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inthemoneystock (< 20)

May 2011

Recs

1

Broadcom Under Pressure

May 31, 2011 – Comments (0)

Broadcom Corp.(NASDAQ:BRCM) is one of the leading semiconductor stocks that has come under selling pressure this afternoon. BRCM stock is trading lower today by $1.14 to $35.38 a share. This stock is selling off sharply lower today after staging a three day rally into important daily chart resistance. Short term day traders should watch the $34.60 area as intra-day support.

Most other leading semiconductor stocks are trading higher on the trading session. The Semiconductor Holders Trust(NYSE:SMH) is trading higher by 0.38 cents to $35.71 a share, therefore, the decline in Broadcom stock is very specific to this company.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Small Cap Chinese Stocks Back In Favor

May 31, 2011 – Comments (1)

This morning, it was announced that Morgan Stanley (NYSE:MS) in Asia invested $50 million in Yongye International, Inc. (NASDAQ:YONG). This is a significant investment for a company only valued at approximately $250 million. In addition, it is catching Wall Streets eye because of the recent problems in many Chinese stocks. Over the past few months, stocks like China MediaExpress Holdings Inc. and China Agritech Inc. along with countless others have been halted and delisted due to shady, fraudulent accounting practices. This has caused almost all Chinese stocks to be punished and trade at tiny multiples. Investors have stayed away from small Chinese stocks as they fear more shady companies are lurking. However, today may be the turning point. Investors may start to flood back into Chinese small caps, following Morgan Stanley. Hedge funds may also follow suit and jump in.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Solar On Fire Off Germany

May 31, 2011 – Comments (0)

Germany, already an avid fan of solar energy, announced they would have all nuclear power plants shut down by the year 2022.  This was in response to the horrific catastrophe in Japan just a couple months ago.  The meltdown at the Fukushima Daiichi nuclear plant caused radiation to spread throughout much of the region and faint amounts around the world. It has been called one of the greatest man made disasters in history.

Germany, has always been on the leading edge of alternate energy and has now proclaimed an end to nuclear energy in their country. This announcement was very bullish for solar stocks. LDK Solar Co., Ltd (NYSE:LDK) surged close to 10% before pulling back and First Solar, Inc. (NASDAQ:FSLR) is currently trading at $123.76, +2.39 (+1.97%). In addition, Suntech Power Holdings Co., Ltd. (NYSE:STP) is up +0.44 (+5.47%) to $8.48 while Canadian Solar Inc. (NASDAQ:CSIQ) is trading at $9.69, +0.41 (+4.42%).

Solar stocks have been hammered of late because of lower margins and an end to subsidies in many countries. This was the first small bit of good news for the sector in months. Many solar stocks were near 52 week lows.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

What A Fade!

May 31, 2011 – Comments (1)

This morning, the major stock market indexes have faded from the sharp gap higher open. This fade from the open can only mean that the U.S. Dollar Index is trading off the morning lows. The S&P 500 Trust(NYSE:SPY) is short term oversold intra-day, however, the next major support level for the SPY will be around the $133.50 level. This is certainly a short term intra-day bounce area.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

VM Ware and Salesforce.com Lag Early

May 31, 2011 – Comments (0)

This morning, the major stock indexes are all trading higher as the U.S. Dollar Index remains at the lows of the session. The rally today is broad based with early strength in energy, commodities and technology. Two leading technology stocks are not participating in the morning rally and they are Salesforce.com Inc.(NYSE:CRM), and VMWare Inc.(NYSE:VMW).

Salesforce.com Inc.(NYSE:CRM) is a leading application software company that has been very strong as of late. The stock made a new 52 week high on May 26, 2011 at $153.99 a share. The stock remains very strong on the daily chart at this time, however, it is short term overbought and may need to pullback or consolidate. Traders can watch short term intra-day support around the $149.00 area and more around the $147.90 level.

VMWare Inc.(NYSE:VMW) is another leading technology stock that is trading lower on the session this morning. This stock stock is trading just below its 52 week high of $99.19 a share. This stock remains above its 20 and 50 moving averages which indicate that the daily chart trend is up at this time. Intra-day the stock is trading lower by 0.54 cents to $96.76 a share. Day traders can watch for intra-day support around the $95.75 area. There will also be more support around the $95.00 level should VMW decline further.

Traders must always be aware of stocks that fail to participate in broad based market rallies. These stocks could decline or fall further if the overall indexes decline or fade from their morning highs.


 
Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Keep This Chart On The Radar

May 31, 2011 – Comments (0)

This morning, the major stock market indexes are soaring higher on the back of the weaker U.S. Dollar Index. As we should all know by now, when the U.S. Dollar Index declines the major stock market indexes climb higher. Traders must keep an eye on the U.S. Dollar Index at all times. If the U.S. Dollar Index rallies higher intra-day it can easily take a lot of steam out of this early morning rally.

Generally, leading commodity stocks are the first to inflate and trade higher on the back of the weaker U.S. Dollar, therefore, these leading stocks are usually the first to decline and deflate on the back of the stronger U.S. Dollar Index. Traders should watch and follow leading commodity stocks such as iShares Silver Trust(NYSE:SLV), AK Steel Holdings Corp.(NYSE:AKS), and Southern Copper Corp.(NYSE:SCCO) for inverse reactions to the U.S. Dollar Index. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Holiday Float Begins: How To Profit

May 26, 2011 – Comments (0)

The markets are heading slowly north as predicted in my article yesterday. This is classic pre-holiday action caused by the Federal Reserve and their POMO, along with light volume and an overbought Dollar short term. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.88, +0.49 (+0.37%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) has fallen to $21.63, -0.08 (-0.37%).

The Federal Reserve and the powers trying to help a recovery have a vested interest in having the markets move higher into a holiday weekend. Remember, consumer spending is still the major driving force behind any recovery. Should the market tank into a three day holiday weekend like this, would anyone really be spending that extra money? More likely than not, a large drop into a holiday weekend would make the average American think twice about rushing out to those stores in search of great Memorial Day sales.

In addition, as Wall Street traders head out today and tomorrow for the holiday weekend, the markets remain open. This means that the volume remaining will be exceptionally light. Based on human psychology, the markets will naturally float neutral to higher. The psychological aspects of this delve into human nature and the way the we naturally have a positive outlook on life. With institutions gone, the retail investor is the main participant in the markets. Their outlook is to buy. In fact, most retail investors have never shorted the market.

Lastly, the Dollar has surged in recent weeks, heading into a resistance area. The odds based on the extension move in the Dollar, favor a pull back. It is very important to recognize that the markets trade in the opposite direction of the Dollar. Therefore, a fall in the Dollar should help the markets trade to the upside.

The leaders today are clearly technology related with the Nasdaq pushing higher. Microsoft Corporation (NASDAQ:MSFT) is having a fantastic day, trading at $24.80, +0.61 (+2.52%). The weakest stocks continue to be the financial firms, barely squeaking out a gain today. This is one of the only sectors to be near or at their 52 week lows. Continued worry about regulation, lawsuits and more have hampered these stocks for months.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

U.S. Dollar Index Strength Deflates Stock Markets Again

May 26, 2011 – Comments (0)

Once again, the major stock market indexes have come under pressure this morning. Once again, it is the intra-day strength in the U.S. Dollar Index(DXY) that has deflated the major stock indexes. We are living in a society where the stock market can only rally if the U.S. Dollar Index declines.

This morning, many of the major energy stocks are all coming under sharp selling pressure. Stocks such as Chevron Corp.(NYSE:CVX), Devon Energy Corp.(NYSE:DVN), and ConocoPhillips(NYSE:COP) are all trading lower. Energy stocks now account for 16.0 percent of the S&P 500 Index. Therefore, when these market leaders decline the markets seem to decline.

At this time, every trade is a trade on the U.S. Dollar Index. The action in the dollar is dictating almost every move inthe stock market. When the DXY trades higher the major stock indexes trade lower. The opposite is true when the DXY trades lower the major stock indexes inflate and trade higher.

 
Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Financial Stocks Continue To Struggle

May 26, 2011 – Comments (0)

Most of the leading financial Stocks have been under pressure since the beginning of May. This leading sector is now starting to get extended on the downside and could be due for a short term bounce in the coming days. It is important to note that most of the leading financial stocks are trading below the daily chart 50 moving average and this puts this sector in a weak technical position, therefore, all bounces are just short term reactions in the sector until that important 50 period moving average is recaptured.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the market. This leading financial stock has sold off sharply since early April 2011. The daily chart is showing some short term daily support around these current levels. The stock looks to have near term intra-day support around $42.00 and $41.70 levels.

Bank of America Corp.(NYSE:BAC) is a leading financial stock that has struggled since January 14, 2011 when it topped out at $15.31 a share. This stock is now trading below all of the major daily chart moving averages which put the stock in a weak technical position. This morning, BAC stock, is trading higher by 0.09 cents to $11.47 a share. The stock looks to have intra-day resistance around the $11.55 level. Should BAC stock start to decline intra-day, traders can watch for intra-day support around the $11.35 area and more around the $11.20 area.

Wells Fargo & Co.(NYSE:WFC) is another leading financial stock that has struggled for most of 2011. This financial giant is trading below all of its major moving averages on the daily chart which put this stock in a weak technical position. In other words, the trend on this stock is down. Traders can watch for intra-day support on this stock around the $27.35 area and more around the $27.00 level.

Citigroup Inc.(NYSE:C) is a leading financial stock that topped out on January 14, 2011. This stock has declined by more than 20.0 percent since that high pivot point. This stock is also trading below all of the major moving averages, which put the stock in a downtrend and a weak position on the charts. Recently, the stock had a ten for one reverse split and it has been declining ever since that time. Intra-day the stock will have support around the $39.80 and $39.40 levels.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Which Sector Is Worst, Homebuilders Or Airlines?

May 25, 2011 – Comments (3)

The homebuilder, and airline sectors give us tremendous trading opportunities on a daily basis, however, these two sectors are simply terrible long term investments. The current economic climate simply cannot support these industries.

Since August 2005, the housing stocks have tumbled lower and remain near the low end of their charts. Since the March 2009 stock market lows, the homebuilder stocks have given short term traders good opportunities on a swing and day trading basis. This sector is still just good for traders and not for investors that are looking to hold for the long pull. Leading homebuilder stocks such Toll Brothers Inc.(NYSE:TOL), Lennar Corp(NYSE:LEN), and KB Home(NYSE:KBH) seem to trade like birds of a feather who flock together. These stocks seem to trade in a trading range and do not have any institutional buying accumulation. This sector is fighting an uphill battle as single family foreclosures remain at all time highs. This is truly a supply and demand story, and in this case there is just too much supply.

The airline sector topped out in January 2007 and has really not recovered since that time. Sure, this industry group will bounce higher when oil prices decline from time to time, however, when one looks at the way the U.S. Dollar Index has traded over the past 10 years how can we ever expect oil to decline significantly. As long as oil remains high this sector is only good for short term traders. Leading airline stocks such as AMR Corp.(NYSE:AMR), United Continental Holdings Inc.(NYSE:UAL), and Delta AirLines Inc.(NYSE:DAL) have all consolidated over the years and still have trouble generating a profit. The business model is broken for most of these legacy carriers and that is reflective in the stock trends.

The homebuilder and airline sectors are two industry groups that are favorable to the short term trader. These two sectors face major headwinds as they are very sensitive to the current economic conditions.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Stock Charts To Make Passionate Love To

May 25, 2011 – Comments (0)

Finding a great chart is often better than making love. While both give you pleasure, a great chart setup will pay you hundreds, if not thousands. On the other hand, making love means we often end up paying dearly for the hot passion desired, either monetarily, nagging or other means. At least after a great swing trade you can roll over and go to sleep instead of cuddling. Having said that, let's find some charts that we want to make love to.

The first stock chart that looks about as amazing as a supermodel is Lowe's Companies, Inc. (NYSE:LOW). This ugly duckling has finally flowered into a beautiful setup for a swing trade to the long side. The stock hit the 200 moving average at the $24.00 level this fine day and is ready to jump high into next week. The bounce should take it to $24.50 - $25.00 in the coming week.

The next chart that looks like a gem and was a former ugly duckling as well is Research In Motion Limited (NASDAQ:RIMM). When looking at this chart, I must admit it excites me. The massive double buttom was tagged almost two weeks ago at $42.50. From this point, it jumped higher and has since slowly floated back down, never going below $42.50. As long as RIMM stays above the $42.50 level on a closing daily basis, this long is intact and ready to deliver an orgasm of power and money to those that take it.

