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April 2011

Recs

2

Gold and Silver Love The U.S. Dollar Decline

April 29, 2011 – Comments (0)

Gold and silver are directly benefiting from the decline in the U.S. Dollar Index. In fact, the entire stock market is rising as the U.S. Dollar Index declines intra-day. Gold and silver are both making new highs this morning. The SPDR Gold Shares is trading higher by 0.68 cents a share to $150.49 a share. The next important intra-day resistance level for the GLD should be around the $151.00 area. 

The iShares Silver Trust(NYSE:SLV) is off to the races this morning. The SLV is trading higher by 0.59 cents to $47.95 a share. Traders must watch for intra-day resistance around the $48.00 and $48.50 levels. If the U.S. Dollar Index somehow bounces higher throughout the day this will put selling pressure on gold, silver and most everything else in the stock market.



Nicholas Santiago
InTehMoneyStocks  [more]

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Mining Equipment Stocks Leading The Charge

April 29, 2011 – Comments (0)

This morning the leading mining equipment stocks are surging higher. The catalyst for the move higher in the sector is the strong market reaction to the Caterpillar Inc.(NYSE:CAT) earnings release. This morning CAT is trading higher by $3.19 to $115.83 a share. This is a new 52 week high for the stock as it gaps above the old April 4, 2011 high which was $113.93 a share. Should Caterpillar stock close up here the stock could have the $120.00 level in it's sights. This would be the next important daily chart resistance area. The stock should have intra-day resistance around the $116.75 level.

Other leading mining equipment stocks that are trading higher this morning are Deere & Co.(NYSE:DE), and Joy Global Inc.(NYSE:JOYG). Both of these leaders are acting very strong this morning. These stocks will come into daily chart double top resistance soon, therefore, traders must watch for these resistance areas very soon. Deere stock will have some intra-day resistance around the $97.50 level. The intra-day resistance level for JOYG will be around the $102.50 and $103.00 levels.


Nicholas Santiago
InTheMoneyStocks.com
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Transports Lead Markets, Are They Tired Here?

April 28, 2011 – Comments (0)

The Dow Jones Transportation Index(DJT) is one of the most highly followed indexes by traders and investors. This afternoon the Dow Jones Transport Index is trading at a new 52 week high on the charts. This index can be easily followed or traded by using the iShares Dow Jones Transportation ETF(NYSE:IYT). The IYT is trading higher by $1.18 to $99.63 a share. Traders must now watch the psychological $100.00 level as the next important resistance point. When the transports trade higher it is often viewed as a sign of economic strength and expansion.

Some leading transportation stocks that are climbing higher today include CSX Corp.(NYSE:CSX), United Parcel Service Inc.(NYSE:UPS), and Union Pacific Corp.(NYSE:UNP). Many of these leading transportation stocks are looking extended at these current levels and may be due to pullback or consolidate soon. The index and many of the leading stocks continue to look strong, however, nothing goes up in a straight line and this may be a spot where the institutions decide to take some profits.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

1

Goldman Sachs: Master Level To Watch

April 28, 2011 – Comments (0)

Goldman Sachs Group, Inc. (NYSE:GS) has major support just below the $150.00 level today at $149.60. There may be a solid bounce off this point and can be utilized as an intra day scalping level to the long side. The financial stocks have been very weak in an otherwise strong market. The daily chart of Goldman Sachs is probably one of the weaker charts in the large cap arena.

Gareth Soloway
InTheMoneyStocks.com
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1

The Debacle That Is The Dollar

April 28, 2011 – Comments (0)

The Federal Reserve released their FOMC Policy Statement yesterday and for the first time ever, Ben Bernanke held a conference call. To show the lack of faith in him and the Federal Reserve, the Dollar crumbled. Investors ran into gold and silver in record numbers. Today, the Dollar is falling again with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $20.97, -0.05 (-0.24%). In response to the weaker Dollar, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $135.86, +0.19 (+0.14%). Always remember, the markets go the opposite way of the Dollar. Yesterday, the Dollar fell on the Federal Reserve's comments and the markets surged. Today the Dollar is slightly weaker and the markets are slightly stronger.

Silver and Gold continue to surge higher. The iShares Silver Trust (NYSE:SLV) is trading at $47.26, +0.26 (+0.55%) and the SPDR Gold Trust (NYSE:GLD) is trading at $149.36, +0.16 (+0.11%).

This morning economic reports were somewhat poor as Jobless Claims were reported at 429,000. A month ago, Jobless Claims were hovering in the 380,000 range and were at multi-year lows. Since then, they have steadily crept higher. In addition to a poor jobless claims number, GDP came in at 1.8%. While somewhat in line with expectations, this number is concerning. The reason for concern focuses on the massive amount of money the Federal Reserve is pushing into the markets through QE2. With the massive stimulus, the growth should be higher. These economic numbers are definitely concerning but have little effect on the markets as long as the U.S. Dollar falls.

Gareth Soloway
InTheMoneyStocks.com

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1

Silver Moves Back Into The Drivers Seat

April 28, 2011 – Comments (0)

The iShares Silver Trust(NYSE:SLV) is soaring higher this morning by 0.94 cents to $47.95 a share. Spot silver is trading around $49.06 an ounce. At this time silver is soaring whenever the U.S. Dollar declines. Traders should watch for short term intra-day resistance on SLV around the $48.50 and $49.00 levels. Please keep one eye on the dollar as gold and silver seem to be reacting quickly to the upside on any dollar pullback.

   
Nicholas Santiago
InTheMoneyStocks  [more]

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0

How Low Will It Go?

April 28, 2011 – Comments (1)

This morning, the U.S. Dollar Index is declining again this morning. The U.S. Dollar Index has now declined lower by more than 17.0 percent since June 7, 2010. Yesterday, the Federal Reserve said that they do not have any control over the U.S. Dollar. Chairman Bernanke made a comment that suggested that the U.S. Treasury has control over the U.S. Dollar. We really have no choice but to chuckle at this statement by the Federal Reserve boss, is it not the Federal Reserve who controls the money supply? Oh well, it appears that Ben Bernanke is taking a page out of Alan Greenspan's book, he is living in his own delusional world. Does anyone realize that when Alan Greenspan tried this same weak dollar policy in 2002 that he created the greatest bubble and stock market collapse since the Great Depression. We can only wonder what the next market bubble will be and when it will burst.

The SPDR S&P 500 Trust(NYSE:SPY), and the SPDR Dow Jones Industrial Average(NYSE:DIA) are inching higher again. Whenever the U.S. Dollar Index declines the major stock market indexes will inflate higher. Traders can continue to buy the dips intra-day as long as the dollar continues to plummet. The U.S. Dollar is now very oversold, however, there are no signs of a bounce for the dollar as it continues to fade into the abyss. The next important support level for the U.S. Dollar Index will be the March 2008 low. The March 2008 low was $70.69, it was also the all time low for the U.S. Dollar Index.

When the U.S. Dollar declines everything that people need for survival becomes more expensive. Food, energy, and most every commodity besides natural gas has soared higher over the past two years. Gasoline prices have soared higher by 70.0 percent since the Federal Reserve announced its QE-2 program in late August 2010. Just look at a chart of the United States Gasoline Fund(NYSE:UGA), the UGA was trading around $30.00 a share in August 2010. Today, the UGA made a new 52 week high around $55.50 a share. Yesterday, Ben Bernanke said that high energy prices were caused by demand, however, the chart suggests that it is caused by the Fed's weak dollar policy and inflation inducing methods. You be the judge. The chart below says it all.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

5

Silver and Gold Soar After The FOMC

April 27, 2011 – Comments (2)

Gold and silver are soaring higher this afternoon as the FOMC keeps the Fed funds rate at zero percent. The iShares Silver Trust(NYSE:SLV) is trading higher by $2.58 cents to $46.63. The all time high for SLV was made two days ago at $47.00 a share. That level could get breached today as the U.S. Dollar Index continues to get pummeled.

The SPDR Gold Shares(NYSE:GLD) is trading at a new all time high  today. The GLD is trading higher by $2.50 to $148.90 a share. It is still rather amazing that the Federal Reserve Chairman, Ben Bernanke did not address gold and silver.
    

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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The Only Chart That Matters

April 27, 2011 – Comments (0)

This afternoon the major stock indexes are trading higher as the Federal Reserve Bank Charmian, Ben Bernanke, gives a live press conference. As Ben Bernanke takes questions from reporters all that seems to matter is the action in the U.S. Dollar Index. As long as the dollar declines the major stock indexes seem to inflate higher. Traders should keep one eye on the dollar at all times as this is the only inverse relationship in the stock market that really matters. Should the U.S. Dollar Index catch a bid higher these markets could turn south quickly. So far, Chairman Bernanke, has not said anything that indicates he wants a stronger U.S. Dollar. There have not been any questions  regarding gold and silver which are telling the world that the U.S. Dollar is in freefall.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

How To Trade The FOMC Policy Statement

April 27, 2011 – Comments (4)

The markets are hovering on the flat line ahead of the 12:30pm ET release of the FOMC rate decision. Obviously, rates are not going anywhere at this time so it is more a matter of the comments released by Federal Reserve Chairmen Ben Bernanke. This will happen at 2:15pm ET today during a first ever press conference. Into the release, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $134.77, -0.02 (-0.02%). The Dollar has gained some strength this morning but it is likely Bernanke and friends will force it down later to help prop the markets up.

The markets rallied yesterday on anticipation of positive comments from the Federal Reserve. Ben Bernanke has been a friend to the markets and will do his best to continue. The markets are looking for something new on the positive side. The same old positive rhetoric is already baked in the cake.

Look for volatile trading at 12:30pm ET and then a market that gets quiet until the press conference. The SPY is holding under the $135.00 level, its new resistance point. Should this level get taken out today, the markets will most likely see more highs the remainder of the week. If we stay underneath at the close, look for a pull back in the next few days.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Alert: Sell Oil Stocks Now

April 27, 2011 – Comments (1)

Oil stocks are in a precarious position which leaves no alternative but to sell them. We have seen oil prices advance sharply higher over the last two months. This has been a combination of a stronger global economy and instability in the Middle East. With this rise in energy, stocks like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) have soared. In July 2010, Chevron was trading at $67.00 per share. It now trades at $108.00, just off its 52 week highs. This gain is huge, coming in at over 60%. Exxon has had the same type of move as has other oil stocks like SandRidge Energy Inc. (NYSE:SD) have soared over 200% in that same time.

The reason why oil stocks should be sold is simple. Oil has reached a level just shy of $115.00 per barrel. As oil approaches that price, the markets seem to get skittish and sell off. When the whole market sells off, it is tough for energy stocks to push higher. The market sells on oil reaching this level because it hurts demand and the overall economy suffers. Not only do people drive less thus using less oil, but a slowing economy will also hurt demand through industrial channels. This hurts the amount of oil bought, thus profits for large oil companies may fall.

The other side of the coin shows a situation where oil falls. Imagine oil pulls back under $100 per barrel. Simply put, when oil falls, energy stocks like Chevron and Exxon sell off as well. If they are selling each barrel of oil for less and less, profits will take a hit. This puts oil stocks in a no win situation. This is a Catch 22. Not only have oil stocks rallied 60% or more in the last ten months, but a move higher or lower in oil will drive their stocks lower.

Oil stocks should be avoided at all costs. Some oil stocks can be shorted because of this as well. The no win situation will be a win for those that take profits and those that short in the coming months.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Retail Stocks Are Flexing Early Muscle, Can It Last?

April 27, 2011 – Comments (0) | RELATED TICKERS: RTH , WMT , TGT

The strongest sector in the market today looks to be in the retail stocks. This morning the popular Retail Holders Trust(NYSE RTH) is trading higher by $1.24 to$110.70 a share. Traders must be careful here as the RTH is looking extended on the daily chart and could be due to pullback, however, there is definitely good intra-day strength at the start of this trading day. The RTH will have strong intra-day resistance around the $111.00 level.

Other leading retail stocks that are trading higher this morning include Costco Wholesale Corp.(NASDAQ:COST), WalMart Stores Inc.(NYSE:WMT), and Target Corp.(NYSE:TGT). Traders must be aware that these daily charts have had very strong moves and are starting to get extended. Therefore, it is possible to see pullbacks in the retail stocks over the next few days  [more]

Recs

0

Energy Sector Loses Steam

April 27, 2011 – Comments (0)

This morning all of the leading energy stocks are under some sharp selling pressure. This sector has lead the major stock market indexes higher since August 2010, this when the Federal Reserve announced its quantitative easing program.

Some of the leading stocks that are trading lower this morning include Chevron Corp.(NYSE:CVX), ConocoPhillips(NYSE:COP), and Devon Energy Corp.(NYSE:DVN). Short term traders can watch for short term intra-day support on DVN around the $87.00 level. The is where scalp traders can look for a quick bounce trade. Please remember that the stock is weak today and the bounce may not last very long.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Buy Or Avoid: Have These Stocks Bottomed?

April 26, 2011 – Comments (0)

As the markets continue to hit new 52 week highs, certain former winners are sitting at their lows. In a market this strong, how did these stocks fall out of favor? Are they good buys?

The first stock is Cisco Systems, Inc. (NASDAQ:CSCO). This stock was a former darling until recent earnings misses. Company management has said they are restructuring and hope to turn things around. The stock is down from a 52 week high of $27.74 to its current price of $17.40. With the current valuation, Cisco is looking attractive. The stock seems to have found significant support in the $16.50 to $17.00 level and has held multiple times. With the power of the name and an insane amount of cash, the bad news may be priced in and the turn around starting.

Semiconductor Equipment & Materials maker Cree, Inc. (NASDAQ:CREE) is another former darling of the markets. This stock soared all the way to $81.69 before falling over 50%. It currently trades at $40.35. The stock recently hit the $38.50 level which is major support on the daily and likely a short term bottom. Ultimately, this stock seems to be in purgatory for the time being and should only be played as a swing trade off the $38.50 level.  The swing trade bounce can take the stock to $47.00 before it meets major resistance and will likely pull back.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Alert: Market Action You Need To Know

April 26, 2011 – Comments (0)

The markets are moving higher today ahead of the FOMC Policy Statement tomorrow. This release will be done in a new format which is sure to help the Federal Reserve maintain more control of the markets. First, at 12:30pm ET, they will release their interest rate policy. Then at 2:15pm ET, Ben Bernanke will release some more comments and hold a conference call. Spacing the Federal Reserve Policy Statement out like this enables the Federal Reserve to see the direction of the markets and adjust their statements accordingly. Ahead of the release, the SPDR S&P 500 ETF (NYSE:SPY) is trading at a new 52 week high at $134.72, +1.08 (+0.81%). The markets have realized at this point, Ben Bernanke will not do anything negative to hurt the recovery. He has been a friend of the markets and believes higher markets give people confidence to spend more.

The Dollar has fallen slightly as well, helping the markets move higher. The little bit of weakness in the Dollar has helped oil move higher. As oil moves higher, commodity stocks jumped. Key components of the Dow Jones Industrial Average like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are higher by approximately one percent.

3M Company (NYSE:MMM) reported earnings and the market cheered. MMM is another component of the Dow Jones Industrial Average and is carrying the market higher. The stock is trading at $95.87, +1.75 (+1.86%).

Lastly, major Dow component International Business Machines Corp. (NYSE:IBM) announced a quarterly dividend hike of 15% this morning. The stock surged from being flat to $168.79, +1.12 (+0.67%). Earnings, dividend hikes, a weak Dollar and the Federal Reserve FOMC Policy Statement tomorrow are all making for a solid up day in the markets.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Oil Holds Steady Eddie, Gasoline At New 52 Week Highs

April 26, 2011 – Comments (0)

This morning, the highly popular United States Oil Fund(NYSE:USO) is trading higher by 0.12 cents to $44.65 a share. The USO made a new 52 week high on April 8, 2011 at $45.20 a share. This level will still be minor daily chart resistance. Until the April high is breached on a closing basis traders should not expect a breakout in the USO.

