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inthemoneystock (< 20)

May 2013

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Simple Explanation: Why Rates Matter To The Stock Market

May 29, 2013 – Comments (4) | RELATED TICKERS: DIA , QQQ , SPY

The 10 year bond yield pushed higher again today. It is currently trading at 2.15%. So why does this matter to the stock market? Why has the stock market all of a sudden gone from a straight up move to a choppy pullback? The reasons are extremely simple and I will lay them out below.

1. When rates rise, borrowing money becomes more expensive. As interest rates rise, housing will take a hit. The Federal Reserve has made it clear they believe housing is the key to an economic recovery. If interest rates jump, less Americans will be able to afford to borrow money to buy a house. The housing market will slow and the economy will follow. The stock market senses this.

2. The 10 year yield is now at 2.15. Yesterday, it crossed the dividend yield of the S&P 500. This means it is now more profitable to buy bonds than to invest in the stock market. Considering that the stock market is extremely high and possibly due for a correction, many investors are opting for the safety of bonds which are still going to pay out more than stocks on a yield basis. In simple terms, two investments, one pays you 2.15% with little risk while the other pays you 2.00% with a lot of risk, which one do you choose? The answer is obvious and a major reason why the stock market has started to get jittery.

These are the keys to understanding why interest rates/yields matter. The Federal Reserve wants to keep rates low so housing recovers, the economy does better, and money flows into stocks. The Federal Reserve keeps rates low by printing money in the form of quantitative easing. However, they cannot print forever. The market senses this and is beginning to react.

Gareth Soloway
InTheMoneyStocks.com<
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Yields Spike: Screwing The Fed One Tick At A Time

May 28, 2013 – Comments (2) | RELATED TICKERS: TBT , TLT

The music in the game of musical chairs can only go on for so long. When the music stops, $hit hits the fan. We may be seeing that today with yields jumping dramatically higher. The 10 year yield is trading at 2.12, +0.10 (+5.17%). This is the highest in over a year and could literally handcuff the Federal Reserve and their massive printing of money campaign.  [more]

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These Leading Tech Stocks Can't Catch A Bid

May 28, 2013 – Comments (0) | RELATED TICKERS: BRCM , NFLX

This morning, the major stock indexes are soaring higher at the start of the trading session. The highly popular NASDAQ Composite is surging by 1.50 percent. Whenever there is a rally of this size it is always important to note the weak equities that are not rallying higher with the major stock indexes. Stocks that fail to rally higher on a day like today signal weak relative strength and could be signaling future weakness should a downturn occur in the major stock indexes.   [more]

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Japanese Stock Market: Bubbles And Why The Small Investor Remains Scared

May 23, 2013 – Comments (0)

The NIKKEI 225 (INDEXNIKKEI:NI225) dropped 1,060.23 (-7.32%) to close at 14,483.98 last night. This was after a 30% rise in their stock market in the last 6 months. These type of sharp declines are a result of market bubbles built by Central Bank intervention. In the case of Japan and the Nikkei, the Japanese Central Bank has printed even more money than the Federal Reserve.

Bubble after bubble and bust after bust, the average investor is starting to get savvy. When a stock market can drop over 7% in one day and it is no big deal because it is just a small correction, something is wrong. In addition, the average investor gets in late to the party, usually near the highs. Therefore, the drop actually hurts them the most, often causing substantial losses.

Bottom line is, investors are usually screwed by buying high and selling low. They know the game Wall Street plays with pumping the markets and are finally saying 'enough is enough!'

F#ck Wall Street and start making more money than the institutions who rape the average investor. 

Gareth Soloway
InTheMoneyStocks.com  [more]

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Railroad Stocks Could Get Hurt By The Keystone Pipeline

May 23, 2013 – Comments (2) | RELATED TICKERS: CSX , KSU , UNP

Yesterday, the House Republicans pushed through a bill Wednesday to bypass the president to speed up the approval of the Keystone pipeline. The oil pipeline stretches from Canada to Texas. At this time, most of the energy being transported is done by the railroads. The 1,700-mile pipeline would travel though Montana, South Dakota, Nebraska, Kansas and Oklahoma on its way to refineries in Houston and Port Arthur, Texas. This news is certainly a negative for the leading railroad stocks.

Some leading railroad stocks that are trading sharply lower today include Kansas City Southern (NYSE:KSU), CSX Corp. (NYSE:CSX), Union Pacific Corporation (NYSE:UNP), and Norfolk Southern Corp (NYSE:NSC). It is still important to note that President Obama rejected the use of the pipeline because of environmental fears.