A former powerhouse, Goldman Sachs Group, Inc. (NYSE:GS) has been spit on for months if not years. The stock price has crumbled in 2011 from a high of $175 to its current level of $136.00. Just in the past few days, Goldman Sachs has made a bottom that represents a great long swing trading opportunity. Love shall be made for days on this one. Look for a solid bounce into next week from this level back to the low $140.00 level.

These are just three plays looking great on the charts. As with making love, always use protection on your stock swing trades. Enjoy and profit.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Markets To Move Higher Into Holiday

May 25, 2011 – Comments (0)

The markets put in a solid low on a gap down this morning. This selling took place in response to fears of a new emergency election in Greece. On this worry, the Dollar moved higher which in turn pushes the stock markets in the U.S. lower. The SPDR S&P 500 ETF (NYSE:SPY) hit a low of $131.38 before rebounding all the way back to its current level at $132.38, +0.43 (+0.33%). PowerShares DB US Dollar Index Bullish (NYSE:UUP) opened at $21.78 but has since fallen to $21.68, -0.05 (-0.21%). This gap higher in the Dollar and then fall, is the reason why the markets have reversed and are now trading higher.

It is highly likely that the markets have put in their low for the week. The $131.38 level on the SPY happens to be a master gap fill from the closing price on April 19th, 2011. In addition, the markets are headed towards the Memorial Day holiday weekend. The Federal Reserve always likes to push the markets up into a holiday weekend to get consumers spending and traveling. In addition, as the volume dries up, the markets always have a tendency to float up. It is very likely that the SPY will head to $133.60 by the close on Friday. Remember this call here.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Is Anyone Watching Any Other Chart?

May 25, 2011 – Comments (0)

At this time, almost every trader in the world is watching the U.S. Dollar Index(DX) chart. This morning, the U.S. Dollar Index has pulled back after the opening bell rang at the New York Stock Exchange. This decline in the U.S. Dollar has caused the major stock indexes to inflate and trade higher from a gap lower open. The U.S. Dollar index chart is by far the most important chart in the stock market right now.

Energy and commodity stocks are usually the first equities to bounce or trade higher when the U.S. Dollar Index pulls back or declines intra-day. This morning, stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), United States Steel Corp.(NYSE:X), and Alpha Natural Resources Inc.(NYSE:ANR) are all trading higher on the session. These stocks are very sensitive to the U.S. Dollar Index and could easily pullback if the dollar begins to catch a bid. Essentially, every trade is a dollar trade at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

Debt Ceiling Breached, Does Anyone Care?

May 25, 2011 – Comments (0)

The United States of America in now drowned in debt by $14.39 trillion. This debt, is obviously at an all time high for the country. The politicians from both parties seem to only care about winning elections and really do as little as possible to solve the problem of a debt burdened America. The current debt ceiling which is the legal limit that the country can borrow has been reached yet the U.S. Treasury continues to borrow more money, even this very week. President Obama asked Congress for another $2 trillion in order to keep the government running as usual. Now lets be fair here, the debt ceiling has been raised by nearly every president on numerous occasions regardless of the political party. When I was watching the popular television program, Freedom Watch with Judge Napolitano, it was reported that the debt ceiling has been raised 70 times already. This is a rather fascinating number when you think about it. What is the point of having a debt ceiling when it can be raised at anytime?

We certainly live in a debt built society. The country and the world as we know it has been built on debt. The value of the U.S. Dollar is certainly not what it was years ago. This is due to the fact that inflation has inflated everything from homes, government, business, and the ultimately the money supply. My dad talks about going to a movie for 0.25 cents when he was kid. Today, a movie costs around $15.00 a ticket. My parents bought their first home for $27,000, today that same home sells for around $300,000. Has the value really gone up that much? Of course not, it increased in price because of inflation. Have we now reached a point in society where the inflation building has come to an end? Everyone knows that when you blow up a balloon the air will eventually leak out and deflate. Are we now at that phase of the economy?

At this time the stock market seems to only care about the falling U.S. Dollar Index. When the U.S. Dollar Index declines, the major stock indexes seem to inflate and trade higher. The opposite effect occurs when the U.S. Dollar Indexes trades higher, the major stock indexes will deflate and trade lower. Currency prices are dictating every move in the stock market right now. This is not sound money, and most politicians are either afraid, or just too dumb to address this problem. For crying out load, President Obama assigned a gasoline task force to find out why gasoline prices were climbing on a daily basis. Are you telling me that he could not figure out that gasoline was climbing for the same reason every other commodity was climbing, because the U.S. Dollar Index was falling! You see, politicians, like many on Wall Street, like to play dumb when things are not going so well. To my knowledge, there only seems to be one politician out there that has told the truth for years and his voting record is there to prove it, it is Congressman Ron Paul (R-Texas). This man has talked about the failed economic policies of the United States for years now and nobody wants to hear it. Congressman Paul has talked repeatedly about going back to a gold standard. This may not happen for many years, however, it is the only way that a new global economy can survive.

The days of printing money are coming to an end in my humble opinion. The fiat system was great for many years, however, it is no longer sustainable due to the debt that has been accumulated. I suppose it will have a few more years left before it finally ends. The U.S. Dollar can gets tossed around like a yo-yo by the central banks for a few more years to keep this ship sailing. Traders and investors should probably watch for a major gold and precious metals correction sometime this year. This is when the smart money will load the boat with the precious metal as the world moves closer to the gold standard in the coming years.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Markets Advance Slightly Higher In Late Trading

May 24, 2011 – Comments (0)

The markets are floating higher in late trading after the financial stocks caught a bid. The U.S. Dollar is also hovering near the lows of the session which is helping the markets as well. Light volume has taken over which will most likely continue into Friday. This weekend is the Memorial Day holiday and traders will be headed on vacation with their families.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Markets Hesitate As Worry Still Remains

May 24, 2011 – Comments (0)

The markets are trading slightly higher today as the holiday weekend inches closer.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.36, +0.30 (0.23%). There are still faint worries about the European debt crisis but with the Dollar trading lower, the markets are enjoying a break from the selling. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.71, -0.08 (-0.37%).

The strength to keep the markets slightly positive comes from commodities. Oil, gold and silver are all surging higher today with a small drop in the Dollar. This is helping the beaten down stocks like Chevron Corporation (NYSE:CVX)  and Exxon Mobil Corporation (NYSE:XOM) bounce. While the commodity stocks are bouncing nicely and keeping the market afloat, banks and technology are weaker. After a sharp drop yesterday, this small bounce in the markets is nothing to write home about.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

It Is 10:30, Do You Know What The Dollar Is Doing?

May 24, 2011 – Comments (0)

This morning, the major stock market indexes are trading higher on the session, this can only mean that the U.S. Dollar Index is trading lower. The U.S. Dollar Index futures(DX M1) are trading lower by 0.21 cents to $76.02 per contract. At this time, the U.S. Dollar Index(DXY) chart simply trades inverse to the major stock market indexes. In the past three weeks, the U.S. Dollar Index has rallied higher by over 3.00 points. This is the same amount of time that the major stock market indexes have been pulling back. If you look at the intra-day chart below, you can clearly see how the S&P 500 Index futures(black and white candles) will trade directly inverse to the falling U.S. Dollar Index futures(red and green candles).

At this time, everything seems to inflate and trade higher when the U.S. Dollar Index declines. Generally, the best movers in the market from a falling U.S. Dollar will be commodities, energy stocks, and the major stock market indexes. Should the U.S. Dollar Index catch a bid and trade higher these sectors will simply deflate and trade lower.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Energy Stocks Find Fuel In Dollar Decline

May 24, 2011 – Comments (0)

This morning, the leading energy sector is bouncing higher helping to lift the S&P 500 Index. It is important to note that the energy sector accounts for roughly 16.0 percent of the S&P 500 Index. WTI oil is trading higher this morning by $1.60 to $98.30 a barrel. Leading financial firms Goldman Sachs Group Inc.(NYSE:GS), and Morgan Stanley(NYSE:GS) upgraded WTI oil to $130.00 a barrel. This upgrade looks to be having a positive effect on spot crude and most energy stocks to start the day.

Some leading energy equities that are trading higher this morning include United States Gasoline Fund(NYSE:UGA), ConocoPhillips(NYSE:COP), and Noble Energy Inc.(NYSE:NBL). Short term day traders must keep one eye on the U.S. Dollar Index as the dollar has had the strongest influence on the leading energy stocks. As long as the U.S. Dollar Index holds steady, or declines throughout the day, the energy stocks should hold on to their gains. Should the U.S. Dollar Index trade higher it would be prudent to expect the leading energy stocks to deflate and sell off from the morning highs.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Agriculture Stocks Buck The Trend

May 23, 2011 – Comments (0) | RELATED TICKERS: CF , MOS , POT

Anyway you slice it or dice it, the major stock indexes are under selling pressure today. Most leading industry groups are trading lower this afternoon as the U.S. Dollar Indexes rallies higher and deflates the stock markets. There is one sector that is bucking the intra-day trend and that is the agriculture stocks.

This afternoon some leading agriculture stocks such as Potash Inc.(POT), CF Industries Holdings Inc.(NYSE:CF), Mosaic Co.(NYSE:MOS), and Monsanto Co.(NYSE:MON) are all trading higher on the session. Often, when the U.S. Dollar Index is stronger on the session most agriculture stocks will decline and trade lower as they usually behave much like commodity stocks. That is not the case today as most agriculture stocks are trading higher on the session.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Stock Market Longs In Play

May 23, 2011 – Comments (0) | RELATED TICKERS: DE , AMAT

The charts are once again revealing some interesting swing trades as the markets are getting smoked on continued European debt crisis worries. The key with any chart is to find a level that has significant support. There, wait patiently until price hits and pull the trigger, buying long. With the markets sharply lower, a few stocks are reaching respectable pull back levels, hitting their 200 moving averages on the daily chart.

The first chart that looks promising is Applied Materials, Inc. (NASDAQ:AMAT). The stock is sharply off its recent highs. In addition, the lows of the day kissed the 200 moving average on the daily chart at $13.72. This sets up for a solid bounce in the coming days.

Another beautiful bounce chart is Deere & Company (NYSE:DE). Deere, like Applied Materials has run into the 200 moving average at a level of $82.50. This represents a solid long opportunity for the rest of the week.

The markets continue to be sharply lower today as the Dollar surges. The SPDR S&P 500 ETF (NYSE:SPY) is at $131.79, -1.82 (-1.36%), the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is at $123.31, -1.54 (-1.23%) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is at $56.82, -0.94 (-1.64%).

Is is very possible the markets bounce later this week again as volume dries up into the Memorial Day weekend holiday. In addition, any pull back in the Dollar will pop the markets back up.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

1

European Crisis: A Path To QE3

May 23, 2011 – Comments (0) | RELATED TICKERS: SPY

There is little doubt in anyones mind that the current crisis hitting Europe may be just what the Federal Reserve ordered for another round of quantitative easing. In the very least, the Federal Reserve has already made it clear they will re-invest all the current QE2 proceeds. It seems to be clearer each day that the Federal Reserve policy of printing trillions of Dollars has done little to help the system. Europe is on the brink of collapse again and the Unemployment Rate has barely dropped. The only thing that has occurred in a major way is the spectacular rise in commodity prices. These prices have recently taken a tumble on the back a surge in the Dollar. It seems like the stage is set for another type of easing, print money policy. Obviously, the Federal Reserve will not call it QE3 as the unpopularity would be negative, but it is highly likely they will have some sort of new policy in play.

The markets are sharply lower today as the European crisis continues. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.97, -1.64 (-1.23%) as the Dollar is surging. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.82, +0.17 (+0.79%).  The markets remain on edge over the many new bailouts needed in Europe.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Sandisk Drops Again

May 23, 2011 – Comments (0) | RELATED TICKERS: SNDK , BRCM , INTC

Sandisk Corp.(NASDAQ:SNDK) is a leading flash memory semiconductor stock that is coming under early selling pressure. This leading stock has been selling off on the daily chart since April 27, 2011 when the stock traded as high as $51.15 a share. This morning the stock is trading lower by $1.06 to $45.42 a share. There will be some short term intra-day support for this stock around the $44.50 area. This is a level where short term day traders can look for an intra-day bounce.