The USO will have short term intra-day resistance around the $44.75 and $45.00 levels. Traders must also keep one eye on the U.S. Dollar Index. The U.S. Dollar, and the USO seem to trade inverse lockstep to each other.

The United States Gasoline Fund(NYSE:UGA) is trading higher this morning by 0.44 cents to $54.23 a share. This is a new all 52 week high for the UGA. The average price of gasoline in the United States is now $3.92 a gallon. Higher energy prices are a direct tax on the U.S. consumer. The Unites States Gasoline Fund has increased higher by 40.0 percent since the Federal Reserve announced its QE-2 program in late August 2010.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

As Inverse As It Can Be

April 26, 2011 – Comments (0)

Whenever the U.S. Dollar Index declines the major stock market indexes will inflate and advance higher. The chart below clearly defines this inverse relationship in real time. The U.S. Dollar Index has now declined lower by 17.0 percent since June 7, 2010 when it traded as high as $88.70 per contract. This morning the U.S. Dollar Index is trading around $73.85. There is the stock market rally for you. Dilute the currency and inflate asset prices. We can only wonder how long this can continue before the inflation rally ends?



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Silver Retreats, Everything Needs A Breather

April 26, 2011 – Comments (0)

Yesterday, the iShares Silver Trust(NYSE:SLV) traded over 189 million shares. This was the highest volume ever in the SLV, which will usually signal exhaustion buying. Many times before a stock, ETF, or commodity top out or are getting set for a pullback it will surge higher on heavy volume. That was exactly what took place yesterday for silver. This morning the SLV is trading lower by $1.65 to $44.19 a share. Please understand that the SLV was very overbought and extended on the charts. The SLV has climbed higher by more than 80.0 percent since January 25, 2011 when the SLV traded around $26.00 a share.

Anytime a stock or commodity has a move this strong for this length of time, a correction or pullback will eventually occur. Please remember that nothing goes up in a straight line. Other leading silver stocks that are trading lower include Silver Wheaton Corp.(NYSE:SLW), and Pan American Silver Corp.(NASDAQ:PAAS).


Nicholas Santiago
InTheMoneyStocks.com
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Recs

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Pre-market News And Views

April 26, 2011 – Comments (0)

The S&P 500 e-mini futures (ES M1) are trading higher this morning by 5.75 points to 1336.25 per contract. Earnings reports continue to be released in droves at this time. Most of the earnings releases have been better than expected and well received by the market. This morning, United parcel Service Inc.(NYSE:UPS) is trading higher by $1.11 to $74.75 a share after releasing their earnings report. This leading stock will usually help to lift most leading transport stocks.

The Federal Reserve begins a two day meeting today. Tomorrow the FOMC will release its Fed funds rate decision. The Fed funds rate has been at zero percent since December 2008, it is expected to remain at this level. Ben Bernanke will also hold his first ever press conference to discuss his views on the economy, he has also stated that he wants to be more transparent to the public. The pressure from Congressman Ron Paul (R-Texas) looks to be getting to the Federal Reserve Chairman. We shall see what Chairman Bernanke has to say tomorrow.

Last night, the Asian markets sold off sharply. The Nikkei 225 Index (Japan) sold off by more than 1.00 percent and this could put some pressure on many of the Japanese ADR's this morning. Stocks such as Toyota Motor Corp.(NYSE:TM), and Sony Corp.(NYSE:SNE), could come under some early pressure. The Hang Seng Index(Hong Kong), Sensex Index(India), and the Shanghai Index(NYSE:China), were also lower last night, however, they were down by less than 1.00 percent.

WTI oil is trading higher this morning by just 0.04 cents to $112.34 a barrel. The crisis in the Middle East and Northern Africa continues. There does not seem to be any real solution to this problem. The stock market does not really seem to be bothered by the conflict and protests in the region. At this time the U.S. Dollar Index continues to decline and this is certainly helping to keep all commodities including oil at high price levels. Gold and silver are trading slightly lower this morning.

The Case/Schiller Home Price Index was released this morning at 9:00 am EST. The report was lower by 1.1 percent in the month of February. It looks as if Washington, DC was the only region to have higher home prices compared to the twenty regions in the report. The stock market futures are not being effected by the report and that is all traders should care about.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

China Internet Plays Stay Hot

April 25, 2011 – Comments (0)

China internet stocks continue to show amazing gains as Sohu.com Inc. (NASDAQ:SOHU) leads the charge, trading at $106.63, +10.94 (+11.43%).  SINA Corporation (NASDAQ:SINA) is not far behind and even small caps like China Finance Online Co. (NASDAQ:JRJC) is getting in the mix with a solid gain of 0.84 (+15.53%).
These stocks have been the hottest plays out of China recently as Baidu.com, Inc. (NASDAQ:BIDU) was a $10.00 stock in 2009 and now sits at $150.00 per share. While these stocks have been hot, the multiples are getting a little excessive. In most cases, these stocks are trading at forward price-to-earnings ratios of 50 or higher. While amazing to watch and marvel at, a true investor and swing trader would not touch them with a ten foot pole until they have corrected.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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New Federal Reserve Style Screams Control

April 25, 2011 – Comments (0)

The market is trading with very light post holiday volume. The first trading day after a long holiday weekend is always light and today is no exception. In addition, the markets are all looking towards Wednesday. On Wednesday, a new FOMC Policy Statement release format from the Federal Reserve will debut. At 12:30pm ET, the Federal Reserve will release their policy statement. Then at 2:15pm ET, they will release some comments and minutes with a press conference immediately following.

The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $133.36, -0.42 (-0.31%) while the SPDR Dow Jones Industrial Average (NYSE:DIA) is trading at $124.35, -0.44 (-0.35%) and the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) trades at $58.36, +0.02 (+0.03%).

This format seems to be another way the Federal Reserve can control the markets. The initial release will be done during lunch when many traders will not be trading and volume will be light. The Federal Reserve will monitor the reaction over the next couple hours and decide what they then need to tell the markets in the press conference. Should the markets be selling sharply, you can bet some positive statements will follow. If it is up or neutral, nothing major will be said. For a Federal Reserve that continues to print trillions and use POMO to prop up the markets, this format should initially help them control and prop even better.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Silver Reverses Off Pre Market Highs

April 25, 2011 – Comments (0)

Silver reversed off the early morning highs in dramatic fashion. The iShares Silver Trust (NYSE:SLV) traded above $47.00 pre market before falling to a low by mid morning of $44.53. When silver was trading at the highs, it was getting close to the 31 year old all time highs from 1981. The last run in silver occurred when the Hunt brothers tried to corner the silver market. Spot silver ran up to $50.00 before reversing dramatically. The Hunt brothers ended up filing for bankruptcy. The highs of silver this morning were just shy of that level.

The reversal could be a short term top in the silver market as the hype hit a crescendo over the weekend. Whenever the average trader jumps on the bandwagon of any stock, commodity or currency, the trend is usually complete and will reverse. This may have happened over the weekend and this morning in silver.  The SPDR Gold Trust (NYSE:GLD) is trading at $147.00, +0.26 (+0.18%) while the United States Oil Fund LP (NYSE:USO) is trading at $44.40, -0.17 (-0.38%).

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Are The Markets On Pause for Bernanke?

April 25, 2011 – Comments (0)

Since late August 2010, the major stock market indexes have rallied sharply higher. The catalyst for the rally was the announcement of QE-2(quantitative easing) by the Ben Bernanke in Jackson Hole, Wyoming. The U.S. Dollar Index has been declining sharply ever since that announcement and the stock markets have inflated higher. Now the Bernank will start holding press conferences after their FOMC announcements. This is something new by the Federal Reserve as they try and become more transparent to investors and the public. Congressman Ron Paul(R-Texas), has been recently breathing down the back of the Federal Reserve in his new position as head of the subcommittee that oversees the central bank.

The big question that many traders and investors are asking, what will the Federal Reserve bank do for an encore to QE-2? How can the central bank keep the liquidity(money) flowing into the stock market after QE-2 expires? Many investors believe that the Federal Reserve will start QE-3 if the stock market starts to falter or is unable to stand on its own feet after the Fed no longer does quantitative easing.

The last Federal Reserve Chairman was Alan Greenspan. He was know for talking in circles to politicians. There were actually people hired by the financial media that would try and interpret what he said after a meeting with the U.S. Congress. We can only wonder if Ben Bernanke will take a page out of Greenspan's book.

Gold and silver have told the world that the Federal Reserve and other central banks have continued to simply create money in order to keep the markets floating higher. In my humble opinion, gold and silver are the central bank's worst nightmare because it simply tells us that money is being created on a daily basis. Eventually, the Federal Reserve Bank will be forced to strengthen the U.S. Dollar. The big question that traders must ask, is when that will happen?

In the meantime, the Federal Reserve seems to be one step ahead of all the investors in the world at this time. High oil, unemployment, and overall inflation, have not stopped this market from advancing. The U.S. Dollar Index is now trading at a new two year low. The U.S. Dollar Index has declined by nearly 17.0 percent since June 7, 2010. Commodities and commodity stocks have surged higher since the Federal Reserve began its QE-2 program. Stocks such as AK Steel Holdings Corp.(NYSE:AKS), Caterpillar Inc.(NYSE:CAT), and Newmont Mining Corp.(NYSE:NEM) have all benefited from the action by the Federal Reserve. If the Fed decides to stop inflating the markets these leading stocks and others could be in for a sharp correction.

It will be interesting to see what the Federal Reserve Chairman, Ben Bernanke, will have to say in this press conference on Wednesday. Will he defend the U.S. Dollar or just push any questions aside like his predecessor Alan Greenspan did? Get the popcorn ready we shall soon enough.

 
Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-Market News and Views

April 25, 2011 – Comments (0)

The long holiday weekend is over and today is still expected to be a light volume trading session. The S&P 500 e-mini futures are trading higher by 2.00 points to 1333.00 per contract. Often after a long weekend the market will have what we call a holiday hangover.  This is when traders and investors extend their weekend by an extra day. Monday's are notoriously light volume trading sessions, therefore, traders must realize this and take today's action in stride.

Last night the Asian markets were mixed. The highly followed Shanghai Index (China) traded lower by 1.50 percent. This decline could put early pressure on the leading commodity stocks after the opening bell rings at the New York Stock Exchange. Traders should watch stocks such as Freeport McMoRran Copper and Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc(NYSE:CLF) early in the morning as these leading commodity stocks could be effected by the decline in China last night.

Silver and gold are trading slightly higher this morning, as the U.S. Dollar Index declines lower again. Last week, the U.S. Dollar Index made a fresh new two year low closing below the November 2009 low pivot. The U.S. Dollar Index still remains very weak at this time, however, it is important to note that the U.S. Dollar Index is very oversold and often bounces can occur from oversold conditions. The Federal Reserve is holding a press conference on Wednesday after they announce their interest rate policy. It will be interesting to see if they comment on the U.S. Dollar Index nosedive. As long as central banks continue to devalue their currencies in order to inflate asset prices, gold and silver could trade higher.

WTI oil is trading higher this morning by 0.89 cents to $113.18 a barrel. Normally, we would think that oil at these high prices would effect the stock market, however, the stock market and oil have traded in tandem with each other as of late. It seems that the stock market declines sharply when oil pulls back. This tells us that the U.S. Dollar Index movement is the dominating force behind the stock market, gold, silver and oil.

Earnings will be reported in droves this week. Netflix Inc.(NASDAQ:NFLX) is the leading stock that is scheduled to report after the close today. Traders can also watch for the New Homes Sales report to be released at 10:00 am EST. Most economic reports have had very little effect on the stock market recently.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

3

Holiday Mode

April 21, 2011 – Comments (1)

Usually, before a major holiday the stock markets will have some decent trading volume in the first hour of the trading session and then drift sideways for most of the day. Traders would then watch for a late day surge to occur sometime in the final thirty minutes of the session. This late day push will make for a good headline on the evening news when people see that the highly followed Dow Jones Industrial Average (DJIA) ended the session higher.

It is important to remember that the average person on the street is not aware of what the S&P 500 actually is. They simply hear that the Dow Jones Industrial Average is higher and they feel better. This is called the wealth effect. The average person on the street has no idea that the U.S. Dollar Index is down 17.0 percent since June 7, 2010, nor do they know that the U.S. Dollar Index is lower by 39.0 percent since 2001. They simply know that the DJIA is higher and they might be able to spend a little extra money this weekend for the holiday. The stock markets will be closed tomorrow for Good Friday.

Happy holidays everyone.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-market News and Views

April 21, 2011 – Comments (0)

The holiday rally continues again this morning after strong corporate earnings reports by Apple Inc.(NASDAQ:AAPL), and Qualcomm Inc.(NASDAQ:QCOM). The S&P 500 Index e-mini futures(ES-M1) are trading higher by 5.00 points to 1333.00 per contract. Often, before a long holiday weekend the major stock indexes will rally higher. After all, if QE-2 is going to work for a while it will require the U.S. consumer to spend money. Consumer spending accounts for 70.0 percent of the gross domestic product(GDP) in the United States.

WTI oil is trading higher by 0.32 cents to $111.68 a barrel this morning. There are several reasons for continued higher oil prices. First, the Middle East and Northern Africa remain in turmoil. Libya, and Nigeria, are the two countries that produce oil and are in focus today. However, there are uprisings in many other non-oil producing nations such as Yemen, Bahrain, and the Ivory Coast, that receive very little attention. Second, the U.S. Dollar Index(DXY) has been in free fall mode. The U.S. Dollar Is now trading below its November 2009 lows. The U.S. Dollar Index has declined by 17.0 percent since June 7, 2010. The retirees and those that are on fixed incomes cannot be happy about there loss of purchasing power. In any case, oil is purchased in U.S. Dollars, therefore, when the dollar declines oil prices move higher. Gold and silver are also surging to new highs on the back of the declining U.S. Dollar Index.

Initial jobless claims were reported at 8:30 am EST this morning. The claims number reported was 403,000. The expectation by analysts was for 390,000 initial claims. The number is still pretty high and this gives the Federal Reserve an excuse to keep doing their QE-2 program. Does anyone really believe these reports anymore?

Asian markets were all higher last night as they seemed to benefit from the U.S..stock market rally yesterday. The Shanghai Index which seems to be the most important of all the Asian stock indexes was higher by 0.65 percent. This increase will not have much effect on the U.S. markets this morning.

Corporate earnings are coming out in droves this week. Some stocks that are trading higher in the pre-market are EI DuPont de Nemours & Co.(NYSE:DD), The Travelers Companies, Inc.(NYSE:TRV), and Biogen Idec Inc.(NASDAQ:BIIB).

Stocks that are trading lower this morning include Verizon Com Inc.(NYSE:VZ), and Teva Pharmaceutical LTD.(NASDAQ:TEVA). Traders must always use caution during earnings season as it is very difficult to know how the market will react to each earnings report. Markets are closed in the U.S. tomorrow for Good Friday.



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Recs

1

Day Trading Lesson: Understanding The Gap And Slow Day

April 20, 2011 – Comments (1)

Often day traders watch the markets for 'gap and go' trading sessions. This is when the S&P 500 futures trade higher 7.0 – 10.0 points before the opening bell and rallies throughout the rest of the trading session. Often day traders will look for small pullback and jump on board for a move higher into the close.

Today the market made a 'gap and slow' day. This is when the market gaps higher by 15.0 to 20.0 points at the open and then stalls out for the rest of the session. Many inexperienced traders will usually buy the highs thinking the market is about to break out. Wrong, the market will usually trade sideways and sometimes even drift slightly lower into the end of the session. Day trading requires experience. Traders should not just guess or assume, that is gambling.

