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inthemoneystock (< 20)

June 2011

Recs

1

Is This The Next Leg Of The Bull Market Or Just Bull Shhh?

June 30, 2011 – Comments (2) | RELATED TICKERS: SAN , NBG , EWP

There is really no person that can deny the size of the rally over the past four trading sessions. The highly popular and followed Dow Jones Industrial Average(DJIA) has surged higher by 460.00 points in just four trading sessions. This is an enormous move in such a short period of time. One would think that cancer was cured with the action in this stock market. In reality, all that happened was the can of problems in Greece, and the European Union, was kicked down the road a little bit. There is not anyone on the earth that really expects Greece to resolve it's problems in the next few years. The country will ultimately have to default.

You see, the stock market really is not about Greece, it is about banks. Yes banks, the banks are the institutions that are holding Greek, and European paper, or what we call Greek bonds(debt). If Greece defaulted the banks would lose a lot of money, as there so called bond investment went sour. It is always about the banks. In 2008, when the stock market crashed and every leading financial institution was insolvent, it was about the banks. Nothing has changed since that time, bailouts continue to occur on a daily basis. This action by the central banks and the International Monetary Fund will continue until the people lose faith in paper money. Until that time, it would be prudent to simply expect more bailouts for other nations and states down the road.

As traders, we continue to simply trade what we see on the charts. Traders really do not buy into the story that is being sold to the public via the mainstream media. How many times have we seen a public official rescind a comment, or statement that they have made six months or a year earlier? The answer is that we see it and hear it all the time. For example, when President Obama ran for office he said that he was against debt, now he says we need debt. The debt is over $14.3 trillion at the moment, how much do we really need? Lets take the Federal Reserve Chairman Ben Bernanke, in 2007, he said sub-prime loans were not a problem, then in 2008, sub-prime loans were the problem. Currently, Chairman Bernanke says that there is no inflation, yet the world is crying about inflation. Can anyone believe this stuff anymore? The only truth is the charts. The charts were oversold and the stock markets bounced ahead of a major U.S. holiday. As fast as these markets go up they can just as easily come down. If you want the really scoop on the markets just stick with the charts.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Two Stocks That Will Pull Back Next Week

June 30, 2011 – Comments (2) | RELATED TICKERS: CAT , IBM

The bears are morphing into bulls and the Greek aid package is solidified. This week, the Dow Jones Industrial Average is up close to 500 points. This move in the market is one of the biggest in a one week period in years. Stocks have gone from being at major low pivot support levels to huge resistance levels. They have gone from oversold to overbought in days. Below are two stocks that are extended and should see a pull back next week.

Caterpillar Inc. (NYSE:CAT) is currently trading at $105.75, +2.39 (+2.31%).  The stock has rocketed in the last two weeks from a low of $94.00. Once this stock hits $106.70, it will pull back. The $106.70 level is a double top, pivot high and is major resistance.

International Business Machines Corp. (NYSE:IBM) is trading at $172.18, +1.64 (+0.96%). The major component of the Dow Jones Industrial Average has jumped over $10.00 in the last two weeks. It is quickly approaching its all time high, which will also be a double top. This level is at $173.54. Should it hit this level, the stock should have a multi day pull back and be a great swing trade short.

These stocks have made impressive moves but are extremely extended. Look for them to pull back in the coming week.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Stock Market Slams Into The 50 Moving Average

June 30, 2011 – Comments (0) | RELATED TICKERS: UUP , SPY , QQQ

The markets are sharply higher again today. This is the fourth day in a row major gains are being seen on Wall Street. The Dollar again is sharply lower as the Greek aid package is essentially signed, sealed and delivered. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.22, -0.10 (-0.47%).  Remember, a weak Dollar is positive for the stock market. As things look better in Europe, the Euro gets stronger. As that currency strengthens, the Dollar must weaken in response.

While the markets are turning bears into bulls, it is extremely important to recognize that the major indexes are slamming into the daily 50 moving average. This is major resistance. It can be seen clearly on the daily charts of the SPDR S&P 500 ETF (NYSE:SPY) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). After a four day sharp rally in the markets, this resistance level may signal a pull back in soon. Possibly as early as tomorrow or next week. It also allows for swing traders to jump on the short side for a couple days.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Rare Earths Are Still The Rage

June 30, 2011 – Comments (0)

The rare earths stocks really became well know and popular in late 2010. This sector looks to have peaked in early May 2011 with the overall stock market indexes. The rare earths have been staging a short term rally on the daily chart since June 16, 2011. This morning, all of the rare earth stocks are trading higher. This recent move higher in this sector is now getting a little long in the tooth, therefore, this sector is likely going to pullback soon.
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Recs

0

F5 Networks and Netflix Are The NASDAQ Laggards

June 30, 2011 – Comments (0)

This morning, the major stock indexes are rallying higher for the fourth consecutive trading day. The NASDAQ Composite is trading higher by over 24.00 points to 2765.00. Just about every leading NASDAQ 100 stock is trading higher on the day. There seems to be just a couple of leaders that are lagging the tech heavy index. The two leading tech stocks that are trading lower are F5 Networks Inc.(NASDAQ:FFIV), and Netflix Inc.(NASDAQ:NFLX).

F5 Networks is a leading networking stock that has surged higher by $15.00 since June 20, 2011 when the stock traded as low as $96.21 a share. Short term traders can look for intra-day support around the $109.43 level should the stock decline throughout the session. The stock will have intra-day resistance around the $112.25 area should it rally higher.

Netflix Inc.(NASDAQ:NFLX) is the leading provider of online movie rental subscriptions. The stock has been a stock market leader for the past two years. This morning, NFLX stock is declining by $2.44 a share to $262.50 a share. Traders should watch for short intra-day support around the $262.00, and $260.00 levels.   [more]

Recs

0

Lululemon and Nike Bounce Off Lows

June 30, 2011 – Comments (2)

This morning, leading Canadian yoga apparel maker Lululemon Athletica Inc.(Nasdaq:LULU) started the morning lower trading below $110.00 a share. The early decline seemed to be caused by a downgrade. The stock has surged higher by 35.0 percent since making a low pivot on June 6, 2011 at $82.36 a share. This downgrade is understandable as the stock is very extended on the daily chart at this time. Short term traders can watch for intra-day resistance around the $112.85 level.

Nike Inc.(NYSE:NKE) is another leading athletic footwear and apparel manufacturer that has surged higher recently after reporting earnings. This stocks remains very strong on the charts by trading above all of its major moving averages. The stock looks to have hit some daily chart resistance around the $90.00 level which was the March 2011 high. Nike stock is also very extended on the daily charts and looks as if it needs to pullback and consolidate before making another move to the upside. Short term traders can watch for some minor intra-day support around the $89.00 level. The intra-day resistance levels for Nike stock will be around the $91.25 area should the stock trade higher.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

Visa And Mastercard Soar On Swipe Fee Increase

June 29, 2011 – Comments (1) | RELATED TICKERS: V , MA

This afternoon, Visa Inc.(NYSE:V), and Mastercard Inc.(NYSE:MA) are soaring higher after the Federal Reserve raised the cap on debit card swipe fees to 0.21 cents to 0.12 cents. Traders should watch for intra-day resistance on MA stock around the $308.25 level. The intra-day resistance level on Visa stock should be around the $86.70, and $91.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

New Kids On The Block

June 29, 2011 – Comments (0)

Recently, there has been a new wave of initial public offerings reaching Wall Street. Everyone is getting very excited about all of the new internet companies that are roaring on the market place. This year we have seen companies such as LinkedIn Corp.(NYSE:LNKD), and Pandora Media Inc.(NYSE:P) become publicly traded companies. These two stocks have seen volatile trading action since their IPO, however, the demand for these stocks before coming public was enormous and over subscribed.

The internet is the new form of media. People can now access the internet 24 hours a day, seven days a week through their computer or cell phone. This revolution is here to stay and the internet competition is getting fierce. Many investors are now waiting for companies such as Groupon, Living Social, Twitter, and even Face Book to become publicly traded in the near future.

At this time, we have not seen so many internet and technology companies coming public since the 1990's. Most of these stocks have real business models and many of them actually make some money, unlike the majority of the dot coms in the 1990's. Some of these companies will be swallowed up or taken over in time by the likes of Google Inc.(NASDAQ:GOOG), Microsoft Inc.(NASDAQ:MSFT), Netflix Inc.(NASDAQ:NFLX) and Apple Inc.(NASDAQ:AAPL). This could be exactly what the doctor ordered for the stock market in the next few years. It is no secret that the stock market only moves higher when it is artificially inflated by a weaker U.S. Dollar. Perhaps in due time,the new tech companies can make a real difference in the economy. We shall see. I'm rooting them on and hope they are all successful.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Did You Miss It: Another Bailout For The Banks

June 29, 2011 – Comments (1)

The financial stocks are soaring today on yet another bailout. Europe just bailed out Greece and by doing so, saved the world from yet another global financial crisis. Many will not understand how this was a bank bailout, yet again. Let me explain. If Greece did not get their bailout, they would default. European banks would take large losses if that happened because of credit default swaps and derivatives, among other things. U.S. banks have less exposure but still some.

While this event would not cause the collapse of the global banking system, it would most likely start a chain reaction, domino effect, spreading to Spain, Portugal, Italy and so on. If each one was allowed to fail, the banks would take huge losses and most likely become insolvent once again. In essence, the bailout of Greece now means the banks will not take losses. Ultimately, the leaders in Europe made a decision to bailout Greece instead of having to bailout the banks directly in a year. Either way, it is the same thing. It just sounds prettier and more worldly to bailout a country.

This can clearly be seen in U.S. bank stocks, which have been trading at their 52 week lows for the last couple weeks. Today however, on the back of the Greek austerity vote which solidified the aid package, they are surging. Bank stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC) are all up two to three percent.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Markets Extend Gains On Commodity Stocks

June 29, 2011 – Comments (0) | RELATED TICKERS: USO , UUP , FXE

The stock market rally is continuing for the third consecutive day. Austerity measures in Greece were voted through this morning. This was widely anticipated but is still being cheered by Wall Street. The market is moving higher today mainly because of the rise in the Euro. The Euro is jumping as Greece will no longer default on debt, saving the European economy for now. As the Euro moves higher, the Dollar moves lower.  The CurrencyShares Euro Trust (NYSE:FXE) is trading at $143.70, +0.60 (+0.42%). In response, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%).

