash or catastrophic financial event:

1. It is important for all individuals to not be loaded and burdened with debt. In the 1920's, almost everyone was taking on high debt and this was one of the reasons why it took the United States so long to recover. In times of need, creditors will demand their money back as soon as possible and they will also cut credit lines so liquidity will be scarce. This also happened in 2008 when the credit and housing bubble popped, credit lines on credit cards where slashed and even dissolved. Money lending by banks came to a halt. Many of the people with high debt are still trying to recover from the 2008 stock decline despite the stock markets reaching new all time highs.

2. Everyone should own some precious metals as insurance against fiat currency. This is the first time in the history of the world that the major central banks around the world are printing so much money at the same time. Currently, the Bank of Japan, Bank of England, Federal Reserve, and others are creating massive amounts of money simultaneously. When money is printed or created it will usually dilute the currency and create inflation in items needed for survival such as food and energy. This is precisely why gold, and silver have been used as money since biblical times. The people knew back then that gold and silver could not be printed or generated by a computer program with a click of a button. If there was a catastrophic financial event gold and silver might be what countries go back to and use as currency. Remember, history repeats itself and gold was the choice of currency for thousands of years.

3. It is important to own some land where you can hunt or plant crops. My dad was born during the Great Depression, but he lived on a farm. He told me, while the family did not have much money they always had a full belly because they lived off of the land. So if you can live in an area where you can hunt, fish, or farm you might have it easier than people who live in a congested city. Many people in the United States do not know how to be self sufficient, you will be much better off if you are.     

Nicholas Santiago
InTheMoneyStocks.com  [more]

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The Buy Price On Facebook I Am Dreaming About

March 27, 2014 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) has been taking a beating in the last few weeks. The stock topped out at $72.59 before dumping to a low today of $57.98. This is a dramatic $17.61 (24%) fall. So where does this become a no brainer buy? The level is $53.25 if it hits in the next three trading days. This level is based on a key gap fill as well as a time factor. Some of you may ask why it must hit it in the next three trading days? That is the time factor which is unbelievably important to any profitable trade.

Gareth Soloway
InTheMoneyStocks.com  [more]

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Restaurant Stocks Signaling A Weak Consumer

March 27, 2014 – Comments (0) | RELATED TICKERS: YUM , MCD , SBUX

Many of the leading restaurant stocks have come under selling pressure recently. Generally, when the restaurant stocks decline it will signal to traders and investors that the U.S. consumer is cutting back on spending. Everyone should know that U.S. consumer spending accounts for roughly 70.0 percent of the U.S. GDP (gross domestic product). Remember, following the leading restaurant stocks will often give traders a good sense of what the economy is doing. 

Some of the leading restaurant stocks that have declined recently include Yum! Brands, Inc. (YUM), McDonald's Corp. (MCD), Starbucks Corporation (SBUX), and Chipotle Mexican Grill, Inc. (CMG). All of these leading restaurant stocks still have further downside potential on the daily charts.

The near term daily chart support level for YUM stock should be around the $70.00 level. SBUX stock has potential downside to the $68.00 area according to the daily charts. CMG stock should find daily chart support around the $541.00 level, so this leading stock still has further downside to go. All in all, this weakness in the restaurant sector is likely telling us that the U.S. consumer has lost some of their discretionary income in 2014. 

Nicholas Santiago
InTheMoneyStocks.com
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Hot IPO's Are All The Rage, Warning Sign Or Better Times Ahead?

March 26, 2014 – Comments (0) | RELATED TICKERS: KING , BX

This morning, the hot initial public offering (IPO) that opened for trading on the New York Stock Exchange was King Digital Entertainment plc (NYSE:KING). This company is in the mobile gaming space and almost everything in technology sector has been rallying over the past few years. So it is understandable why the banking would price the offering at the high end. The IPO was priced at $22.50 a share, but the stock is now trading around $20.45 a share which is about 9.0 percent lower than the offering price. It is safe to say that some shareholders are not too happy right now. At this time, this IPO can be considered a flop, but the coming days will tell us much more. 