Day trading is a very calculated endeavor and it is imperative to know what type of trading day it is. For example, today the SPDR S&P 500 Trust(NYSE:SPY) made a high around 10:00 am EST, since that time the SPY has traded in a 0.30 cent range for the rest of the day. Welcome to a gap and slow day.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Wells Fargo Clocks The Financial Sector

April 20, 2011 – Comments (0)

While the markets are surging higher today, financial stocks are weak on the back of earnings from Wells Fargo & Company (NYSE:WFC).  The company reported net income that rose 51% but revenue fell. Revenue dropped to $20.3 billion from $21.5 billion.  This was mostly due to lower mortgage fees. Wells Fargo is getting hammered today, trading at $28.70, -1.37 (-4.56%).

The revenue miss on Wells Fargo is putting the whole financial sector under pressure.  JPMorgan Chase & Co. (NYSE:JPM) is trading at $44.31, -0.34 (-0.76%) and Bank of America Corporation (NYSE:BAC) is barely positive, trading at $12.39, +0.05 (+0.41%). Goldman Sachs Group, Inc. (NYSE:GS) is slightly higher as well, $152.89, +1.03 (+0.68%).

While some of the financial firms like Goldman and Bank of America are slightly higher, the Dow Jones Industrial Average is soaring by 200 points. In other words, even the positive financial stocks are under performing. The overall financial earnings announcements from the major players have been somewhat dissapointing. JPMorgan, Goldman Sachs and Bank of America all sold off after they reported earnings. Today, Wells Fargo is selling off.

Special Note: The one saving grace about Wells Fargo is the 200 moving average it is hitting on the daily chart. This may act as a short term bottom on the stock, especially ahead of the light volume holiday this weekend.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Dollar Pimp-Slapped, Market Rallies

April 20, 2011 – Comments (1)

The markets opened sharply higher today on the back of a major beat down of the Dollar and some positive earnings. Anytime the Dollar drops, it rallies the market. The bigger the drop in the Dollar, the larger the up move in the market. Today, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) opened lower by 1.00% and the markets, with the help of some solid earnings, opened up well over 1.00% higher.

The Federal Reserve continues to be stuck in their pimp-slap mode on the U.S. Dollar. Anytime the Dollar tries to push up, they smack it down. They are so focused on keeping the equity markets up, they are willing to crush the Dollar almost ever day as they print trillions of Dollars. The scary thing about this action is not the massive debt the United States has built up, but more so the commodity surge as a result. The average American is struggling to buy food and energy and each day the Dollar collapses, those products get pricier. The Federal Reserve has tunnel vision. They believe they must keep the markets up at all costs, flooding the market will trillions of Dollars. They do not notice or refuse to notice and care about the hardships the massive weakening in the Dollar is creating. Gas over $4.00 per gallon? Who cares! A majority of ones salary spent on groceries? No big deal! It is sad but truly the state of things. Perhaps the massive trillions of Dollars printed has created a few extra jobs here and their. However, salary growth has remained neutral as energy and food prices have soared 25% in the last six months.

As the markets rally on light holiday volume and a weak Dollar, a flood of solid earnings hit  the markets. Key earnings results from Intel Corporation (NASDAQ:INTC), Yahoo! Inc. (NASDAQ:YHOO) and VMware, Inc. (NYSE:VMW) are keeping technology strong while energy stocks are leading the Dow Jones Industrial Average and S&P 500.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Mining Stocks Are Still Lagging The Precious Metals

April 20, 2011 – Comments (1)

The leading gold and silver mining stocks have recently lagged the precious metals themselves. Sometimes the leading mining stocks will lead the metal, however, they have been lagging the precious metals since mid-March 2011. Gold and silver are making new highs this morning while the Market Vectors Gold Miners ETF(NYSE:GDX) is still trading below its December 2010 high which was $64.62 a share. This morning the GDX is trading higher by $1.45 cents to $63.10 a share. The GDX will have intra-day resistance around the $63.50 level.

Some leading mining stocks that are trading higher this morning are Newmont Mining Corp.(NYSE:NEM), Randgold Resources Ltd.(NASDAQ:GOLD), and Goldcorp Inc.(NYSE:GG). These stock will usually trade in tandem with the GDX, therefore, watch for pullbacks when the GDX comes into its resistance level.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Swiss Cheese Rally

April 20, 2011 – Comments (0)

This morning, the major stock indexes are soaring higher. The rally looks to be broad based as almost every stock on my screen is in the green. Most sectors are trading higher including technology, retail, energy, and mining. While everything looks really strong today there are some holes or pockets of weakness in this rally.

One area that is somewhat on the weak side is the large financial stocks. This morning Well Fargo & Co.(NYSE:WFC) reported earnings and the stock is trading sharply lower by $1.30 to $28.80 a share. Anytime a major financial stock declines this sharply it will usually keep the rest of the stocks in the sectors on the weak side. Other stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), and Bank of America Corp.(NYSE:BAC) are trading near the unchanged level an not participating in the market rally.

Mosaic Co.(NYSE:MOS) is a leading agriculture stock that is trading lower this morning by 0.95 cents to $75.75 a share. This stock is putting some pressure on the rest of the agriculture sector. Traders can watch for intra-day support on Mosaic stock around the $75.17 area.

CSX Corp.(NYSE:CSX) is a leading rail road stock that is trading lower this morning after reporting earnings. The stock is trading lower by $1.31 to $74.74 a share. Whenever a leading stock is trading lower on the session it can weigh on the other rail road stocks.

In any case, the major stock market indexes are soaring higher this morning in a broad based rally. There are a few leading stocks that are coming under selling pressure. The stocks that fail to participate must be watched closely going over the next week due to the weak relative strength. Should the major stock indexes decline or pullback these weak stocks could be the first to fall.

Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

When the Dollar Drops The Markets Pop

April 20, 2011 – Comments (0)

Traders can easily see by this chart that when the U.S. Dollar Index declines the S&P 500 e-mini futures rally higher. This is the main catalyst for the gap higher open in the major stock indexes. We can only wonder when the falling dollar will become problematic for the stock market. It has already become problematic for people around the world as inflation is skyrocketing. 



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-market News And Views

April 20, 2011 – Comments (0)

All of the major stock index futures are soaring higher this morning. The popular and highly traded S&P 500 e-mini futures(ES M1) are trading higher by 18.00 points to 1326.75 per contract. This is a huge move higher before the opening bell at the New York Stock Exchange. The catalyst for the rally this morning looks to be a combination of the declining U.S. Dollar Index and good corporate earnings reports from numerous companies. The U.S. Dollar Index is trading lower by 0.67 cents to $74.36 and this is a new multi-month low. When the U.S. Dollar Index declines the stock market will usually inflate higher. The U.S. Dollar Index has now declined lower by over 16.0 percent since June 7, 2010. Traders are now wondering how low the U.S. Dollar Index can fall before the stock market participants sees it as a problem, however, this morning the markets are in jubilee mode.

WTI oil is trading higher this morning as there seems to be continued problems in the Middle East and Northern Africa. As we mention every morning, do not expect these problems to disappear any time soon. Problems in Nigeria are starting to erupt. This country will usually have issues every so often just so they can stay in the news it seems, however, they are an oil producer and that is why the market pays attention to them. If they did not have oil we probably would not hear about any of the problems there. WTI crude is trading higher by $1.39 to 109.67 a barrel. It is still amazing that the major market indexes seems to trade higher with oil.

Gold and silver continue to rally higher as the U.S. Dollar sinks to new lows for the year. Gold is now trading over the $1500.00 level. Silver which is considered the poor man's gold is trading higher by $45.00 an ounce. Precious metals continue to rally as long as central banks continue to print money to inflate asset prices.

Some stocks that are trading higher after reporting earnings are Intel Corp.(NASDAQ:INTC), United Technologies Corp.(NYSE:UTX), and VMWare Inc.(NYSE:VMW).

International Business Machines(NYSE:IBM), and Wells Fargo & Co.(NYSE:WFC) are two leading stocks that are trading lower this morning after reporting earnings.


Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

USO Pulls Back Intra-day. Watch This Level.

April 19, 2011 – Comments (0)

The United States Oil Fund(NYSE:USO) sold off a little from its intra-day high just before spot crude closed on the NYMEX at 2:30 pm EST. Traders should watch the $42.80 level for intra-day support. This could also be a likely scalp bounce level for the USO.



Nicholas Santiago
InTheMoneyStocks


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Recs

0

The Falling U.S. Dollar Index Saves The Day

April 19, 2011 – Comments (0)

The major stock market indexes have all rallied back higher this afternoon as the U.S. Dollar Index(DXY) makes new intra-day lows. When the U.S. Dollar Index declines it will help to inflate most stocks and commodities higher. This inverse correlation to the dollar has been going on for years now. Yesterday, the U.S. Dollar Index rallied higher by nearly a full point and the Dow Jones Industrial Average declined by 144.00 points. You can easily see how it works.

Many leading commodity stocks such as Freeport McMoRan Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) have all rallied higher on the back of the declining U.S. Dollar Index. Most energy stocks will usually inflate higher as the U.S. Dollar Index sells off or declines. Leading energy stocks such as Chevron Corp.(NYSE:CVX), Exxon Mobil Corp.(NYSE:XOM), and ConocoPhillips(NYSE:COP) are benefiting from today's dollar decline.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Entry Alert: To Buy Solar Stocks

April 19, 2011 – Comments (0) | RELATED TICKERS: FSLR , CSIQ , SPWRA.DL

The solar stocks have been dropping significantly over the last two weeks as global cut backs on subsidies loom. The fears are great that with austerity measures being pushed through, less rebates will be available for solar. First Solar, Inc. (NASDAQ:FSLR) has fallen nearly every day for the last two weeks from a level of $163.00 to its current price of $133.23, -3.71 (-2.71%). Other solar stocks have been hit just as hard like Canadian Solar Inc. (NASDAQ:CSIQ) and SunPower Corporation (NASDAQ:SPWRA). Below are the key levels of support that look attractive as long plays.

First Solar has significant support on the daily chart at $128.95. This represents a pivot low from late December 2010. A solid bounce should occur at this level. Canadian Solar has been hit the hardest of late, falling from $16.79 on February 18th, 2011 to its current price of $9.44, -0.11 (-1.15%). The major support to buy this stock is at $9.00. This will be a major support and with an oversold stock like CSIQ, a likely hard bounce level. Lastly, SPWRA is approaching its 200 moving average on the daily chart. Should it hit this level it will also coincide with a double bottom from mid March at $14.25.

The solar stocks are currently being discounted based on fears of cuts to subsidies. Should oil stay strong, it is likely that demand will remain solid for alternate energy and a majority of solar companies will survive and flourish. These levels are the master supports in the short term and should be taken as solid levels to buy for a swing trade. 

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Banks Weak On Goldman, BofA Buy Level Looms

April 19, 2011 – Comments (0)

The markets opened slightly higher today after Tim Geithner defended the U.S. credit rating. He expressed his belief that there is "no risk the U.S. would lose its AAA credit rating". This helped weaken the Dollar and lift the futures for a positive open. After the SPDR S&P 500 ETF (NYSE:SPY) opened at $130.76 and moved to a high of $131.07, it faded and is currently trading at $130.63, barely positive. Volume is much lighter today after the panic of the credit outlook downgrade by Standard and Poor's seems a distant memory and the Passover holiday is now in full swing. In addition, Easter is coming this weekend and with many kids off from school, some traders are taking it lighter this week.

Goldman Sachs Group, Inc. (NYSE:GS) reported earnings and revenue that beat Wall Streets view but after opening higher, the stock quickly went negative. This action is bearish in the short term for financial firms. Bank of America Corporation (NYSE:BAC) is taking another hit today but is quickly approaching a possible buy level at gap fill. This level is at $11.95 and coincides with a major gap fill spanning back to December 8th, 2010. This will be a short term support level and should give the stock a few days bounce. Bank of America reported earnings last week that were not up to par as worries about mortgage losses from real estate continue to weigh.

Even with all the negative issues surrounding the banks and financial firms, JPMorgan Chase & Co. (NYSE:JPM) is mustering a small gain on the day, trading at $44.08, +0.12 (+0.27%). The stock came into solid support at $43.50 yesterday. This level should work as short term support as well. 

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Las Vegas Sands Craps Out. Watch This Level

April 19, 2011 – Comments (0)

Las Vegas Sands Corp.(NYSE:LVS) has sold off from its small gap higher open. The stock has been a major winner by rallying higher since March 15, 2011 when it traded as low as $36.05 a share. This morning LVS is trading lower by 0.94 cents to $44.81 a share. Trader should watch the $44.00 for good intra-day support. This is also a very likely intra-day bounce level for short term day traders.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Pre-market News and Views

April 19, 2011 – Comments (0)

S&P 500 e-mini futures(ES M1) have erased an overnight decline and are trading positive by 2.50 points to 1303.50 per contract this morning. A positive reaction to corporate earnings in some leading stocks such as Johnson and Johnson(NYSE:JNJ), and Goldman Sachs Group Inc.(NYSE:GS) are certainly helping the markets remain higher before the opening bell.

The European Union debt crisis remains front and center despite the lack of media coverage in the United States. Greek 2-year bond yields are spiking higher again today. Spain is the next nation on the list that could be in line for a bailout. We shall see how long this problem can just be ignored by the markets.

The Asian markets sold off sharply last night. The highly followed Shanghai Index(China) closed lower by nearly 2.0 percent and this should put pressure on many of the leading commodity stocks around the open of the session. Often when the Shanghai Index declines many investors will view this action as a sign of contraction in the economy. The only thing that could help commodities from falling would be a declining U.S. Dollar Index(DXY). This morning the U.S. Dollar Index is declining lower by 0.30 cents to $75.20.

Gold and silver were trading higher earlier in the morning, however, both precious metals are pulling back a little this morning. The iShares Silver Trust(NYSE:SLV) is trading lower by 0.40 cents to to $42.01 a share. The SPDR Gold Shares(NYSE:GLD) are trading lower by 0.30 cents from yesterday's close to $145.61 a share. Gold and silver remain in strong up-trends on the daily charts.

WTI oil is pulling back again for a second consecutive session. WTI oil is trading lower by $1.20 to $105.92 a barrel. The Middle East and Northern Africa remain in turmoil. The saving grace for oil is that the problems have not escalated over the past few weeks to different nations in the region. Saudi Arabia has also remained stable despite the uprising by its neighbor Bahrain. Anyone who has followed the Middle East should know that these problems do not disappear quickly.

Corporate earnings are being released in droves this week, therefore, there should be good volatility at least in the early part of the trading session. This is a holiday shortened trading week and many traders will usually leave early today for the start of Passover and this could make for a light volume environment after the first few hours of the day.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Las Vegas Sands Leads The Casino Stocks

April 18, 2011 – Comments (0) | RELATED TICKERS: WYNN , LVS , MGM

Las Vegas Sands Corp.(NYSE:LVS) is a leading casino stock that has been very strong today despite the sharp broad based stock market sell off. This stock is trading higher by 0.93 cents to $45.06 a share. The daily chart for LVS remains very strong as the stock is trading above all of the daily chart moving averages. The next important daily chart resistance area for LVS will be around the $46.50 area.

Wynn Resorts Ltd.(NYSE:WYNN) is also trading higher this afternoon by 0.47 cents to $138.93 a share. This stock remains in a very strong uptrend on the daily charts by trading above the major daily chart moving averages. The next daily chart resistance area for WYNN would be around the $143.00 area. Intra-day WYNN could have resistance around the $140.00 level.

MGM Resorts International(NYSE:MGM) is still trading lower by 0.25 cents to $13.75 a share. This stock is still trading negative on the session, however, MGM is trading sharply off of the morning lows by 0.35 cents. MGM will have intra-day resistance around the $13.85 and $14.00 levels.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Stocks Crushed - Here Are The Buy Levels

April 18, 2011 – Comments (0)

The markets are getting crushed today on the back of a negative outlook issued by Standard and Poor's on the United States credit rating. Stocks are getting smacked across the board on this market weakness. While many stocks are taking a hit, some key names are hitting master support levels and may see a bounce for the remainder of the week.