Other leading semiconductor stocks that are declining lower today include Texas Instruments Inc.(NYSE:TXN), Intel Corp.(NASDAQ:INTC), and Broadcom Corp.(NASDAQ:BRCM). Technology as a whole is very weak today, however, should the U.S. Dollar Index decline these stocks should catch an intra-day bounce with the overall markets.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Blood On The Street

May 23, 2011 – Comments (1) | RELATED TICKERS: FCX , X , SCCO

This morning, the major stock market indexes are declining sharply lower. The catalyst for the steep stock market decline is once again the stronger U.S. Dollar. When the dollar rallies or trades higher the major stock and commodities will deflate and simply trade lower. This morning the leading commodity stocks such as Southern Copper Corp.(NYSE:SCCO), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and United States Steel Corp.(NYSE:X), are all under early selling pressure. Traders should keep one eye on the U.S. Dollar Index(DXY), if the DXY declines intra-day it would be prudent to expect these leading commodity stocks to catch an intra-day bounce.

Most energy stocks are also coming under selling pressure to start the trading day. The Oil Services Holders Trust(NYSE:OIH) is declining lower by $3.10 to $145.88 a share. Traders can watch for short term intra-day support around the $145.00 and $143.50 levels. Other leading energy stocks that are declining lower include Suncor Energy Inc.(NYSE:SU), and Devon Energy Corp.(NYSE:DVN). These stocks could also see some bounces if the U.S. Dollar Index pullback intra-day.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

This Chart Says It All

May 20, 2011 – Comments (1)

The major stock market indexes have become nothing more than an inverse play on the U.S. Dollar Index. Forget earnings, economic news and any other lie Wall Street has programmed us to believe. It is the U.S. Dollar Index that moves markets. Look at the chart below, you can easily see how the major stock indexes recovered after the U.S. Dollar Index sold off intra-day. The SPDR S&P 500 Trust (NYSE:SPY) will have some minor resistance around the $134.50 area.


Nicholas Santiago
InTheMoneyStocks.com
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Commodity Leaders Feel The Pressure

May 20, 2011 – Comments (0) | RELATED TICKERS: CLF , FCX

As you all know by now, every trade is essentially a dollar trade. The leading commodity stocks will usually feel the pressure the most when the U.S. Dollar Index rallies. Therefore, traders should always watch for weakness in stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) when the dollar trades higher. While these stocks are the first to decline on the back of a stronger U.S. Dollar, they are also the first stocks to react to a U.S. Dollar pullback.

Short term day traders can look for some intra-day support on FCX around the $47.00 level. This stock is in a daily chart downtrend, therefore, any bounces in the stock are just short term moves at this time. CLF will have good intra-day support around the $85.49 and $85.00 levels. Again these support levels are just for the short term day trader.


Nicholas Santiago
InTheMoneyStocks.com  [more]

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You Know It Is Options Expiration Week

May 19, 2011 – Comments (0)

You know it is option week when:

1.
The U.S Oil Fund (NYSE:USO) drops with the U.S. Dollar Index and trades in an 0.80 cents intra-day trading range.

2. Apple Inc.(NASDAQ:AAPL) opened at $342.40 and found an intra-day bottom at $338.67 which was an hour and twenty minutes later.

3.
The U.S. Dollar Index futures(DX M1) drop by 0.50 cents after the opening bell.

4
. Cliffs Natural Resources Inc.(NYSE:CLF) trades below $85.00 on Monday, rallies back to $90.00 this morning, only to decline back to $88.00 this afternoon. The small retail options trader gets screwed again.

5.
Netflix Inc.(NASDAQ:NFLX) trades in a 20 point range since Monday. Small retail options trader gets screwed again.

6.
Goldman Sachs Group Inc.(NYSE:GS) downgrades Intel Corp.(NASDAQ:INTC) and the stock is in its first real up-trend in months. Meanwhile, Goldman stock is in a confirmed downtrend dropping over 10.0 points since May 11, 2011.

7.
When the Federal Reserve's POMO operation can't move the markets more than 30 minutes.

8.
When the institutional traders don't have hundreds of mini flash crashes intra-day on individual stocks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

MasterCard And American Express Targets

May 19, 2011 – Comments (0)

MasterCard Incorporated (NYSE:MA) and American Express Company (NYSE:AXP) have been two of the strongest stocks in the market over the last few months. Both stocks are approaching multi year pivot highs. MasterCard is going to hit the $310 level, which is an all time high from 2008. American Express looks to be on target to hit its 2008 pivot high at $53.00. At these levels, both stocks should pull back significantly.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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The Goldman Sachs Target Level

May 19, 2011 – Comments (0) | RELATED TICKERS: GS

The bank stocks continue to perform poorly in the market action today. Goldman Sachs Group, Inc. (NYSE:GS) is trading $139.09, -1.75 (-1.24%).  The price action in the bank stocks of late tells of further downside. Goldman Sachs will likely hit support at $135.75. This looks to be a level that can be played as a long swing trade. Goldman Sachs has been under significant pressure of late because of new regulations and the coming end of QE2. These factors have all been putting pressure on Goldman Sachs and dragging it down.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Las Vegas Sands Fades From The Open

May 19, 2011 – Comments (0) | RELATED TICKERS: LVS , MGM , WYNN

Las Vegas Sands Corp.(NYSE:LVS) is a leading casino stock that started the morning higher and has faded from the open. This morning the stock is trading higher by 0.28 cents to $41.84 a share. The stock has been under selling pressure since early May 2011 on the daily chart. Day traders can watch for short term intra-day support around the $41.50 area.

Wynn Resorts Ltd.(NYSE:WYNN) is trading lower on the session by 0.16 cents to $146.70 a share. WYNN stock remains in a daily chart up-trend at the moment. The stock should have intra-day support around the $143.15 level.

MGM Resorts International(NYSE:MGM) is trading higher by 0.27 cents to $15.34 a share. This stock remains very strong on the daily chart at this time, however, the stock is getting a little extended and may be due for a pullback soon. The stock will have intra-day support around the $15.00 level.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

The Next QE-3 Will Be In 2012

May 19, 2011 – Comments (0)

Almost everyone in the financial media is talking about the current quantitative easing program(QE-2) that is scheduled to expire in late June 2011. This is where the central bank, called the Federal Reserve, creates money and buys U.S. Treasuries. The Federal Reserve has bought about $500 billion dollars worth of U.S. Treasuries so far since the current QE-2 program began in November 2010. The Federal Reserve is scheduled to buy another $90 billion in U.S. Treasuries next month(June). Many economists and investors in the financial media are betting that the Federal Reserve will begin buying more U.S. Treasuries as soon as the current QE-2 program ends at the end of June. If we have learned anything from this group of bankers it is that they love to surprise the markets and will do anything to keep the stock markets inflated.

Here is how they will operate over the next year. The Federal Reserve will eventually have to take a break from purchasing U.S. Treasuries. The last time the Federal Reserve stopped creating cash reserves the stock market dropped like a rock, that occurred in late April 2010 through late August 2010. This time around, the Federal Reserve will simply let the current QE-2 expire, however, they will hint that are are planning a QE-3 whenever the stock market declines sharply. By doing this they can buy themselves some more time and hopefully see the price of commodities decline over the next year. It is the inflated commodity prices that keep the central bank from inflating the markets further. You see, the more cash reserves that the Federal Reserve creates the higher the prices of oil, gasoline, copper, gold, silver, cotton and almost every other commodity will be. By using rumors of a possible QE-3 throughout the rest of the year they will get the institutional money to buy the markets sporadically. Therefore, if the stock market does pullback or decline it will not crash and burn it will just decline gradually. Basically, they will use the boy that cried wolf theory until it no longer works, then they will actually implement QE-3.

Sometime in 2012 will be when the Federal Reserve will put the pedal to the metal and begin a massive QE-3 program. The central bank has been playing yo-yo with the U.S. Dollar for nearly a decade now. Simply put, the U.S. Dollar is the central bank's instrument of choice for inflating and deflating the markets. When they allow the U.S. Dollar to decline, the stock and commodity markets inflate higher, that is exactly what QE-2 does currently. If the U.S. Dollar Index rallies or trades higher then the major stocks and commodities simply deflate and trade lower. The next couple of years will be a traders market, however, the maestro behind the moves will be the Federal Reserve. Stay tuned and watch for QE-3 in 2012.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Colgate Palmolive and Procter & Gamble Still Look Good

May 18, 2011 – Comments (0) | RELATED TICKERS: CL , PG

Many traders and investors seem to get nervous when stocks such as Colgate Palmolive Co (NYSE:CL), and Procter & Gamble Co. (NYSE:PG) are two of the strongest stocks in the entire market. These two particular are companies are very defensive stocks. No, this does not mean that they are in the defense industry like General Dynamics(NYSE:GD), or Lockheed Martin Corp.(NYSE:LMT). This means that they are stocks that people will buy in case of an economic downturn. You see, Colgate Palmolive, and Procter & Gamble, make products that people cannot live without. Almost everyone needs to brush their teeth, shave, and use soap when they bath. These stocks also pay a dividend and most investors seek the income.

The daily charts of both stocks continue to look very strong. These stocks are trading in a confirmed up-trends at this time and should see higher prices in the coming days. Procter & Gamble and Colgate Palmolive have made higher lows on the daily charts and this is also a bullish sign for the near term. Right now PG stock looks as if it has upside potential to the $68.00, and $70.00 levels. The intra-day resistance levels for PG stock will be around the $67.50 level. CL stock has upside potential to the $90.00 area in the near term on the daily chart. The intra-day resistance for CL stock will be around $86.15 level this afternoon.


Nicholas Santiago
InTheMoneyStocks.com  [more]

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0

Answers: Where To Buy These Stocks

May 18, 2011 – Comments (0) | RELATED TICKERS: BAC , HPQ , CSCO

Out of favor stocks still need some love and if played correctly, these plays can return huge amounts of money in a short amount of time. The key is to catch an out of favor stock at the dead low support area, prior to a gigantic bounce. These type of returns can be over 10% in days and over the longer term, much, much more. With the market in a rare down cycle, it is important to find the appropriate levels and wait patiently. Below are key stocks and their buy levels.

After warning of a "tough" quarter just a couple days ago, Hewlett-Packard Company (NYSE:HPQ) has dropped dramatically. The stock broke through support at $37.35 and is currently trading at $36.08, -0.83 (-2.25%).  Many Wall Street traders and investors are wondering where Hewlett-Packard will be a buy? Based on the chart, the buy level will be at $33.85. A sharp bounce should occur off this level, maybe even a long term low will be in place.

Cisco Systems, Inc. (NASDAQ:CSCO) is another company that has had many problems producing and meeting expectations. Wall Street has continually been disappointed with their earnings reports and guidance. In the latest quarter, restructuring has begun, fostering hopes of some sort of return to glory. Cisco is inching below major support today. Should the price not rebound and continue lower, it is destined for $14.00. In this range, a tremendous buy would be initiated on the stock based on pure technical analysis. While this level is far away, never underestimate a stock or a market in punishing a habitual loser. The masters in the market will lay in wait for this one at that level.

Bank of America Corporation (NYSE:BAC) is another beaten down stock. This financial firm was trading over $15.00 per share in January. It is now currently trading at $11.74, -0.16 (-1.34%). Based on its recent price action, Bank of America is heading lower. Where is it going to bottom? The answer to that is $10.95. There is a beautiful double bottom base at that point which will act as a near term and possibly a long term bottom. The risk to reward will be highly in the bulls favor at this price.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Market Mastery: Keys To The Up Day

May 18, 2011 – Comments (0) | RELATED TICKERS: DELL.DL , USO , SPY

The markets turned higher from the start, inching as the Dollar faded. The classic inverse Dollar trade still holds 100% true. The Dollar opened flat to higher and faded to the negative side. Because of that, the markets opened flat to lower and advanced. The SPDR S&P 500 ETF (NYSE:SPY) is holding the gains at $133.73, +0.56 (+0.42%).

This week is options expiration. All traders must be aware of this factor as it is part of the reason why the markets are trending higher today and most likely will tomorrow as well. Why? Options expiration week is almost always noted by sharp moves in one direction and then the other. The fact that Monday and part of Tuesday saw a solid move lower, generally means that the next few days will be up. In addition, short levels are extremely high in the markets. This means the institutions will most likely push the market in the opposite direction as well, keeping a maximum of the profits on puts sold. Knowing this key can lead to avoiding many of the the pitfalls of options trading.

The markets are being carried higher today on the back of a surge in commodity prices via a weaker Dollar. The United States Oil Fund LP (NYSE:USO) is trading at $39.36, +0.81 (+2.10%). This is propelling Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) dramatically higher which in turn is carrying the Dow Jones Industrial Average. Earnings from Dell Inc. (NASDAQ:DELL) are also pushing technology shares higher.