As many of you know, there is a long list of high flying companies that are looking to come public over the next few months. Most of these companies do not make any money currently, but the stock market has been on fire so it makes sense for these companies to try and go public. In the past, when this type of IPO euphoria has occurred it was always a warning sign of a stock market that was filled with hot money looking to put in something. Just look back at 1999, and 2007, companies were becoming public by the minute hoping to cash in. Does anyone remember when the popular private equity firm Blackstone Group L.P. (NYSE:BX) rushed its IPO out in the public market in June 2007? That so-called hot IPO flopped and signaled a top in the stock market. As you might know, the stock market topped out on October 7, 2007 which was just four months after the Blackstone IPO. 

Some companies that are looking to become public soon include Grubhub Inc (NYSE:GRB), Tarena Intl Inc ClA ADR (NASDAQ:TEDU), 2U Inc (NASDAQ:TWOU), Rubicon Project Inc (NYSE:RBU), and Aerohive Networks Inc (NYSE:HIVE). Many of these stocks mentioned are in the cloud computing space, but there are many more potential IPO's in other sectors that are looking to come public very soon. If history has taught us anything, these so-called hot IPO's could be warning us that this stock market is frothy at best and possibly warning us of some sort of top in the stock markets. 

Nicholas Santiago
InTheMoneyStocks.com
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Hewlett-Packard May Be On Its Last Circuit

March 25, 2014 – Comments (0) | RELATED TICKERS: HPQ

Hewlett-Packard Company (NYSE:HPQ) continues to do its best to drive their stock price higher. The feeble attempts are beginning to smell of desperation. Just a couple days ago, CEO Meg Whitman said the company would be getting into 3-D printing as early as this summer. However, yesterday, the company quickly back tracked, saying it was further down the line.

What makes this company a sell? First, the chart put in a classic topping tail just days ago. When a topping tail forms at multi year highs, it signals a very likely exhaustion top and reversal. Next, we must all put on our big boy pants and recognize that the stock is up from $11.50 in late 2012. With the current price of $32.21, this makes for an approximate 200% move in just over a year and a half. For an old school tech company, this has far exceeded its common sense range and reeks of a bloated pig.

As the company tries to fabricate the next big story that will drive the stock up, smart investors are noting the signals and selling or shorting. I myself gave this out as an alert to my members as a short trade. It fits the criteria for a multi-month pull back candidate to the $27.50 level.

Gareth Soloway
InTheMoneyStocks.com
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Biotech Smashed Again: Media Talking About It Which Means Bounce Close

March 24, 2014 – Comments (0) | RELATED TICKERS: IBB

Three weeks ago when the iShares NASDAQ Biotechnology Index (NASDAQ:IBB) was trading at $275.00, I was on 820 AM News Talk Radio in Florida, talking about the one sector which was a true bubble in this market. That sector was the biotechnology sector. At that time, the financial media on CNBC continued to talk about it as a buy, telling viewers it was in an 'uptrend'. Today biotech index IBB hit a low today of $232.84. This is a massive collapse of $42 (15%).

Today, the only thing the media is talking about is the biotech collapse. These 'analysts' and 'commentators' are always late to the trade and ultimately lose people money. The fact that they are talking about it now means we are close to a bounce on the biotech index. 

Gareth Soloway
InTheMoneyStocks
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Has CNBC Even Mentioned This Decline Once Today?

March 24, 2014 – Comments (1)

In case anyone hasn’t noticed, the NASDAQ Composite is trading lower by nearly 2.0 percent this morning. Believe it or not, CNBC has not once mentioned the decline in the tech sector. Instead the popular financial news network continues to focus on the upcoming IPO's like Grubhub which is an online food delivery service. Oh, how this feels like 1999 all over again. 

Due to today's decline in the NASDAQ and the Russell 2000 Index traders should now expect the central bankers to start chirping about interest rates staying low forever. Generally, whenever there is a decline of this magnitude the central bankers will come out of the woodwork and today should be no exception. 