JPMorgan Chase & Co. (NYSE:JPM) is taking a hit today after reporting earnings late last week. The stock is trading at $43.69, -1.20 (-2.67%). While it may look ugly now, JPMorgan is coming into significant support at $43.40. This is a perfect double bottom from March 17th, 2011. Look for a bounce off this level into the end of the week.



Bank of America Corporation (NYSE:BAC) reported earnings last week that did not thrill Wall Street. The stock has been punished accordingly and is trading at $12.39, -0.43 (-3.35%).  Should the stock continue to fall to $12.00, a key gap fill will be hit stretching back to December 8th, 2010. This will be a prime level to buy at for a short term bounce.


 
LDK Solar Co., Ltd (NYSE:LDK) is seeing some downside today on the back of weaker oil. This solar play finds weakness when oil is weak. When oil is stronger, often, solar stocks will rally as well on alternate energy hopes. Today, LDK hit the 200 moving average on the daily chart at $10.46. In addition, this level is a double bottom from March 14th, 2011 and a master gap fill from January 7th, 2011. The combination of these three levels should signal solid support for the rest of the week



Whether the market is up or down, there are always great swing trades. The charts will show you the master levels and high probability longs and shorts.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Markets Sell On S&P Negative Outlook

April 18, 2011 – Comments (0)

The markets sold sharply this morning on the back of a downgrade by Standard & Poor's. They downgraded the long-term credit in the U.S to negative. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.94, -2.10 (-1.59%). This downgrade was inevitable, as the trillions printed by the Federal Reserve continues, however, the markets have been enjoying a period of ignorance is bliss on this matter. Today seems to be somewhat of a reality check.

Off of the downgrade in long-term credit, the Dollar spiked dramatically and oil dropped sharply. The spike in the Dollar goes contrary to what many would think would happen. The Dollar spiked higher as borrowing costs jump. As investors get more and more negative on on the debt of anyone or any country, they require a higher return (interest rate) for the risk they are taking in lending money. As these costs go higher, it will be harder for the U.S. to borrow money. In tune with that, it is feasible to think less will be borrowed. Less Dollars equal a stronger Dollar.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.68, +0.23 (+1.05%) while the United States Oil Fund LP (NYSE:USO) is trading at $42.75, -0.96 (-2.20%).

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Commodity Stocks Get Rocked

April 18, 2011 – Comments (0)

This morning the leading commodity stocks are declining sharply after a downgrade warning to the United States was issued by Standard & Poors. The U.S. Dollar Index is also trading higher and that will usually help to deflate asset and commodity prices. Leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), United States Steel Corp.(NYSE:X), and Southern Copper Corp.(NYSE:SCCO) are all trading sharply lower this morning. This is exactly what happens when the U.S. Dollar Index shows a little strength.

Leading mining equipment stocks such as Caterpillar Inc.(NYSE:CAT), Joy Global Inc.(NYSE:JOYG), and Deere & Co.(NYSE:DE) are also coming under selling pressure this morning. These stocks could still have further downside as the daily chart support levels are a bit lower on the charts. Traders must now keep one eye on the U.S. Dollar Index at all times as these leading mining equipment stocks will generally trade inverse to the U.S. Dollar Index.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Three Ring Circus: Gold, Silver, and the U.S. Dollar

April 18, 2011 – Comments (0)

How low can the Federal Reserve allow the U.S. Dollar to decline? Every trader and investors understands the argument that a weak U.S. Dollar will usually boost exports and help to create inflation. However, the negative fact for the world is that the U.S. Dollar is the world's reserve currency. Therefore, when the U.S. Dollar declines goods for everyone in the world will inflate higher. Has anyone bought a vegetable lately? Produce has skyrocketed from last years prices. Look at the price of gasoline, the average price of gasoline in the United States is now $3.90 a gallon. All of these high prices for food and energy are occurring because of the weak U.S. Dollar Index.

All of the people that are on fixed incomes feel the effects of the weak U.S. Dollar the most. The U.S. Dollar is buying less and less goods for these individuals while there income remains the same. The inflation created from a weak U.S. Dollar is a direct tax for all consumers.

This morning the U.S. Dollar Index is trading higher by 0.47 cents to $75.36. This move higher in the U.S. Dollar Index is causing gold and silver to decline from their morning highs. Many traders and investors have bought gold and silver as an alternative to the U.S. Dollar. Eventually, the controlling powers of the United States will have to try and boost up the U.S. Dollar in order to keep gold and silver from breaking out further and scaring the public that the U.S. Dollar is nearly worthless. We shall see if we are now nearing that time as Standard and Poors has downgraded the outlook for the United States to negative this morning. Please understand that this is just an outlook cut by S&P as the credit rating of the United States is still triple A(AAA) rated.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Pre-market News and Views

April 18, 2011 – Comments (0)

The major stock indexes are all coming under pressure this morning as the S&P 500 e-mini futures(ESM1) are trading lower by 8.00 points to 1310.75 per contract. Corporate earnings season is under way this week as countless stocks will report earnings. Citigroup Inc.(NYSE:C) was one of the leading financial stocks that reported earnings this morning. The stock is trading higher by 0.05 cents to $4.47 a share. The earnings for Citigroup were very similar to what J.P. Morgan Chase & Co.(NYSE:JPM), and Bank of America Corp.(NYSE:BAC) reported last week. Goldman Sachs Group Inc.(NYSE:GS) is scheduled to report earnings tomorrow before the opening bell. It will be interesting to see the markets reaction to this leading financial stock. Goldman Sachs Group has come under some very negative press recently after a U.S. Senate report places a lot of the blame on the company for the financial crisis in 2008.

The Asian markets were mostly lower last night. The Hang Seng(Hong Kong), Nikkei 225 Index(Japan), and the Sensex Index(India) were all lower last night. The highly followed Shanghai Index(China) actually scratched out a gain last night finishing higher by 0.22 percent. The Peoples Bank of China increased its reserve requirement ratio by 50 basis points to try and curb inflation and to stop a supposed housing bubble. The Asian market weakness could weigh on the U.S. markets this morning.

The U.S. Dollar Index(DXY) is soaring higher this morning by 0.54 cents to $75.43 a share. The strength in the U.S. Dollar Index comes as debt yields are spiking higher in Greek bonds. Yields on Spanish debt is also increasing on short term maturities. Spain is the next country on the list to likely need a bailout. When the U.S. Dollar Index trades higher the major stock indexes will usually deflate and come under pressure. Traders should always be careful of the U.S. Dollar Index when it starts out strong. Often the U.S. Dollar Index will fade from the high once the opening bell rings at the New York Stock Exchange.

Gold and silver are trading slightly lower this morning. Should the U.S. Dollar Index fade or decline after the opening bell it would be prudent to expect gold and silver to rally higher again. The daily chart trend for the precious metals is still in a strong uptrend at this time.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

3

Silver Continues To Lead The Precious Metals Race

April 15, 2011 – Comments (0)

Gold and silver have both been very strong as of late moving higher almost on a daily basis. This morning silver is making a fresh new 31 year high trading above $42.00 an ounce this morning. Gold is making another fresh new all time high trading around $1480.00 an ounce. As we all know by know, as long as central banks around the world continue to print money at an alarming rate these precious metals can continue to climb higher.

Many of the talking heads in the financial media continue to call gold and silver a bubble. Bubbles occur when everyone in the public own something and they cannot get enough of it. Personally, I bearly know any traders that own gold, and silver, let along the public. Sure the public owns some jewelry, and maybe some silverware, however, they do not own actual bullion. Therefore, it is very difficult to call gold, and silver, a bubble. These precious metals could have a sharp correction sometime this year if the U.S. Dollar and other currencies rise in price. After all gold has been rising for 10 years now. Corrections are a natural process in any bull run. The key to gold and silver is the action by the central banks. Gold and silver are the Federal Reserve's and most other central banks worst nightmare. These precious metals tell you that the currency is being devalued in order to inflate asset prices.

The popular and highly traded iShare Silver Trust(NYSE:SLV) is trading higher by 0.53 cents to $41.61 a share. The SLV will have intra-day resistance around the $42.00 area. The daily chart remains in a strong uptrend, however, it is starting to get a bit extended. The SPDR Gold Shares(NYSE:GLD) are trading higher by 0.52 cents to $144.33 a share. The intra-day resistance area for teh GLD will be around the $144.50 level and more around $145.00.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

U.S. Dollar Index Stops Markets In Its Tracks. Will It Fade?

April 15, 2011 – Comments (2)

This morning the U.S. Dollar Index is trading higher by 0.27 cents to $74.95. Since June 7, 2010 the U.S. Dollar Index(DXY) has declined by 16.0 percent. The falling dollar has been the catalyst for the inflate stock and commodities markets. Could the stock market indexes actually climb with a stronger dollar? That scenario is highly unlikely at this time. You see as the stock market indexes and the commodity complex moves higher the U.S. Dollar Index(DXY) and its purchasing power have been declining. So while peoples retirement plans look better it has been at the expense of their purchasing power. This is what we call the fabricated wealth effect. What good would it do anyone if you had a $1 million dollars in the bank and that money could only buy you a shopping cart of food? This is obviously an exaggeration, however, you get the point.

Today, the U.S. Dollar Index(DXY) looks to be trading higher because of problems in the European Union. The popular Currencyshares Euro Trust(NYSE:FXE) is trading lower by 0.80 cents to $143.59 a share. Greek bond prices are plummeting today. When this happens other troubled nations will usually face a similar fate in the next few weeks.

Short term traders must watch closely to see if the U.S. Dollar Index pulls back or sells off intra-day. The U.S. Dollar Index actually does this quite a bit whenever the stock market indexes look like they are about to break down. Often when the U.S. Dollar Index starts the morning off in a strong position it will suddenly drop or fade which helps to inflate the major stock indexes higher.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-market News and Views

April 15, 2011 – Comments (0)

The S&P 500 e-mini futures(ES M1) are trading lower by 0.75 to 1309.50 a contract. The highly followed Consumer Price Index(CPI) report was released this morning. The CPI for March was 0.5 percent and exactly what analysts had expected. In any case, the price action in the market is all that matters when it comes to trading. The major stock indexes are basically flat this morning.

Last night, the Asian markets were all basically flat on the session. The highly followed Shanghai Index(China) ended higher by just 0.25 percent. However, the Sensex Index(India) was lower by 1.57 percent. This decline could effect some leading India stocks such as Tata Motors Ltd.(NYSE:TTM), and the India Fund(NYSE:IFN).

WTI oil is trading lower by 0.75 cents to $107.37 a barrel. Nothing has really changed in the Middle East and Northern Africa. The region still remains in turmoil. Oil looks to be settling into this range at this time. However, any new outbreaks could cause a spike higher in oil at any time. The daily chart remains in an uptrend.

Gold and silver are trading slightly higher this morning as the European Union debt crisis is alive and well. Despite the lack of media attention that the European debt crisis is receiving there will be other nations that will need bailouts. Spain is rumored to be the next country in line for a bailout. As far as gold and silver go, as long as central banks continue to create money the precious metals can continue to climb higher.

This is an options expiration Friday, therefore, the market will usually get very quiet after the first couple of hours. Generally, on a Friday before the weekend we usually look for a somewhat flat to slightly higher trading session.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

0

Goldman Sachs Weighs On Financial Stocks

April 14, 2011 – Comments (1)

Goldman Sachs Group Inc.(NYSE:GS) has long been know as the smartest firm on the street. However, its golden image has been tarnished since the credit crisis in 2008. In July 2010, the company paid a record $550 million fine by the Security and Exchange(SEC) to settle charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse. This was the largest penalty ever paid by a Wall Street firm.

Today, the stock is declining lower by $4.39 to $155.78 a share after the Senate Permanent Subcommittee on Investigations released a report on the financial crisis. The report highlighted activities that Goldman Sachs may have done wrong in 2007 just before the 2008 stock market crash. Senator Carl Levin(D-Mich) openly said that the company may face additional scrutiny from the Department of Justice(DOJ), or the Security and Exchange Commission.

This report is bringing down the entire financial sector today. Many traders and investors are now saying if one company was involved in shady practices there is a good chance that all of the other leading firms may have done the same.

Morgan Stanley(NYSE:MS) is trading lower on the session by just 0.1 cent to $26.77 a share. Morgan Stanley stock has been beaten down on the daily chart and is trading below all of the major moving averages. This puts the stock in a weak position on the charts. Morgan Stanley is scheduled to report earnings on April 21, 2011. The stock will have daily chart support around the $25.00 and $24.00 levels.

Goldman Sachs Group Inc. will have daily chart support around the $152.50 level and more around the $147.00 area. However, when negative news is reported such as this about Goldman Sachs, it could drag the stock lower. Traders and investors must use caution when trading this stock at this time.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Scary: Markets Move With Oil, Stagflation Looms

April 14, 2011 – Comments (0)

The markets opened lower with initial weakness in oil. As the morning progressed, oil surged to the upside and the markets followed. Contrary to most retail investors thinking, weak oil is actually bad for the markets while strong oil is good. This is primarily due to the indexes being over weighted with energy and commodity stocks. When oil drops, stocks like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) fall. They are major components of the Dow Jones Industrial Average, thus, the index is likely to be weak. When oil spikes, those stocks are strong and the Dow responds accordingly. The United States Oil Fund LP (NYSE:USO) is trading at $43.23, +0.48 (+1.12%).

In addition to oil causing early weakness, Jobless Claims were reported higher than expected at 412,000 and Producer Price Index numbers came in hot as well. The Producer Price Index for March was reported at 0.7% while the core PPI, excluding food and energy came in at 0.3%.

This is a scary thing for the markets as inflation is starting to rise but more people are filing for unemployment. The worst case scenario for the Federal Reserve would be stagflation. Stagflation is where there is inflation but no growth in the economy. Think of it this way, usually when there is inflation, there is growth in the economy so people are making more money to pay for more expensive items. With stagflation, they are not making more money and prices are going up.  This hurts the population much more.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Oil Bounces. Watch These Resistance Levels

April 14, 2011 – Comments (0)

This morning the United States Oil Fund(NYSE:USO) has rallied higher from the opening bell. The USO has been under selling pressure over the past few trading sessions. This morning the USO is trading higher by 0.35 cents to $43.10 a share. Short term day traders can watch for intra-day resistance on the USO around the $43.25 area and more around the $43.50 level. Small pullbacks could occur around both levels.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Gold and Silver Are the Only Bright Spots

April 14, 2011 – Comments (0)

Gold and silver continue to be the lone winners this morning as the major stock indexes come under pressure for a fifth consecutive day. Many traders and investors in the financial media continue to see gold and silver as a bubble, however, very few people in the public actually own any gold or silver outside of their personal jewelry. This is very different than the housing bubble in 2005, or the tech bubble in 1999. Gold and silver are now considered currencies as central banks continue to inflate the money supply on a daily basis.

This morning the SPDR Gold Shares(NYSE:GLD) is trading higher by 0.97 cents to $142.87 a share. The all time high for the GLD was made four trading days ago at $143.84 a share. This high will still be minor resistance until the GLD can close above that level on a daily chart basis. The GLD will have intra-day resistance around the $143.00 area and more around $143.75.

The iShares Silver Trust(NYSE:SLV) is making a new all time high this morning. The SLV is trading higher by 0.72 cents to $40.29 a share. There will be some intra-day resistance for the SLV around the $40.50 and $41.00 levels. The daily chart remains in a strong uptrend trading above all of the major moving averages.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Pre-market News and Views

April 14, 2011 – Comments (0)

The S&P 500 e-mining futures are trading lower this morning by 7.00 points to to 1301.75 per contract. The futures began to nosedive around 1:30 am EST when they were trading as high as 1310.25 per contract. This morning there are a lot of problems erupting from the European Union. Greece, Portugal, and Ireland, all remain in trouble. Spain is the next nation that could be in line for a bailout after Portugal. Where is all of this bailout money coming from?