As the Dollar weakens, oil is surging higher. United States Oil Fund LP (ETF) (NYSE:USO) is trading at $37.50, +1.08 (+2.97%), As oil rallies, major components of the Dow Jones Industrial Average are rallying the market. Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are both solidly higher. In addition, other commodity related stocks are surging today. United States Steel Corporation (NYSE:X) is trading at $46.00, +2.69 (+6.21%).

It is clear that Wall Street is having a rally today on the back of commodity plays. This is coming from the weakness in the U.S. Dollar.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Large Financial Stocks Rally On Greek Austerity Vote

June 29, 2011 – Comments (0) | RELATED TICKERS: WFC , JPM , MS

The large financial stocks are trading sharply higher this morning. This sector has been under severe selling pressure until today. It appears that the Greek austerity vote has helped to lift the large financial stocks this morning. Recently, there have been many rumors in the trading community that the large financial companies such as J.P. Morgan Chase & Co.(NYSE:JPM), Goldman Sachs Inc.(NYSE:GS), and Morgan Stanley(NYSE:MS) have had a lot of exposure to Greek and European debt. Therefore, the passing of the Greek austerity vote kicks the can down the road before Greece will have to default on its debt.

Some of the leading financial stocks that are climbing higher this morning include Wells Fargo & Co.(NYSE:WFC), Goldman Sachs Group Inc.(NYSE:GS), J.P. Morgan Chase & Co.(NYSE:JPM), and Morgan Stanley(NYSE:MS). Traders should use caution when trading these stocks at this time. The daily charts on the large financial stocks are still very poor and remain in down trends at this time.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Forget Greece, It Was Baked Into The Cake

June 29, 2011 – Comments (0) | RELATED TICKERS: CLF , FCX , XOM

Once the Greek parliament voted in favor of the austerity vote the U.S. Dollar Index has rallied higher off the morning lows. Should the U.S. Dollar Index trade higher throughout the trading session we could expect the major stock indexes to fade or deflate throughout the day. The European Union has many hurdles in front of it besides Greece. Countries such as Ireland, Portugal, Spain, Italy, and Belgium are just a few countries that could face the same crisis as Greece in the near future.

The major stock market indexes have soared higher over the past two trading sessions. The S&P 500 Index has climbed higher by more than 25.00 points in just two trading sessions. Often, when markets rally sharply higher in such a short span of time they will need to pause or consolidate before moving higher. This market is not out of the woods just yet despite it staging a sharp two day rally. Traders should simply keep an eye on the U.S. Dollar Index throughout the day.

Some leading stocks that could deflate quickly on the back of a stronger U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF).

Nicholas Santiago
InTheMoneyStocks  [more]

Recs

2

Goldman Sachs Sinks Despite Market Rally

June 28, 2011 – Comments (0) | RELATED TICKERS: GS , PJC , MS

One of the leading financial stocks in the entire stock market is Goldman Sachs Group Inc.(NYSE:GS). Since April 2010, this stock has been surrounded by a black cloud. Last year, the company paid out a record $550 million to settle with the Securities and Exchange Commission (SEC) over fraud charges. Earlier this year, the stock has come under numerous allegations by many leading politicians.

The stock topped out on April 18, 2011 at $175.34 a share. This afternoon Goldman Sachs stock is trading around $128.50 a share which is a new 52 week low. The decline today comes as the major stock indexes are surging higher by over 1.00 percent. This stock is in a downtrend at this time and is signaling weak relative strength. Intra-day, GS stock will have some support around the $128.50, and $128.00 levels.

Other leading financial stocks that are declining today include Piper Jaffray(NYSE:PJC), Jeffries Group Inc.(NYSE:JEF), and Morgan Stanley(NYSE:MS). When these leading financial stock fail to rally higher with the major stock indexes it is a sign of a temporary stock market rally. The leading financial stocks should lead the markets higher, not lag the major stock indexes.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Solar Stocks Heat Up

June 28, 2011 – Comments (0)

As the markets catch their second up day in a row, solar stocks are pressing higher. This move in solar is most likely related to the bounce in oil. Always remember, when oil gets more expensive, more consumers will turn to alternate energy. Therefore, alternate energy stocks usually trade with the price of oil.  In addition to the rise in oil, the markets are optimistic that the Greek austerity measures will be passed tomorrow. Should these pass, then the EU may be saved some major defaults and heartache in the short term.  That is good for Europe thus good for solar energy. Europe is a major consumer of solar power.

Today, the winners are clearly broad based in the solar industry. First Solar, Inc. (NASDAQ:FSLR) is leading, as it trades at $121.93, +5.25 (+4.50%). In addition, SunPower Corporation (NASDAQ:SPWRA) and Trina Solar Limited (ADR) (NYSE:TSL) are both up nicely.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Alert: Stock Market May Fade Ahead Of Greek Vote

June 28, 2011 – Comments (1)

The markets have floated higher today on the back of a slowly weakening U.S. Dollar. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.06, +1.12 (+0.88%). The markets have just put in an intra day topping tail. A topping tail is a bearish signal as it usually signals a reversal. In addition tomorrow at 5am ET, Greece will be voting on the austerity package. As of now, it is said that they have 151 votes for the motion. They need 150 to pass it. The markets may get a little nervous later today into the close and profits may be taken off this two day rally. 

Stocks are mostly higher today with the exception of the banks. JPMorgan Chase & Co. (NYSE:JPM) is leading the downside, trading at $39.38, -0.50 (-1.25%). Other banks are also weaker. The markets are gaining momentum from the likes of International Business Machines Corp. (NYSE:IBM) and commodities stocks like Exxon Mobil Corporation (NYSE:XOM).

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Airline Stocks Stay Grounded

June 28, 2011 – Comments (0) | RELATED TICKERS: AAMRQ , DAL , UAL

The morning, the major stock indexes are surging higher. The Dow Jones Industrial Average is trading higher by 120.00 points and most major sectors in the market are participating in the rally. The airline sector looks to be lagging the major stock indexes this morning. The cause for the weak action in the airline sector looks to be due to the bounce in oil. This morning, WTI oil is trading higher by $1.22 to $91.83 a barrel. When oil is higher the airline stocks seem to struggle.

Some leading airline stocks that are trading lower this morning include Delta Air Lines Inc.(NYSE:DAL), AMR Corp.(NYSE:AMR), United Continental Holdings Inc.(NYSE:UAL), and U.S. Airways Group Inc.(NYSE:LCC). Should oil pullback or retreat the airline stocks will likely catch a bounce. Until that occurs we should not expect much out of this sector.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Major Financial Stocks Fail To Participate In Rally

June 28, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , WFC

The large major financial stocks are not rallying higher with the major stock indexes this morning. This leading sector continues to struggle on the charts. Most of the leading financial stocks remain in sharp down trends. Traders can simply look at a chart of the Financial Select Sector SPDR (NYSE:XLF) and clearly see that this industry group is trading below the important daily chart 50, and 200 moving averages. The XLF looks to be basing in a bearish manner on the daily chart at this time.

Some of the leading financial stocks that are declining this morning include J.P. Morgan Chase & Co. (NYSE:JPM), Goldman Sachs Group Inc.(NYSE:GS), Wells Fargo & Co.(NYSE:WFC), and Morgan Stanley(NYSE:MS). These stocks are sending a different message to the markets at this time despite the current rally in the stock indexes that is taking place today. Traders should be aware of price action in the leading financial stocks as they will often lead the markets.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Forget Greece, Watch This Chart

June 28, 2011 – Comments (0)

This morning, the major stock market indexes are rallying higher. The move in the market looks to be broad based as every sector seems to be inflating higher. Many traders and investors are very concerned with the events taking place in Greece today. Greece is facing a 48 hour strike before the important austerity vote on Thursday. The protesting in Greece has turned violent and many traders are concerned that this violent action could escalate over the next two days. While all of these concerns are valid there seems to be only one thing that matters to the markets, the U.S. Dollar Index.

As traders we must simply understand that the major stock market indexes are trading inverse to the U.S. Dollar Index. This morning, the U.S. Dollar Index is trading lower and the major stock indexes are trading higher. The same type of action took place yesterday, the markets rallied and inflated higher as soon as the U.S. Dollar Index declined. Therefore, traders and investors must keep a close eye on the U.S. Dollar Index chart at all times. Should the U.S. Dollar Index rally higher off the morning lows the major stock indexes could deflate and trade lower. The U.S. Dollar Index is the only chart that really matters.

Oil, gold, gasoline, and silver are very sensitive to the U.S. Dollar Index at this time. Therefore, should the U.S. Dollar Index show some strength these commodities are likely to decline quickly. They have all been under pressure over the past couple of weeks when the U.S. Dollar Index has gained strength and should continue to be under pressure if the U.S. Dollar Index rallies further. On the flip side, if the U.S. Dollar Index continues to decline traders should look for strength in these commodities and the overall stock market indexes.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

It Is As Inverse As It Can Get

June 27, 2011 – Comments (0)

When the U.S. Dollar Index declines the major stock indexes inflate and rally higher. This inverse relationship between the U.S. Dollar Index and the major stock indexes are as inverse as they have ever been. Traders and investors can simply look at the chart below to how correlated these two charts are. As long as the U.S. Dollar Index remains on the weak side and continues to decline the major stock indexes should hold up and keep the intra-day gains into the close. Should the U.S. Dollar Index catch a bid and trade higher off of the lows it would be prudent to expect the major stock indexes to pullback.

Some stocks that have really made strong moves to the upside this afternoon include Chevron Corp.(NYSE:CVX), Caterpillar Inc.(NYSE:CAT), and Amazon.com Inc.(NASDAQ:AMZN). The rally in these stocks show us how the falling U.S. Dollar Index will inflate all sectors and not just the inflation sensitive industry groups.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Biggest Stock Market Level In Years Still Holds

June 27, 2011 – Comments (0) | RELATED TICKERS: NFLX , PCLN , AAPL

The markets are hanging on to the side of the cliff. They are unwilling to break and that is saving investors from an ugly death spiral.  Last week I discussed a major trend line that starts at the pivot low from May 2009. If you connect it to the lows of 2010, the trend line extends to the recent lows in the market. This is the biggest level the markets have had since the 100% bounce from the lows of 2009. Should this trend line break, the markets will collapse, ultimately heading for the 2010 lows.