Nicholas Santiago
InTheMoneyStocks.com
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Markets Bounce Back: Understand If Markets Will Go Higher Or Fall

March 20, 2014 – Comments (1) | RELATED TICKERS: SPY

After Wednesday's sharp Federal Reserve triggered fall, the markets are bouncing back today. Yesterday, Fed Chairman Janet Yellen said interest rates may start to rise in approximately one year. This spooked the markets as the Dow Jones Industrial Average tumbled 200 points from its highs. Today, the markets are recovering a majority of that dip. Investors and traders are wondering whether or not the markets are headed dramatically higher or if they are getting ready to dump again.

I will explain how to see this perfectly.

All you need to do is follow the chart from yesterday. Take the high on the SPY just before the FOMC Statement. That level was $187.90. The low was $185.50. As long as the market remains in this range you should have a neutral bias. If the markets break above the high on the SPY of $187.90, a bullish bias should be taken as the markets will likely trade higher in the coming days. Should the markets take out the lows of $185.50, a very bearish stance should be taken as the markets are likely headed much lower and quickly.

This is a simple way to read the charts. Keep it simple and stop using all the nonsense like MACD, RSI and more. Just follow the price action. To get more information, trade alerts and daily educational videos, take the seven day free trial to the Research Center. Join today and profit for life.

Gareth Soloway
InTheMoneyStocks.com
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Five Reasons Why A Real Trader Is Not A Gambler

March 20, 2014 – Comments (1)

How often have you heard someone say that they just bought a stock because they have a feeling that it is going to move higher? Personally, I hear someone tell me that every single trading day. When I ask them how they know the stock is going to move higher they answer by saying it’s a hunch or they heard someone talk about it. Well, in the trading world it is not prudent to take tips or trade on a hunch. There needs to be a sound methodology for taking a trade, otherwise it is just gambling. It is important to note, a good trader has the odds in his favor while a gambler does not. Just think about it, how can a Las Vegas casino stay in business if they do not have the odds in their favor? The answer is they can't. A casino knows that the odds are always in their favor and the longer a gambler plays in the casino the more likely the casino will take their money. As a trader you want to be Steve Wynn, not the guy at the roulette wheel placing bets. 

Here are five reasons why a good trader is not a gambler, but more like a Las Vegas casino owner:

1. A good trader takes a position when the odds are in his favor, not when the odds are against him. An educated trader will accomplish this task by using charts and understanding the human emotion that is being displayed on a chart. That is why certain breakout and breakdown patterns continue to reoccur throughout history. The chart pattern is simply recording the human emotion that is taking place in that particular equity.

2. A good trader will know when to cut his loss when he is wrong. The legendary trader Jesse Livermore used to say that a trader should never  take more than a 10 percent loss on any position. Even a Las Vegas casino will cut off a hot gambler if they win too much money. When a trader can admit they are wrong on a trade and limit the loss it is much easier to come back from that error. Traders must always use a stop loss.

3. A good trader does not need constant action in the market. A trader only enters a trade when the chart setup favors that he will make money. If the chart setup does not overwhelmingly support a pattern then the trader does not want to be in the position. A gambler constantly needs action; they continuously need to have some type of bet in place at all times. This gambler mentality is one of the reasons why so many people over-trade and lose money. A good trader patiently stalks out a stock or equity waiting for the right chart setup to appear. One thing I have learned over the years is that the worst thing you can do as a trader or investor is to force your will on the market. Chart patterns make money and you must patiently seek the good charts out. 

4. A good trader does not trade will with capital they cannot afford to lose. It is so important to be calm and keep all of your senses when trading. I have seen traders enter a position hoping that it is going to work out and their heart rate jumps up like they are running a marathon, this is usually a sign that they are trading too much money. A trader should not use capital that makes them feel uncomfortable. A gambler will usually bet the farm on a single bet, a good trader will not. Gamblers are always doubling down after they lose; this is a recipe for disaster, especially if you are a trader. I have seen traders blow up their entire accounts by doubling down and averaging in.  