WTI oil is trading lower this morning by $1.15 to $105.95 a barrel. The stock market indexes and the crude have traded almost in lock step for the past two weeks. Prior to that time, if oil declined lower the stock market would skyrocket higher. Is the stock market really taking the lead from oil these days, or is it just more options expiration games being played by the large institutions?

Gold and silver are trading slightly higher this morning. Often when there are serious problems hitting the headline news regarding the European Union, gold and silver will trade higher. At this time as long as central banks continue to create cash reserves(money) at an alarming rate all of the precious metals can trade higher.

The Producer Price Index was released this morning. The PPI number reported was 0.7 percent, meanwhile, analysts had expected a 1.1 percent. Initial jobless claims surprisingly jumped higher this morning by 27,000 to 412,000 initial claims. All in all, this the report is weighing on the markets a little before the open.

The Asian markets were mixed last night. The Nikkei 225 Index(Japan) was higher by just 0.13 percent. The Shanghai Index(China), and the Hang Seng Index(Hong Kong) closed lower by less than 0.50 percent. The Asian markets do not seem to be having much effect on the stock markets this morning.

Traders and investors should still remember that tomorrow is options expiration. There can still be a lot of games played by the institution traders, therefore, expect volatility into tomorrow.


Nicholas Santiago
InTheMoneyStocks
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Recs

6

This Is What You Should Know About Whipsaw Wednesday

April 13, 2011 – Comments (1)

The Wednesday before options expiration is usually one of the most volatile trading sessions of the month. As we all know options expiration is on the third Friday of every month. The April expiration will be on April 15, 2011 this month. Many of the small retail options traders will trade the near term expiration because they do not have to lay out a large amount of capital in order to take a position in a stock. By the Wednesday before options expiration the institutions have taken care of most of their business by shaking the small retail options trader out of there option position. Please understand that the small retail options trader is usually just trying to capture the a gain in the premium paid for the option. They will rarely exercise a stock option and will almost always settle the position for a gain or loss before the actual expiration date. Therefore, the entire trading week before the actual expiration date is very volatile.

Today, the major stock indexes all started the day with a sharp gap higher open. Since that opening bell high, the major indexes declined sharply lower into the noon hour erasing all of the early gains. Then the major stock indexes rallied back into positive territory. This is what you must expect on the Wednesday before options expiration. Hence the saying, 'whipsaw Wednesday'. Traders must always be careful and selective when trading during the week of options expiration. The institutions have elaborate computer programs that can figure out where the majority of the small retail options traders have placed their bet. This is not hard to do by the human eye if you are watching the options market closely. Imagine how easy it is for a computer. Most professional traders will simply accept what the market is willing to give this week. It is not a time to get greedy, it is a time to be prudent and to use stops on all positions.

Traders can easily look at some of the sell offs and rallies in stocks such as Netflix Inc.(NASDAQ:NFLX), F5 Networks Inc.(NASDAQ:FFIV), ConocoPhillips(NYSE:COP), and Valero Corp.(NYSE:VLO). These are all stocks that are being tossed around like a cheap suit by the institutions in order to shake out the weak handed retail options trader. Beware of this activity, it goes on every month.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

JPMorgan Chase Gaps Then Craps

April 13, 2011 – Comments (1) | RELATED TICKERS: JPM

JPMorgan Chase & Co. (NYSE:JPM) opened nicely higher this morning after reporting earnings that beat expectations. While the earnings were solid, the stock could not hold the gains and has fallen sharply, now trading at $46.06, -0.58 (-1.24%). The key to this level is the even number and double bottom shown on the chart below. This could be a solid level for support on JPMorgan for a bounce.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Money Rotation From Commodities To Tech

April 13, 2011 – Comments (1)

As the markets bounce today, the technology sector seems to be the strongest. Stocks like Apple Inc. (NASDAQ:AAPL), International Business Machines Corp. (NYSE:IBM) and Google Inc. (NASDAQ:GOOG) are all higher, while oil stocks like Exxon Mobil Corporation (NYSE:XOM) continue to fall.

It appears, over the last three days a rotation has started to take place from commodity stocks back into technology. This is clearly seen by the action in Apple Inc. of late. Over the last three weeks Apple has barely been able to keep its head above water, falling almost every day, even when the market was rallying higher. This was partly due to rebalancing but also due to money being pulled out of technology and pushed into oil plays like Exxon. Then oil began to collapse, as oil fell from $113.00 to $106.00, oil and all commodity stocks saw a mass exodus. As the mass exodus occurred in the energy sector, Apple Inc. started moving higher. Today, the commodities have continued to sell, Apple and other technology stocks are moving higher.

This movement in these sectors can clearly be pinned on money flow as Wall Street rotates billions in investment capital from one sector to the other.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

How: Calling The Oil Bounce Today

April 13, 2011 – Comments (0) | RELATED TICKERS: USO , GS , CVX

Oil bounced today after dropping sharply the last two days. After topping out around $113.00 per barrel last Friday, oil collapsed into the $105.00 range. This drop over the last two days scared many speculators into selling oil. News hit the market that Goldman Sachs Group, Inc. (NYSE:GS) had told their clients to sell. In addition, there seems to be more signs that the sharp incline in oil prices have sent consumers into hiding.

Oil is bouncing today, with the United States Oil Fund LP (NYSE:USO) trading at $42.72, +0.42 (+0.99%). Oil was going to bounce today, there was no doubt about it. I made the bullish call yesterday and I will explain why?

Prior to the latest move in oil that sent it to $113.00 and the USO to $45.20, oil had been hammering on the 2010 high. This 2010 high happened to be at $42.15 - $42.20 on the USO. Note the chart below clearly showing this pivot high from 2010. Finally, oil broke through this major resistance point, spiking dramatically higher.

After the USO hit $45.20 on Friday, it started the drastic sell off over the last two days. As it fell, guess what level it fell into? The USO slammed into the $42.15 - $42.20 level which was the former breakout resistance level from 2010. This now becomes massive support and an ideal level for a bounce. Sure enough, today speaks for itself with oil bouncing sharply. It is a beautiful thing to learn the charts.

Not only did I alert a bounce on the USO and on oil but I also covered my Chevron Corporation (NYSE:CVX) short. In addition, it made sense to also go slightly bullish on the markets due to the fact that if oil bounced, most likely the markets would get a small bounce as well. Sure enough, the markets opened higher today, getting that bounce on oil.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Casino Stocks Hit Blackjack

April 13, 2011 – Comments (0)

All of the leading casino stocks are soaring higher this morning. Traders should now be alerted to the action in these leading casino stocks whenever the Asian stock markets trade higher. The business in Las Vegas, Nevada is not the reason for the strong reaction in the casino stocks. It is the Macao market that is thriving and driving the casino names higher at this time. Last night, both the Shanghai Index(China) and Hang Seng(Hong Kong) indexes were up sharply higher.

Wynn Resorts Ltd.(NASDAQ:WYNN) is trading higher this morning by $4.53 to $134.69 a share. This stock remains the strongest of all the leading casino stocks. The stock will have some short term intra-day resistance around the $135.00 and $136.00 levels. The daily chart remains very strong as the chart is very close to testing its 52 week high made just five trading days ago at $137.10 a share.

Las Vegas Sands Corp.(NYSE:LVS) is trading higher by $1.19 to $44.65 a share. The stock should consider changing its name to Macao Sands since that is where it is driving its revenue from. Short term traders can watch for intra-day resistance around the $44.65 and 45.00 levels. The stock could also have some daily chart resistance around the $46.50 area.

MGM Resorts International(NYSE:MGM) is also surging higher this morning by 0.81 cents to $13.41 a share. MGM has a large presence in Macao and looks to be benefiting from their stake in Asia. MGM stock will have intra-day resistance around the $13.60 area. The stock will have a fair amount of daily chart resistance around the $14.00 area.

When the Asian markets rally it is now beneficial to the leading casino stocks that have a presence in Macao, China. This market is the growth engine for the leading casino stocks at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Casino Stocks Hit Blackjack

April 13, 2011 – Comments (0)

All of the leading casino stocks are soaring higher this morning. Traders should now be alerted to the action in these leading casino stocks whenever the Asian stock markets trade higher. The business in Las Vegas, Nevada is not the reason for the strong reaction in the casino stocks. It is the Macao market that is thriving and driving the casino names higher at this time. Last night, both the Shanghai Index(China) and Hang Seng(Hong Kong) indexes were up sharply higher.  [more]

Recs

0

Casino Stocks Hit Blackjack

April 13, 2011 – Comments (0)

All of the leading casino stocks are soaring higher this morning. Traders should now be alerted to the action in these leading casino stocks whenever the Asian stock markets trade higher. The business in Las Vegas, Nevada is not the reason for the strong reaction in the casino stocks. It is the Macao market that is thriving and driving the casino names higher at this time. Last night, both the Shanghai Index(China) and Hang Seng(Hong Kong) indexes were up sharply higher.

Wynn Resorts Ltd.(NASDAQ:WYNN) is trading higher this morning by $4.53 to $134.69 a share. This stock remains the strongest of all the leading casino stocks. The stock will have some short term intra-day resistance around the $135.00 and $136.00 levels. The daily chart remains very strong as the chart is very close to testing its 52 week high made just five trading days ago at $137.10 a share.

Las Vegas Sands Corp.(NYSE:LVS) is trading higher by $1.19 to $44.65 a share. The stock should consider changing its name to Macao Sands since that is where it is driving its revenue from. Short term traders can watch for intra-day resistance around the $44.65 and 45.00 levels. The stock could also have some daily chart resistance around the $46.50 area.

MGM Resorts International(NYSE:MGM) is also surging higher this morning by 0.81 cents to $13.41 a share. MGM has a large presence in Macao and looks to be benefiting from their stake in Asia. MGM stock will have intra-day resistance around the $13.60 area. The stock will have a fair amount of daily chart resistance around the $14.00 area.

When the Asian markets rally it is now beneficial to the leading casino stocks that have a presence in Macao, China. This market is the growth engine for the leading casino stocks at this time.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Fade From Open

April 13, 2011 – Comments (1)

This morning the street was raving about the J.P.Morgan Chase & Co.(NYSE:JPM) earnings. The stock was trading higher in the pre-market by 0.85 cents to $47.56 a share. Since the opening bell rang at the New York Stock Exchange the stock has declined sharply lower trading negative briefly before bouncing off of an intra-day support level. The stock is now trading higher by 0.15 cents to $46.78 a share as of 9:55 am EST. Financial stocks could be in play for most of the day.

Other leading financial stocks that are trading on the weak side include Wells Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). These two leading financial stocks have also faded sharply from a gap higher open to now trading slightly negative on the session. WFC will have intra-day support around the $30.55 level. BAC will intra-day support around the $13.35 area.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Pre-market News and Views

April 13, 2011 – Comments (0)

What a turnaround the market is making this morning! The S&P 500 e-mini futures are trading higher by 9.50 points to 1317.75 per contract. This move higher in the futures before the opening bell at the New York Stock Exchange is almost recapturing all of yesterday's sharp decline. Could this market be getting played like a yo-yo by the institutions since options expiration is Friday? Just think about how many amateur retail options traders were long call options on leading energy stocks last week such Chevron Corp.(NYSE:CVX), or ConocoPhillips(NYSE:COP). Those options are worth a lot less and some worthless at this point. As I always say in my chat room, options expiration week is a feast for the sharks(institutions).

The Asian markets all finished the trading session higher last night. The Nikkei 225 Index(Japan) ended higher by 0.90 percent. The highly followed Shanghai Index closed higher by nearly 1.00 percent. When the Shanghai Index finishes the session strong it will usually favor the leading commodity stocks in the United States. Therefore, traders should watch for early activity in stocks such as United States Steel Corp.(NYSE:X), and Cliffs Natural Resources Inc.(NYSE:CLF). These stocks could be strong at the open. The Sensex Index(India) soared the most last night closing higher by 2.25 percent. This should help stocks such as Tata Motors Ltd.(NYSE:TTM), and the India Fund(NYSE:IFN).

WTI oil is trading higher this morning by 0.53 cents to $106.80 a barrel. Oil sold off by $6.00 in the past two trading sessions on the back of an extended move on the charts and a Goldman Sachs Group(NYSE:GS) downgrade. Personally, I think the decline was due to options expiration games being played by the large institutions. Learn to read the charts and you can usually be protected.

Gold and silver are both trading slightly higher this morning as the inflation rally looks alive and well. The SPDR Gold Shares are trading higher by nearly 1.00 point to $142.55 a share. The iShares Silver Trust(NYSE:SLV) is trading higher by 0.44 cents to $39.55 a share. As long as central banks continue to flood the markets with liquidity(money) gold, and silver can trade higher.

J.P. Morgan Chase and Co.(NYSE:JPM) was the first financial giant to report earnings this morning. The stock is trading higher 0.86 cents to $47.50 a share. Who really cares what the company said? Who even believes it? All that matters is the reaction from the stock market and right now the stock is higher before the opening bell.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Oil Finds Support At Master Level

April 12, 2011 – Comments (0)

As oil fell sharply, the markets followed. Demand destruction fears, a Goldman Sachs bearish call and a disaster in Japan surely to rock their economy for years were all culprits. Speculators fled with arms flailing in the air, trying not to get clipped on the way. As oil retreated to the $105 range, it found some support. The United States Oil Fund LP (NYSE:USO) hit a low of $42.17 which was a master retrace on the charts to the pre breakout levels. It also perfectly matched up with the daily 20 moving average.

As oil stabilized today, so did the markets. The markets are tied to oil in an amazing way since much of the Dow Jones Industrial Average and S&P 500 are made up of energy stocks. If energy is rising, energy stocks will rise as well, thus the markets have a bid. Over the last two days, energy prices have fallen, thus energy stocks have fallen and the markets have collapsed. Many retail investors have no clue about this and think higher energy prices would hurt the markets. That is not necessarily true and with energy falling today, it is clearly seen.

Some key oil movers today hitting solid support levels are Schlumberger Limited. (NYSE:SLB), Peabody Energy Corporation (NYSE:BTU) and ConocoPhillips (NYSE:COP). As oil hits support, so are these key oil companies. There may be a rubber-band small bounce on oil coming tomorrow. Watch closely, the charts are telling us it is a solid possibility.

Gareth Soloway
InTheMoneyStocks.com

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Recs

2

Alert: Commodity Selling Shakes Markets

April 12, 2011 – Comments (1) | RELATED TICKERS: XOM , GS , CVX

The markets are seeing a steep decline today as broad based commodity dumping surges. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.16, -1.30 (-0.98%).  Oil is leading the decline for a second straight day as spot crude has fallen from $113 a barrel two days ago to its current level at $106.00. This massive drop has sent the indexes tumbling mainly because of their heavy weighting in energy stocks. A great example would be Chevron Corporation (NYSE:CVX). This stock is one of the thirty stocks in the Dow Jones Industrial Average along with Exxon Mobil Corporation (NYSE:XOM). The S&P 500 is also heavily weighted towards energy stocks. When these stocks take a major hit, the indexes will take a major hit as well. Today, Chevron is trading at $103.88, -3.90 (-3.62%).

Energy is taking a massive hit for multiple reasons. Yesterday, it was reported that Goldman Sachs Group, Inc. (NYSE:GS) sent an alert to its clients to sell oil and other commodities. It was reported that Goldman Sachs advised their clients that the risk to reward in oil was no longer as attractive in the short term due to the major run higher. This began the sell off which has continued into today.

In addition, the nuclear disaster in Japan was upgraded to a level 7. This puts it on par with Chernobyl. As this disaster looks to be worse, demand for oil from Japan may crumble as their economy takes a bigger hit.

Lastly, the quick spike in oil is much like an oil shock to consumers in the United States and abroad. Demand destruction looks to be in play. Demand destruction occurs when the price of oil jumps, shocking the consumer. The consumer compensates by cutting energy use. When energy use declines, supplies surge and ultimately prices will fall.