Mighty stocks like Netflix, Inc. (NASDAQ:NFLX), priceline.com Incorporated (NASDAQ:PCLN) and even Apple Inc. (NASDAQ:AAPL) could find their stock prices cut drastically.

It all comes down to whether or not this master trend line can hold. Watch it closely. 

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Stock Markets Bounce Back

June 27, 2011 – Comments (1) | RELATED TICKERS: SPY , UUP , AMZN

The stock market is solidly higher today on the back of a weaker Dollar. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.47, +0.66 (+0.52%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.55, -0.08 (-0.39%). It looks like the July 4th holiday may already be taking hold as volume is light today well.

The rally is broad based today, with gains in the banks, commodities and technology. Apple Inc. (NASDAQ:AAPL) has regained its leadership in the last week as it is soaring again today, trading at $331.52, +5.17 (+1.58%). In addition, Amazon.com, Inc. (NASDAQ:AMZN) is also having a stellar day, trading at $199.80, +7.25 (+3.77%).

All eyes continue to be on Greece. This will make or break the markets in the next few days. An austerity vote is scheduled. Should this be passed, key aid will help Greece avoid default. As of today, the markets are slightly optimistic.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

So Far The Falling U.S. Dollar Index Saves Monday

June 27, 2011 – Comments (0)

This morning, the U.S. Dollar Index has declined sharply since the opening bell rang at the New York Stock Exchange(NYSE). By now, we should all know when the U.S. Dollar Index declines the major stock market indexes will usually inflate and trade higher. That is certainly the case this morning, the U.S. Dollar Index futures(DX U1) have pulled back by 0.50 cents to $75.77 per contract. Traders must closely follow the U.S. Dollar Index at all times. The major stock indexes continue to trade inverse to the dollar.

Normally, when the U.S. Dollar Index declines leading stocks such as Exxon Mobil Corp.(NYSE:XOM), Freeport McMoRan Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF) will rally and trade higher. Should the U.S. Dollar Index rally or bounce higher it would be prudent to expect the major stock indexes to pullback.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Too Big To Fail Leads Markets Higher

June 27, 2011 – Comments (0) | RELATED TICKERS: JPM , WFC , BAC

The large major banks are catching a bid higher this morning. This leading industry group has been very weak recently on the daily charts. Therefore, when the large major financial banks rally higher it is very difficult to see the major stock indexes come under pressure.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the entire stock market. This stock is trading higher by 0.46 cents to $39.95 a share. On June 24, 2011 JPM stock made a new low for 2011. The stock remains below all of its major daily chart moving averages, which puts the stock in a weak technical position. The stock will have intra-day resistance around the $40.10 and $40.50 levels.

Wells Fargo & Co.(NYSE:WFC) is one of the leading financial stocks that has showed some relative strength when compared to the rest of the major bank stocks. WFC made a low on the daily chart on June 8, 2011 at $25.26 a share. This morning WFC stock is trading higher by 0.26 cents to $27.51 a share. WFC stock should face intra-day resistance around the $27.60 and $27.85 levels.

Other leading financial stocks that are trading higher this morning include Bank of America Corp.(NYSE:BAC), Citigroup Inc.(NYSE:C), and Morgan Stanley(NYSE:MS). As long as the large financial stocks hold up, it is difficult to see the major stock indexes decline lower. Should the leading financial stocks decline during the trading session the major stock indexes could fall like a rock. The major market indexes are still very fragile at this time.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Monday Madness: Expect Volatility Today

June 27, 2011 – Comments (0)

This morning, the S&P 500 e-mini futures(ES U1) are trading higher by 0.75 cents to 1264.75 per contract. The worries in the European Union seem to be dominating the financial news headlines. Greece is facing another important austerity vote in their parliament. In any case, Greek debt yields are spiking higher this morning. Ireland and Portuguese debt yields are also surging and this tells us that the region is unstable at this time. Traders and investors should expect the European debt crisis to last throughout the rest of 2011.

Last night, the Asian Markets were mixed. The Nikkei 225 Index(Japan), and the Hang Seng Index(Hong Kong) traded lower on the session. Meanwhile, the Shanghai Index(China) and the Sensex Index(India) traded higher. All of the Asian markets remain very volatile at this time. The Asian economies continue to face high inflationary pressures. Traders can look for early strength in the iShares FTSE China 25 Index Fund (NYSE:FXI), and the India Fund(NYSE:IFN). Leading Chinese ADR's have been bouncing higher for about a week now. Just take a look at a chart of Baidu Inc.(NASDAQ:BIDU), the stock has rallied higher since June 16, 2011 when it traded as low as $114.14 a share.

WTI crude is trading lower this morning by 0.63 cents to $90.52 a barrel. The highly popular United States Oil Fund(NYSE:USO) is trading lower by 0.31 cents to $35.81 before the opening bell. Should the U.S. Dollar Index rally higher throughout the trading session oil could decline further.

Gold and silver are trading flat to slightly lower this morning ahead of the opening bell. These two precious metals are really currencies at this time. Both gold and silver have recently traded lower on the back of the stronger U.S. Dollar Index.

Traders should be prepared for another volatile trading session. Often, when the markets decline sharply before the weekend close the Monday opening is usually very weak.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Weekly Market Report - Profit Play Book

June 27, 2011 – Comments (0)

As we all know, the major stock indexes have been in correction mode since the beginning of May 2011. Most leading sectors are trading lower and continue to remain weak at this time. Despite the current market weakness, there are a few stocks trading really well and remain in a strong uptrend. This week, we shall look at three stock different stocks that are trading above their daily chart 50, and 200 moving averages. 

The first stock that we shall examine this week is ONEOK Inc. (NYSE:OKE). ONEOK is a diversified energy company that primarily operates as a natural gas distributor. OKE stock has been in a solid uptrend since September 2010 when the stock was trading around $45.00 a share. On Friday June 24, 2011 the stock closed at $73.27 a share, this is a new 52 week closing high. OKE stock traded higher on an increase in volume this past week, this will usually indicate a little more strength in the stock before needing a pullback. Traders should watch for near term resistance around the $75.00, and $78.00 levels. The near term support for OKE stock should it pullback will be around the $67.75 level.

Hansen Natural Corp. (NASDAQ:HANS) is a leading producer and distributor of natural sodas, fruit juices, and energy drinks. The stock has been in a steady uptrend since July 2010 when the stock was trading around $40.00 a share. The stock closed at a new 52 week high on June 24, 2011 at $78.05 a share. Traders and investors must watch for daily chart resistance around the $80.00, $82.50, and $85.25 levels. Should HANS stock pullback traders can watch for near term support around the $70.00, and $67.50 levels. 

Fortinet Inc.(NASDAQ:FTNT) is a leading provider of network security appliances to enterprises, service providers, and government entities worldwide. This stock just broke out of a loose two month basing pattern. On June 24, 2011 the stock closed at $25.85 a share which is a new 52 week high. Traders and investors should now watch the $27.50, and $30.00 levels for near term resistance. Should the stock pullback, FTNT stock will have daily chart support around the $22.00, and $20.00 levels. 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Chinese Stocks Remain Strong Despite Market Weakness

June 24, 2011 – Comments (0)

This morning, the major stock market indexes are coming under very strong selling pressure. The stronger U.S. Dollar Index is obviously the catalyst for the early stock market decline, stocks and commodities will deflate and trade lower when the dollar strengthens. There is one group of stocks that are showing strength this morning, it is Chinese ADR's. Last night, the highly popular and followed Shanghai Index(China) traded higher by more than 2.00 percent. The night before the Shanghai Index traded higher by 1.5 percent. Therefore, the Shanghai Index has rallied higher by 3.75 percent in the past two trading sessions. It only makes sense that the Chinese ADR's are trading higher again this morning.

Some of the leading Chinese ADR's that are rallying higher include Baidu Inc.(NASDAQ:BIDU), Sina Corp.(NASDAQ:SINA), Sohu.com Inc.(NASDAQ:SOHU), and NetEase.com Inc.(NASDAQ:NTES). Should the major stock indexes recover sometime during the trading session these stocks would likely trade higher and lead the markets.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The U.S. Dollar Index Flexes Early Muscle

June 24, 2011 – Comments (0)

When the U.S. Dollar Index(DXY) rallies higher the major stock market indexes will come under pressure and deflate lower. That is exactly what is happening this morning at the start of the trading day. As soon as the DXY traded higher everything in the market sold off, especially commodity related stocks. At this time the most important chart that a trader can follow is the U.S. Dollar Index.

Many traders and investors have been selling the major stock indexes on Fridays. Recently, four of the past six Friday trading sessions have been sell offs. This is certainly a change in character, the major market indexes normally rally or finish flat on Friday's before the weekend. Traders and investors must really follow the U.S. Dollar Index chart. If the U.S. Dollar Index declines intra-day then the major stock market indexes will inflate higher. This is exactly what happened yesterday. If you look at an intra-day chart of the U.S. Dollar Index from yesterday, you can clearly see that the U.S. Dollar Index topped out exactly as the S&P 500 Index bottomed. We do not expect that inverse relationship to change anytime soon.

Some leading stocks that will usually rally higher from a decline in the U.S. Dollar Index include Caterpillar Inc.(NYSE:CAT), Suncor Energy Inc.(NYSE:SU), and Southern Copper Corp.(NYSE:SCCO). Traders should take note that all of these stocks and most other commodity sensitive stocks will decline sharply should the U.S. Dollar Index continue to climb higher on the session.



Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Forget The Greek Tragedy, Follow The Dollar

June 23, 2011 – Comments (0)

We can examine this market until we are blue in the face. Will Greece get bailed out for a second time in two years or not? Will the European Union fall apart? The truth of the matter is that we just need to simply follow the U.S. Dollar Index. When the U.S. Dollar Index declines the major stock indexes will rally and inflate higher. The opposite is true when the U.S. Dollar Index rallies higher, the major stock indexes will deflate and trade lower. It is not a Greek story, it is a dollar story. Look at the chart below, you can clearly see how the S&P 500 Index trades inverse to the U.S. Dollar Index. It is as inverse as a chart can get. Are you kidding me, these two markets are polar opposites.