5. A good trader does not take tips from others, but looks at the chart and decides whether the pattern is bullish or bearish. Have you ever been to a horse track? Half of the bets in a horse race are because someone has given someone else a tip. Good traders do their own due diligence and never listen to the public. Remember, when everyone is looking at the same thing it will rarely happen. Never take tips. Even the legendary Jesse Livermore admitted this to be one of his biggest mistakes as it was usually one of the main reasons for his trading losses.

Nicholas Santiago
InTheMoneyStocks.com  [more]

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Facebook Bear Flag Signals Coming Drop: Enjoy

March 19, 2014 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) has a classic bear flag that is forming under the 20 moving average on the daily chart. This is one of the better patterns you will see and ultimately tells of much further downside on the stock. Even today, the stock is underperforming a market that is flat. Facebook is trading at $68.21, -0.98 (-1.42%). Key supports will be $58.85 and $53.45.


Gareth Soloway
InTheMoneyStocks.com
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Pro Trader Notes: Inside The Mind Of A Profit Guru

March 18, 2014 – Comments (0) | RELATED TICKERS: SPY , FB

Markets are being driven by the USD/YEN as well as 'buy the dippers' aka small investors who continue to buy into the market. Today, Putin said he had no intentions of invading the rest of Ukraine. Like he would really tell everyone if he planned to do it ahead of time. The bottom line is, the markets continue to push higher into the FOMC Policy Statement tomorrow. The market has priced in another $10 billion taper. The comments from the fed (dovish/hawkish) will be the key to the market move.

Whether or not the big drop from last Thursday can be negated with this rally is at the heart of whether or not the stock market is headed higher or lower in the short term. Watch for a closing S&P 500 price above 1,874.40. If it closes above, the markets will likely test the all-time highs on the S&P 500 and very possibly move higher. If the markets cannot close above the highs by tomorrow, look for a  flush and Thursday's lows to be wiped out quickly.

Copper is an important long term indicator but short term means nothing. The recent collapse after extremely poor Chinese economic news confirms the lack of demand for the building materials metal. Down the line this spells huge trouble for the global economy and should be taken as a warning signal. There is a limited amount of time prior to the copper signal coming into play.

Facebook (NASDAQ:FB) continues to look weak. The hype is fast fading and the charts show significant downside in the coming months. Look for a test of the $59.00 and then $53.50 level.

Take the seven day free trial to the Research Center to get proprietary trade alerts with entry and exit points. Just in the past week, members have earning almost 20% while the market has chopped. Get daily videos, live broadcasts and more. Join today and profit for life.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

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Markets Spike As Russia/Ukraine Shows No Signs Of Escalation

March 17, 2014 – Comments (3) | RELATED TICKERS: SPY

Late last week the markets crumbled as global issues took center stage. There were significant worries that Russia might expand its invasion to more than just Crimea. Even with Crimea voting to join the Russian Federation, the market had priced in the possibility for violence and more. This has not happened and is showing no signs of happening. In addition, worries about China's economy have faded (at least for today). A solid rally is underway. Overall, expect more volatility and downside but also accept that buy the dip large bounces will be common place as more average investors continue to pile money into the markets.

Gareth Soloway
InTheMoneyStocks.com
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Dollar/Yen Collapse Signals Market Sell

March 13, 2014 – Comments (0)

The USD/JPY collapsed today taking the markets with it. As you all know, the markets are pegged to this chart and today is no different. After a solid gap higher, the markets fell with as the Dollar/Yen fell. So there has been no stop in the selling at this point as the indexes are down over half of one-percent.

This break in the Dollar/Yen is a big negative for the markets. While it is only an initial minor sell-off, should the Dollar/Yen continue to collapse, the markets will not be able to curtail their selling. Watch for follow through tomorrow. If we see it, expect a top in the market and a large pullback.