These three factors have come together to drop oil drastically in the last two days. Speculators that jumped on the oil bandwagon are also selling quickly which is helping the oil drop as well.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Airline Stocks Fly On Oil Pullback

April 12, 2011 – Comments (0)

All of the major airline stocks are trading higher this morning on the back of declining oil prices. Since mid-February most of the major airline stocks have come under sharp selling pressure as oil began to climb higher by nearly 30.0 percent. The Guggenheim Airline ETF(NYSE:FAA) is trading higher this morning by 0.55 cents to $34.94 a share.

Delta Air Lines Inc.(NYSE: DAL ) is one of the leading stocks in the commercial airline sector. This company has a fair amount of exposure to Japan after its merger with Northwest Airlines. Delta stock is trading higher by 0.62 cents to $10.05 a share. This stock will have intra-day resistance around the $10.25 and $10.60 levels.

United Continental Holdings Inc.(NYSE:UAL) is trading higher by $1.14 to $21.66 a share. This stock recaptured the important $20.00 support level on the daily chart yesterday, which shows that the stock was being defended by the institutions. Today UAL stock will have intra-day resistance around the $22.00 area.

AMR Corp.(NYSE:AMR) is another leading airline stock that has come under pressure since early January 2011. This morning AMR stock is trying to recapture the $6.00 level which was an important breakdown point for the stock. AMR stock is trading higher by 0.20 cents to $5.98 a share. The stock will have intra-day resistance around the $6.00 level and more at $6.20.

Traders and investors that are playing the airline stocks must keep one eye on oil prices at all times. Should another oil producing nation begin having protests or conflict oil could easily spike higher again causing another decline in the commercial airline sector.



Nicholas Santiago
InTheMoneyStocks.com

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Retail Stocks Trade Higher Despite Early Market Decline

April 12, 2011 – Comments (0) | RELATED TICKERS: WMT , RTH , TGT

This morning the major stock market indexes are trading lower across the board. The decline is very broad based as most leading sectors including technology, and energy, are trading lower. There is one sector that is posting green on the screen and that is the retail sector. The Retail Holders Trust(NYSE:RTH) is trading higher by 0.25 cents to $108.54 a share. Normally, when the market gaps sharply lower the retail sector is the first to decline as this sector usually represents consumer spending. The RTH will have some intra-day resistance around the $109.00 and $109.50 levels.

Wal Mart Stores Inc.(NYSE:WMT) is trading higher this morning by 0.46 cents to $53.28 a share. This leading retail stock should have some resistance around the $53.35 level and more around the $53.65 area.

Other leading retail stocks that are trading higher this morning include Kohls Corp.(NYSE:KSS), Target Corp.(NYSE:TGT), and J.C. Penney Inc.(NYSE:JCP). Should the major stock indexes find a low today and start to rally higher these leading retail stocks are going to likely trade higher as they are showing intra-day relative strength.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Pre-market News and Views

April 12, 2011 – Comments (0)

The S&P 500 Index e-mini futures (ES M1) are trading lower this morning by 7.00 points to 1312.50 per contract. The decline in the futures comes after Alcoa Inc.(NYSEAA) reported earnings last night and missed analysts estimates. Alcoa stock is trading lower by 0.77 cents to $17.00 a share. The major stock indexes are finally starting to pullback a little after the huge rally from the March 16, 2011 pivot low.

The Asian markets all declined lower last night. The Nikkei Index (Japan) finished the session lower by 1.70 percent. The Japanese government reported that the nuclear reactor problem has increased from a level 5 to a level 7. Many experts are now comparing this disaster to the Chernobyl disaster in April 1986. The Shanghai Index (China) performed the best last night ending lower by just 0.05 percent. The Shanghai Index seems to be the one index that the stock market in the U.S. reacts off of the most. The Hang Seng (Hong Kong) was lower by 1.34 percent. The Sensex Index (India) closed lower by 0.97 percent making it two consecutive declines.

Gold and silver are holding steady this morning after a staging sell off yesterday. Both metals remain in an uptrend at this time, however, many talking heads in the financial media continue to call these precious metals a bubble. That does not seem to be the case as most of the public does not own any gold or silver besides their jewelry and silverware. However, corrections are certainly possible when the run ups in these metals have been very strong over the past two months. Until these metals decline further, yesterday was nothing more than a pullback day in an uptrend. The SPDR Gold Shares (NYSE:GLD) are trading higher 0.30 cents to $142.94 an ounce. The iShares Silver Trust (NYSE:SLV) is trading higher this morning by 0.63 cents to $39.84 a share. As long as central banks continue to create money at alarming rates gold and silver can be bought on pullbacks.

WTI oil is trading lower again this morning by 0.47 cents to $109.45 a barrel. Yesterday oil staged a strong pullback closing lower by more than $3.00 and under the psychological $110.00 level. Libya, and the rest of the Middle East remains in turmoil. The cease fire agreement that was supposedly made yesterday between Qaddafi and the rebels lasted about ten minutes before fighting began. Oh well, it was good for a quick oil pullback. Anyone that has ever followed the problems in the Middle East and Northern Africa should know that the situation there does not end quickly.

Nicholas Santiago
InTheMoneyStocks.com

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Copper Stocks Look Corroded Today

April 11, 2011 – Comments (0) | RELATED TICKERS: JJC , SCCO , FCX

All of the major copper stocks are declining sharply lower today with most other leading commodities. The iPath Dow Jones-UBS Copper Subindex Total Return ETN(NYSE:JJC) tracks copper and is declining lower this afternoon by 0.82 cents to $59.01 a share. Often traders and investors will follow copper as a leading indicator for economic growth and expansion. The JJC made an all time high on February 14, 2011 at $61.69 a share. Short term scalp traders can watch for intra-day support around the $58.50 level.

Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is the leading copper stock in the stock market. This copper mining giant is declining lower by $1.96 to to $55.25 a share. FCX stock tested the $58.75 resistance level last week and is coming under heavy selling pressure today. This stock looks to have intra-day support around the $54.50 and $54.00 levels should it sell off throughout the rest of the afternoon.

Southern Copper Corp.(NYSE:SCCO) is another popular copper producer that is based out Peru, and other parts of Latin America. This stock topped out on January 3, 2011 at $50.35 a share. Since that high earlier in the year the stock has sold off sharply and is now trading below all of its major daily chart moving averages. This is an indication of weakness and indicative of a solid down trend. The next intra-day level for this stock will be around the $38.00 area.



Nicholas Santiago
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Rare Monday Selling Pressure

April 11, 2011 – Comments (0)

The major stock indexes are all coming under some rare Monday selling pressure this afternoon. The decline in the market indexes is occurring even during a light volume trading session and a decline in WTI oil. Crude is selling off by $3.21 to $109.45 a barrel. One would think that lower oil prices would help the major stock indexes. Traders should watch for intra-day support on the SPDR S&P 500 Trust(NYSE:SPY) around the $132.00 level.



Nicholas Santiago
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Update: Oil Falls, Markets Follow

April 11, 2011 – Comments (0)

As oil drops sharply, Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are also falling . This is starting to bring the Dow Jones Industrial Average lower as these are major components of the thirty stock index. The United States Oil Fund LP (NYSE:USO) is down in afternoon trading at $44.01, -1.14 (-2.52%). The key seems to be a possible cease fire in Libya and an overbought situation in oil as profit taking comes in.

Oil helps the markets on the upside when it is slow and steady but hurts when it is fast and sudden. The oil move on Friday began to scare the markets as it was quick and sharp, jumping above $113.00 per barrel. The quick spike in oil is known as a shock and scares money out of equities. Money runs from stocks on sharp oil spikes as investors fear demand destruction for good and services, as money once used for buying goods must now be used to purchase energy. In an ideal world, oil would inch up slowly, flat to positive each day. Not only is a fast spike in oil a negative for the markets, but when oil declines, it takes down many of the key stocks that make up the S&P 500 and Dow Jones Industrial Average such as Chevron and Exxon. This is what is happening today in the markets. A sharp drop in oil is pushing key stocks lower and taking the indexes with it.

On the technical side, the USO just hit the 200 moving average intra day and bounced beautifully. For the day, this is most likely the low. 

Gareth Soloway
InTheMoneyStocks.com

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Oil Drop Lifts Markets, Key Stocks In Motion

April 11, 2011 – Comments (0)

The markets opened slightly higher today on the back of a drop in oil. The markets have maintained their slight positive open as volume dries up. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.30, +0.44 (+0.33%) as the United States Oil Fund LP (NYSE:USO) has fallen to $44.74, -0.41 (-0.91%). Not only was oil extremely extended but talk of a cease fire in Libya is mounting. These are putting pressure on the commodity and the market is liking it. Higher oil means less spending money for the average American. Lower oil means more spending.  Obviously, the markets like the more spending option, especially during this economic recovery.

Monsanto Company (NYSE:MON) is bouncing sharply today after being crushed on earnings late last week. After reporting earnings on Wednesday that did not meet Wall Streets expectations, the stock fell from $74.50 to a low on Friday at $66.22. This massive drop has coaxed buyers into the stock today as it is bouncing sharply to $67.43, +1.21 (+1.83%).

Baidu.com, Inc. (NASDAQ:BIDU) is surging higher today on news of a joint venture with Facebook. Baidu.com will be bringing a social network to China with the help of Facebook. Baidu is trading at $146.25, +4.37 (+3.08%). The key resistance level for the stock is at $150.00 as the market cap is now just above the infamous $50 billion.

Gareth Soloway
InTheMoneyStocks.com

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USO Retreats. Watch These Levels

April 11, 2011 – Comments (0)

This morning the United States Oil Fund(NYSE:USO) is pulling back by 0.46 cents to $44.69 a share. WTI crude for may delivery is declining lower by 0.93 cents to $111.90 a barrel. Short term traders can watch for intra-day support on the USO around the $44.50 area. There will also be more intra-day support around the $44.30 and $44.00 levels should the USO slip further intra-day.

This morning the United States Gasoline Fund(NYSE:UGA) is trading lower by 0.39 cents to $52.69 a share. Traders should remember that the UGA made a new 52 week high last week and remains in a strong uptrend on the charts. Therefore, a pullback or consolidation from these levels is common. The UGA will have short term intra-day support around the $52.35 area.



Nicholas Santiago
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Auto Stocks Turn South

April 11, 2011 – Comments (0)

This morning all of the major auto makers are coming under some selling pressure. The leading stocks in this sector have not traded in tandem with each other recently, however, they are all declining lower today.

Tata Motors Ltd.(NYSE:TTM) is a leading automaker out of India. This stock is declining this morning by 0.54 cents to $27.36 a share. This stock will have intra-day support around the $27.00 level. Last night the Sensex Index(India) closed lower by nearly 1.00 percent and this could put further pressure on this stock today.

Toyota Motors Corp.(NYSE:TM) is trading lower by $1.03 to $76.85 a share. This stock has been hit exceptionally hard since the Japanese earthquakes began in early march 2011. On March 3, 2011, Toyota stock was trading as high as $93.90 a share before tumbling lower. Last night, Japan had another 6.1 magnitude earthquake and this news could certainly be weighing on the stock this morning. The leading Japanese automaker will have short term intra-day support around the $76.50 and $76.00 levels.

General Motors Co.(NYSE:GM) is declining lower by 0.73 cents to $30.70 a share. This stock has been under selling pressure since early January 2011 when it traded as high as $39.48 a share. The stock will have short term intra-day support around the $30.40 area and more around the $30.00 level.

Ford Motors Co.(NYSE:F) is a leading U.S. automaker that is coming under some selling pressure today. This stock is trading lower by 0.23 cents to $15.10 a share. Short term day traders can watch for intra-day support around the $15.00 level. Should the stock decline further the next support level will be around the $14.75 area. Both levels could see small intra-day bounces.

High gasoline prices are certainly hurting all of the leading automakers. Should gasoline and energy prices continue to rise over the next few weeks this could put further pressure on all of the automakers over the next few months.




Nicholas Santiago
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Pre-market News and Views

April 11, 2011 – Comments (0)

This morning the S&P 500 e-mini futures(ES M1) are trading higher by 2.00 points to 1325.75 per contract. The catalyst for the move higher in the futures is likely due to the decline is oil prices this morning. WTI oil is declining by $1.23 to $111.56 a barrel. Rumors are circulating that Libyan leader Qaddafi will agree to a cease fire in Libya. We shall see about that.

The Asian markets all traded slightly lower last night. The Nikkei 225 Index(Japan) finished lower by 0.50 percent. Earlier this morning Japan had another 6.6. magnitude earthquake. Reports were released that the evacuation zone had to be expanded. The Sensex Index(India) was lower last night by nearly 1.00 percent which was the largest declining index in the Asian region.

Gold is trading slightly lower this morning while silver makes new highs. June gold is trading lower by $6.20 to $1467,90 an ounce. May silver is trading higher by 0.60 cents to $41.21 an ounce. The all time high for silver was $50.35 made over 31 years ago. Can silver reach this old resistance levels before pulling back?

This afternoon kicks off the start of earnings season when aluminum producer Alcoa Inc.(NYSE:AA) is the first company scheduled to report quarterly earnings after the close. J.P. Morgan Chase & Co.(NYSE:JPM) will report earnings on Wednesday before the opening.

Monday's have been a notoriously light volume trading session recently. Therefore, it is usually a very dull market(light volume) after the first two hours of the session. We shall see if that is the case today. Please remember the old market adage that states, never short a dull market.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Markets: The Truth Revealed

April 08, 2011 – Comments (0)

The markets opened sharply higher. The key to the markets higher open was a crushing of the Dollar that took place overnight. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.53, -0.14 (-0.65%), making a new 52 week low. A weaker Dollar is positive for the markets as stocks are treated like commodities in regards to Dollar fluctuations. A drop in the Dollar means individual companies must be valued higher in terms of Dollars just like a drop in the Dollar means gold must be valued higher in terms of the greenback. Black box trading programs are programmed this way. Until those programs are changed, expect the same going forward.

The SPDR S&P 500 ETF (NYSE:SPY) pushed to a high of $133.99 in the first ten minutes of the trading day before collapsing lower. This level happened to be a perfect triple top from the last two trading days and a major sticking point of resistance. The sharp fall in the markets can be blamed on the technical resistance points as well as a continue push in oil. Spot crude is nearing $112.00 per barrel and showing no signs of slowing. The United States Oil Fund LP (NYSE:USO) is trading at $44.53, +0.54 (+1.23%). Silver and gold are both spiking higher again, making new 52 week highs. As volume lightens up this afternoon, look for the markets to start to float sideways, possibly even slightly higher.

With commodity prices soaring, there is just one group to blame, the Federal Reserve. Their weak Dollar, print money policy is the culprit. By flooding the world with tons of new Dollars, the Dollars value declines. As the value of the Dollar declines, commodity prices must rise. This effect was obvious from the very start but did little to deter Ben Bernanke and his minions. As commodity prices have soared, the middle class is fading. Articles have been written that to survive as the middle class, many have to work two jobs. As energy and food continue higher, the middle class is finding themselves to be no more. The poor in this country, those that could barely afford to buy food to feed their family are relying on food stamps. As prices rise, this is not even enough to help them get by.

The Federal Reserve has said food and energy do not count when looking at inflation. That is probably the biggest joke ever spoken. What is the largest percentage of income spent on by the average American family? After housing, food and energy. In this simple Chief Market Strategists view, food and energy should be the main keys to monitoring inflation.

The bottom line is this, two years ago I spoke of the repercussions of a print money policy. I discussed how energy and food would rip higher and the average American, with few jobs and slow wage growth would get crushed. This is happening and will continue to happen as long as the Federal Reserve continues to print money and the Dollar goes down. I believe the Federal Reserve to be decently intelligent, therefore I must conclude they knew this would happen. That leaves me with one final thought, they wanted this to be the outcome. Was this all planned? Are they attempting to create two classes, rich and poor? Time will tell but without wage growth and jobs, the hardships are just starting as oil heads north of $112.00 per barrel.