Key areas to watch in the next few days will be beaten down smaller oil and gas plays. These plays could see significant upside should oil continue to gain for a few days.  Solar stocks along with other alternate energy plays may also see some upside on oils advance.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

When The Dollar Dips The Market Flips

May 18, 2011 – Comments (0)

Often, when the U.S. Dollar Index rallies higher before the opening bell it will fade once the opening bell rings at the New York Stock Exchange at 9:30 am EST. That is exactly what took place this morning, as almost everything in the stock market is inflating. On the flip side, if the U.S. Dollar Index somehow catches a bid during the trading session it is likely that we see the major stock indexes deflate and trade lower. Today is the Wednesday before options expiration which is on May 20, 2011, therefore, this is usually most volatile trading session of the week. 

Some equities that are trading higher from the decline in the U.S. Dollar Index include iShares Silver Trust(NYSE:SLV), SPDR Gold Shares(NYSE:GLD), Chevron Corp.(NYSE:CVX), and the Oil Services HOLDRs(NYSE:OIH). If you have not noticed all of these equities are part of the commodity complex which is the most influenced from a dollar decline.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Are The Mining Equipment Stocks Broken?

May 18, 2011 – Comments (0) | RELATED TICKERS: JOY , CAT , DE

Caterpillar Inc.(NYSE:CAT) is the leading mining equipment stock in the stock market. This stock looks to have topped out on May 2, 2011 at $116.55 a share. Since that high in early May, the stock has sold off sharply lower by nearly $15.00 to $102.00 a share. This current area is actually minor support on the daily chart as this is where CAT traded on April 18, 2011. Therefore, the stock could hold this level and bounce a little from here. Should CAT break and close below the $101.47 level on the daily chart there is a good chance that the stock will test the $96.75 support level. Caterpillar stock will have intra-day resistance around the $104.00 level. Should the stock decline intra-day traders can watch for support around the $100.00 area.

Deere & Co.(NYSE:DE) is another leading mining and farming equipment manufacturer that is declining after reporting earnings this morning. This stock is trading lower by $2.02 to $84.91 a share. The stock does have some minor daily chart support around the $84.75 area. Should the stock decline further, traders can watch for more daily chart support around the $82.35 level. Intra-day, the stock will have support around the $84.75 and $84.00 levels. Should the stock somehow rally off its intra-day low the resistance areas for DE stock will be around the $86.15 and $86.85 levels.

Joy Global Inc.(NASDAQ:JOYG) is another leading mining equipment maker that has been very weak as of late on the daily chart. This stock topped out in early April 2011 at $103.44 a share. Yesterday, JOYG stock traded as low as $85.50 a share. This is a 17.0 percent decline from the April high. The stock does have some minor daily chart support around the $85.00 and $86.00 areas. Should JOYG break and close below these levels traders will have to look at the $80.00 level as the next important daily support area. Intra-day, the stock will have resistance around the $87.50 level.


Nicholas Santiago
InTheMoneyStocks.com
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Big Blue Saves The Dow Jones Industrial Average

May 17, 2011 – Comments (0) | RELATED TICKERS: IBM , HD , MMM

This afternoon the Dow Jones Industrial Average(DJIA) is the weakest stock index in the market. It is important to note, that while this index is the most highly followed index by the public the index consists of just 30 large cap blue chip stocks. The index is also a price cap weighted index and not a market cap weighted index like the S&P 500 Index or the Nasdaq Composite. Therefore, as long as the highest priced stock in the index is trading higher on a particular trading session the over all index is likely to do well. 

Today, the Dow Jones Industrial Average has been under pressure since the opening bell rang at 9:30 am, however, International Business Machines(NYSE:IBM) has rallied higher by nearly 2.00 points to $170.81 a share. This stock is the highest priced stock in the Dow Jones Industrial Average and will have the most effect on the index. If the DJIA is going to trade sharply off the lows it will certainly help if the high priced stocks make a move to the upside. If IBM was trading down a point or more today the DJIA would be significantly more this afternoon.

Some other stocks in the DJIA that are doing well today include Procter & Gamble Co.(NYSE:PG), J.P. Morgan Chase & Co.(NYSE:JPM), and Home Depot Inc.(NYSE:HD). The DJIA laggards are Caterpillar Inc.(NYSE:CAT), 3M Co.(NYSE:MMM), and United Technologies Corp.(NYSE:UTX).


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Stock Market Analysis: Keys Of The Day

May 17, 2011 – Comments (0) | RELATED TICKERS: HPQ , FXE , CSCO

The markets are struggling again on the back of a stronger U.S. Dollar. This is pushing commodities like oil sharply lower. In addition, demand fears are hurting technology stocks again today as countries like Greece and Ireland look to need another bailout.  With the European issues, the Euro is falling. That action is strengthening the Dollar.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.65, +0.03 (+0.14%) while the CurrencyShares Euro Trust (NYSE:FXE) trades flat on the day.

An underlying fear has crept into the markets over the end of QE2 and the ability for the world to fully recover with Europe in such dire shape. The recent surge in commodity prices only put more pressure on the global economic picture with food and energy prices sucking discretionary income that could have been spent on other things. Inflation is beginning to creep up as well, will the Federal Reserve raise interest rates to curb inflation?

Today, the markets are also reeling from Hewlett-Packard Company (NYSE:HPQ) after comments about a "tough" quarter signaled trouble in large cap technology.  Recently, Cisco Systems, Inc. (NASDAQ:CSCO) posted earning and comments that did not lighten the mood on Wall Street either.

If the markets are going to turn around by the end of options expiration week, the Dollar must start to drop. If the Dollar drops, it is most likely due to a slight change in view on Europe. If that happens, then the demand outlook should bring the markets up for all sectors.


Gareth Soloway
InTheMoneyStocks.com
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Recs

1

As Inverse As Ever

May 17, 2011 – Comments (0)

It is rather amazing to trade day after day and see how the major stock market indexes such as the S&P 500 Index, and the Dow Jones Industrial Average(DJIA), continue to trade inverse to the U.S. Dollar Index(DXY) virtually tick for tick. When the DXY rallies or bounces higher the major stock indexes simply deflate and trade lower. The opposite effect occurs when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Therefore, in order to see higher stock prices the U.S. Dollar Index must decline and trade lower. This is now the only chart of any importance. The news that the financial media reports is really just noise, it's the action in the dollar that moves markets.

Some other trading vehicles that trade opposite the U.S. Dollar Index include the CurrencyShares Euro Trust(NYSE:FXE), iShares Silver Trust(NYSE:SLV), and the iPath DJ-UBS Copper TR Sub-Idx ETN (NYSE:JJC). Remember, every trade is a trade on the U.S. Dollar Index at this time. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Retail Stocks Flex Muscle Early

May 17, 2011 – Comments (0)

This morning, the retail sector is the one area of the market that is holding up despite the early stock market declines. Many traders and investors have been buying retail stocks as the price of oil, and gasoline have declined. The Retail Holders Trust(NYSE:RTH) is trading higher this morning by 0.42 cents to $112.90 a share. The RTH remains above the daily chart 20 and 50 moving averages which keeps the RTH in good technical shape. The 52 week high for the RTH was made just three trading days ago at $114.38 a share. This level will still be minor daily chart resistance until the RTH can close above that high. Short term day traders should watch for intra-day resistance around the $113.16 area.

Other leading retail stocks that are trading higher this morning are Home Depot Inc.(NYSE:HD), J.C. Penney Inc.(NYSE:JCP), and Costco Wholesale Corp.(NASDAQ:COST). Some retail leaders that are trading lower this morning are TJX Cos Inc.(NYSE:TJX), WalMart Stores Inc.(NYSE:WMT), and Bed Bath and Beyond Inc.(NASDAQ:BBBY). At this time the retail sector is showing good relative strength compared to the major stock indexes. Therefore, if the stock market somehow catches a bid higher intra-day, the retail stocks could lead the markets higher.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Schizophrenic Market

May 16, 2011 – Comments (0)

If you are an intra-day stock trader you will have noticed that the major stock market indexes have traded all over the map. The Dow Jones Industrial Average has traded over 300 points from its intra-day peaks and troughs. The driving force behind every stock market move is the U.S. Dollar Index(DXY). When the DXY declines the major stock indexes rally and trade higher. The opposite is true when the DXY trades higher the major stock indexes deflate and trade lower. This inverse relationship between the stock market and the U.S. Dollar Index is as tightly correlated as I have ever seen.

Options expiration is on May 20, 2011, therefore, that means that the entire trading week should be very volatile. Often during this week, many of the leading and popular stocks will trade rather erratic. The reason for this type of activity is due to the institutional games that will played by the major financial firms. You see the institutions have enough capital on hand to push the market anyway they see fit. The object by the institutions is to try and shake out the small retail options traders out of their positions. For example, if enough retail options traders bought call options on a stock like Netflix Inc.(NASDAQ:NFLX), or Apple Inc.(NASDAQ:AAPL), the stocks will generally sell off during the week so that the retail options trader closes his call position for a loss on the premiums paid.

These games take place every month during the week into options expiration. Therefore, until the institutions take care of business it would be prudent to expect more volatility throughout the trading week.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Apple Shows Signs Of Key Break Down

May 16, 2011 – Comments (2)

Apple Inc. (NASDAQ:AAPL) has been stuck in purgatory for weeks now, trading sideways to lower. It did not matter if the markets were sharply higher or lower, Apple continued to trade flat to lower. This pattern for many is known as bullish consolidation but the price action was unbelievably poor. The leader of the technology sector was no more! This was a direct alert that the bullish pattern may fail. As of Friday, May 13th, the pattern failed with a close below two major moving averages. These moving averages had been the support level for the bullish consolidation pattern. With a close below, the downside may come fast and furiously. A possible drop to the 200 moving average at $320.00 is likely in the next month. Always remember, a failed pattern in one direction usually results in a major move in the opposite direction.

Another stock worth noting is Amazon.com, Inc. (NASDAQ:AMZN). Amazon looks to have finally put in a pivot top on Friday at high of $206.39. This high will confirm today as a pivot top if the closing price on the stock ends lower than the lows on Friday. That looks likely at this point. Amazon.com would become a short on any solid bounce back towards that pivot top.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Manipulation: Bullish Case For The Week

May 16, 2011 – Comments (0)

The markets are hovering slightly higher, after a gap lower this fine Monday morning. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $134.34, +0.30 (+0.22%). This move higher is due to the weakness in the Dollar. Always remember, the markets will move inverse to the Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP)$21.57, -0.12 (-0.55%).

The markets will most likely have an up week for one main reason. It is options expiration. Institutions sell a majority of options to the public and to various funds. These institutions have a bias towards wanting those options to expire worthless, thus the entire premium is profit.  The more put options (downside expected) are bought in the month and weeks prior to an options expiration, the more likely the market will go the opposite way into options expiration. Driving the price of a stock out of the money is a favorite past time of institutions. They can make billions this way over the course of a year.

Over the last month, the markets have started to get jittery. The downside is something seen much more often as the Dollar has rallied strongly off the lows and the Federal Reserve winds down their print money policy of QE2. As this has happened, short interest has increased dramatically in the market. This implies many more puts have been bought over the last month as well.

Knowing the downside is being favored by the retail investor through shorts and puts, it is likely that this week will end flat to higher as the institutions try and capitalize on the options game. While this week should end higher, the market most likely will resume its downward trend following this week.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Agriculture Stocks Sprout On Weaker Dollar

May 16, 2011 – Comments (0) | RELATED TICKERS: MOS , POT , MON

This morning, the leading agriculture stocks are bouncing higher this morning as the U.S. Dollar Index pullbacks back. Often the agriculture stocks will behave very much like a commodity stocks and react positive from a weaker dollar. 

Potash Corp Sask Inc.(NYSE:POT) is one the leading agriculture stocks in the market. The stock is trading higher by $1.34 to $52.93 a share this morning. Traders should watch for some intra-day resistance around the $53.00 area and more around $53.75 level. As long as the U.S Dollar Index remains weak this market leader could trade higher intra-day.

Other leading agriculture stocks that are trading higher this morning include Monsanto Co.(NYSE:MON), Mosiac Co.(NSE:MOS), and Agrium Inc.(NYSE:AGU). These stocks are all trading higher on the back of a weaker U.S. Dollar Index. Should the U.S. Dollar Index catch a bid higher today these stocks could pullback intra-day. Remember, every trade is essentially a trade on the dollar.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Gold And Silver On The Move, Watch These Resistance Levels

May 16, 2011 – Comments (0)

Gold is trading higher seven points this morning  to $1500.00 an ounce. The SPDR Gold Shares (NYSE:GLD) are trading higher by 0.80 cents to $146.43 a share. Short term traders must watch for short term intra-day resistance around the $146.66 area. Should the GLD trade through that level the next intra-day resistance area will be around the $147.25 level.