Gareth Soloway
InTheMoneyStocks.com
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Don't Reach Out And Touch AT&T (T) Until $30.00

March 13, 2014 – Comments (0) | RELATED TICKERS: T , VZ , TMUS

One of the leading stocks in the mobile telecom sector is AT&T Inc (T). This stock has been trending lower since it peaked out in April 2013 at $39.00 a share. Stocks that continuously make lower highs on the charts will generally signal lower prices ahead. Currently, the stock trades around $32.44 a share, so it is easy to see how further downside should be anticipated. AT&T stock is also trading below the daily chart 50-day and 200-day moving averages which puts the stock price in a weak technical position. The saving grace for the stock is that there will be a level where the institutional money will step in and support the stock, but that level is lower according to the charts. Traders and investors should wait for the $29.90 level to be reached before stepping in and buying AT&T stock. Recently, the company has been coming under competitive pricing pressure by other mobile telecom companies such as T-Mobile US, Inc. (TMUS), Sprint Corporation (S), and Verizon Communications Inc. (VZ). 

Nicholas Santiago
InTheMoneyStocks.com
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Crimea Is Just One Of The Many Catalysts That Could Spoil Stock Rally

March 12, 2014 – Comments (1)

As we all know, the Russian-Ukraine tension in Crimea continues to escalate on a daily basis. While this event has been front page news it has not really affected the stock market in the United States. Traders and investors have basically shrugged off all of the geopolitical events; they have simply followed the action in the USD/JPY (U.S. Dollar Index vs Japanese Yen) for market movement. Basically, when the USD/JPY chart moves higher so does the S&P 500 Index, NASDAQ Composite, and the Russell 2000 Index. On the flip side, when the USD/JPY declines so does the major stock indexes. While this lockstep relationship between the stock markets and the USD/JPY will not last forever, it has been firmly intact since late 2012. So it is safe to say that the stock markets really only care about this current trade at this time. 

Now we will point out some issues that could affect the USD/JPY chart...

One of the problems brewing around the world at this time is the high Japanese debt levels. Some reports are now saying that Japanese debt is 300 percent higher than its GDP. Any debt level that is this high is extremely alarming. The Bank of Japan is printing more money than the Federal Reserve, and their economy is only one third the size of the United States. How long can this continue? While a weak Japanese Yen helps to lift markets it cannot go on forever; any strength in the yen will disrupt the recent stock rally and an implosion of the Japanese economy could trigger it.  

China is also facing a ton of problems. Some of the Chinese problems include shadow banking, high debt levels, and daily liquidity issues. The Shanghai Composite Index is now trading at a five year low and it is not very far from its 2008 lows. The stock chart of the Shanghai Composite is not very healthy looking and signals further weakness ahead for the Chinese economy. China is a major exporter to the United States and has the second largest economy in the world.

Japan and China have also been arguing over a chain of islands in the East China Sea. Any military conflict between China and Japan would affect the United States directly, as the U.S. military is obligated to defend Japan and its territories. This week, military officials will meet in Hawaii to review bilateral defense guidelines for the first time in 17 years. Both China and Japan have had a long history of dislike for each other and are very sensitive to the recent words spoken by the respected leaders of both countries. Any conflict between these two countries could escalate in major global tensions as other countries choose sides. 

These are just a few of the problems that are brewing at the start of 2014. Any of these potential catalysts could trigger a decline in the stock markets around the world in the next few months.

Nicholas Santiago  [more]

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Apple Scam Being Repeated With Facebook

March 11, 2014 – Comments (0) | RELATED TICKERS: AAPL , FB

In 2012, Apple Inc. (NASDAQ:AAPL) saw countless upgrades when the stock was trading at $700 a share. The stock never went higher and has since collapsed as low as $387.00 before stabilizing in the $500 range. This shameful action by analysts should be a learning experience for all investors. The lesson? Always be skeptical of upgrades at all-time highs or downgrades at all-time lows. Most analysts are no better than an average investor and often times can have ulterior motives.

History appears to be repeating itself again. Facebook Inc (NASDAQ:FB) has seen multiple upgrades in recent weeks including yesterday, when UBS upgraded the stock to a $90 price target. Sound familiar? In 2012, when Apple was trading at $700, it saw upgrades to $1000 price targets and beyond. Be aware of this as it may be telling us of a long term top on the stock.