Nicholas Santiago
www.InTheMoneyStocks.com
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All Eyes Should Be On Big Energy

May 23, 2013 – Comments (0) | RELATED TICKERS: COP , DVN , XOM

The important energy sector accounts for roughly 16.0 percent of the S&P 500 Index. Today, most of the leading energy stocks are declining lower at the start of the session. Exxon Mobil Corp (NYSE:XOM) is the leading stock in the sector. This stock also has the largest market capitalization in the stock market at $406 billion, so it is safe to say that this stock carries a lot of weight in the markets. Day traders should watch for three important support levels on XOM at $91.00, and $90.45, and $89.43. These are all levels where XOM stock could bounce intra-day. 

Some other leading energy stocks that are declining lower today include Devon Energy Corp (NYSE:DVN), ConocoPhillips (NYSE:COP), BP plc (NYSE:BP), and Suncor Energy Inc (NYSE:SU). Traders should follow XOM very closely as it is the leader of the industry group. Should the energy stocks decline further it will help to pull down the major stock indexes much further.

Nicholas Santiago
InTheMoneyStocks.com
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Bernanke Vows To Keep The Pedal to The Metal

May 22, 2013 – Comments (0) | RELATED TICKERS: BLK , GS , JPM

The Federal Reserve Chairman Ben Bernanke is beginning to testifying in front of the Joint Economic Committee. In his opening remarks, the head of the central bank has signaled that he shall continue to keep the current quantitative easing program in place. Traders and investors can easily see the decline in the U.S. Dollar Index after his comments were released. Chairman Bernanke warned that reducing the Federal Reserve's efforts to keep borrowing rates low would carry a substantial risk of slowing or ending the economic recovery. This means that he will keep interest rates at zero percent and continue to buy $85 billion a month worth of mortgage backed securities and U.S. Treasuries for the foreseeable future. 

Large financial stocks are soaring higher after the news. Leading stocks such as J.P. Morgan Chase & Co (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and BlackRock Inc (NYSE:BLK) have all moved sharply higher leading the rally in the major stock indexes today.

Nicholas Santiago
InTheMoneyStocks.com
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Markets Go For 19th Straight Gain On A Tuesday

May 21, 2013 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

Light volume in play, markets slightly positive, media pumping and it looks likely the U.S. stock markets will have their 19th straight positive Tuesday. This is a roaring bull with little to stand it its way as long as the Federal Reserve is backstopping it. Yields are being kept so low by the Federal Reserve that the only possible angle for investors is to buy stocks. As stocks balloon higher, a bubble forms. It is much like musical chairs. It great until the music stocks. Then watch out below. Enjoy the ride and profit!

Gareth Soloway
InTheMoneyStocks.com
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Ego Alert: Jamie Dimon Makes His Biggest Mistake

May 21, 2013 – Comments (0) | RELATED TICKERS: JPM

Jamie Dimon let his ego get the best of him and it caused a major error in judgement. Often times, ego is the downfall of some of the greatest men in history. Word surfaced today that Jamie Dimon would keep his head directors role along with the CEO title at JPMorgan Chase & Co. (NYSE:JPM). The vote was tight but ultimately he succeeded. Word has it that Jamie Dimon threatened to quit if the head director role was taken away from him.

What Was The Critical Error?

He should have let the company name another director as head. Why? He would enshrined himself as one of the greatest leaders of all time through the financial crisis and beyond. If he let the directors position go, any negatives the company experienced in the future would be blamed partially on him not being in that leadership role. If the company continues to have success, it would still be looked at as his company as the CEO. 

Ultimately, he would have insulated himself slightly by allowing another person to take his place as director. By staying in the position, everything that happens will be under an even closer microscope with his head on the chopping block. This was a simple ego move my Jamie Dimon with no real thought. It will be an error in judgement he will likely regret in the years to come.

Gareth Soloway
InTheMoneyStocks.com

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Ego Alert: Jamie Dimon Makes His Biggest Mistake

May 21, 2013 – Comments (0) | RELATED TICKERS: JPM

Jamie Dimon let his ego get the best of him and it caused a major error in judgement. Often times, ego is the downfall of some of the greatest men in history. Word surfaced today that Jamie Dimon would keep his head directors role along with the CEO title at JPMorgan Chase & Co. (NYSE:JPM). The vote was tight but ultimately he succeeded. Word has it that Jamie Dimon threatened to quit if the head director role was taken away from him.