Silver has also bounced higher this morning as the U.S. Dollar Index has declined lower. The iShares Silver Trust started the day trading around the $33.70 level. Since the U.S. Dollar Index has plunged lower the SLV has traded sharply higher and is now positive on the session trading at $34.40 a share. Short term traders should watch for resistance around the $34.70 area. Should the SLV trade higher later in the session traders must watch the $35.25 area as the next important intra-day resistance level.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

How Low Will The Dollar Go?

May 16, 2011 – Comments (0) | RELATED TICKERS: FXE , CLF , X

This morning, the U.S. Dollar Index futures(DX M1) are declining sharply lower by 0.32 cents to $75.61 per contract. Usually, when the U.S. Dollar Index declines the major commodity stocks will inflate and trade higher. Therefore, short term traders must keep one eye on the dollar at all times. 

Last week, the major stock market indexes came under pressure every time the U.S. Dollar Index rallied higher. Just look at the action in the market on May 13th, 2011. The major stock indexes declined sharply lower last Friday as the U.S. Dollar Index surged higher. 

Leading commodity stocks seem to be affected the most by a stronger U.S. Dollar Index. Therefore, when the U.S. Dollar Index declines trader should watch stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) and United States Steel Corp.(NYSE:X). All of these stocks are positive this morning as the U.S. Dollar Index is lower on the trading session. Remember if the U.S. Dollar Index catches a bid higher these stocks will generally be the first stocks to sell off. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Buy: Stocks Hitting Key Support

May 13, 2011 – Comments (0)

Many stocks have fallen sharply over the last week as the Dollar made a dramatic low and surged higher. Today, the Dollar is ripping higher, forcing the stock market lower. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is currently trading at $21.64, +0.10 (+0.46%).  This is another big move for the Dollar ETF. In response, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $134.36, -0.72 (-0.53%).

As the markets have fallen sharply this past week, some stocks are nailing massive support levels and may see a short lived bounce next week. These plays may be optimal swing trades and great for capturing gains in a short amount of time.

The first stock nailing a major level is Goldman Sachs Group, Inc. (NYSE:GS). After being downgraded yesterday, the stock has tumbled into the $140.00 level. This represents a massive support level and should signal a bounce early next week.

The second stock hitting support is Morgan Stanley (NYSE:MS). This is another financial firm that has been under pressure almost all of 2011. While the stock has tumbled from a high in 2011 of $31.04, it now is slamming into major support at $24.25. Look for a bounce early next week.

Lastly, Yahoo! Inc. (NASDAQ:YHOO) has hit a level that may represent the best bounce of all. This stock is down sharply today after major miscommunications surfaced between Alibaba. With such confusion, the stock is getting pounded, down -1.17 (-6.81%) t0 $16.00.  This level happens to be a major pivot low from mid March as well as the 200 moving average on the daily chart. A easy $0.50 bounce is likely next week and maybe more.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Gold Miners Inch Higher Early

May 13, 2011 – Comments (0)

The leading gold mining stocks have been market laggards since putting in a pivot high on April 8, 2011. The popular and highly traded Market Vectors Gold Miners ETF(NYSE:GDX) topped out at $64.14 a share which was actually a lower high from the December 7, 2011 top made which was $64.62 a share. Whenever an index makes a lower high it is usually a sign of bearish action to follow. Since the $64.00 high on April 8, 2011 at $64.14 a share, the GDX has declined lower by $10.00 a share. In the near term the GDX is oversold, however, the GDX is now in a down trend on the daily chart by trading below all of the major moving averages. This tells us that bounces will usually be sold until the GDX can recapture one of those moving averages. Therefore, any rallies in the GDX should be short term. Intra-day the GDX will have intra-day resistance around the $55.50 area.

Other gold mining stocks that are bouncing higher this morning are Newmont Mining Corp.(NYSE:NEM), Randgold Resources LTD.(NASDAQ:GOLD), and Goldcorp Inc.(NYSE:GG). These leading gold mining stocks will often trade right along with the GDX. Generally, all of these stocks and the precious metals could see better bounces if the U.S. Dollar Index declines.



Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

The DXY Futures Turn Into Scrambled Eggs

May 12, 2011 – Comments (0)

The U.S. Dollar Index futures(DX) are trading all over the map this afternoon. Traders should take note how almost every stock and commodity inflated higher when the DXY sold off. The opposite is true when the DXY bounces or rallies higher, the major stocks and commodities decline. Essentially, every trade intra-day is a U.S. Dollar Index trade.

Leading stocks such as Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSECVX), and Schlumberger Limited (NYSE:SLB) have all staged sharp reversals higher when the DXY declined. It is important to remember that many of the leading energy stocks have sold off sharply over the past week as the U.S. Dollar rallied higher. The DXY chart is the most important chart in the market right now.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

End Game: The Strong Keep Chugging

May 12, 2011 – Comments (0)

In a market frightened by the end of QE2, ugly Jobless Claims numbers and commodity prices that seem to be moving faster than a small cap stock, Intel Corporation (NASDAQ:INTC) and Amazon.com, Inc. (NASDAQ:AMZN) keep pushing higher. These two stocks were probably the best performers following their earnings releases in the last month. Both stocks soared on earnings and even with the weak market, have done little but continue higher.

Intel looks destined for a double top from its 2010 highs at $24.25. This will be the beginning of major resistance for a stock that has jumped from under $20.00 per share prior to earnings to its current level of $23.65, +0.24 (+1.03%).

Amazon continues its upward climb, now over $200.00 per share. This stock reported stellar revenue numbers as the online retailer seems to have growth in the title again. The stock will enter a resistance area around $210.00 to $215.00.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Goldman Hammered On Downgrade But Sees Some Light

May 12, 2011 – Comments (0) | RELATED TICKERS: GS , JPM , BAC

Goldman Sachs Group, Inc. (NYSE:GS) is taking a beating today on the back of an analyst downgrade. Richard X. Bove of Rochdale Securities cut his price target and moved the stock to a sell rating. This was all on the back of worries the Justice Department will come down hard on Goldman Sachs any day now. Investors are running for cover as the stock is trading at $140.74, -7.14 (-4.83%). While things look extremely grim, Goldman is approaching some mega support levels. The first support happens to reside at a key gap fill from September 2nd, 2010. This level is at $139.50. The second level of support is at $136.00 and is a key double bottom from August 31st, 2010. Both these levels serve to be solid swing trading pivot points. Swing trading level is an art form using technical analysis and support, resistance points. A swing trade can last from one day to a week or two.

Other financial stocks are also taking a hit today in sympathy. With the market around the flat line, JPMorgan Chase & Co. (NYSE:JPM) is trading at $43.72, -0.51 (-1.15%) while Bank of America Corporation (NYSE:BAC) is trading at $12.17, -0.08 (-0.65%)

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

The Ultimate Safety Stocks

May 12, 2011 – Comments (0)

Whenever the major stock indexes come under selling pressure or even have a correction there are a few stocks that seem to be safety stocks. These are stocks where investors will immediately flock to and park their money in order to weather the storm. These stocks are Procter & Gamble Co.(NYSE:PG), Colgate Palmolive Co.(NYSE:CL), Johnson and Johnson(NYSE:JNJ), and Coca-Cola Co.(NYSE:KO). These are stocks that make products that very few people can live without. All of these stocks distribute dividends and are held by many leading mutual funds. Therefore, whenever the stock market starts to sell off or have a market correction these stocks will see buying interest increase.

At this time, Procter & Gamble, and Colgate Palmolive have very strong daily charts patterns. These stocks are very close to trading around their 52 week highs. The current chart patterns for these stocks indicate higher prices as they are trading above all of their major moving averages.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Cloud Stocks Flying High

May 12, 2011 – Comments (0)

This morning, the major stock indexes are all coming under some selling pressure. However, there is one group of technology stocks that are trading higher just after the opening bell and they are the cloud computing stocks. Traders should always keep an eye on a group of stocks that seem to be bucking the short term trend as the stocks have good intra-day relative strength. Therefore, if the major stock indexes begin to trade higher these stocks could see further gains in the trading session.

Some of the leading cloud computing stocks that are on the move this morning include F5 Networks Inc.(NASDAQ:FFIV), Riverbed Technology Inc.(NASDAQ:RVBD), Netapp Inc.(NASDAQ:NTAP), and VMWare Inc.(NYSE:VMW). These are some leading cloud computing stocks that are trading higher in down market. Therefore, should the major stock indexes catch a bid higher later in the trading session these stocks could see further gains. At the moment, most of these stocks may need to pause or consolidate intra-day before making a move later in the trading session.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

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

May 12, 2011 – Comments (0)

Since the weekly initial claims number was released at 8:30 am EST this morning, the U.S. Dollar Index(DXY) has declined lower. When the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. It now seems that computer programs are trading directly inverse to every move in the U.S. Dollar Index. Look at the chart below, you can easily see how the S&P 500 e-mini(ES M1) contract trades higher on any U.S. Dollar Index pullback.

Traders should watch for moves higher in the leading commodity and energy stocks if the U.S. Dollar Index pulls back intra-day. Some stocks that have a tendency to react quickly from moves in the U.S. Dollar Index include Freeport McMoran Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X). Remember, traders can look for these names to trade inverse to the U.S. Dollar Index.



Nicholas santiago
InTheMoneyStocks.com  [more]

Recs

2

Choose: Stronger Dollar Or Higher Markets

May 11, 2011 – Comments (4)

Politically it is a tough decision. What will get you re-elected? What is best for the American people in the short run and long term? A higher stock market or a stronger Dollar. Very few average Americans understand that we cannot have both. The stock market moves 100% inverse to the stock market. Dollar up, market down. Dollar down, market up. Today, the stock market is slightly lower with the SPDR S&P 500 ETF (NYSE:SPY) trading at $135.28, -0.59 (-0.43%). Why is the market lower today? The Dollar is rising. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.47, +0.09 (+0.42%).  Please recognize that the percentage the Dollar is up, is identical to the percentage the markets are down.

The Federal Reserve has wanted a weak Dollar policy since this crisis began. In fact, even far before that. The weaker the Dollar the higher exports. Trade balances adjust and overall it is a more even playing field for the United States when it comes to selling and buying goods. In addition, more recently the Federal Reserve found that they could manipulate the stock market by pushing the Dollar lower. Ben Bernanke has fought long and hard to put into effect his thesis paper from way back in the day. This thesis basically said, to create a recovery, the powers that be must make people believe there is a recovery, then it will happen. Essentially fooling the average American. While in theory this may be something to like, reality happens to have consequences.

While dropping the Dollar and pumping trillions of Dollars into the economy helped in the short term, the questions remain whether or not the recovery will last. In addition, as commodity prices surge, the average American struggles to pay for food and energy, has a weaker Dollar really helped? In addition, is the weak Dollar policy, which is forcing the markets higher, really helping? In reality, a higher stock market and weaker Dollar helps those who invest heavily. The richer Americans do not care much if food and energy costs go higher as they can afford it. In addition, as long as they are invested, the weaker Dollar drives up equity prices, thus offsetting the rising cost of good for them.

On the other hand, the poorer Americans are getting the short end of the stick. Not only do they not have significant investments, or even any investments but the rising costs of food and energy of creating a catastrophe. Bottom line is this. Who is this policy really helping? Is it just another way to enlarge the gap between rich and poor? What is better? A weaker Dollar for exports and the market or a stronger Dollar for the average American?

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

The Next Small Cap Runners

May 11, 2011 – Comments (1)

Small stocks have been ripping over the last week and today is no different. With stocks like Quantum Fuel Systems Technologies (NASDAQ:QTWW) and OXiGENE, Inc. (NASDAQ:OXGN) up over 100% from their lows in just days, all eyes must be peeled for the next small cap runner.

The small plays on watch are rated based on market capitalization, float, and where they reside on their charts as well as the hot sectors. These factors are key in understanding the next small 100% mover in a day or two.

FuelCell Energy, Inc. (NASDAQ:FCEL) is a prime candidate in sympathy to Quantum Fuel Systems. FCEL traded all the way to $2.25 six weeks ago and has fallen since then to the 200 moving average on the daily chart at $1.57. The market cap on FCEL is $125 million which puts it at the upper range of size but still alright. This is on watch for a possible spike higher.

Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM) is a small Chinese biotechnology stock that is trading at the dead lows. With all the fear of fraud in the reverse merger arena for Chinese plays, this stock has been hit drastically. With a P/E of just over 2, it looks to be a possible bounce candidate in the short term. Other Chinese stocks have jumped higher like Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL), spiking close to 100% in the last three trading days. Based on the chart, this may be a 50% mover to the upside in the short term.