Gareth Soloway
InTheMoneyStocks.com
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What's Wrong With Goldman Sachs Stock?

March 11, 2014 – Comments (0) | RELATED TICKERS: JPM , BAC , BLK

As we all know, the major stock indexes have been making new all time highs. The leading financial stocks have been surging higher driving the stock market into uncharted territory. Recently, leading financial stocks such as J.P. Morgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Bank of America Corp (NYSE:BAC) have been making new 52-week highs, but Goldman Sachs Group Inc (NYSE:GS) has not made new 52-week highs. In fact, GS stock looks to have peaked on January 6th, 2014 at $181.13 a share. Today, the stock is trading around $173.13 a share.

What is wrong with Goldman Sachs stock? At this time, GS stock is trading into a lot of daily chart resistance around the $174.00 level. The stock looks vulnerable to a pullback from this resistance area. Just the fact that Goldman Sachs stock price is not leading the financial stocks higher is somewhat alarming. Swing traders must be on guard for any decline below the $172.00 level on a closing basis, this could signal a larger decline down to the $157.00 area which would be weekly chart support and an area where the stock would likely see institutional sponsorship.

Some other market leading financial stocks that are not yet making new highs on the daily chart include Morgan Stanley (NYSE:MS), BlackRock, Inc. (NYSE:BLK), and Deutsche Bank AG (NYSE:DB). When the large broker/dealer stocks lag the other large financial stocks it is often a sign weakness to come in the overall stock market. 

Nicholas Santiago
www.InTheMoneyStocks.com
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China News Is Scary, Add In Ukraine And The Fed: Major Trouble

March 10, 2014 – Comments (1)

Over the weekend, China reported an 18.1% drop in exports year-over-year. In addition, they saw an 18% drop in crude oil imports, month over month. Considering the Chinese government fakes their economic numbers more than the United States does, this is absolutely shocking. That type of slow down is epic and considering China is the second biggest economy in the world, it spells major trouble for all countries. If you add into the mix the fact that it is extremely likely Crimea will be part of Russia within a week and sanctions/stress will mount because of it, it amazes me the markets have not seen more selling today. Lastly, add in the fact that the most recent Non Farm Payrolls report came in better than expected at 175,000, any chance of the Federal Reserve not tapering another $10 billion just went out the window.

Gareth Soloway
InTheMoneyStocks.com  [more]

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Alternate Energy Plays On Fire: How To Trade Them Now

March 10, 2014 – Comments (1) | RELATED TICKERS: PLUG

Stocks like Plug Power Inc (NASDAQ:PLUG), FuelCell Energy Inc (NASDAQ:FCEL) and Ballard Power Systems Inc. (NASDAQ:BLDP) continue to be on fire. PLUG is up another 32% today, trading at $10.94 +2.67 (32.29%). Just in the last two weeks, it is up almost 200%. When these stocks get this extended, I begin to salivate and look to short them. It is often a high risk trade so I short with options or lighter share size. PLUG has crossed the $10 even number level, this is a psychological level that will create sellers (once the short squeeze is over). In addition, the stock is now worth over $1 billion, another psychological selling level (once reality sets back in). I think it is also important to mention that the stock is in need of capital. This drastic price move will give them the ability to do a stock offering at a solid price. This stock offering will cause dilution to current shareholders and could be the catalyst for a pull back.

In my opinion, the stock will fall in the coming weeks to $7.00 before finding support. 

Disclosure: I am short Plug Power Inc (NASDAQ:PLUG).

Gareth Soloway
InTheMoneyStocks
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Three Reasons Why Gold Continues To Shine

March 10, 2014 – Comments (0) | RELATED TICKERS: GLD

Gold has been rallying higher since the start of 2014. In late December 2013, the precious metal was trading as low as $1181.40 an ounce, today the spot price of gold is $1342.50 an ounce. The current pattern on the daily chart of gold futures looks poised to trade into the $1400.00 level.   [more]

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Adobe Systems Bear Flag Daily Chart

March 06, 2014 – Comments (0) | RELATED TICKERS: ADBE

Adobe Systems Incorporated (NASDAQ:ADBE) has a classic bear flag on the daily chart. This is coming off of a reversal candle from last week. These signals show a very bearish setup for the coming days. Also, please note that Adobe is flat on the day while the markets are nicely higher. This is another weak signal to pay attention to called relative weakness.