What Was The Critical Error?

He should have let the company name another director as head. Why? He would enshrined himself as one of the greatest leaders of all time through the financial crisis and beyond. If he let the directors position go, any negatives the company experienced in the future would be blamed partially on him not being in that leadership role. If the company continues to have success, it would still be looked at as his company as the CEO. 

Ultimately, he would have insulated himself slightly by allowing another person to take his place as director. By staying in the position, everything that happens will be under an even closer microscope with his head on the chopping block. This was a simple ego move my Jamie Dimon with no real thought. It will be an error in judgement he will likely regret in the years to come.

Gareth Soloway
InTheMoneyStocks.com

  [more]

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Forget Stocks, It Is The Japanese Yen That Is Moving Markets

May 21, 2013 – Comments (0)

As we all know, almost every central bank in the world is printing money to boost exports and support asset prices in the stock market. To their credit, the money printing idea has worked as markets around the world have been rallying. Japan is now the most aggressive money printing country. The Bank of Japan (BOJ) said that they would put $1.4 trillion into the economy over the next two years. The Nikkei 225 Index (Japanese stock market) has gained nearly 7,000 points or 80.0 percent since October 2012. This rally in the USD/JPY, and the Nikkei 225 Index has been parabolic and shows the power of money printing or the devaluing of the currency.

At this time, the major stock indexes around the world seem to be trading higher when the Japanese Yen declines against the U.S. Dollar. Traders can simply look at the chart below and see how the S&P SPDR 500 Trust (black line) and the USD/JPY (green line) trade higher together. The red line is the SPDR Gold Shares which is trading inverse to the USD/JPY. The bottom line, if the Japanese Yen starts to strengthen against the U.S. Dollar the current rally in stocks could come to an abrupt end.

Nicholas Santaigo
InTheMoneyStocks.com

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Retail Stocks Lose Momentum

May 20, 2013 – Comments (0) | RELATED TICKERS: BBBY , RTH , LULU

Throughout 2013, the leading retail stocks have been very strong. This leading industry group seems to be a little weak today. One of the leading retail stocks that are coming under some selling pressure today is Bed Bath & Beyond Inc (NASDAQ:BBBY). Today, BBBY stock is trading lower by $1.43 to $67.69 a share. Short term day traders should watch for intra-day support around the $67.00 level. Swing traders will want to watch for daily chart support around the $64.00 level.

Some other leading retail stocks that are trading lower today include lululemon athletica inc (NASDAQ:LULU), Target Corp (NYSE:TGT), and Lowe's Cos (NYSE:LOW). Traders can usually track the retail sector by following the Market Vectors Retail ETF (NYSEARCA:RTH). Today, the RTH is trading lower by 0.16 cents to $52.66 a share.

Nicholas Santiago
InTheMoneyStocks.com
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IBM On Steroids: A Case Of A Bubble Market

May 16, 2013 – Comments (0) | RELATED TICKERS: IBM

International Business Machines Corp.(NYSE:IBM) is surging again today, trading at $205.95, +2.63 (1.29%). The stock reported ugly earnings three weeks ago and collapsed to a low of $187.68. This was a massive decline and thought to be the end of an era for this tech titan. Yet, today IBM has risen from the dead. Charge higher, juiced on steroids from a market where investor are chasing return and even ugly earnings and outlook looks attractive. The Federal Reserve has artificially deflated yields forcing investors to turn to the only place they can for any sort of return. The stock market. As the bubble inflates, it no longer matters what the earnings, revenues or future projections were. If it is a stock, buy it. That is the mentality of this bubble market. How do you trade it? Ride it while it lasts but be wary. The market often takes the stairs higher and the elevator down.

Gareth Soloway
InTheMoneyStocks.com
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Day Trading Opportunities Are Everywhere

May 16, 2013 – Comments (0)

Almost every trading day we hear about the stock market making new all time highs. Yet, there are stocks and commodities that are in bear market territory. Trading volumes are some of the lightest that we have experienced in the past ten years. Many retail investors and traders are now gun shy in this stock market since the former leading stocks and sectors such as BHP Billiton Ltd. (NYSE:BHP), Silver Wheaton Corp (NYSE:SLW), Southern Copper Corp (NYSE:SCCO), SPDR Gold Trust (NYSEARCA:GLD) have stopped rallying. The new market leaders have been the financial stocks, housing stocks, and Google Inc (NASDAQ:GOOG). In this light volume environment it is very easy for the large financial institutions to keep the major stock market indexes floating higher. After all, remember the old market adage that states you should never short a dull market. A dull market is a light volume market and that is exactly what we have been seeing every trading day for months. 