Last but not least is ARCA biopharma, Inc. (NASDAQ:ABIO). This biotechnology stock is trading at a market cap of  $20 million. They just inked a major deal with a large pharma company and are at the dead lows of the chart. This fits a perfect sympathy play to OXGN which is up well over 100% in the last few days.

When one trades small capitalization stocks, there is always risk. However, with the risk, there is the possibility of monster rewards. The stocks above may be the big movers in the coming days. Watch them closely,

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Energy Stocks Plummet

May 11, 2011 – Comments (0)

This morning, the weak sector in the stock market is the energy sector. The leading integrated energy stocks such as Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP), are all trading lower by more than 1.50 percent. When the big three decline it is prudent to expect the rest of the major energy stocks to decline or trade lower.

Most of the leading coal stocks are trading lower as well. Stocks such as Peabody Energy Corp.(NYSE:BTU), James River Coal Co.(NASDAQ:JRCC), and Alpha Natural Resources(NYSE:ANR), are also under selling pressure. When different industry groups in the energy sector are trading lower this tells us that the entire energy complex is under distribution or institutional selling.

The stronger U.S. Dollar Index is obviously the catalyst for the energy decline. Short term scalp traders can look for a bounce in many of the energy stocks when the U.S. Dollar Index(DXY) pulls back. At this time the DXY is very strong trading higher by 0.36 cents to $74.98. As long as the DXY trades higher most energy stock could decline further.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

U.S. Dollar Rallies, Will It Fade?

May 11, 2011 – Comments (0) | RELATED TICKERS: UUP , FXE

The U.S. Dollar Index(DXY) is trading higher this morning by 0.24 cents to $78.85 per contract. As we all know by now, when the DXY is trading sharply higher the major stock indexes will usually trade sharply lower. That is exactly what is happening this morning. The problem with the DXY is that when it trades higher in the morning it will often make a high and usually fade throughout the rest of the session. As soon as the U.S. Dollar Index declines intra-day the major stock indexes will inflate and trade higher again. The same effect will be seen in most of the leading commodities such as oil, gold, silver, gasoline, and copper. In other words if you can control the dollar you can control the stock and commodity markets.

There is really only one institution that we know of that can really move the U.S. Dollar Index and that is the Federal Reserve. Since the Federal Reserve announced its quantitative easing program in late August 2010 the U.S. Dollar Index has declined sharply. In fact, since June 7, 2010 the U.S. Dollar Index has dropped by as much as 17.0 percent. If the DXY falls everything else in the stock market trades and inflates higher.

This week the U.S Treasury is auctioning off almost $100 billion in new bonds. Therefore, the it is usually easier to sell those notes if the U.S. Dollar Index strengthens. Is the recent five day climb in the U.S. Dollar Index(DXY) just another propping stunt by the Federal Reserve and the U.S. Treasury so that foreign governments will buy our bonds? We shall see. In any case the DXY is trading higher today and that can only mean that the major stock indexes will be under pressure as long as the dollar trades higher.



Nicholas Santiago
IntehMoneyStocks.com  [more]

Recs

1

As Inverse As It Gets

May 10, 2011 – Comments (0)

We no longer need an S&P 500 Index chart to trade. The U.S. Dollar Index chart will work just fine. Notice in the chart below how the S&P 500 Index(white and black candles) trades inverse to the U.S. Dollar Index(green and red candles). 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Light Volume And The Falling Dollar Save The Day

May 10, 2011 – Comments (0)

Is this May 10, 2011 or August 10th, 2011? Where has all of the volume gone? This is one of the lightest trading volume sessions of 2011. As we should all know by now, when the trading volume is very light that will generally favor the upside in the stock market. This afternoon the SPDR S&P 500 Trust(NYSE:SPY) is trading just 69.3 million shares as of 2:45 pm EST. What a joke! Just three trading days ago the SPY traded over 222 million shares. How can the volume change so dramatically. The Citigroup Inc.(NYSE:C) 10 for 1 reverse split can't be the total blame for the light trading volume.

The U.S. Dollar Index(DXY) is now trading lower by 0.10 cents to to $74.63. The DXY did trade as high as $74.86 this morning before declining lower on the trading session. Again, as we all know by now when the DXY declines the major stock and commodity indexes will trade higher.

So there you have it. Light volume that is reminiscent of the summer doldrums and a falling U.S. Dollar Index lead to a higher stock and commodity market. Even crude is trading higher today and that move higher comes after margin hikes. Every trade is essentially a trade on the DXY at this time.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Death Spiral

May 10, 2011 – Comments (0)

The financial stocks have been weak throughout 2011 as the Federal Reserve QE2 comes to a close. New rules and regulations have hampered them as well. As the markets have recently hit new 52 week highs, many financial stocks have made or are near new 52 week lows. Today, as the markets uptick again, financial stocks are finally catching a little bit of a bid and moving higher.  Goldman Sachs Group, Inc. (NYSE:GS) is trading at 150.24, +1.12 (+0.75%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $45.25, +0.29 (+0.65%). Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC) are also up approximately one-percent on the day.

While the financial stocks are seeing a rare move higher, it is likely they will see more downside in the near term. None of these stocks mentioned above have solid support. Goldman Sachs has major support at $143.00, JPMorgan at $43.00 then $42.00, Bank of America at $11.50 and Wells Fargo at $26.50.

These levels are key supports and should they hit, then these stocks will have a reward to risk that is worthy of a long. Until then, today appears to be a minor dead cat bounce in an otherwise ugly sector.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Technology: The Haves And Have Nots

May 10, 2011 – Comments (0)

As the markets float higher today, technology is showing up mixed, with some key named stocks leading and some lagging. This divergence has been going on for the last few months and looks to be separating the strong from the weak. The weak stocks should be avoided in the near term while the stronger plays should be bought on pull backs.

The clear leader of late has been Amazon.com, Inc. (NASDAQ:AMZN). After reporting great revenue numbers in their last quarterly statement, the stock has been a monster, pushing through $200.00 per share. Today, Amazon is trading at $203.49, +2.69 (+1.34%). Amazon will likely move to the $210.00 level before pulling back. The strength it is showing, tells traders to buy the pull backs.

Another leader in tech land is Intel Corporation (NASDAQ:INTC). Going into earnings, expectations were low and the stock was wallowing in purgatory. However, after blowing out earnings expectations, the stock has jumped, nearing its 2010 highs. While this level will be resistance, this tech giant has regained its shine and will most likely be a favorite buy on pull backs.

As some stocks shine, some must also be falling out of the spot light. Apple Inc. (NASDAQ:AAPL) is probably the best example of a stock that appears to have lost its shine. Over the past two years, if the markets were going to rally, Apple had to lead it. Over the last month, Apple has barely had an up day, even when the markets were hitting new 52 week highs. There has to be major concern over the price action in Apple lately. Even today, the stock is trading at $347.12, -0.48 (-0.14%) while the Nasdaq is higher by half a percent. As of now, one must believe Apple will collapse quickly on any market weakness.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

2

It Is All About The Dollar

May 10, 2011 – Comments (0)

Does any takeover, or economic news in the market really even matter anymore? Today, Microsoft Corp.(NASDAQ:MSFT) bought Skype for $8.5 billion. The stock market does not care about that deal. The stock market only cares about the U.S. Dollar Index. If the U.S. Dollar Index dips or declines the major stock indexes will trade higher and vice versa. Nothing else even matters at this point. Wall Street simply wants to know if the inflation rally is still on or is it off.

Last Friday, the government reported a much better than expected job report. The major stock indexes soared higher after the announcement. However, once the U.S. Dollar Index traded higher that rally faded throughout the day and the major stock indexes barely closed higher on the day. The Wall Street computer algorithms are programed to trade inverse to the U.S. Dollar Index. Often the major stock indexes will trade inverse to the U.S. Dollar Index tick for tick. The same type of action can be seen this morning and it is not yet 10:00 am EST right now.

Everything inflates higher when the U.S. Dollar Index trades lower. The entire stock market rally from March 2009 has been on a weaker U.S. Dollar Index. In fact, the only corrections that the stock market has seen have been when the U.S. Dollar Index rallied higher. Oil, gold, silver, copper, coffee, cotton, gasoline, and almost every commodity except natural gas have benefited from a weaker U.S. Dollar Index.

The problems in Europe do not seem to be going away anytime soon. Greece is looking to possibly leave the European Union if they do not get more favorable borrowing terms. The problem is that if Greece does get new borrowing terms countries such as Ireland, and Portugal will also look to get more favorable lending terms. This is just another domino effect that will take place in the European Union. Should all of this transpire in Europe over the next few months then the U.S. Dollar Index could actually trade higher. Hence, when the dollar is higher the inflation rally over.

It will be very interesting to see how the central banks are going to handle this situation. Obviously, they will need to keep the U.S. Dollar Index down at all costs in order to keep asset prices inflating higher. Right now the CME continues to increase margin rates on many of the leading commodities in order to keep these prices from climbing. We shall see how they try and accomplish this task in the coming months.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

The Federal Reserve Is Stuck Between A Rock And A Hard Place

May 09, 2011 – Comments (1)

We have all seen this act before, the U.S. Dollar Index makes an early move higher and then declines sharply from its intra-day high. Well, this is exactly what occurred today around 10:30 am EST as the U.S. Dollar Index pulled back. The effect from the intra-day dollar decline was a sharp move higher in most commodities.  [more]

Recs

0

Dollar Falls Off Highs Giving Market Solid Lift

May 09, 2011 – Comments (0)

The Dollar spiked higher for the third straight day with one small difference. Today, the Dollar pulled back into lunch, giving the markets a solid pop. The Dollar trades inversely to the markets and anytime the Dollar falls, the markets will move higher. Note the chart below. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) hit a high today of $21.55 before falling sharply in the last hour to $21.46. This fall coincided perfectly with the SPDR S&P 500 ETF (NYSE:SPY) pop into the 200 moving average on the intra day ten minute chart.

The markets are having a normal Monday float higher. After a weekend, especially one with a holiday like Mothers Day, the markets have a tendency to have light volume and also float higher. Commodities are popping today with oil, gold and silver all surging. Key stocks leading the up move in the markets are the beaten down commodity plays like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Buy: Two Stocks Nearing The Master Level

May 09, 2011 – Comments (0)

The market is just slightly off of a mega top. Recently, the SPDR S&P 500 ETF (NYSE:SPY) hit $137.18 before reversing last week. The markets reversed primarily because the Dollar made a bottom and began to spike higher. While the markets seem toppy and may be seeing further downside, there are some stocks that are starting to look attractive.

Research In Motion Limited (NASDAQ:RIMM) has been crushed in recent months. Margin pressure, competitors like the iPhone and Droid are hammering profits across the board. The stock has been hit accordingly, dropping from a 52 week high of $70.54 to a current price of $44.86. The key to this trade is the pivot low from August 31st, 2010. This low level was $42.90 and represents a beautiful double bottom for a buy. The stock should find significant support here.

Marvell Technology Group Ltd. (NASDAQ:MRVL) is another tech stock that has been crushed in 2011. On January 19th, 2011, MRVL was trading as high as $22.00 before collapsing to its current level of $14.65. MRVL is in the semi sector and while many semiconductor players have been hot, MRVL has been cold as ice. While the chart looks ugly, it does show significant support at August 12, 2010 low of $13.90. This represents a buy level and should be utilized as such.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Dollar: Small Pull Back Likely, But Bottom In

May 09, 2011 – Comments (0)

The Dollar has ripped higher over the last three trading sessions. This dramatic move has signaled a bottom in the near term. This now means pull backs in the Dollar can be bought and bounces on the Euro can be shorted.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) has jumped from $20.84 last Wednesday to a high today of $21.55. This is a monstrous move for any currency and must be respected. In response, the Euro has collapsed with the CurrencyShares Euro Trust (NYSE:FXE) dropping from $148.81 to a low today of $142.01.

In the next few days, expect a pull back in the Dollar and a bounce in the Euro. The Dollar is into major resistance with the 50 moving average on the daily chart. In addition, this is a three day move and this mega move is notorious for a pull back. In addition, the FXE hit the 50 moving average on the daily chart and this signals a coming bounce in the Euro.

After this pull back in the Dollar, the Dollar can be bought. In addition, on any solid bounce, the Euro can be shorted. This is simply because a pivot bottom has been put in on the Dollar and a pivot top is now in on the Euro. The reversals in each chart have begun.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Stronger U.S. Dollar Index Halts Stock Market Indexes

May 09, 2011 – Comments (1)

Monday's are notoriously a light volume trading session which usually favors the upside action in the major stock indexes. This morning the trading volume is extremely light as the SPDR S&P 500 Trust(NYSE:SPY) is trading just 29 million shares as of 10:28 am EST. Normally, light volume will often help to lift the major stock indexes, however, the U.S. Dollar Index is also trading higher by 0.34 cents to $75.07 per contract. When the dollar trades higher the major stock market indexes will usually deflate and trade lower. That is exactly the case this morning, as the Dow Jones Industrial Average, S&P 500 Index, and the NASDAQ Composite, are all trading slightly lower this morning.



Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Transport Stocks Stall On Oil Bounce

May 09, 2011 – Comments (0)

Last week, the iShares Dow Jones Transport Index(NYSE:IYT) rallied higher despite the major stock and commodity sell off. The move higher for the transport indexes was obviously caused by the decline in oil prices. This morning oil and gasoline prices are moving higher today. WTI oil is trading higher by $2.16 to $99.32 a barrel. The United States Oil Fund(NYSE:USO) is also moving higher by 0.60 cents to $39.45 a share. The United States Gasoline Fund(NYSE:UGA) is rallying higher by $1.28 to $52.27 a share. The transportation stocks are certainly being effected by the higher price of energy.

Some leading energy stocks that are coming under some minor selling pressure this morning include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and Delta Air Lines Inc.(NYSE:DAL). Traders and investors must continue to follow the energy prices closely, as higher energy could adversely effect many of the leading transportation stocks.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Citigroup 10 for 1 Reverse Spilt, There Goes The Volume

May 09, 2011 – Comments (0)

Citigroup Inc.(NYSE:C) has implemented a 10 for 1 reverse split this morning. The stock is now trading at $44.75 a share, however, the value of the company remains the same. The trading volume on the New York Stock Exchange could be effected going forward. Citigroup stock traded an average of 500,000 million shares a day, now the stock would be expected to trade just 50 million shares. It will be interesting to see how this stock will effect the overall volume in the markets.



Nicholas Santiago
  [more]

Recs

7

It Is Friday, What Else Could You Expect?

May 06, 2011 – Comments (4)

Ah, the markets are surging higher today after yesterday's bloodbath decline. Well, this should not be a real surprise to traders. By now, we should all know that the stock market rarely declines on a Friday. You see, Friday is the end of the work week for most people. Therefore, if someone comes home from work and sees the Dow Jones Industrial Average(DJIA) lower by 100.00 points they are likely to save their money instead of spending it. Most retail stores, restaurants, and other entertaining venues will do the most business on the weekend. If the average Joe comes home and sees a stock market crash or sharp decline he will think differently about spending his hard earned money over the weekend.

If you look at a chart of the Dow Jones Industrial Average over the past two and a half years you will notice that there have been less than a dozen Friday's where the market has declined by more than 100.0 points. This is because the powers that be need the U.S. consumer to spend money. All of this weak dollar stuff that the Federal Reserve and other central banks have done, such as the zero percent Fed funds rate since December 2008, $1 trillion QE-1, and the current $600 billion QE-2 , will only work if the U.S. consumer spends money. Please remember that consumer spending accounts for roughly 70.0 percent of the gross domestic product(GDP) in the United States.

The Federal Reserve boss, Ben Bernanke, wrote exactly about this many years ago. Basically, he says if the stock markets are higher than the public will feel better. He is actually correct if you look at the Friday effect. The central bank controls the stock and commodities markets by the amount of cash reserves they create. The only negative for the Bernanke theory is that by creating cash he also creates inflation. When goods become too expensive due to inflation the economy will ultimately suffer. Just look at the price of gasoline, food, and most other commodities recently. However, the party for the stock market will usually last until that final point of inflation becomes too much pain for consumers. Since March 6, 2009, the inflation party has been in full force. Yesterday, the U.S. Dollar finally surged higher and look how quickly that inflation party came to an end. Today, the U.S. Dollar is trading flat and the party is back on. Today is also a Friday, the volume is extremely light, and the government job report was much better than expected.

Since the tech wreck, and the dot com bubble burst, in the year 2000, the solution for the stock markets by the central bankers has been to weaken the U.S. Dollar. That was tried by the former Federal Reserve boss, Alan Greenspan, in 2002 which lead to the greatest stock decline since the Great Depression in 2008. This time around the current Federal Reserve boss, Ben Bernanke, has done much more stimulus and money creation than Alan Greenspan ever did. This method that the central bank uses is really just playing yo-yo with the U.S. Dollar. Last year, the U.S. Dollar Index surged higher from November 2009 until June 2010 and that surge in the dollar caused the stock market to stage it's first 17.0 percent correction since the inflation rally began in March 2009. This is a direct correlation to the U.S. Dollar Index and that is still all that really matters. At this point in time the stock market cannot stand on its own two feet with a falling U.S. Dollar. This is unlike the 1990's when the stock market and the dollar rallied higher together. When the dollar and the markets can trade higher together that is real wealth. Right now, when the dollar trades lower and the stock market trades higher that is just a trade off. Wealth is not created when that happens, and hopefully the equity you have has increased more than the dollar has declined. There is really nothing gained here.

Oh well, let us enjoy the Friday rally and remember to spend some money this weekend. Please keep an eye on the U.S. Dollar, if that green piece of paper catches a bid today's rally may not last very long.



Nicholas Santiago
InTheMoneyStocks.com
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2

It Is Still A Dollar Story

May 06, 2011 – Comments (3)

As long as the U.S. Dollar Index is declining lower this morning the major stock market indexes should remain strong. The leading commodities that were all crushed lower yesterday could all bounce up a bit on the back of a U.S. Dollar Index pullback. Traders must keep one eye on the dollar at all times.

Some leading commodity stocks that could see bounces today should the U.S. Dollar Index pullback include Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF) and United States Steel Corp.(NYSE:X). Please remember that these stocks will usually trade inverse to the U.S. Dollar Index. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Stronger Dollar, No Longer A Need For Gasoline

May 05, 2011 – Comments (0)

Today, the U.S. Dollar Index is surging higher by $1.09 to $74.12 per contract. This is the largest one day gain for the U.S. Dollar Index since January 5, 2011. As we have all learned by now when the U.S. Dollar Index declines the rest of the equity markets will decline lower. Today, gold, oil, silver, copper, steel, and most every other commodity that is trading in U.S. Dollars is plummeting lower as the dollar surges higher.

Last week, President Obama organized a gasoline task force in order to find the evil speculators that were driving up the price of gas. Well, I guess they found those evil speculators as gasoline is plummeting lower this afternoon, and its not Osama bin Laden. The United States Gasoline Fund(NYSE:UGA) is trading lower by $4.07 to $50.21 a share. This is a decline 7.50 percent in UGA during this trading session. Ah, it seems the evil speculators that were driving gasoline prices higher were the guys over at the Federal Reserve. These are people that are responsible for crushing the U.S. Dollar lower on a daily basis. When the dollar goes down, gasoline, oil, coal, copper, and every other commodity trades higher. So much for Ben Bernanke's, Abbot and Costello routine were he says that high gasoline is driven by demand.


Nicholas Santiago
InTheMoneyStocks.com
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0

Conspiracy: Jobless Equals QE3

May 05, 2011 – Comments (4)

The markets are wild today on the back of comments from the ECB and Jobless Claims that shot higher to 474,000.  The SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA) are trading lower while the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) are higher.

The Jobless Claims numbers have skyrocketed over the last month. Just a month ago, people filing for unemployment sat below 400,000. Last week, the number of filings jumped to 431,000 and this week to a staggering 474,000. This massive jump in Jobless Claims has many wondering if it is another ploy by the Federal Reserve and government to enact a controversial QE3.

In June, QE2 is supposed to come to a close as the $600 billion will have been used up. It is obvious, this infusion of money has done little to fix the massive housing problem or even truly curb the unemployment number. On the negative side, food and energy prices are killing the average American. If you take away the drug (free money), the junkie will freak out. Even Ben Bernanke must see this. Therefore, is it plausible to think that a sudden spike in Jobless Claims may give the Federal Reserve the ammo to push out QE3? It is hard to imagine this spike in Jobless Claims being a mere coincidence just one month prior to the end of QE2.

Gareth Soloway
InTheMoneyStocks.com

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0

Commodities Crash, What To Do

May 05, 2011 – Comments (0)

The Dollar ripped higher today causing commodities to be annihilated. The Dollar jumped on ECB comments that pushed the Euro lower. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) hit a high of $21.18, +0.23 (+1.07%). This is a gigantic move in the Dollar. The Dollar has been collapsing lower all year but seems to have found support around current levels with QE2 coming to an end.

Silver is continuing to collapse. This is a sell off of epic proportions, following the 80% run higher in the last three months. The iShares Silver Trust (NYSE:SLV) is currently trading at $35.40, -2.87 (-7.50%). This is after hitting a high of $48.35 a week ago. In total, the sell off on silver is now at a staggering 27% in one week.

Jobless Claims shocked the markets today. After being in the 380,000 range a month ago, last week Jobless Claims jumped to 431,000. At 8:30am ET this morning, Jobless Claims were reported at $474,000. The increase in these numbers is shocking and the markets are reacting with selling. Tomorrow, the Non Farm Payrolls and Unemployment Number will be released. These will give further insight into the state of the jobs market in the United States.

There is a massive rotation underway in money over the last week. Money is running from commodity stocks and into old school technology. While stocks like Chevron Corporation (NYSE:CVX) are getting crushed this week, old school tech stocks like Hewlett-Packard Company (NYSE:HPQ) and Intel Corporation (NASDAQ:INTC) are moving higher.  This is a classic maneuver as money is looking for a new home and also looking for safety.

Gareth Soloway
InTheMoneyStocks.com

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0

Transport Stocks Sail Up Stream

May 05, 2011 – Comments (0)

This morning the major stock market indexes are all coming under some selling pressure for the fourth consecutive trading day. There is one sector that is bucking the short term trend and it the highly popular transportation index. This morning the Dow Jones Transportation ETF(NYSE:IYT) is trading higher by 0.98 cents to $98.62 a share. The IYT made a new 52 week high just three trading days ago at $100.67 a share. Often when an index makes a new high it will usually try and retest the high levels and does not just rollover. Traders can watch for intra-day resistance on the IYT around the $99.20 and $99.75 levels.

Some leading transport stocks that are trading higher today include CSX Corp.(NYSE:CSX), FedEx Corp.(NYSE:FDX), and United Continental Holdings Inc.(NYSE:UAL). Traders should watch the activity in the IYT as most of the leading transport stocks will trade in tandem with the index. 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Oil Gets Spanked By Stronger Dollar

May 05, 2011 – Comments (0)

This morning, WTI oil is trading sharply lower by $3.74 to $105.51 a barrel. When the U.S. Dollar rallies higher most commodities will come under some selling pressure. The United States Oil Fund(NYSE:USO) is trading lower by $1.32 to $41.94 a share. Traders can watch the $40.90 area for intra-day support. This is also a likely bounce area for the USO should it trade down to this level.

Many leading energy stocks are trading sharply lower this morning. Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX, and ConocoPhillips(NYSE:COP), are a few of the giant integrated energy stocks that are coming under selling pressure from a stronger U.S. Dollar. Traders should understand that if the U.S. Dollar continues to move higher most leading energy stocks could trade lower. On the flip side, if the U.S. Dollar begins to fade and trade lower these energy leaders will likely bounce higher.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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3

U.S. Dollar Index, The Stock Market Cardiogram

May 04, 2011 – Comments (0)

The U.S. Dollar Index(DXY) is trading lower by 0.08 cents to $73.06. This is another new daily chart low for the U.S. Dollar Index, however, the DXY is trading off of its intra-day low. As you probably know by now, when the U.S. Dollar Index rallies higher intra-day the major stock indexes will trade lower. Every trader must be wondering if the U.S. Dollar Index will fade into the close helping to inflate the stock market indexes higher. Traders can look at a 5, or 10 minute chart and watch how the major stock indexes will trade inverse to the DXY virtually tick for tick. If the DXY can somehow rally into the close the major stock indexes could see further declines into the close. It really is a dollar story.



Nicholas Santiago
InTheMoneyStocks.com
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2

Oil Stocks Reach Short Term Support Levels

May 04, 2011 – Comments (1)

Oil stocks have collapsed this week, a sell off of monumental proportions. The drop was almost too obvious as oil was at a level where if it moved up, the oil stocks would sell off and if it moved down, oil stocks would also sell off. This was a no win situation for stocks like Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP) and Marathon Oil Corporation (NYSE:MRO). Chevron and Exxon had rallied over 60% in the last three quarters and were already extended. Add in the major no win situation and the short was 100% in play.

While the three day drop on oil stocks has been fantastic, there are some signs that a short term bottom has been reached. The charts on everything from Exxon, Chevron to even the Oil Service HOLDRs (NYSE:OIH) are saying this.