Look for a down move into next week the potential to reach the $61.00 level on a larger drop in the markets.   [more]

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Setting Up For A Great Trade: Mining Equipment Stocks Digging Profits

March 06, 2014 – Comments (0) | RELATED TICKERS: CAT , DE , JOY

Anytime a trader or investor looks at a stock chart they should look to see if the instrument is making a new high, or a lower high. Continuous lower highs are a good indicator that further weakness is ahead for the equity. 

Earlier today, the leading mining equipment company, Joy Global Inc (NYSE:JOY) reported earnings. The stock is trading higher by $1.91 to $57.73 a share. While this pop in the stock seems great in the near term the weekly and monthly charts are signaling a move lower. You see, the larger time frames have a series of lower highs on the chart beginning with the April 2011 top. Anytime a trader notices lower highs on a chart they must assume that the stock is ultimately going to trade lower before making a final bottom. According to my calculations, JOY stock has downside potential toward the $37.00 area before making a significant low. Now please understand, this does not mean the stock is going to decline today or even next week; the current chart pattern just tells us that the stock is ultimately going to trade lower. Therefore, as smart traders/investors we need to be prepared for that move. 

Other stocks in the mining equipment sector also have lower highs on the larger time frames, so this chart pattern is not specific to JOY only right now. Leading mining equipment stocks such as Deere & Company (NYSE:DE), and Caterpillar Inc (NYSE:CAT) are forming the same exact pattern on the larger time frame, these stocks are just as susceptible to lower prices in the months ahead. 

Nicholas Santiago
InTheMoneyStocks.com
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Understanding A Great Trade Setup: Dupont

March 05, 2014 – Comments (0) | RELATED TICKERS: DD

When finding a great swing trade, one must look at multiple factors. I hope to reveal my mindset fully, helping the average investor understand how I reached my decision to short Dupont (NYSE:DD). I believe a short on this stock an extremely high success rate, bordering on 90% over the next month. The downside target is $64.75, then $59.95.

1. The chart is extended. In the last month DD has jumped over 10% and currency is trading at highs not seen since the year 2000. 

2. There is a key gap fill in this range from 2000 that the stock has currently filled.

3. Connect the recent highs from May 31st, 2013. They connect perfectly and everytime the stock has touched this level, it has pulled back. 

4. There is a time count on the daily chart extending into the doji forming today. This should be a short term pivot top.

5. The stock has extended itself to the max move above the 200 moving average. Note how throughout history, the stock has never been much more extended from its 200 moving average prior to pulling back.

These reasons create a very solid base for a short trade on Dupont (DD). The downside should begin shortly and last at least a month or two.  [more]

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KSS Slides, Watch This Intra-day Support Level

March 05, 2014 – Comments (0) | RELATED TICKERS: KSS , TGT , COST

This morning, leading retailer Kohls Corp (NYSE:KSS) is coming under some selling pressure. The popular retailer is falling lower by 0.76 cents to $55.13 a share. Short term day traders should keep an eye on the $54.03 support level for an intra-day bounce. This should be a level where the institutional money will likely step in and sponsor the stock. Other leading retail stocks that are declining lower today include Target Corp. (NYSE:TGT), Dollar Tree, Inc. (NASDAQ:DLTR), and Costco Wholesale Corporation (NASDAQ:COST). Keep a close eye on these levels and stocks as they will present good profit making opportunity. 

Nicholas Santiago
InTheMoneyStocks.com
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Three Signs This Bull Market Is On Borrowed Time

March 04, 2014 – Comments (1)

Every bull and bear market has a life span before it ends. So often, traders and investors that simply follow the news and fundamentals think that the current trend can last forever, but we all know that is not true. In 2007, it took three small stock market crashes before the public realized that the bull market was ending and a strong bear market was about to begin. 