When the U.S. Dollar Index declines traders should watch the leading commodity stocks to trade higher. Stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), U.S. Steel Corp.(NYSE:X), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) will usually react and trade higher on the back of the declining U.S. Dollar Index. Should the U.S. Dollar Index start to rally these stocks are usually the first to decline and pullback, therefore, the U.S. Dollar Index must be watched closely at all times.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

CREE Shows Strength In Stock Market Selling

June 23, 2011 – Comments (0)

In the last two days Cree, Inc. (NASDAQ:CREE) has shown major upside potential. Yesterday, the stock was crushed in the first twenty minutes of the trading day, hitting a low of $32.55. From that point on, it ran higher, closing flat on the day. This was unique and showed strength because late yesterday, the markets sold sharply into the close. CREE weathered this selling in the markets and maintained the flat line.

Today, with the markets again taking a drastic hit, CREE opened slightly lower and within an hour was positive. It has continued to rally higher, trading at $34.19, +0.63 (+1.88%). This is another strong showing in a down market and most likely is telling Wall Street something positive is around the corner for the company. In addition, CREE is down from its 52 week high of $76.14. With over a 50% drop from its highs, it does show up as a possible oversold value play. This stock is one to watch.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Key Technology Stocks Bucking Sharp Market Sell

June 23, 2011 – Comments (0)

Some major leading technology stocks are moving to the upside even though the markets are getting slammed. These stocks have been up all day long and are known as leaders in their group. First, from the start of the day Apple Inc. (NASDAQ:AAPL) was positive. It has slowly inched higher even in the face of a massive drop in the markets. It is currently trading at $325.93, +3.32 (+1.03%). In addition, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is leading the Chinese technology stocks and even beaten down Research In Motion Limited (NASDAQ:RIMM) is jumping to $29.44, +1.04 (+3.67%).

The fact that technology leading stocks have been strong all day usually tells traders there is a move higher off the lows coming. Sure enough, the markets have moved nicely off their lows of the day. In addition, technically a master level was tagged on the daily chart of the S&P 500 which should be major support. There is a high probability this market may stabilize for a week off this level.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Markets Test Biggest Level Since 2009

June 23, 2011 – Comments (0)

This level is epic, this level is everything. If you take the low from March 2009, when the S&P 500 traded to 666 and the low of 2010, a line can be connected to the exact low of today. This trend line represents the biggest level for this market in years. Should it break, this market will have put in a multi year top and could eventually trade back to the 2009 lows. Should it stay above this level, the market can technically trade up to and higher than the 2011 highs. This level means everything to technical traders.  Note the the SPDR S&P 500 ETF (NYSE:SPY). This shows the trend line perfectly. The investors and traders alike should be very concerned with this line breaking. It could mean even more than a recession is coming.

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

Airline Stocks Fly On Opening Of Strategic Oil Reserves

June 23, 2011 – Comments (1)

This morning, the International Energy Agency (IEA) announced that its 28 member countries have agreed to release 60 million barrels of oil in the coming month. This action is causing WTI oil to plummet lower by $5.00 to $90.46 a barrel. While oil and almost every energy stock is deflating lower this morning, there is one sector which is flying higher, the airline sector.

All of the major airline stocks are rallying higher this morning. Leading airline stocks such as United Continental Holdings Inc.(NYSE:UAL), AMR Corp.(NYSE:AMR), Delta Air Lines Inc.(NYSE:DAL), and Southwest Airlines Co.(NYSE:LUV) are all trading sharply higher. Traders should follow the price of crude as the airline stocks will often trade inverse to oil.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The U.S. Dollar Index Tells You All You Need To Know

June 23, 2011 – Comments (0)

The inverse relationship between the major stock market indexes and the U.S. Dollar Index are as close as they have ever been. Simply put, when the U.S. Dollar Index declines, the major stock market indexes will inflate and trade higher. The opposite is true when the U.S. Dollar Index rallies higher, the major stock indexes will deflate and trade lower.

This morning, we are hearing reports that the U.S. strategic oil reserves are being opened up to try and lower the price of oil. Obviously, lower oil prices will help the economy at some point. The problem is that the stock markets only go higher when oil goes higher. This stock market has been rallying on the back of inflation and the weak U.S. Dollar Index. In other words, the stock market has only rallied over the past two years because the Federal Reserve has diluted the U.S. Dollar. Let's see if the stock market can rally on the back of a stronger U.S. Dollar, the odds are not favorable.

Oil, gold, silver, copper, and every other leading asset class that has lead the major stock indexes higher for the past two years will continue to decline on the back of a stronger U.S. Dollar. It is happening this morning as the U.S. Dollar Index trades higher by 0.90 cents to $76.08 per contract. The last time the U.S. Dollar Index surged higher was during the summer of 2010 and the Federal Reserve scrambled to create QE-3. Eventually, the central bank will have to revert back to another quantitative easing program down the road.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Old School Tech Stocks: Where To Buy

June 22, 2011 – Comments (0) | RELATED TICKERS: CSCO , MSFT , HPQ

There are mega players in technology land that have been monsters in the past.  These companies are still a force to reckon with, however, their stock prices have fallen drastically. The three main old school tech stocks are Cisco Systems, Inc. (NASDAQ:CSCO), Microsoft Corporation (NASDAQ:MSFT) and Hewlett-Packard Company (NYSE:HPQ). All three of these technology stocks are hovering well off their all time highs and most are near their 52 week lows.

Cisco Systems has major support on the daily chart at $13.85. The stock is currently trading at $15.47. While this seems like a long way off, it is important to note that the stock was over $22.00 a share earlier this year. For those who are patient traders and want to make money, wait for this level on CSCO and buy for the longer term.

Microsoft Corporation has been stuck in purgatory for years. While hitting a high in the year 2000 of close to $60.00 per share, it has fallen and been suck in the $20.00 range for close to a decade.  There have been small quick pops over $30.00 and under $20.00 but overall, it has remained in this tight range. The buy range on MSFT is $22.85.  Should MSFT hit this price, it will be a solid upside mover for many months.

The last old school technology stock is Hewlett-Packard Company. This was a powerhouse and high flier not long ago. However, after many earnings misses and disappointments, it now hovers near its 52 week lows at $35.40. This play has major support at $33.85 and more at $32.80. Smart Wall Street players will accumulate in this range and look to hold.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Alert: Stock Market Awaits Federal Reserve

June 22, 2011 – Comments (0) | RELATED TICKERS: SPY , GS , BORN

The markets are holding on the flat line as they await the Federal Reserve FOMC policy statement and the press conference that will follow later today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.66, +0.21 (+0.16%). After a monster rally yesterday, the markets are waiting to hear if there will be some sort of QE3 or in the very least some QE2.5. With the economic data of late and the massive problems inside of Europe, the Federal Reserve may be poised to bring some sort of secondary easing plan. This plan will most likely come later this year or early in 2012 though. Be ready for the next swing trade alert on the Federal Reserve's action.

Financial stocks are leading the charge today. They were initially weak yesterday following downgrades on Monday, but bounced nicely by the end of the day. Today the banks are the leading sector in the market. Goldman Sachs Group, Inc. (NYSE:GS) is trading higher at $136.82, +0.86 (+0.63%).

Chinese stocks again seem to be the the best performers.  These stocks have been hammered due to fraud allegations, short sellers and accounting issues. Many have lost over 75% of their value. Even dead cats bounce though, and stocks like China New Borun Corp (NYSE:BORN), Sino Clean Energy Inc. (NASDAQ:SCEI) and A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) have all rocketed off their recent lows. Until there is more transparency, the smaller Chinese stocks should be utilized and short term trading vehicles, nothing more. Which is the next China stock to pop or drop?

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Is OpenTable A Broken Table?

June 22, 2011 – Comments (1)

OpenTable Inc.(NYSE:OPEN) provides electronic reservation book (ERB), an integrated software and hardware solution that computerizes restaurant host-stand operations. This helps restaurants with reservations, seating arrangements, guest recognition, and email marketing. OpenTable Inc. has been a leading stock until late April 2011 when the stock traded as high as $118.66 a share. Since that high print, the stock has plummeted lower by 35.0 percent. The stock is now trading below its daily chart 50, and 200 simple moving averages. This puts the stock in a weak technical position on the charts. This is certainly a major decline in such a short period of time on the daily chart. The next major support level on the daily chart looks to be around the $71.00, and $68.00 levels.The stock is very oversold at this time, however, traders must continue to be cautious on this stock until it can recapture and close above the 200 moving average.

This morning, OPEN stock is trading slightly higher by 0.84 cents to $77.63 a share. The stock will have intra-day support around the $76.25 and $75.70 levels. Should the stock rally higher intra-day, traders should watch for intra-day resistance around the $79.00 level.


Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

All Eyes On Bernanke

June 22, 2011 – Comments (0)

Almost every trader and investor will be waiting patiently for the Federal Open Market Committee(FOMC) interest rate decision, that announcement is expected to be released this afternoon. The Federal Reserve Bank Chairman, Ben Bernanke, will hold his second press conference after the Fed funds rate decision is announced. Therefore, the major stock indexes could remain range bound until all of these events take place.

Many traders and investors are expecting the Federal Reserve to leave the Fed funds rate unchanged at zero to a quarter percent. This rate is the overnight lending rate to the large financial institutions such as J.P. Morgan Chase & Co.(NYSE:JPM), Wells Fargo & Co.(NYSE:WFC), Bank of America Corp.(NYSE:BAC), and Citigroup Inc.(NYSE:C). These banks can basically borrow unlimited capital at zero percent. This important lending rate has been at this level since December 2008. This is the reason why bank customers hardly earn any interest on their savings account. In essence, savers get punished for not taking risk these days. The average interest earning on a savings account in the bank is around 0.10 percent, therefore, a $100,000 savings account earns you $100.00 in a year. Many people are now wondering if they should just keep there money under the mattress.