Gareth Soloway
InTheMoneyStocks.com

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Airline Stocks Continue To Descend

April 08, 2011 – Comments (0)

All of the major airline stocks remain under heavy selling pressure this morning. High oil prices are certainly hurting the margins in this sector. This morning these stocks are making new lows for 2011 and as long as oil remains strong the airline sector could face further pressure.

United Continental Holdings Inc.(NYSE:UAL) is trading lower this morning by 0.87 cents to $20.13 a share. This stock topped out in late October 2010 around the $29.75 level. The stock will have some minor daily chart support around the $19.75 area, however, high oil prices could cause this stock to decline further.

Delta Airlines Inc.(NYSE:DAL) is making a new 52 week low this morning declining by 0.33 cents to $9.08 a share. This stock topped out in early November 2010 around the $14.50 level. The stock will have some daily chart support around the $8.50 level and more around the $8.00 area. As long as oil continues to trade higher it would be prudent to expect further declines in this stock.

AMR Corp.(NYSE:AMR) broke below the important $6.00 support level today. This is a new 52 week low for the airline giant. This stock is again being sold off because of the high fuel prices. AMR stock will have some daily chart support around the $5.50 level and more around the $5.00 area.

As long as oil continues to surge higher all of the airline stocks will remain under pressure. The geopolitical events in the Middle East do not seem to be going away anytime soon. Should oil see a super spike, which could happen if there is any disruption in oil production from Saudi Arabia, airline stocks could remain under selling pressure.



Nicholas Santiago
InTheMoneyStocks.com
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Gasoline Soars And Markets Ignore It

April 08, 2011 – Comments (0)

Is this a sick April fools joke, or is it reality? The United States Gasoline Fund(NYSE:UGA) is making a new 52 week high this morning and the major stock market indexes around the world are all trading higher. At some point the high gasoline prices will certainly take its toll on the U.S. consumer. Please remember that consumer spending in the Unites States accounts for 70.0 percent of the U.S. gross domestic product. The average price of gasoline in the United States is $3.74 a gallon. Last week the average price was $3.60 a gallon in the United States. Gasoline prices in California are well over $4.00 a gallon at the moment. Please remember that the state of California is the eighth largest economy in the world.

The United States Oil Fund(NYSE:USO) is trading higher by 0.37 cents to $44.36 a share. This is a new 52 week high for the USO. WTI crude is trading at a new 52 week high as well. WTI oil is higher by 0.80 cents to $111.12 a barrel. One would have to think that high oil prices will eventually take its toll on this inflation driven economy.



Nicholas Santiago
InTheMoneyStocks.com


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Pre-Market News and Views

April 08, 2011 – Comments (0)

Oil is on the rise again this morning making a new 52 week high. WTI oil is trading higher by $1.15 to $111.45 a barrel. The stock market seems to love it as the S&P 500 e-mini futures(ES M1) are trading higher again this morning by 6.25 points to $1335.00 per contract. Who could have ever guessed that high oil would boost the stock market indexes on a daily basis? As a trader this is why we use charts and do not think too much about the geopolitical events in the world.

The problems in the Middle East and Northern Africa continue to escalate on daily basis. Today, Egypt is scheduled to have another massive protest. Traders and investors are keeping one eye on Saudi Arabia which is the largest oil producer in the region. Should any problems erupt in Saudi Arabia oil could see a super spike in price. Traders should remember it was $147.00 a barrel oil that broke the camels back in July 2008 and really sent the U.S. consumer over the edge.

The Asian stock indexes all rallied higher last night. The lone exception was the Sensex Index(India) closing lower by 0.71 percent. The Sensex had been overbought and due for some profit taking. The Nikkei 225 Index(Japan) rallied higher by 1.84 percent making this the leading Asian stock index last night. Japan continues to face major problems regarding their damaged nuclear reactors. The country also had another 7.1 magnitude earthquake yesterday.

Gold and silver are once again climbing to new highs. Silver reached the $40.00 level and this tells us that inflation is running high and central banks continue to inflate the markets. The world is being sold a global growth story at the moment, however, it is inflation that is causing that growth. The U.S. Dollar Index is trading sharply lower again this morning and this is the reason for the gap higher opens that occur almost every other day. Remember, when the dollar declines the stock market shines. In reality it is a trade off, devalue the reserve currency of the world and inflate asset prices. At least this is what gold and silver prices are telling the world at this time.



Nicholas Santiago
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Intra-day SPY Resistance Level

April 07, 2011 – Comments (1)

The highly popular SPDR S&P 500 Trust(NYSE:SPY) is grinding higher throughout most of the afternoon trading session. Traders must watch the $133.55 area as the next important Intra-day resistance level.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Market On Growth Hormone

April 07, 2011 – Comments (0)

The intra-day activity in this market is nothing short of wild. The Dow Jones Industrial Average has seen a couple of 100 point intra-day swings by the noon hour. Since that time there have been sell offs and light volume rallies bringing the major stock indexes right back up. There have not been light volume buy programs like this since mid 2008 when the market was in the middle of the credit crisis. Who is trading these markets for the bounces to be so robust? Has the 'fat finger' trader from the May 6, 2010 flash crash come back to play again.

It is rather amazing that the major stocks indexes are not down sharply lower today as spot oil is trading at $110.00 a barrel. The Middle East seems to be getting worst by the minute as Israel and Palestine have begun to fight again. Problems in Libya, Syria, and other nations in the region do not seem to be getting any better. Japan had another 7.1 magnitude earthquake earlier and we do not know how bad the already damaged nuclear reactors are. Portugal needs a bailout and Spain could be next on horizon. What else could go on in this world? It seems that everything except the kitchen sink has been thrown at this market and it still holds up and bounces back almost immediately.

As of 3:09 pm EST the Dow Jones Industrial Average is trading lower by just 39.00 points to 12,387.66. Traders must watch for resistance around the 12,400.00 level which looks to be the next important intra-day resistance area. Please use caution when trading in this environment intra-day as we can never predict the next major news event to cause a spike in either direction. The United States oil fund is trading at a new high for the year just above $44.00 a share. This would normally be a negative for the major stock indexes, however, it has not really seemed to matter over the past week. This is truly a market that does not want to decline.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Keys: Markets Recover After Massive Sell

April 07, 2011 – Comments (0) | RELATED TICKERS: USO

After a late morning massive sell off, the markets have recovered, inching back to the flat line. Earlier, another massive earthquake struck Japan measuring 7.2. The markets freaked out on fears of more economic hardships, a possible tsunami and of course more nuclear meltdowns. However, it looks as if the impact may be on the minor side and the markets are responding by moving back to the flat line.

Oil is trading higher again today and looks to be headed towards $110.00 per barrel. The United States Oil Fund LP (NYSE:USO) is trading at $43.67, +0.30 (+0.69%). Not only has an economic recovery taken place, but fear over nuclear energy has put more emphasis on oil as the main source of energy. The uncertainty in the Middle East continues and is also adding fuel to the fire.

Solar shares are weak again today which is somewhat unusual on the back of higher oil prices. Usually, the higher oil goes, the more people will look to alternate energy. That is not happening today nor has it happened over the last week. This is structural weakness that must be watched closely. Often times when weakness like this is seen in a sector that should be strong, news will break about a miss in earnings or margin pressure. Keep a close eye on this sector over the next couple weeks.  First Solar, Inc. (NASDAQ:FSLR) is trading at $147.39, -3.21 (-2.13%).

The fertilizer stocks are slightly weaker again today. Yesterday, Monsanto Company (NYSE:MON) fell sharply on earnings taking the sector with it. Today, it appears some weakness remains.

Gareth Soloway
InTheMoneyStocks.com

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Action Markets: Another Earthquake Strikes Japan

April 07, 2011 – Comments (1)

The markets opened quietly today on the back of an expected interest rate hike by the ECB and Jobless Claims that came in at 382,000. These were no shock to the markets which opened slightly lower on a stronger Dollar. No sooner had the markets opened, a flurry of buying came in as the Dollar fell down in its normal daily spiral. The markets advanced towards the high from yesterday with the SPDR S&P 500 ETF (NYSE:SPY) hitting $133.98. All of a sudden, the markets turned down, collapsing with ferocity and massive volume. News had hit that Japan was struck with a massive earthquake, measuring 7.2. Worries about more damage, another Tsunami and of course those nuclear plants surged. The SPY went from a high of $133.98 to $132.66 before having a gigantic bounce. It is currently trading in the middle range at $132.84, -0.72 (-0.54%).

Chevron Corporation (NYSE:CVX) is seeing its second down day in a row, somewhat of a rarity. The stock is trading at $107.81, -0.85 (-0.78%). A second down day may actually signal a short term top in the stock as long as it closes below $108.44 today. This would be known as confirmation of a reversal. Chevron would have first major support at $106.00 while resistance would be the 52 week high at $110.00.

As the markets continue to sell, Goldman Sachs Group, Inc. (NYSE:GS) is bucking the trend. The stock is trading at $163.30, +1.41 (+0.87%). Goldman has surged in the last three trading days and continues to show abnormal strength, relative to the markets. The daily chart shows massive resistance at $165.60 while support is at $159.00. Yesterday, banks and financial firms saw massive buying interest.

Looking forward, the markets will be analyzing the new earthquake in Japan. Is there additional damage, what is the economic impact? In addition, all eyes are now on the U.S. government and a possible shutdown tomorrow at midnight. As of now, the markets have felt it will not occur. However, should it occur there may be an economic impact as checks are not sent out and various programs shut down. Follow this closely in the next couple days.

Gareth Soloway
InTheMoneyStocks.com

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Southern Copper Under Pressure

April 07, 2011 – Comments (0)

Southern Copper Corp.(NYSE:SCCO) is declining lower this morning by 0.41 cents to $39.83 a share. This leading copper producer is trading lower on the session while copper the commodity is trading higher. Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is also trading higher on the session by 0.70 cents to $56.95 a share. Therefore, the weakness looks to be specifically in Southern Copper stock. Short term traders should watch the $39.44 area as the next intra-day support area. This is a level where the stock could see a small intra-day bounce.



Nicholas Santiago
InTheMoneyStocks.com
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Same Game Different Day

April 07, 2011 – Comments (0)

This morning was another day when the U.S. Dollar Index declined sharply lower after the opening bell rang at the New York Stock Exchange. When the dollar dips the major stock indexes flip (higher). This phenomenon occurs almost on a daily basis. The same exact thing happened yesterday. Therefore, all short term scalp traders should really watch and follow the U.S. Dollar Index chart every trading session.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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FXE Drops. Watch This Support Level

April 07, 2011 – Comments (0) | RELATED TICKERS: FXE

This morning the Currencyshares Euro Trust(NYSE:FXE) is declining after the European Central Bank(ECB) raised their key bank lending rate by 25 basis points to 1.25 percent. This move by the ECB was already telegraphed by the market over the past month and today the FXE is declining lower by 0.70 cents to $142.00 share. The FXE will have intra-day support around the $141.70 area. This is a level where short term scalp traders can look for a bounce in the FXE.

When the FXE declines it can only mean that the U.S. Dollar Index is rising in price. This morning  the U.S. Dollar Index is trading higher by 0.15 cents to $75.65 per contract. Traders must be aware that often the U.S. Dollar Index will start the morning higher and usually fade once the market opens in the U.S. for trading. That is actually occurring as I write this. If the U.S. Dollar Index declines the FXE could bounce before tagging the $141.70 support area.


Nicholas Santiago
InTheMoneyStocks.com  [more]

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Pre-market News and Views

April 07, 2011 – Comments (0)

The S&P 500 e-mini futures(ES M1) are trading higher by 2.75 points to 1331.75 per contract. The major stock market indexes continue to climb and remain on a sixteen trading day rally. The highly followed Dow Jones Industrial Average has climbed by 871.0 points in just three weeks time and is making a new high for the year. The geopolitical events in the world do not seem to matter at this time as the markets seem to rally every single day.

Last night the Asian markets were basically flat across the board so there is not much to report there. The popular and highly followed Shanghai Index(China) has held up exceptionally well since raising interest rates a couple of days ago. So far there have not been any ill effects from that tightening in China to fight off inflation.

The Middle East and North Africa remain in turmoil. Libya, Bahrain, Egypt, Syria, and other nations are receiving less and less attention. However, WTI crude is now trading at $109.00 a barrel and oil remains strong on the charts. The oil price is really all that the stock market cares about and so far it has had very little effect on the major stock markets. Often high oil prices will effect corporate earning in the next quarter, therefore, the negative effect can be felt in about three months. It will be interesting to see how earnings will be reported when Alcoa Inc.(NYSE:AA) kicks off earnings season on April 11, 2011.

The Portuguese have accepted a bailout offer that could be around $130 billion. Spain is now the next nation on the hot seat for a bailout, although they say they do not need it. We have all been down this road before with Greece, Ireland, Portugal, and Spain will be next. Where does the money come from to bail these nations out? Oh, it gets printed. As long as central banks continue to print money at an alarming rate gold and silver can increase as they are the true barometers of money printing and inflation.

The European Central Bank(ECB) raised its benchmark interest rate last night by 25 basis points to 1.25 percent. This move higher in rates was expected and is already baked into the market. I do not expect any major reaction from the markets off of this move by the ECB. The U.S. Dollar Index is trading slightly higher by 0.23 cents to $75.73 on the news. However, the U.S. Dollar Index will usually fade and drop once the bell rings at the New York Stock Exchange. When the dollar declines the markets will inflate and trade higher. Same game just a different day.

This morning the weekly jobless claims report was released and it posted a decline in claims by 10,000 to 382,000 jobless claims. The four week average is now down to 389,500 initial weekly jobless claims.

The market is overbought in the short term, however, it continues to defy gravity and seems to climb on a daily basis.



Nicholas Santiago
InTheMoneyStocks.com

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Recs

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Financial Stocks Hold Markets Up

April 06, 2011 – Comments (0)

The financial stocks are the one strong sector in the market today. It was a strange trading session today as the major stock indexes such as the Dow Jones Industrial Average(DJIA), S&P 500 Index, and the NASDAQ Composite started the morning with a sharp gap higher open. However, all the major stock indexes faded from the open and traded near the flat level around the noon hour before rallying higher on light volume. However, while everything was declining intra-day the financial stocks actually traded higher.

Many traders and investors are asking what was the reason for financial strength. Well, we must take into consideration that Portugal reportedly had a successful bond auction today. Whether it was the European Central Bank, International Monetary Fund, or the Federal Reserve Bank that bought the bonds it really does not matter. As a trader what matters is the action in the stock market. The action in the financial stocks is strong today. The second positive factor for the financial stocks is the steep yield curve that is occurring as yields on the 10 and 30 year T-Notes rise. Remember, the banks can charge more interest on loans and credit cards while they themselves borrow from the Federal Reserve at zero percent. Talk about having your cake and eating it too. The banks also barely pay any interest on an individual savings account. A steep yield curve certainly favors the banks.

Financial 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) are all trading higher on the session. This is a market of individual sectors and money rotation. Right now money has certainly flowed back into the financial stocks.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

5

Distribution Alert: Third Day In A Row, Markets Fade

April 06, 2011 – Comments (3)

A common theme is developing in the markets this week. Each day, the markets have been up nicely and by the close, faded to the flat line. This seems to be happening again today. The SPDR S&P 500 ETF (NYSE:SPY) is at $133.37, +0.13 (+0.10%) after being as high as $134.00. The high of the day was only a small distance from the 52 week high on the SPY at $134.69.

The fall in the markets each day most likely represents distribution. Distribution occurs when the institutions sell their shares to the individual investors, taking profits. This generally represents the high in the market or near the high. Why would individual, retail investors be putting money into the market? First, between the Middle East, Japan and Europe, the markets have been unbelievably strong. This gives the small investor a false sense of security. They basically think, if all that cannot derail the markets up move, then nothing will and the markets must be headed far higher. In addition, this is the first week of the second quarter for 2011. New money into 401k's and other retirement plans are now available and are flooding into mutual funds. This is a perfect time for institutions to sell into the buying.
The Dollar is down again today, a common theme of late. The one interesting factor is to note that the Dollar has been dropping as the markets have been falling back. This is unusual and should be noted. The most likely reason is commodity prices. As the Dollar continues to fall, commodities like oil just go higher. The $110.00 per barrel level is quickly approaching and the markets are getting nervous. Higher oil means higher prices at the pump. In an economy trying to recover, higher costs to consumers means less spending and a weaker economy. This must be watched. The United States Oil Fund LP (NYSE:USO) is trading at $43.42, +0.32 (+0.74%).