Now, this does not mean that you cannot make money on a daily basis. Just today, I gave out a short trade on Cisco Systems Inc (NASDAQ:CSCO) at $24.12. The stock is now trading $23.49 a share. That is a 0.63 cent decline in just a little more than one hour. There are day trading opportunities every trading day. Day traders can also be done with work after the first couple hours of the trading session. What other job in the world can give you that type of freedom? 

Now finding these opportunities everyday are not easy. It takes a skill that very few people in the world possess. It also takes practice, patience, and dedication to master these skills. Often, when someone wants to learn to trade they want instant gratification, but it does not work that way. Think about it, if you want to become a doctor, lawyer, CPA, or engineer you cannot practice your craft until you have completed many years of schooling. Then you will need to study under other professionals before you can start your own practice. In the trading world you need to study under someone who has been in the business for many years and model what they are doing everyday. Modeling is the key to success if you ask me. You will also avoid many of the pitfalls that the trader before you has made. That alone could be worth its weight in gold. Remember, the trading opportunities in the stock market occur everyday if you know what you are doing. 

Nicholas Santiago
InTheMoneyStocks.com
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Jamie Dimon Slaps The Public And Smiles

May 15, 2013 – Comments (2) | RELATED TICKERS: JPM

"For lack of a better word, greed is good." Jamie Dimon has done some shady things as the head of JPMorgan Chase & Co. (NYSE:JPM). While JPMorgan has been fined left and right with investigations galore, apparently it matters little. Remember, if you can make $5 billion and get fined $1 billion, it is still a great trade in the realm of publicly traded companies. No ethics needed in this arena. Dimon is getting the last laugh for now as JPMorgan has just crossed through the 52 week high of $51.00. The stock is trading at $51.09, +0.86 (1.71%). Three cheers for slapping the public with a very large stick...

There is talk about removing him as the board of directors chair at JPMorgan Chase. The stock hitting new 52 week highs has just locked in his tenure. Cheers!

Gareth Soloway
InTheMoneyStocks.com
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Jamie Dimon Slaps The Public And Smiles

May 15, 2013 – Comments (0) | RELATED TICKERS: JPM

"For lack of a better word, greed is good." Jamie Dimon has done some shady things as the head of JPMorgan Chase & Co. (NYSE:JPM). While JPMorgan has been fined left and right with investigations galore, apparently it matters little. Remember, if you can make $5 billion and get fined $1 billion, it is still a great trade in the realm of publicly traded companies. No ethics needed in this arena. Dimon is getting the last laugh for now as JPMorgan has just crossed through the 52 week high of $51.00. The stock is trading at $51.09, +0.86 (1.71%). Three cheers for slapping the public with a very large stick...

There is talk about removing him as the board of directors chair at JPMorgan Chase. The stock hitting new 52 week highs has just locked in his tenure. Cheers!

Gareth Soloway
InTheMoneyStocks.com
  [more]

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Solar Soars Again: Is A Pull Back Looming?

May 13, 2013 – Comments (0) | RELATED TICKERS: FSLR , SCTY

Solar stocks are staging another huge rally today. First Solar, Inc.(NASDAQ:FSLR) is trading at $51.65, +2.31 (4.68%). This stock was trading at $11.43 less than a year ago. Almost all other solar stocks are surging today. SolarCity Corp(NASDAQ:SCTY) is trading at $36.85, +7.97 (27.60%).

This massive move in solar stocks is a continued short squeeze. Once the shorts have all covered, the buying pressure will subside and the stocks will pull back. However, the pull back will be limited to a retrace of this big up move. With First Solar, the pull back is at hand. This move over $50.00 will trigger a final surge from short covering. We are seeing that today and it may briefly continue tomorrow morning. Following that move, expect a pull back to around the $35.00 - $40.00 level.

Gareth Soloway
InTheMoneyStocks.com
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Two Things You Must Know About The Straits Times Index

May 13, 2013 – Comments (0)

Many traders and investors do not realize how important the Singapore stock markets are these days. Lately, the Nikkei 225 Index (Japan) has been dominating the headlines as that index makes new 52 week highs on a daily basis. The Shanghai Index (China) also receives a lot of attention by investors as China has become a manufacturing powerhouse over the past 10 years. What most people do not realize is that the Singapore markets are also extremely important and should be followed.