Many traders and investors are wondering if Chairman Ben Bernanke will hint that he will start another quantitative easing program soon. Currently, the Federal Reserve is scheduled to end its $600 billion quantitative easing program on June 30, 2011. This program has helped to create cash reserves on the banks balance sheets. These banks can then take this money and invest in stocks, commodities, and other market instruments helping to inflate the stock markets higher. Last summer, when the stock market faced its most severe correction and a possible double dip recession, Ben Bernanke announced his current QE-2 program and the stock markets skyrocketed higher. We can only wonder if QE-3 will be announced soon if the major stock indexes continue to slump.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Lots Of Green On The Screen

June 21, 2011 – Comments (0) | RELATED TICKERS: BA , GLW , SSO

Today's rally is very broad based as there are very few leading stocks that are trading lower this afternoon. The S&P 500 Index is trading higher by 19.00 points to $1297.00. the Nasdaq Composite is soaring higher by 57.00 points or 2.15 percent. Almost every major stock is trading higher as investors expect positive news out of Greece this evening regarding the government confidence vote. Should the Greek confidence vote turn out to be a negative vote it could mean turmoil for the markets in the short term.

There are a couple of leading stocks that are trading lower this afternoon. These stocks are worth noting because they could lead the markets lower if the major stock indexes begin to decline or sell off tomorrow.

Boeing Co.(NYSE:BA) is the worlds leading aircraft manufacturer. The stock is trading lower by 0.46 cents to $74.06 a share. Traders can watch for intra-day support around the $73.66 level. Should BA stock begin to trade higher, traders should watch the $74.40 level as intra-day resistance. The daily chart still remains weak with some minor support around the $72.40 area.

Corning Inc.(NYSE:GLW) is another leading stock that is trading lower this afternoon despite the large market rally. GLW stock is trading lower by 0.24 to $17.68 a share. This stock will have intra-day support around the $17.40 area. Should GLW somehow rally higher the stock will have good intra-day resistance around the $17.85 area. This stock remains very weak on the daily chart trading below all of the major moving averages. This daily chart pattern puts GLW in a poor technical chart position for the near term.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Keys: Stock Market Rally Ahead Of Fed

June 21, 2011 – Comments (6) | RELATED TICKERS: SPY , UUP , QQQ

The markets are in rally mode today as positive comments from the Federal Reserve tomorrow afternoon are expected. It appears the markets may even be hoping for some QE3 news. Ben Bernanke and the rest of the Federal Reserve are meeting to discuss policy. They will announce it tomorrow. The SPDR S&P 500 ETF (NYSE:SPY) traded as high as $129.55, +1.85 (+1.45%). This was a major gain for a market that has seen seven weeks of selling.  

The Dollar is also taking a large hit today. A down Dollar means a strong up market.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%) This weakness in the Dollar is partially related to possible further easing measures by the Federal Reserve but also an aid package to Greece that may be given as early as tomorrow. The first step tonight is a vote of confidence for the government. Assuming that goes well, new austerity measures will be voted on. The market is anticipating a royal flush of approval. Should something happen, the markets could freak out. It is unlikely but not impossible. 

The rally today is broad based. Financial stocks were weak early but have roared back and are now matching the gains of other stocks. JPMorgan Chase & Co. (NYSE:JPM) is trading at $41.00, +0.52 (+1.28%). Technology has taken charge with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) trading at $55.08, +1.01 (+1.88%).

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Tech TakeoffTech Takeoff

June 21, 2011 – Comments (0) | RELATED TICKERS: AAPL , BBRY , GOOGL

All of the major stock market indexes are advancing higher this morning. The early market rally looks to be very broad based, however, the strongest index is the NASDAQ Composite. The NASDAQ Composite is trading higher by 1.70 percent, this is a substantial move higher compared to the other major stock indexes. The S&P 500 Index is trading higher by 1.00 percent, while the popular Dow Jones Industrial Average is trading higher by just 0.64 percent.

Some of the leading NASDAQ Stocks that are surging higher include Apple Inc.(NASDAQ:AAPL), Google Inc.(NASDAQ:GOOG), Research In Motion LTD.(NASDAQ:RIMM), and Netflix Inc.(NASDAQ:NFLX). When the leading NASDAQ stocks advance or trade higher on the session it is usually a sign of short term strength. The NASDAQ Composite has been very oversold on the daily chart. At this time, the NASDAQ Composite has recaptured its daily chart 200 moving average which is a positive sign for the index.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Transport Stocks Continue To Deliver

June 21, 2011 – Comments (0) | RELATED TICKERS: IYT , CSX , FCX

The highly followed transportation sector continues to rally this morning. This sector found a short term low on June 13, 2011, since that time the sector has rallied higher by nearly 5.0 percent. Today, the iShares Dow Jones Transportation ETF(NYSE:IYT) is trading higher by $1.47 to $95.99 a share. The IYT will have some short term intra-day resistance around the $96.10, and 96.50 levels.

Many traders and investors will follow the transportation sector very closely. When the transportation index trades higher it is usually a sign of economic growth and expansion. Some other leading transportation stocks that are trading higher include CSX Corp.(NYSE:CSX), FedEx Corp.(NYSE:FCX), and Union Pacific Corp.(NYSE:UNP).


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Hold All The Cards

June 21, 2011 – Comments (0) | RELATED TICKERS: JPM , BAC , MS

One of the most important sectors in the stock market is the financial stocks. These stocks seem to lead the markets. At this time, J.P. Morgan Chase & Co.(NYSE:JPM) is probably the most important financial stock in the entire stock market. This leading financial stock is trading lower by 0.08 cents to $40.40 a share. If this stock can hold up throughout the trading day the major stock market indexes are likely to hold up without selling off. On the flip side, should JPM begin to sell off and decline the major stock indexes will likely begin to sell off and decline. JPM stock will have short term intra-day resistance around the $40.85 level. Should JPM stock decline, the stock will have short term intra-day support around the $40.00 level.

Other leading financial stocks that are struggling to catch a bid higher are Bank of America Corp.(NYSE:BAC), Morgan Stanley(NYSE:MS), and Goldman Sachs Group Inc.(NYSE:GS). Traders must keep a close eye on JPM as this stock is the leading financial stock in the market at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Still A Fragile Market

June 20, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , WFC

In nearly every trading session over the past six weeks, the major stock market indexes have struggled into the close of the trading session. Four out of the past six Friday's have been sell offs. This is a very unusual occurrence and a change in character for the major stock indexes. Even today, the major stock indexes will rally higher only to sell off sharply after 20 – 30 minutes of upside. These markets simply continue to face selling pressure.

Many traders and investors seem to worried about the problems in Greece and the rest of the European Union. Other investors are waiting to hear what the Federal Reserve Chairman, Ben Bernanke, will say on Wednesday after he releases his interest rate decision.

The plain truth is that the major stock indexes remain weak at this time. Anytime the U.S. Dollar Index rallies intra-day the major stock indexes sell off very quickly. Traders and investors are running for cover anytime the U.S Dollar Index ticks up by 0.05 cents on an intra-day basis. At this time the U.S. Dollar Index chart is still one of the most important charts in the entire stock market. Does the Federal Reserve have any other bullets left in its arsenal to inflate the major stock indexes? Lets make no bones about it, the major stock indexes are very oversold, however, that does not mean they cannot go down even further. At this time, traders must simply trade the best chart pattern setups. If you are a trader or investor that does not know or understand the stock market technicals it is a good time to start learning them.

Today, leading stocks such as Goldman Sachs Group Inc.(NYSE:GS), J.P. Morgan Chase & Co.(NYSE:JPM), and Wells Fargo & Co.(NYSE:WFC) are trading lower on the trading session. This type of action tells us that traders are still very cautious about the markets today. When the financial sector leads the markets higher that is when the investors and traders that move market indexes will be signaling actual conviction. Until that time, remain a short term trader and use charts.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Stock Market Alert: Inverse Head And Shoulder

June 20, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

The markets are at a pivotal point today. As of now, there is a beautiful inverse head and shoulder pattern on the intra day SPDR S&P 500 ETF (NYSE:SPY) chart. This can be seen on the chart below. An inverse head and shoulders pattern is a bullish pattern should it be triggered. To trigger, the pattern must break the neckline to the upside. This would set off a move higher with a target on the SPY of $130.00 near term, most likely this week. The SPY is having a solid up day, trading at $127.82, +0.76 (+0.60%). A move over $128.00 would begin trigger this bullish pattern.

The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $120.59, 0.85 (+0.71%) and the PowerShares QQQ Trust, Series 1 ETF (NASDAQ:QQQ) is trading at $54.13, +0.34 (+0.63%). The QQQ was triggered as a long swing trade on Friday at a price of $53.85 inside the Research Center. In addition, other positions making money for Research Center members are Morgan Stanley (NYSE:MS) and General Electric Company (NYSE:GE).

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

1

Markets Advance Cautiously

June 20, 2011 – Comments (0) | RELATED TICKERS: GOOGL , AAPL , SPY

The markets opened lower today on continued fears out of Greece. While an aid package is already inked and ready to go, it looks like officials are unwilling to give Greece the money until they see what happens in the coming days with the Greek government and more austerity cuts. This stall had the futures on edge early in the morning. As the markets opened lower, a bid came in, lifting them nicely to the positive side. While the gains are minor at this point, it is a positive move for a market that has seen week after week of losses.

As the lunch hour arrives, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.49, +0.44 (+0.35%). There is definitely a slow volume effect on the markets today. As the markets have drifted higher, very little volume is being seen. After a wild options expiration last week, it appears some traders are taking it lighter today. This generally has a beneficial effect on the markets.

There are two standout stocks not participating in the overall up move in the markets. Their names are Google Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL). This is keeping the Nasdaq just barely positive today. In addition, the financial stocks are under pressure after a couple institutions cut price targets for the group. While this cut was made this morning, the stocks have recovered a majority of their losses and are just trading slightly lower. The low pivot from two weeks ago seems to be in and holding. Upside is likely.

Gareth Soloway
InTheMoneyStocks  [more]

Recs

0

A Bite Out Of The Apple

June 20, 2011 – Comments (0) | RELATED TICKERS: AAPL , GOOGL , XOM

Apple Inc.(NASDAQ:AAPL) is one of the most highly followed and loved stocks by traders and investors. This morning, the innovative tech giant is coming under major selling pressure. The stock is trading lower by $8.12 to $312.07 a share. The stock has been under pressure since April 21, 2011 when it traded as high as $355.13 a share. Traders can watch for two important intra-day support levels. The first important support level is around the $310.50 area. That level was just tested a few minutes ago and is holding up so far. The second important intra-day support level for AAPL stock will be around the $300.00 area. Apple Inc. is the second largest stock in the United States with a market capitalization of $290 billion. The only stock that has a larger market capitalization than AAPL is Exxon Mobil Corp.(NYSE:XOM). Exxon Mobil's market capitalization is around $390 billion at this time. 