Exxon Mobil dropped from a double top high of $88.23. It hit a low today of $84.06. This low of the day matches up perfectly with a pierce of the 50 moving average on the daily chart and is just $0.25 shy of a key gap fill going back to April 19th, 2011. This range should be solid support for three days or so.

Chevron dropped from a high on Monday at $109.58 to a low today of $103.70. As CVX hit the low today, it is less than $0.50 away from the support base in early to mid April at $103.35. This should hold it for a few days and it is likely to see CVX bounce for two to three days.

Perhaps the best example of all is the OIH. This represents all the oil services as an ETF. The OIH has dropped for three straight days, falling into the mid March lows of $149.50. This level is major support for the ETF and should hold in the short term. This should get a solid bounce in the coming few days before ultimately going lower.

While many oil stocks are hitting key daily support levels, it is important to recognize that this is only short term support for a minor bounce. After this happens, oil stocks will fall further to the downside. Ultimately, daily 200 moving averages should be hit which are far below current levels.

Gareth Soloway
InTheMoneyStocks.com

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0

Integrated Energy Stocks Lead Markets Lower

May 04, 2011 – Comments (0)

This morning, the major stock market indexes are coming under some heavy selling pressure. The decline in the major stock indexes looks to be very broad based. The one sector that is leading the decline this morning looks to be the large integrated energy stocks. Stocks such as Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP) are all trading lower by more than 1.00 percent. Energy stocks account for 16.0 percent of the S&P 500 Index.

Other leading energy stocks that are trading lower include Chesapeake Energy Corp.(NYSE:CHK), Devon Energy Corp.(NYSE:DVN), and Suncor Energy Inc.(NYSE:SU). Lately, when the U.S. Dollar Index has declined lower the energy stocks and most other commodity related stocks have bounced higher. That inverse relationship between stocks and the dollar has not occurred today. This tells us that the recent leading stocks could see further declines.



Nicholas Santiago
InTheMoneyStocks
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0

KLA Tencor and Lam Research Up In Sympathy

May 04, 2011 – Comments (0)

This morning, the major takeover news comes as Applied Materials Inc.(NASDAQ:AMAT) buys out Varian Semiconductor Equipment Associates Inc.(NASDAQ:VSEA) for $63.00 a share in cash. This buyout is causing some of the other leading semiconductor equipment makers to rally sharply higher this morning.

Lam Research Corp.(NASDAQ:LRCX) is a leading semiconductor equipment maker that has been declining since early March 2011, when it traded as high as $59.10 a share. Yesterday, Lam Research stock traded as low as $46.65 a share. This morning LRCX stock is trading higher by $1.90 to $48.85 a share which is nearly a 4.0 percent increase. The stock should have some short term intra-day resistance around the $49.25 area. Should the stock rally above this level the next important intra-day resistance level will be at $50.00.

KLA Tencor Corp.(NASDAQ:KLAC) is another leading semiconductor equipment maker. This stock is trading higher this morning $1.09 to $44.05 a share. The stock has been making a series of lower highs on the daily chart which is not a sign of strength on the charts. Traders can look for intra-day resistance around the $44.50 and $45.00 levels.

Lam Research Corp. and KLA Tencor Corp. are two of the larger semiconductor equipment makers. It is difficult to know who would takeover these big market cap companies. Therefore, this bounce in these two stocks could be short lived. That is the reason that we want to follow the charts and not solely rely on the news.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

U.S. Dollar Index Bounces, Deflates Stock Indexes

May 03, 2011 – Comments (0)

Around 11:00 am EST the U.S. Dollar Index rallied sharply higher off its morning lows. When the dollar pops the stock market drops. Short term traders must keep one eye on the U.S. Dollar Index chart at all times, as it seems to be the only chart that matters. Since June 7, 2010, the U.S. Dollar Index has declined by 17.0 percent creating a massive stock and commodity rally. When the U.S. Dollar Index rallies it simply deflates the stock markets in a short time. Just look at how the U.S. Dollar Index bounce has deflated the markets lower today.

This afternoon oil, gold, silver, and most leading stocks are trading sharply lower on the back of some minor U.S. Dollar strength. Should the U.S. Dollar Index pullback intra-day it would be prudent to expect bounces in most commodities and stocks. Right now the markets are trading inverse to the dollar and this relationship is all that matters.


Nicholas Santiago
InTheMoneyStocks.com
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0

Market Eyes Friday Jobs Report

May 03, 2011 – Comments (0)

All eyes turn to the Non Farm Payrolls number this coming Friday. The market is looking for continued positive readings on job creation. Lately, the market has been perplexed by higher Jobless Claims, last week hitting 426,000. This number is a sharp jump from a month ago when Jobless Claims were in the mid 380,000 range. In addition, the GDP reported last week was nothing to write home about, coming in at 1.8%. For a market that is getting steroids from the Federal Reserve, it seems somewhat on the weak side. As the Federal Reserve continues their quantitative easing policy, and the Dollar dives day by day, is the economy stalling out already?

Today, the markets are hovering slightly negative. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $136.02, -0.20 (-0.15%). This shows overall weakness in the market as their is no catalyst for upside until the Non Farm Payroll number on Friday. The weakness is even more apparent when we look at the Dollar. The Dollar is down again which is no surprise, however, a weaker Dollar usually pushes the markets higher. Today the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $20.90, -0.07 (-0.33%).

Energy stocks like Chevron Corporation (NYSE:CVX) are leading the markets lower while financial companies like JPMorgan Chase & Co. (NYSE:JPM) are fighting back, trying to keep things neutral.

Gareth Soloway
InTheMoneyStocks.com

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0

The Trade: Energy Stocks Weaken Further

May 03, 2011 – Comments (0)

Oil stocks have nowhere to go but down. That was the analysis given last week in an article on this very blog. At this time, Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) were trading at their double top, 52 week highs. This hypothesis was based on the current price of oil between $110 and $115 per barrel. The analysis clearly showed that higher oil would cause the markets to sell putting pressure on oil stocks, based on an economic slowdown, while lower oil would cause the oil stocks to sell directly, even if the markets moved higher. Essentially it was a lose, lose situation for oil stocks. In addition, stocks like Chevron and Exxon had rallied 60% higher in the last ten months. Since that alert, the oil stocks have stalled out and started to retreat. Chevron hit a high of $109.17 that day and is now trading back to $107.00 This should continue in the coming weeks.

Any sector related to energy seems to be on the weak side over the last few days. Just last week, Total SA, a European oil company, agreed to buy up to 60% of SunPower Corporation (NASDAQ:SPWRA) for $1.38 billion. The whole solar sector opened sharply higher on this positive news. However, by the end of the day, many solar players had given up a majority of their gains. By today, the entire gains from that news and then some have been wiped out. This is very bearish for the sector. After the close of trading, First Solar, Inc. (NASDAQ:FSLR) will report earnings. This will shed more light on the solar industry. If oil continues lower, solar stocks should remain weak.

Gareth Soloway
InTheMoneyStocks.com


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0

Financial Stocks Keep Market From Dropping Further

May 03, 2011 – Comments (0)

The large financial stocks have been under pressure since early April 2010 when the leading bank stocks reported earnings. This morning the major stock indexes are struggling to stay positive, however, it is the large financial stocks that are showing some intra-day strength and are actually keeping the S&P 500 Index from selling off further.

Bank of America Corp.(NYSE:BAC) is trading higher this morning by 0.27 cents to $12.62 a share. This stock has sold off sharply since mid-January 2011 when it traded as high as $15.31 a share. BAC stock will have intra-day resistance around the $12.60 and $12.90 levels. The daily chart of BAC remains in a downtrend.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the entire stock market. This stock is trading higher this morning by 0.58 cents to $45.76 a share. J.P. Morgan stock topped out in early April after the company reported earnings that were not well received by investors. JPM stock has struggled over the past few days around the $46.00 level, this level remains the intra-day resistance area.

Wells Fargo & Co.(NYSE:WFC) is trading higher by just 0.08 cents to $29.21 a share. WFC stock still remains very weak on the daily chart by trading below the daily chart 50 moving average. This stock looks to have intra-day resistance around the $29.50 level. Should the stock begin to decline traders can look for some short term intra-day support around the $29.00 level.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Rare Earth Stocks Dominate The Action

May 03, 2011 – Comments (0)

The rare earth stocks exploded on the scene in December 2010 when they spike higher during the holiday season. The sector that produces lithium, beryllium, indium, gallium, neodymium, and terbium continues to hold up well on the charts at this time.

Molycorp Inc.(NYSE:MCP) seems to be the leading rare earth stock in the sector. This stock remains in a choppy sideways base on the daily chart. The stock is trading above all of the major moving averages which puts the stock in a strong uptrend and a good technical chart position. This morning Molycorp stock is trading higher by $4.40 to $76.00 a share, which is a new 52 week high.

Avalon Rare Metals Inc.(AMEX:AVL) is another leading rare earth stock that is trading higher this morning by 0.57 cents to $9.40 a share. This stock is trading in a loose sideways base on the daily chart. This type of pattern could trade higher, however, loose consolidation patterns have a tendency to fail sometimes and break lower. Intra-day the stock will have resistance around the $9.55 area. Should the stock rally higher the next resistance area would be around the $10.00 level.

Rare Element Res Ltd.(AMEX:REE) is another leading rare earth stock based out of Vancouver, Canada. This stock has made a lower high pivot on the daily chart and this is a sign of likely weakness. However, a close back above the $15.53 area would put the stock in a strong technical chart position. This morning REE is trading higher by 0.76 cents to $14.61 a share. Short term traders must watch for resistance around the $14.85 and $15.10 levels. These are two short term levels where the stock could see some intra-day selling pressure.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Intra-day Dollar Bounce Rattles Markets

May 02, 2011 – Comments (0)

Everyone in the world thought that the stock market would have been in party mode today after the announcement that Osama bin Laden was killed. Last night the S&P 500 e-mini futures soared higher when the news was made public. This morning the major stock indexes have struggled to stay positive, that is because the U.S. Dollar Index has rallied off its intra-day low. When the U.S. Dollar Index rallies higher the major stock indexes will trade lower and deflate. While the U.S. Dollar Index is still trading lower on the session by 0.03 cents to $72.95 it is sharply off of the low made around 11:00 am EST around $72.72. Short term traders must keep one eye on the U.S. Dollar Index chart at all times.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Stocks On The Move

May 02, 2011 – Comments (0)

The markets are fading off the highs as a master level at $137.10 - $137.15 was hit on the SPDR S&P 500 ETF (NYSE:SPY). This looks like it may be a short term top in the markets. Stocks helping support the markets and keep them positive are International Business Machines Corp. (NYSE:IBM) and Amazon.com, Inc. (NASDAQ:AMZN). These two stocks have lead the markets higher in recent months and continue to do so, each hitting new 52 week highs today.

The laggards in the market are clearly Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), as well as Apple Inc. (NASDAQ:AAPL). While XOM and CVX have  been the leaders of late and are seeing a drop today, AAPL has been very weak over the last month or two and continues to show that weakness.

The markets are looking like continued downside is likely in the coming weeks. Look for a small Dollar bounce to start soon as well.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Major Level Tagged, Markets Sell Off Highs

May 02, 2011 – Comments (0)

The markets opened sharply higher on news that Bin Laden had been killed and a continued fall in the Dollar. The SPDR S&P 500 ETF (NYSE:SPY) is higher, trading at $136.76, +0.33 (+0.24%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower, trading at $20.88, -0.07 (-0.33%). A shocking stat shows just how closely tied the Dollar and the markets are to each other in the opposite direction. The U.S. Dollar is down around 8% on the year while the markets are up 8%. This shows that the markets are inverse to the Dollar and explains one of the reasons why the Federal Reserve favors a weak Dollar policy.

The SPY opened at a massive resistance level from a pivot on June 18th, 2008. This level happens to be at $137.10 - $137.15. No sooner did the market hit that level, then a sell off took place. After a short move lower, the markets retested trying to break through again but failing. Another sell off took place, this one bringing the markets sharply lower to only minor gains on the day. This is a possible top on the markets in the short term.

Commodities started the day with heavy losses, however gold is now soaring with the SPDR Gold Trust (NYSE:GLD) trading at $153.01 +0.64 (+0.42%). Silver has recovered off of major losses, but is still down.  The iShares Silver Trust (NYSE:SLV) is trading at $45.73, -1.15 (-2.45%)
 but had been as low as $43.58 and the United States Oil Fund LP (NYSE:USO) is nicely positive, trading at $45.53, +0.38 (+0.84%).

Gareth Soloway
InTheMoneyStocks.com

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