1. Singapore has become a major financial hub in Asia. Many hedge funds and other large financial institutions are now based in Singapore. There are also many wealthy individuals such as famed investor Jim Rogers and others have relocated to the area. In 2011, Facebook co-founder Eduardo Saverin renounced his U.S. citizenship. This move saved him hundreds of millions of dollars in taxes from the Facebook initial public offering. After all, Singapore does not have a capital gains tax, this makes the country very attractive for wealthy individuals.

2. The FTSE Straits Times Index (STI) is a capitalization-weighted stock market index that is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange. Below is a list of the 30 stocks in the Straits Times Index. 

Capitaland Ltd     
CapitaMall Trust     
CapitaMalls Asia Ltd     
City Developments Ltd     
Comfortdelgro Corporation Ltd     
DBS Group Holdings Ltd     
 Singapore PLC     
Global Logistic Properties Ltd     
Golden Agri-Resources Ltd     
Hongkong Land Holdings Ltd     
 Port Holdings Trust     
Jardine Cycle & Carriage Ltd     
Jardine Matheson Holdings Ltd     
Jardine Strategic Holdings Ltd     
Keppel Corporation Ltd         
Noble Group Ltd     
Olam International Ltd     
Oversea-Chinese Banking Corporation Ltd     
Sembcorp Industries Ltd     
Sembcorp Marine Ltd     
SIA Engineering Co Ltd     
Singapore Airlines Ltd     
Singapore Exchange Ltd     
Singapore Press Holdings Ltd     
 Technologies Engineering Ltd     
Singapore Telecommunications Ltd     
StarHub Ltd     
Thai Beverage PCL     
United Overseas Bank Ltd     
Wilmar International Ltd

Nicholas Santiago
InTheMoneyStocks.com
  [more]

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Base Metal Stocks On The Rise

May 08, 2013 – Comments (0) | RELATED TICKERS: FCX , TCK , VALE

This morning, the leading base and industrial metal stocks are all moving higher at the start of the trading session. This important industry group has now rallied since April 18, 2013. One of the leading stocks in the sector is Freeport-McMoRan Copper & Gold Inc (NYSE:FCX). This company is one of the leading copper producers in the world. Today, FCX stock is trading higher by 0.72 cents to $32.27 a share. Short term traders should watch for intra-day resistance around the $32.30, and $33.00 levels. The daily chart will also have good resistance around the $30.00 area.

Some of the other leading base metal and industrial metal stocks that are trading higher today include
Rio Tinto plc (ADR) (NYSE:RIO), BHP Billiton Limited (ADR) (NYSE:BHP), Vale SA (ADR) (NYSE:VALE), and Teck Resources Ltd (USA) (NYSE:TCK). All of these stocks will usually trade higher when there is bullish news on the Chinese economy. Last night, the Chinese reported stronger that expected import and export data. This news is certainly helping the base and industrial metal stocks today.

Nicholas Santiago
www.InTheMoneyStocks.com
  [more]

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Dead Biotech Plays Surge To Life

May 07, 2013 – Comments (0) | RELATED TICKERS: AFFY , CLSN

Hammered small cap biotech stocks are jumping today, another sign investors are searching for anything with even a faint pulse to buy. Affymax, Inc. (NASDAQ:AFFY) is trading at $1.10, +0.30 (37.48%) and Celsion Corporation (NASDAQ:CLSN) is trading at $1.06, +0.09 (9.50%). Both biotechnology plays are down over 90% from their 52 weeks highs yet are surging today. With all other stocks in the market up near their all time or 52 week highs, traders are finding the lowest crap to buy and pump. In addition, these plays tend to be highly shorted. This can cause a short squeeze. Bottom fishing is common towards the end of a major rally on Wall Street. It shows that there is not much left to buy and make money on prior to a market reversal.

Gareth Soloway
InTheMoneyStocks.com
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How Long Will The Printing Party Last?

May 07, 2013 – Comments (0)

We all know that asset prices (stocks) are being supported by the central bank's easy money policies. Leading central banks such the Federal Reserve, Bank of England, Bank of Japan, the European Central Bank, Reserve Bank of Australia, and others have been either creating money, or lowering interest rates in order to inflate stock markets around the world. Usually, this action by the central banks will help boost the economies around the world by making money easier to borrow. It will also help to increase exports by devaluing the currency. The only problem is that every country is now doing the same thing simultaneously. 