Other leading tech stocks that are trading lower this morning include Research In Motion LTD.(NASDAQ:RIMM), Google Inc.(NASDAQ:GOOG), and Netflix Inc.(NASDAQ:NFLX). When the leading technology stocks trade lower together it is very difficult to try and pick the lows. Often when one of these leading stocks rally higher the other leaders will usually follow. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

U.S. Dollar Index Falls Off A Cliff

June 20, 2011 – Comments (0)

As we all should know by now, when the U.S. Dollar Index declines the major stock market indexes will usually inflate and trade higher. Since 7:40 am EST, the U.S. Dollar Index has declined lower by 0.47 cents to $75.42 per contract. This is exactly when the S&P 500 Index made a move higher into positive territory. All traders must keep a chart of the U.S. Dollar Index up at all times.

The sectors that will usually bounce higher when the U.S. Dollar Index declines includes energy, metals, and agriculture. Traders can easily see how stocks such as Exxon Mobil Corp.(NYSE:XOM), Potash Corp.(NYSE:POT), and the iShares Silver Trust(NYSE:SLV) have all rallied higher as the U.S. Dollar Index has declined. Traders should also be aware that if the U.S. Dollar Index rallies higher intra-day these same sectors will often deflate and trade lower.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Semiconductor Stocks Struggle

June 17, 2011 – Comments (0) | RELATED TICKERS: SMH , BRCM , SNDK

Anytime the major stock market indexes rally it is very important to look at the leading stock sectors. When a leading sector fails to participate in the rally that is usually a sign that the rally could be short lived. This morning, the Dow Jones Industrial Average is trading higher by nearly 100.00 points. The rally looks very good on the surface and traders are in the mood to buy stocks once again. However, there is one important sector in the stock market that is not trading higher and that is the semiconductor stocks. The semiconductor sector usually leads the NASDAQ Composite and most technology stocks higher, that is not occurring today.

The Semiconductor Holder Trust(NYSE:SMH) is trading lower by 0.10 cents to $32.43 a share. Yesterday, the SMH sold off trading down to the March 16, 2011 low, this level is being tested again this morning. This level is short term support at this time, however, if the SMH does not bounce from this support level it will most likely trade lower very soon. The SMH is also trading right on the important 200 day daily chart moving average which is very important as support. Short term day traders can look for intra-day support on the SMH around the $32.00 level.

Broadcom Corp.(NASDAQ:BRCM) is trading lower by 0.25 cents to $31.52 a share. This stock has been in a down trend since January 2011. The stock is now trading below all of its major moving averages which puts the stock in a very weak chart position. The stock will have some minor intra-day support around the $31.20 level intra-day.

Other leading semiconductor stocks that look weak today include Sandisk Corp.(NASDAQ:SNDK), Texas Instruments Inc.(NYSE:TXN), and Lam Research Corp.(NASDAQ:LRCX). Traders and investors must always pay attention to the semiconductor sector. This is a technology leading group of stocks that will often tell traders where the strength in the market really is. Right now it is not in technology.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

It Is Still About The Dollar

June 17, 2011 – Comments (0)

This morning, the U.S. Dollar Index futures(DX U1) is trading lower by 0.60 cents to $75.62 per contract. When the U.S. Dollar Index declines the major stock market indexes inflate and trade higher. That is certainly the case today, as the S&P 500 e-mini futures trades higher by 11.75 points. Traders can clearly see from the chart below how the major stock indexes will trade opposite the U.S. Dollar Index. Should the U.S. Dollar Index catch a bid higher it would be prudent to expect the major stock indexes to pullback or decline intra-day.

Generally, when the U.S. Dollar Index declines traders can look for the leading commodity stocks to trade higher on the session. This morning, many leading commodity stocks such as U.S. Steel Corp.(NYSE:X) and Cliffs Natural Resources Inc.(NYSE:CLF) are struggling to catch a bid higher from the weak U.S. Dollar Index, therefore, these stock could trade much lower if the U.S. Dollar index rallies higher. It is very important for traders to judge the intra-day relative strength in each individual stock.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

7

China Stocks: Beaten, Bloody Dying..Or Good Buys

June 16, 2011 – Comments (1) | RELATED TICKERS: BSPM , ZOOM , ZSTN

With uncertainty clouding almost all China stocks, there has been a fall of epic proportions. Many Chinese stocks have fallen over 75% in the last few months, dumping to levels never imagined. Growth rates in these stocks are unparallelled in the United States, or so they would have you think. These falls have been due to accounting issues, mostly in RTO's. RTO stands for reverse takeover and describes a company getting listed in the United States by buying a shell company that is already listed. In this case, this allows the Chinese companies to avoid much of the due diligence done prior to allowing a listing on the U.S. exchanges. Just yesterday, China-Biotics Inc. (NASDAQ:CHBT) was halted as they said they would delay the filing of their annual report.  These accounting issues seem to be stemming from the companies reporting on contracts that actually do not exist. In other words, inflating their stock prices with phony revenue and earnings streams.

Countless stocks have been halted and delisted because of these issues and more are sure to come. However, there are many valid companies with solid accounting that have been punished in sympathy. The question..which ones? While the current arena still leaves more of these problem stocks to be discovered, within months whichever stocks are left standing, will allow for one of the best buying opportunities in history.

Find the stock that is trading at a 2 P/E because of fear and should it be legit, it may have hundreds of percentage points to gain in the next year or two. Some possible plays to watch are Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM) which is trading at $1.10, Zoom Technologies, Inc. (NASDAQ:ZOOM) trading at $2.20 and ZST Digital Networks, Inc. (NASDAQ:ZSTN) which is trading at $2.71.  These are just examples of Chinese plays to watch. There are many others as well. The key will be, once the due diligence has been completed and most of the fraud has been rooted out, which are left standing.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Stock Market Alert: Understanding The Markets Bounce

June 16, 2011 – Comments (0) | RELATED TICKERS: XOM , HPQ , BBRY

Speculation continues to swirl over the next Greek bailout. After the massive decline in the markets yesterday, today there is more calm. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.93, +.91 (+0.72%). It appears the latest rumor is that a Greek aid package may be on its way regardless of them making the necessary cuts in spending. This is an obvious result of the market tremors felt around the world over the last few weeks. Ultimately Greece will default on its debt. Every intelligent person is aware of this. However, at this time it is about doing it in a manner that does not trigger another Bear Sterns or Lehman Brothers type collapse in the world.

While the markets are higher today on more calm in Europe, there was also some positive economic news in the United States. Jobless Claims were reported at 414,000, dropping 16,000 from the previous week. In addition, Housing Starts came in and Building Permits came in better than expected.

Key stocks in rally mode today include Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Hewlett-Packard Company (NYSE:HPQ).

Watch Research In Motion Limited (NASDAQ:RIMM) after hours today as they are set to report earnings. The stock has been crushed in 2011, falling from a high of $70.54 to its current level at $35.35. This is just off the 52 week lows. The whisper number for quarterly profit is at $1.30. A good report may lift technology shares tomorrow. An ugly report would probably have little impact as it is expected.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Intel Still Holds All The Chips

June 16, 2011 – Comments (0)

Intel Corp.(NASDAQ:INTC) has come under some serious downgrades from several leading brokerage firms recently. On May 20, 2011 the stock was downgraded by Goldman Sachs Group(NYSE:GS) to sell from neutral. This morning Intel stock was downgraded again by FBR Capital to market perform.

The chart on Intel stock tells a different story. The stock has certainly pulled back from its May 18, 2011 high where it traded at $23.96 a share. Then again, every stock has pulled back in the month of May. The stock market is lower by nearly 7.5 percent since May 2, 2011. Intel stock is trading just slight below the daily chart 20, and 50 moving averages. The stock is still trading above the daily chart 200 moving average. Intel stock should have good daily chart support around the $21.00, and $20.00 levels. In other words, this stock has not held up this well in a long time.

The leading competitor to Intel Corp. is chip maker Advanced Micro Devices Inc(NYSE:AMD). This stock is certainly beaten down on the charts and severely oversold. While AMD stock is down sharply and coming into a double bottom support level the trend on the stock is down. AMD stock is trading sharply below all of its major moving averages. Therefore, any bounce that occurs in AMD will soon be met with heavy resistance. That is the nature of down trending stocks, they are just good for bounces until they can recapture the important moving averages.

When a trader is looking to buy a stock it is always better to chose the stronger stock in the sector as opposed to buying the weaker stock. In this case, Intel Stock is the stronger stock and continues to look decent on the charts.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

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

June 16, 2011 – Comments (0) | RELATED TICKERS: FCX , CLF , XOM

Before the opening bell rang at the New York Stock Exchange, the U.S. Dollar Index was surging higher again. Around 8:35 am EST, the U.S. Dollar Index began to decline. Once the U.S. Dollar Index began to sell off the major stock market indexes started to rally and trade higher. It is important to note that yesterday the U.S. Dollar Index rallied higher by more than $1.25 per contract. This is a major move higher for the U.S. Dollar Index. The last time the U.S. Dollar Index rallied this sharply was on May 5, 2011.

Traders should watch leading commodity stocks to move higher when the U.S. Dollar Index declines. Stocks such as Freeport McMoran Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and Exxon Mobil Corp.(NYSE:XOM) will usually react positive when the U.S. Dollar Index pulls back intra-day. These same stocks will also decline quickly when the U.S. Dollar Index rallies or bounces higher.

Every trader must keep an eye on the U.S. Dollar Index chart at this time. This index has become one of the most important indexes for all types of traders. Essentially, ever trade is a trade on the U.S. Dollar Index.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

5

Stock Market Update: Blood In The Street

June 15, 2011 – Comments (0) | RELATED TICKERS: BBRY , CVX , JPM

After a one day stock market rally, all hell has broken loose again. This can be blamed on multiple factors but mainly the Euro collapse because of Greece and the Dollar surging in response. As the U.S. Dollar surges, the markets sell sharply. This inverse relationship has been intact for years now.  The Dollar bottomed in early May 2011, just as the markets topped. Coincidence? I think not.