Gold and silver are both flat to higher today. The SPDR Gold Trust (NYSE:GLD) is trading at $142.08, +0.03 (+0.02%) while the iShares Silver Trust (NYSE:SLV) is trading at $38.56, +0.22 (+0.57%).

Gareth Soloway
InTheMoneyStocks.com

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0

8 Gap Higher Opens In 16 Trading Sessions

April 06, 2011 – Comments (0)

The major stock indexes have certainly staged a sharp rally since the March 16, 2011 pivot low. The Dow Jones Industrial Average(DJIA) has gain 886.00 points in just 16 trading sessions. This is a major move for the markets in such a short time. The amazing fact about this three week rally is that the major stock indexes have had eight gap higher opens in the past sixteen trading days. Therefore, fifty percent of the time the market has gapped sharply higher to start the day. This is very unusual action for the major market indexes.

Continued gap higher opens will usually end in a sharp reversal day, however, that has not occurred and the markets remain strong at this time. When you think of all the negative news that has been thrown at these markets it is really amazing to see the rally from the March 16, 2011 cycle low. However, traders must be aware that gap higher opens usually do not last and are not a sign of a healthy rally.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Pre-market News And Views

April 06, 2011 – Comments (0) | RELATED TICKERS: FXE , SLV , USO

The S&P 500 e-mini futures(ES M1) are trading sharply higher this morning by 8.00 points to 1334.75 per contract. The move higher in the futures comes as the Shanghai Index rallied higher last night by 1.15 percent. When the Shanghai Index(China) rallies most commodities and stock indexes will follow its lead. China is considered the growth engine of the world at this time and the theory is that they will buy more U.S. products and U.S. businesses. Can China save the entire worlds economy?

The problems in the Middle East and Northern Africa seem to have no end in site. The price of WTI oil is higher by 0.16 cents to $108.50 a barrel. It is still amazing that high oil and high gasoline do not have any negative effects on the stock market. This is the reason that we use charts and do not form opinions when it comes to trading. Remember the old market adage, trade what you see and not what you think. Thinking usually just gets in the way. Traders and investors must keep an eye on Saudi Arabia. This is the wild card nation for the Middle East as they are the largest producers of crude in the region. If they experience any disruptions in supply oil could see a super spike.

The problems in Europe remain front and center as Portuguese debt remains problematic. The stock market has swept these problems under the rug as they seem to have very little effect on the stock market these days. In fact, the Currencyshares Euro Trust is actually trading higher by 0.70 cents to $142.37 a share. Obviously, this means that the U.S. Dollar Index is trading lower this morning. The U.S. Dollar Index has now declined by 15.0 percent since June 7, 2010. Other nations in Europe will need to be bailed out soon. We can only wonder what this domino effect will have on the stock market. At this time it is having very little effect on the markets.

Gold and silver are making new highs this morning. As long as central banks continue to create money these precious metals can trade higher. The European Central Bank(ECB), Bank of Japan, and the Federal Reserve Bank continue to create money at an alarming rate. The ECB is expected to raise interest rates in order to fight inflation yet they continue to buy debt from struggling nations such as Portugal to keep rates from soaring higher. Talk about a catch 22.

In any case, the major stock indexes around the world continue to defy gravity. Traders and investors must respect markets when they simply just don't pullback. All rallies come to an end the same way that all declines find a low. Right now the path of least resistance is still up.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Markets Defy Gravity And Here Is The Reason

April 05, 2011 – Comments (0)

This afternoon the major stock market indexes are holding on to some small minor gains. Nothing seems to stop this market from moving higher. WTI oil is trading over $108.00 a barrel. The United States Gasoline Fund(NYSE:UGA) is trading higher again by 0.43 to $51.75 a share which is a new 52 week high. When will the high energy prices effect the major stock indexes? Leading stocks such as Google Inc.(NASDAQ:GOOG), Apple Inc.(NASDAQ:AAPL), and BIDU Inc.(NASDAQ:BIDU) are all trading lower this afternoon and the Nasdaq Composite is basically flat to slightly higher this afternoon. What could ever bring these markets down again?

Ah, we can only look to one other factor that is keeping the markets from even having a simple pullback and that is the weak U.S. Dollar Index. The U.S. Dollar Index has declined lower by 15.0 percent since its June 2010 pivot high when it traded at $88.70. Today the U.S. Dollar Index is trading lower by 0.02 cents to $75.88. Here is the reason for the rally in a nut shell. When the U.S. Dollar declines the asset prices in the market will inflate higher. Traders and investors can simply watch gold and silver as the real barometer of inflation. Gold and silver are a central banks worst nightmare. They tell the investing public exactly how much the currency is being devalued and deflated.

This afternoon the iShares Silver Trust(NYSE:SLV) is trading higher by 0.64 cents which is new 52 week high. The SPDR Gold Shares are rallying higher by $1.94 to 141.79 which is a new all time high. As long as central banks continue to print money at alarming rates to prop up asset prices precious metals can trade higher.

Since December 2008, the Federal Reserve has had the key bank lending rate(fed funds) at zero percent. This means that banks such as J.P. Morgan Chase & Co.(NYSEJPM), Wells Fargo & Co.(NYSE:WFC), Citigroup Inc.(NYSE:C), and Bank of America Corp.(NYSE:BAC), are able to borrow money at zero percent. Therefore, these banks that are too big to fail can borrow money for free and invest as they see fit to make capital. These banks pump money into stocks, operate a lucrative credit card business which they charge and average of 17.00 percent, and pay you nothing for keeping your money in their bank. What a racket?

So there you have it. That is the reason for the stock market rally. When this bubble pops it could just be the mother of all bubbles. In the meantime, just follow the charts and ride the wave while it lasts because it wont last forever.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Giants Continue To Lag

April 05, 2011 – Comments (0)

Since the late February correction the financial stocks have lagged the major stock indexes. On March 16, 2011 the major stock indexes all made a pivot low, however, the large financial stocks have not rallied as much with most other sectors. The highly popular Financial Select SPDR Fund(NYSE:XLF) was trading as low as $15.80 a share on March 16, 2011. Today the XLF is trading around the $16.45 level. While the XLF has bounced it is trading below the daily chart 50 moving averages which can often signal a sign of weakness. In late November 2010, it was the financial stocks that lead the stock market advance.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the market. This stock is considered the best and most influential stock in the sector. JPM is trading above the major moving averages, however, it is still trading below the February 16, 2011 high which was $48.36 a share. This recent high will still be resistance for the stock should it trade up to that level. This morning JPM is trading lower by 0.03 to $46.33 a share.

Wells Fargo & Co.(NYSE:WFC) is trading lower by 0.07 cents to $31.74 a share this morning. This leading financial stock is trading below the daily chart 50 moving average which is a sign of weakness. The stock will have daily chart support around the $30.50 level. Should the stock rally higher the $33.00 level will be near term resistance.

When a leading sector fails to participate in a rally it is usually a sign of weakness in the sector. It can also signal that the overall market may not be as strong as it appears on the surface.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Intra-day Dollar Drop Lifts Markets

April 05, 2011 – Comments (0)

If there is one thing that trader's have learned since March 2009 it is that the markets will move higher when the U.S. Dollar Index moves lower. This morning the U.S. Dollar Index was trading higher by 0.20 cents before the opening bell. However, once the opening bell rang at the New York Stock Exchange the U.S. Dollar Index declined sharply lower. When the dollar declines the major stock indexes and commodities will inflate and trade higher. That is exactly what has taken place this morning.

Please understand that the U.S. Dollar is the world's reserve currency. Therefore, all commodities are denominated in U.S. Dollars. You cannot buy a barrel of oil in Thai Baht or Japanese Yen. It must be purchased in U.S. Dollars. Therefore, when the dollar declines everything that we need to survive becomes more expensive. Food, energy, cotton, wheat, gold, silver, and almost everything else inflates when the dollar declines.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Pre-market News And Views

April 05, 2011 – Comments (0)

This morning the S&P 500 e-mini futures are declining lower by 5.00 to 1324.25 per contract. The advance in the futures from the March 17, 2011 low has been nothing short of extraordinary as the futures rallied 83.0 points in less than three weeks time. Last night the People's Bank of China (Chinese central bank) raised interest rates by 25 basis points to 3.25 percent. China has pledged to fight inflation, however, they have taken baby steps to do it. This slow move is typical with most central banks. The central bank that controls the United States called the Federal Reserve has kept rates at zero percent since December 2008.

The Nikkei 225 Index (Japan) also declined as reports have been released that nuclear material has contaminated the ocean water. The Nikkei Index has staged a sharp bounce higher over the past two weeks and was ready for a pullback on the charts. The Hang Seng Index (Hong Kong) and the Shanghai Index (China) were closed last night for a holiday. The Sensex (India) closed lower by 0.08 percent.

WTI oil is trading lower by 0.40 cents this morning to $108.07 a barrel. The problems in Libya, and other countries in the Middle East and Northern Africa remain. Saudi Arabia is still the wild card nation in the region. Should any meaningful uprisings occur in this nation oil could see a super spike. At this time that has not yet happened, however, neighboring Bahrain continues to experience civil unrest.

Gold and silver continue to hold steady this morning. Gold is trading higher by $3.00 to $1436.00 an ounce. Silver is trading basically unchanged from yesterday's close at $38.49 an ounce. This morning Moody's downgraded Portugal as yields are surging higher again on Portuguese debt. The more nations that need bailouts in the European Union the more favorable gold and silver become.

The ISM Services report will be released at 10:00 am EST. The Fed Minutes report will be released at 2:00 pm EST. It is unclear if these reports will cause a reaction in the stock markets. Recently, the major stock indexes have climbed the wall of worry despite the geopolitical events or economic data in the news.

Apple Inc.(NASDAQ:AAPL) is declining a bit this morning on the back of a re-balancing in the NASDAQ 100 Index (NASDAQ:QQQ). Apple Inc. currently makes up over 20.0 percent of the index. Microsoft Corp. (NASDAQ:MSFT) is scheduled to receive a higher share of the index. Microsoft stock is trading higher before the opening bell by 0.37 cents to $25.92 a share.


Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Stocks In Motion: Charts That Profit

April 04, 2011 – Comments (0) | RELATED TICKERS: INTC , IP , POT

In just the last few trading days, International Paper Company (NYSE:IP) has gone from a bullish chart to a bearish chart. Note the key double top hit late last week. In addition, last Friday, a beautiful topping tail formed. These are two bearish short term indicators telling pro traders the stock may have weakness in the coming days. True to form, International Paper is falling slightly today off that level. The stock is trading at $30.16, -0.26 (-0.85%).

With the NASDAQ flat on the day, Intel Corporation (NASDAQ:INTC) is showing relative weakness, trading at $19.42, -0.30 (-1.52%). The chips are weak overall as the Semiconductor HOLDRs (ETF) (NYSE:SMH) is also down 1%. The key with Intel is to recognize it took out a pivot short term double bottom at $19.70. This leaves the stock open to fall to its next major support at $18.85. At this level, Intel should see solid support.

The fertilizer stocks are showing solid strength today in an otherwise flat market. Stocks like Potash Corp./Saskatchewan (NYSE:POT) and Monsanto Company (NYSE:MON) are trading nicely higher. It appears as if the inflationary fears continue to drive up these stocks. They are quickly approaching a major double top on their daily charts. The Potash double top resistance point will be at $64.00 while the Monsanto double top will be $76.70.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Markets: Action Packed Plays

April 04, 2011 – Comments (0)

As the markets hover around the flat line today on extremely light volume, key stocks are in play and rocking the house. Where is the money being made? Let's talk about it. Research In Motion Limited (NASDAQ:RIMM) is once again in play today as it trades at $55.24, -0.84 (-1.50%).  After collapsing sharply lower on earnings on March 25th, the stock slammed into the 200 moving average on the daily chart. This gave it a small bounce for two days. However, the bigger head and shoulder pattern in the stock dictated this would just be a tiny bounce and the stock will ultimately trade much lower. A possible target based off the head and shoulders pattern is $48.00 per share. True to form, the stock has started lower and is now below the 200 moving average. Note  the head and shoulders pattern.
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Recs

0

Markets: Action Packed

April 04, 2011 – Comments (0) | RELATED TICKERS: SPY , AMZN , AAPL

The markets are floating neutral to higher today on the back of light volume and continued global optimism. Last Friday, the Non Farm Payrolls Report showed a rosy picture of the job market. Being the first Monday of the new quarter, it is likely to see new mutual fund money keep the markets flat to positive as well.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.23, +0.08 (+0.06%).

Apple Inc. (NASDAQ:AAPL) is trading lower today at $341.20, -3.36 (-0.98%). Last week, Apple could barely catch a bid as the markets rallied higher. It appears as if large investors and institutions continue to be on the sell side of Apple.  Worries about Steve Jobs, the companies growth rate and competitors continue.

Amazon.com, Inc. (NASDAQ:AMZN) has been a monster over the last two weeks. Just today, a classic bull flag played out with Amazon spiking to Friday's double top at $183.25. Last week, Amazon unveiled a music cloud program and was upgraded by an analyst at Morgan Stanley.  On March 23rd, 2011, Amazon was trading at $160.82 and now it sits at $183.32, +3.19 (+1.77%). While the stock is short term extended, it has been extremely strong.

The Dollar is hovering around the flat line today as commodities are spiking once again. Gold and silver are having solid days as buyers continue to pile in on fears about currency oversupply leading to massive inflation. The iShares Silver Trust (NYSE:SLV) is trading at $37.50, +0.64 (+1.74%).

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

ConocoPhillips Dips From Intra-day High. Watch This Area

April 04, 2011 – Comments (1)

ConocoPhillips(NYSE:COP) is declining lower by 0.40 cents to $79.28 a share. This leading integrated energy stock has come under some mild selling pressure over the past three trading sessions. Short term scalp traders can watch the $78.85 area for intra-day support. This is a likely short term intra-day bounce area for the stock.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Las Vegas Sands Fades From High. Watch These Levels

April 04, 2011 – Comments (0) | RELATED TICKERS: LVS

Las Vegas Sands Corp.(NYSE:LVS) has sold off a little from it's intra-day high made at the open. As I write this the stock is bouncing with the S&P 500 Index. However, should the stock decline or pullback during the session the $43.00 area should be short term intra-day support. The next intra-day support level that traders must watch would be around the $42.45 area. Both levels could see small intra-day bounces.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Gold Miners Strike Early

April 04, 2011 – Comments (0)

This morning the major gold mining stocks are holding up very well. Gold and silver are both catching bids higher today. The Market Vectors Gold Miners ETF(NYSE:GDX) is trading higher by 0.61 cents to $60.39 a share. The GDX will have intra-day resistance around the $60.65 area. This could be a small pullback area for the GDX.

Newmont Mining Corp.(NYSE:NEM) is trading higher this morning by 0.91 cents to $55.35 a share. There looks to be some minor intra-day resistance for Newmont stock around the $55.40 area and more resistance around the $56.00 level. Traders can watch for small pullbacks off of both levels.

Randgold Resources Ltd.(NASDAQ:GOLD) is another leading gold mining stock. This stock rallied sharply higher last week and looks to be pulling back today after last week's surge. Randgold stock is trading lower this morning by $1.38 to $82.23 a share. The stock will have minor intra-day support around the $82.00 area. Should the stock decline further intra-day traders should watch for support around the $81.00 area.


Nicholas Santiago
InTheMoneyStocks.com
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