Is this money printing by central banks sustainable? If money printing solved all of the problems of the world why didn't the central bankers start this a long time ago? There would probably be no hunger or poverty in the world today. The problem is that money printing does not work for long periods of time. It will usually lead to inflation or another major bubble in stocks, commodities, or real estate. Just think about it, the policies made by former Federal Reserve Chairman Alan Greenspan could be the leading reason why the markets experienced the tech bubble in 2000, and the housing and credit crisis in 2008. This time around there are central banks printing money in almost every country and there could be giant bubbles building all around the world. 

Below are a list of some of the easy money programs by the central banks:
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Relative Strength Tells You A Lot

May 06, 2013 – Comments (1) | RELATED TICKERS: CREE , NFLX , QQQ

If you are a day trader, swing trader, or long term investor it is important to understand relative strength. Relative strength is the strength of an equity compared to the major stock indexes. This reading will help you tell if a stock can trade sharply higher or lower in the time frame that the equity is being viewed. 

Here is an example, if you are a day trader this morning and you see the PowerShares QQQ Trust (NASDAQ:QQQ) trading higher on the session, but a stock such as Netflix Inc (NASDAQ:NFLX) is trading lower by 2.0 percent then it is safe to say that NFLX stock is showing weak relative strength on the intra-day charts. When traders see a stock that has weak relative strength to the QQQ then it is important to note that if the QQQ starts to decline intra-day that particular stock with weak relative strength is likely to trade much lower. Stocks that have weak relative strength are already signaling to the trader that they do not have institutional sponsorship in the near term. 

Lets take a look at another example. Today, the PowerShares QQQ Trust (NASDAQ:QQQ) is trading higher by $0.22 cents a share. This is not a big move higher, but the QQQ is making new 52 week highs on the daily chart. Then you have stocks such as Amazon.com (NASDAQ:AMZN), and Baidu Inc (NASDAQ:BIDU) trading sharply below their daily chart highs, this tells us that these stocks are signaling weak relative strength on the daily charts. Should the QQQ top out then it would be prudent to expect stocks such as AMZN, and BIDU to trade lower and lead the declines in the market. 

Relative strength also works in the opposite way when an equity signals strength. At this time, Cree Inc (NASDAQ:CREE) has been a stock that is signaling strong relative strength. Should the QQQ trade higher we would expect CREE to trade higher along with the QQQ. Today, CREE stock is trading higher by 2.65 percent, meanwhile, the QQQ is only trading higher by 0.36 percent. In other words, CREE stock has strong relative strength in the market. Individuals will be better served by using relative strength when trading in the stock market. 

Nicholas Santiago
inthemoneystocks.com
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Quantitative Easing On Steroids

May 03, 2013 – Comments (0)

Everyone knows that asset prices are being supported by central bank money printing called quantitative easing. Central banks such as the Federal Reserve(FRB), Bank of England(BOE), and now the Bank of Japan(BOJ) are printing money at unprecedented levels. When a country can buy its own debt from money created out of thin air that money will then go into stocks and inflate the equity markets. 

The NIKKEI 225 (Japan) has been surging higher since the country started to devalue its own currency. The Japanese Yen has plummeted against the U.S. Dollar and this has been the catalyst to boost asset prices in Japan. Leading Japanese ADR's such as Toyota Motor Corp (ADR) (NYSE:TM), and Honda Motor Co. Ltd. ADR (NYSE:HMC) are now trading at new 52 week highs because of this central bank action.

A weak currency will help to boost exports for Japan as their products become cheaper for countries with a strong currency. The downside to this money printing is inflation, but at this time the central banks around the world say there is very little inflation. The cure for inflation when it comes will be to stop printing money and raise interest rates. Unfortunately, history has shown that most central banks around the world will create a massive bubble before they start to withdraw the easy money policies. We shall see if it is different this time. 

The Bank of Japan has stated that they will implement monthly bond purchases in the amount of 7.5 trillion yen (US$78 billion) per month in an attempt to increase inflation to two percent within the next two years. Currently, the United States is buying $85 billion worth bonds every month. It is important to note that Japan's economy is one third of the size as the United States. So it is safe to say, Japan has the printing presses on turbo at this time. Traders and investors should watch the NIKKEI 225 Index for near term chart resistance around the 14,000 level. There will also be important chart resistance around the 15,000, and 15,470 levels should the index trade higher. 