The selling is broad based today and the markets have given up all their gains from yesterday. A few notable leaders to the downside are Chevron Corporation (NYSE:CVX), Apple Inc. (NASDAQ:AAPL) and JPMorgan Chase & Co. (NYSE:JPM). All these leading stocks are getting crushed today.

There are a few strong stocks out there but hard to find. Amazon.com, Inc. (NASDAQ:AMZN) remains slightly positive on the day while Research In Motion Limited (NASDAQ:RIMM), one of the weakest stocks in 2011 is flat.

The VIX is spiking dramatically. This is the fear index. Greece may default any day now. Does this bring in QE3? Very likely in 2012 if not sooner. This morning a plethora of economic news was released. The futures sold sharply as the U.S. economic news continues to be ugly. To get a sense, the Empire Manufacturing for June reported in at -7.8.  This negative number was a shock to the markets and something the Federal Reserve is probably looking at closely.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Stock Markets Collapse As Dollar Soars

June 15, 2011 – Comments (0) | RELATED TICKERS: SPY , FXE , UUP

Greece continues to drag the Euro down. Almost every night there seems to be another dramatic issue bubbling up from the most troubled European country. The CurrencyShares Euro Trust (NYSE:FXE) is getting pounded on the back of these worries, trading at $142.23, -1.69 (-1.17%). As the Euro falls, the Dollar soars. As the Dollar soars, the markets collapse lower. Note how the Dollar bottomed in early May. This was the same time the stock market topped.

While Greece continues to bring down the global markets, it is important to realize that this situation will ultimately end in default. Greece is a patient on life support at this point with no options but to pull the plug. However, just like anything in life, it is not that easy. Right now the European Union is struggling to buy Greece time. Not because they have any chance of not defaulting, but more so because of the contagion fear. The longer they can prolong Greece's default, the more likely Portugal, Spain and Ireland can avoid the same fate.  Should Greece default tomorrow, many of the other countries in the EU would follow within weeks.  Think Lehman, Bear Sterns a couple years ago.

After an early morning attempt at recovery, the markets are hitting new lows of the day.  The SPDR S&P 500 ETF (NYSE:SPY) is now trading at $127.70, -1.63 (-1.26%). This massive late morning dump is a pure result of the Dollar surging higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.52, +0.26 (+1.25%).

The markets are getting slammed from all angles, commodity stocks, technology stocks, transports and banks. The SPY which is the tracking ETF for the S&P 500 just hit its gap fill level from Monday, at $127.70. This should be a short term support level intra day. If that fails to hold, the SPY will trade to its low from last Friday at $127.00.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Cloud Stocks Escape The Morning Rain

June 15, 2011 – Comments (0)

The major stock market indexes are once again starting the morning sharply lower. This looks to be a broad based decline as most leading stock sectors are trading lower. There are a few stocks that are showing some early strength despite the stock market decline. A few of the stocks that are showing intra-day strength include the cloud computing stocks.

Netapp Inc.(NASDAQ:NTAP) is rallying higher by $1.70 to $51.60 a share. This stock looks to have made a short term low three trading days ago and continues to climb higher this morning. Short term traders can look for intra-day resistance around the $52.00 area. Should the stock trade higher throughout the session the next intra-day resistance level will be around the $52.65 level. Traders should always take note of strong stocks in a weak market. Should the major stock indexes somehow catch a bid and trade higher it is the strong stocks that will lead the markets higher.

Other cloud computing stocks that are holding up well this morning include Netflix Inc.(NASDAQ:NFLX), VMWare Inc.(NYSE:VMW), F5 Networks Inc.(NASDAQ:FFIV), and Riverbed Technology Inc.(NASDAQ:RVBD). Should the major stock indexes catch a bid higher during the trading session these stocks would be leading candidates to trade higher.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

U.S. Dollar Index Soars

June 15, 2011 – Comments (0)

The U.S. Dollar Index is surging higher this morning as the problems in the European Union continue to escalate. Greece is facing heavy protests, strikes, and rioting this morning by many of its citizens. The yield on the Greek 10 year bond is spiking higher this morning. To add insult to injury, the rating agency Moody's, is expected to cut the credit rating of three major French banks that have exposure to Greek debt. We can only wonder what is going to happen to Portugal, Ireland, Belgium, Spain, Italy, and others throughout the rest of the year.

The stronger U.S. Dollar Index is putting selling pressure on the major stock market indexes, and leading commodities. Should the U.S. Dollar Index pullback intra-day the stock and commodity markets may inflate off of the lows. Short term traders must keep an eye on the U.S. Dollar Index chart at all times this morning.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Pre-Market News And Views

June 15, 2011 – Comments (0) | RELATED TICKERS: FXI , FXP , FXE

This morning, the S&P 500 e-mini futures(ES M1) are plummeting lower by 12.00 points to 1278.25 per contract. The decline in the futures comes as the problems in the European Union seem to be growing by the minute. The economic data in the United States also remains very poor. The Consumer Price Index(CPI) was released at 8:30 am and showed that food and gasoline prices pushed up inflation in the past few months. Please tell us something we don't already know.

The real catalyst for the sharp stock market decline is the stronger U.S. Dollar Index. The U.S. Dollar Index is soaring higher by 0.91 cents to $75.60 per contract this morning. Anytime the European Union comes under pressure the U.S. Dollar Index will catch a bid higher and that is certainly what is taking place ahead of the opening bell. Greece is facing massive protests, strikes and violence this morning. There are still many more problems in Europe besides Greece. Countries such as Ireland, Portugal, Belgium, Italy, and Spain could face protests soon. Hang on, this market could get bumpy!

Last night, the Asian markets were mostly lower. The highly followed Shanghai Index(NYSE:FXI) finished lower by 0.91 percent. This index is the most important index in Asia as it has lead the U.S. markets for the past five years. Simply put, when China declines it will often lead to a stock market decline in the United States. This afternoon, I shall release new support levels for the Shanghai Index. Traders can watch the iShares FTSE China 25 Index Fund (NYSE:FXI) to be under pressure at the start of the day.

All commodities are coming under pressure ahead of the opening bell at the New York Stock Exchange(NYSE). Oil, gold, silver, and copper are all trading below yesterday's closing prices. It is important to note that these commodities could trade higher if the U.S. Dollar Index pulls back intra-day. We have seen this type of action occur many times before and we cannot rule that out today.

This is the Wednesday before options expiration, therefore, it is prudent to expect a lot of volatility in today's trading session. Often, the Wednesday before options expiration is the most volatile trading session of the week.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Markets Keep Gains After Bernanke Speech

June 14, 2011 – Comments (0)

This afternoon, the Federal Reserve Bank Chairman Ben Bernanke just gave a speech in which he said the politicians should raise the U.S. debt ceiling. The institutional investors seem to love this news as the major stock market indexes are all soaring sharply higher on the day.

It is important to note that the trading volume is not very heavy during the trading session. This is telling us that the major stock indexes may just trade higher in the near term. Often, major bottoms are made with heavy volume such as the March 16, 2011 low. This afternoon the SPDR S&P 500 Trust(NYSE:SPY) is trading just 106 million shares as of 3:08 pm EST. The SPY traded 238 million shares last Friday when the market stock indexes sold off sharply into the weekend. When we see this type of volume today, it tells us that there is still very little conviction by the major financial institutions that move markets. 

Nicholas Santago
InTheMoneyStocks.com  [more]

Recs

1

Alert: Stock Markets Rally On These Key Factors

June 14, 2011 – Comments (1) | RELATED TICKERS: SPY , QQQ , DIA

The market shot higher today right out of the gate. While many investors and analysts have been extremely bearish in the last few days, this Chief Market Strategist has been bullish, slowly accumulating long positions. The reasons why I was bullish for this week are simple. I will do my best to explain them.

First, the overly bearish sentiment after six straight down weeks was palpable.  The markets always try and stay in equilibrium. Whenever the markets get too bearish or too bullish, the opposite price movement always occurs.

In addition, many people forgot it was options expiration. Institution sell a majority of the puts and calls to retail players. They receive a premium for that. If price goes against the institutions, it is in their interest to push the market in the opposite direction into options expiration to recoup those losses and turn a profit. In this case, the overly bearish sentiment in the markets had retail investors buying far more puts than calls. Prior to the rally today, those puts were in the favor of the retail investor handsomely, while the institution was going to be taking a loss. As we always know, generally, institutions never take losses. Today, those put options are worth a lot less and the institutions is looking to turn a profit into options expiration.

With the bearish sentiment reaching a crescendo, a plethora of economic news was set for release this week. The negative view of stocks had put a damper on economic expectations. In other words, the data this morning for retail sales could have been horrible, and still better than the market expected, thus creating a rally.

Lastly, the Dollar had soared into a key resistance point on the daily chart. This level happened to be the 50 and 20 moving average. With both moving averages together and price into them, it was almost impossible to not imagine a pull back in the Dollar. Sure enough, a weaker Dollar has helped the markets inch higher.

These are just some of the keys that have sent the markets soaring today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.21, +1.51 (+1.18%), the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $120.81, +1.35 (+1.13%) and the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) is trading at $55.38, +0.74 (+1.35%).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Big Market Rally, Some Tech Stocks Still Struggle

June 14, 2011 – Comments (0)

This morning, the major stock indexes are soaring higher in a broad based advance. As we know, the major stock indexes have been under pressure over the past month. At this time many traders are wondering if this rally is just a short term bottom, or just a one day bounce from a very oversold condition. In any case, the markets are higher at the start of the day. Despite this morning's rally, there are a few stocks that struggling to stay positive and we shall review them.

Netflix Inc.(NASDAQ:NFLX) is one of the leading stocks in the NASDAQ 100(NASDAQ:QQQ). This morning, NFLX stock is trading lower by 0.10 cents to $257.11 a share. This stock remains strong on the daily chart by trading above its daily chart 50 and 200 moving averages. Netflix stock is usually very volatile during the trading week leading up to an options expiration which is this Friday. Traders should watch for NFLX intra-day support around the $256.00 area. Should the stock decline further the next important intra-day support level will be around the $254.00 area. Please remember this stock is very volatile.