Here are three reasons why the current bull market is on borrowed time and could be ending very soon.

1. Most bull markets last around 50 to 67 months. This bull market is about to reach its 60 month anniversary on March 6th, 2014. While bull markets don't just die on the exact anniversary date, it should signal to traders that it is long in the tooth and very mature at this stage of the game. Ironically, the bull market that began in 1982 lasted roughly 60 months before the 1987 stock market crash. The same time period was again seen from the 2002 low to the 2007 high, this was 60 months. So any trader or investor with half of a brain should take note of this current 60-month cycle. The one coincidence of the 60-month bull markets of the past was primarily due to easy money by the Federal Reserve, this time no different.

2. The Federal Reserve Bank has ballooned its balance sheet to over $4  trillion. It will be a very tough task for the central bank to unwind that gigantic number. Currently, the Federal Reserve Bank is trying to unwind its QE-3 (quantitative easing) program by tapering its monthly purchases. Once the central bank starts to ease the amount of created money it should cause major problems. This tapering will soon hurt the equity markets as less U.S. Treasuries and mortgage backed securities (MBS) are purchased each month. 

3. Other countries are starting to feel the pressures of inflation. Countries such as Brazil, India, Ukraine, Venezuela, Thailand, Syria, Bosnia, South Africa, Turkey, and many other countries are dealing with the rise in food prices. Civil unrest has already started to occur in many of these countries due to price inflation. Higher interest rates are really the only way to bring down food inflation. Unfortunately, when higher interest rates occur the economy will usually slow down. Remember, while easy money helps to lift asset prices it does also lift food and energy prices as well. Food and energy are really what people need to survive. The central bankers who run the monetary policy around the world have to be looking at the high food prices, and they will all need to start pulling back on the easy money policies that have been in place for over five years now.  

While the writing on the wall is obvious to any intelligent trader or investor; one thing we know is that regardless of the market direction, up or down, there is always a trade. All we look for is the continued volatility, as that is what creates great opportunity for us to profit.          

Nicholas Santiago
InTheMoneyStocks.com        
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Trading The Psychology Of The Russia, Ukraine Situation

March 03, 2014 – Comments (0) | RELATED TICKERS: RSX

There is money to be made on the Russian incursion into Crimea, inside Ukraine. This is how you trade and profit from it. First, understand that the media will continue to talk about the situation, creating exponential fear. They will talk about every possible outcome, including war to get people to watch and their ratings up. Next, understand that nine out of ten times, the worst case scenario that is priced into the market does not happen. Therefore the Russian stock market will have over compensated, dropping far more than it should have.

The key here is if the Russian stock market drops sharply again in the coming days. The Market Vector Russia ETF Trust (NYSEARCA:RSX) has fallen dramatically in the last few weeks. Today alone, it is down more than six-percent. While I would not be a buyer here, if you see another ten-percent or more drop in the coming days, I will start accumulating.

Gareth Soloway
InTheMoneyStocks.com
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Today's Winner Is Gold

March 03, 2014 – Comments (0) | RELATED TICKERS: GLD

Risk taking seems to be off the table today as everyone watches the potential conflict developing in the Ukraine. All of the major stock indexes such as the S&P 500 Index, NASDAQ Composite, Russell 2000 Index, and the Dow Jones Industrial Average are declining in tandem since the opening bell. Last week, it was reported that money from the small investor was pouring into the market. Did the small investor just buy another top in the stock market?

Not everything in the stock market is falling today, spot gold and gold mining stocks are rallying higher on the trading session. The SPDR Gold  Shares (NYSEARCA:GLD) are trading higher by $2.89 to $130.51. This is a new four month high for the precious metal. When gold rallies it is usually a sign of inflation, or unstable stock market activity. Gold will often trade inversely to the USD/JPY (U.S. Dollar Index verse the Japanese Yen). Day traders should watch for the GLD to have intra-day resistance around the $131.50 area. This level was the high pivot made on October 29th, 2013. Remember, old high pivot levels will become new resistance points. Either way, gold is the big winner so far today. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

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