Nicholas Santiago
InTheMoneyStocks.com
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Something Is Terribly Wrong: Markets Spike To All Time Highs...Again

May 02, 2013 – Comments (6) | RELATED TICKERS: BAC , JPM , SPY

The markets surged higher today, erasing the large downside move from yesterday. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) hit a high of $159.81, taking out the previous all time high of $159.72. While the markets continue to hit all time highs, something is terribly wrong.

The financial stocks cannot catch a bid. As the markets hover at all time highs, the financial stocks retreat. Today alone, JPMorgan Chase & Co. (NYSE:JPM) is trading at $47.91,  -0.10 (-0.21%) while markets sit sharply higher. JPMorgan Chase hit its 52 week highs on March 14th, 2013. Since then, the stock is almost down 10%. Other financial stocks like Goldman Sachs Group, Inc. (NYSE:GS) and Bank of America Corp (NYSE:BAC) are the same.

Something seems to be wrong here. The financial stocks are key to leading this move up and they may be  telling of a dark cloud brewing over the markets. Be warned. 

Gareth Soloway
InTheMoneyStocks.com
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Shanghai Express

May 02, 2013 – Comments (0) | RELATED TICKERS: BHP , GM , RIO

The Chinese economy is very important to the global economy. After all, there are approximately 1.3 billion people in the country and that large number leads to a lot of consumption and consumer spending for corporations. Companies such as General Motors Co (NYSE:GM), WYNN Resorts (NASDAQ:WYNN), and Yum Brands Inc (NYSE:YUM) are just a few of the major corporations in the world that are highly dependent on the Chinese economy. Many of the leading base and industrial metal stocks are also affected by the Chinese economy. Leading mining companies such as Rio Tinto plc (NYSE:RIO), and BHP Billiton Limited (NYSE:BHP) also depend on Chinese growth for their own industry. After all, just look at a chart of the base metal and industrial metal stocks and you will see how they have declined when the Chinese economy slowed down.

One of the leading indicators that investors will follow for growth is the HSBC manufacturing Purchasing Managers' Index. In April, this number declined to 50.4 from 51.6 in March. Please note, any reading above 50.0 indicates growth, but it is easy to see how this number is declining indicating a weakening economy. 

One of the best ways to follow the Shanghai Index and the Chinese economy is to follow the charts. At this time, the Shanghai Index will have near term support around the 2138.00 level. The next important support levels are 2073.00 area, and the important double bottom from December 2012 at 1950.00. It is important to note, the Shanghai Index is  trading below the important daily chart 50-day moving average. This is a  generally a sign of weakness when price trades below the 50-day moving average. This current weakness tells us that the 2300.00 level will be important near term resistance on the daily chart should the Shanghai Index rally higher. 

Nicholas Santiago
InTheMoneyStocks.com
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Every Commodity Dips Ahead Of The FOMC

May 01, 2013 – Comments (0) | RELATED TICKERS: GLD , USO , JJC

This morning, almost every leading commodity is declining ahead of the highly anticipated Federal Open Market Committee meeting announcement. Traders can see the early weakness in the SPDR Gold Trust (NYSEARCA:GLD), iPath Dow Jones UBS Copper Subindex Total Return ETN (NYSEARCA:JJC), United States Oil Fund (NYSEARCA:USO), and the iShares Silver Trust (NYSEARCA:SLV). Often, weakness in the commodity complex will signal global economic weakness. Recently, the economic data from around the world supports the weak economy thesis. 

Traders and investors should also follow the U.S. Dollar Index very closely when trading the leading commodity ETF's. Usually, the leading commodity ETF's will trade inversely to the U.S. Dollar Index. Today, the U.S. Dollar Index futures (DX-M3) are trading lower by 0.17 cents to $81.63 per contract. It should be noted that the U.S. Dollar Index was sharply lower at the start of the trading day. 

Later today, the Federal Reserve will announce its policy statement for the U.S. economy. The central bank is not expected to make any changes to its current $85 billion per month asset purchase program, known as quantitative easing, or QE3. Any hint of the central bank scaling back on these asset purchases could cause a stock market decline. The announcement by the Federal Reserve will be made at 2:15 pm EST. 

Nicholas Santiago
InTheMoneyStocks.com
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