Cisco Systems Inc.(NASDAQ:CSCO) is another leading NASDAQ stock that remains weak this morning. The stock is trading higher by 0.07 cents to $15.13 a share. CSCO stock is trading below all of its major moving averages on the daily chart and this puts the stock in a weak technical position. Traders can watch for intra-day support around the $15.03 and $14.75 levels. Stocks that are in confirmed down trends and fail to rally in strong markets should usually just be avoided as long trades.

Nuance Communications Inc.(NASDAQ:NUAN) is a leading tech stock that continues to hold above its daily chart 50 moving average. This stock is trading higher by 0.10 cents to $20.66 a share this morning. Short term traders can look for intra-day support around the $20.50 area. Should the stock decline further during the trading session the $20.00 area will be the next important support level.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Gold And Silver Fail To Rally On Dollar Pullback

June 13, 2011 – Comments (0)

This afternoon, both gold and silver are trading lower despite the intra-day sell off in the U.S. Dollar Index futures(DX U1). Usually, gold and silver will surge higher when the U.S. Dollar Index pulls back or decline lower. Today, the precious metals are not reacting to the intra-day decline in the U.S. Dollar Index and this is a change in character for the precious metals.

The SPDR Gold Shares(NYSE:GLD) are trading lower by $1.69 to $147.57 a share. Short term traders can look for intra-day support around the $147.47, and $146.50 levels. The GLD has remained very weak this afternoon and this tells us that all support levels are minor.

The iShares Silver Trust(NYSE:SLV) is trading lower by $1.42 to $33.83 a share. Short term traders can watch for intra-day support around the $33.50 and $33.00 levels. The SLV will trade very similar to the GLD, therefore, all bounces are short term.


Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Markets Struggle To Hold Gains

June 13, 2011 – Comments (0)

The market is trading just around the flat line as it struggles to hold key early trading day gains.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.78, +0.18 (+0.14%). The weakness continues to be a result of worried investors who have started to panic after six consecutive weeks of losses. This is the longest losing streak for the markets in years.

As of now, the only saving grace seems to be a slightly lower Dollar. The markets move inverse to the Dollar and thus a weaker Dollar will help prop the markets up. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.34, -0.06 (-0.26%).

When analyzing the markets, the big question is whether or not a bounce is coming this week. This week is options expiration and big money most likely will try and bounce it. Ultimately, the SPY will go to the $125.50 level, it is just a matter of whether or not it happens this week or next week. Based on current factors, it is highly likely this week will end with a slight gain when all is said and done.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Chip Stocks Remain Weak

June 13, 2011 – Comments (0)

The semiconductor stocks remain weak this morning despite the major stock indexes trading positive this morning. The semiconductor stocks have struggled to catch a bid since early May 2011. This sector remains very weak and is now approaching the March 2011 lows.

The Semiconductor Holders Trust(NYSE:SMH) is trading lower by 0.17 cents to $32.84 a share. The SMH should have some short term intra-day support around the $32.40 level. This is a level where the daily chart is signaling support and should be solid in the short term.

Broadcom Corp.(NASDAQ:BRCM) is a leading semiconductor stock that has been declining lower since January 2011 when it traded as high as $47.39 a share. This morning, BRCM stock is trading lower by 0.60 cents to $32.51 a share. The stock remains weak on all time frames. Short term traders can watch for intra-day support around the $32.45, and $32.00 levels.

Texas Instruments Inc.(NYSE:TXN) is another leading semiconductor stock that is making a new low for 2011. This morning, the stock is trading lower by 0.42 cents to $31.73 a share. TXN is now trading below its daily chart 50, and 200 moving averages which put the stock in a confirmed downtrend. Traders can watch for intra-day support around the $31.60, and $31.00 levels.

Often the semiconductor sector will lead the Nasdaq Composite Index. Recently, the semiconductor stocks have lead the Nasdaq Composite lower. Since May 2, 2011 the Nasdaq Composite has declined lower by 8.2 percent.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Play Follow The Leader

June 13, 2011 – Comments (0)

Since early May, it has been the large financial stocks that have lead the stock market declines. Many leading financial stocks have struggled throughout most of 2011. All traders and investors must keep a close eye on the leading financial stocks as these stocks are leading the major stock indexes at this time. In this case, the financial stocks have lead the market indexes lower. The financial stocks account for roughly 14.0 percent of the S&P 500 Index.

J.P. Morgan Chase and Co.(NYSE:JPM) is by far the most important financial company that traders and investors should follow. This stock remains below all of its daily chart 50, and 200 moving averages. When this type of formation forms it tells us that the stock is in a downtrend, and in a weak technical position on the charts. This morning, JPM is trading lower by 0.25 cents to $40.80 a share. Traders can look for some minor intra-day support around the $40.65 and $40.00 levels.

Other leading financial stocks that continue to struggle include Bank of America Corp.(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). These stocks continue to remain weak on the daily charts. This tells us that the entire financial sector is trading together. It is still very important for traders to follow the leading stock in the sector, which is J.P. Morgan Chase & Co., for overall direction in the financial stocks.



Nicholas Santiago
InTheMoneyStocks  [more]

Recs

0

Energy Bounce Lifts Markets Early

June 13, 2011 – Comments (0)

This morning, the major stock indexes are bouncing higher across the board. While most sectors are trading in positive territory, it is the energy sector that is leading the markets higher. The energy sector accounts for roughly 16.0 percent of the S&P 500 Index.

Exxon Mobil Corp.(NYSE:XOM) is the leading integrated energy stock in the stock market. Today, XOM is trading higher by 0.60 cents to $80.37 a share. Traders and investors must always follow the action in this stock as it has the largest market capitalization in the entire market at $400 billion. Therefore, when this stock trades higher on the session it is a good chance that the major stock indexes are trading higher as well. XOM will have intra-day chart resistance around the $80.65 and $81.00 levels.

Other energy stocks that are trading higher this morning include Frontier Oil Corp.(NYSE:FTO), ConocoPhillips(NYSE:COP), and Chevron Corp.(NYSE:CVX). Traders should follow Exxon Mobil very closely as this stock should lead most other energy stocks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Energy Bounce Lifts Markets Early

June 13, 2011 – Comments (0)

This morning, the major stock indexes are bouncing higher across the board. While most sectors are trading in positive territory, it is the energy sector that is leading the markets higher. The energy sector accounts for roughly 16.0 percent of the S&P 500 Index.

Exxon Mobil Corp.(NYSE:XOM) is the leading integrated energy stock in the stock market. Today, XOM is trading higher by 0.60 cents to $80.37 a share. Traders and investors must always follow the action in this stock as it has the largest market capitalization in the entire market at $400 billion. Therefore, when this stock trades higher on the session it is a good chance that the major stock indexes are trading higher as well. XOM will have intra-day chart resistance around the $80.65 and $81.00 levels.

Other energy stocks that are trading higher this morning include Frontier Oil Corp.(NYSE:FTO), ConocoPhillips(NYSE:COP), and Chevron Corp.(NYSE:CVX). Traders should follow Exxon Mobil very closely as this stock should lead most other energy stocks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Alert: Markets Drop Sharply As Dollar Spikes

June 10, 2011 – Comments (0)

The markets have flushed into the key SPDR S&P 500 ETF (NYSE:SPY) support level at $127.60. This level was a long signal taken for a scalp. As of now, the SPY is trading at $127.80. Half of the position is off the table for a $0.20 profit while the remainder has a $0.50 profit target and has a break even stop.

The markets are taking a beating as the Dollar has advanced higher from the open. More worries are bubbling up out of Greece as word is, a bailout is expected by the end of the month.

This is a rare drop in the markets for a Friday. However, with the continued worry out of Europe and now the United States in regards to the job market and debt ceiling, few investors want to hold positions over the weekend.

Commodities are taking a beating today on the back of the stronger Dollar. The United States Oil Fund LP (NYSE:USO) is trading at $39.23, -0.91 (-2.27%) while the SPDR Gold Trust (NYSE:GLD) is trading at $149.58, -0.98 (-0.65%).  These commodity declines are sending shares of market leading stocks like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) sharply lower.

As volume lightens up on this Friday session, the markets may continue to float off the lows. That is why I am holding the second half of my SPY trade long with a break even stop. The first half makes it a profitable trade, no matter what. This is trading discipline.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Dollar Surge Means Another Down Friday

June 10, 2011 – Comments (2)

In the past, the major stock indexes would rarely decline on a Friday, with this type of action occurring so often we coined the phrase, Friday effect. However, over the past month the major stock indexes have been plummeting on Friday's and we may have to make up a new phrase called the Friday defect. This morning, the catalyst for the stock market decline is the rising U.S. Dollar Index. Obviously, there are many other problems in the economy causing a weak stock market such as the European debt crisis, high Asian inflation, and 9.1 percent unemployment in the United States just to name a few. The stock market is no longer able to climb the wall of worry at this time.

Oil, gold, and silver, are all coming under heavy selling pressure as the U.S. Dollar Index rallies higher by 0.43 cents to $74.63 per contract. It would be prudent for short term day traders to look for the stock markets to bounce off the lows intra-day if the U.S. Dollar Index pulls back. However, if the U.S. Dollar Index continues to surge higher on the session then it is very likely the major stock indexes will see further selling pressure throughout the trading session.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Made Of Steel

June 10, 2011 – Comments (0)

This is another trading session where the major stock indexes are starting the morning under selling pressure. Strange enough, the steel stocks are the only sign of strength during this opening hour of the trading session.

United States Steel Corp.(NYSE:X) is trading higher by 0.53 cents to $43.26 a share. The stock has been extremely weak on the daily chart trading below all of the major moving averages. Therefore, this early morning bounce in the stock could be short lived. Short term traders can watch for intra-day resistance around the $43.40 and $43.95 area.

AK Steel Holdings Corp.(NYSE:AKS) is another leading steel stock that is trading higher this morning by 0.30 to $14.98 a share. This stock actually made a short term low on May 17, 2011 at $14.33 a share. Therefore, this stock has better relative strength than United States Steel. Traders can watch for intra-day resistance around the $15.20, and $15.50 area.

Cliffs Natural Resources Inc.(NYSE:CLF) is trading higher this morning $1.10 to $86.26 a share. CLF is a leading producer of iron ore pellets which is used to make steel. This stock will have intra-day resistance around the $86.25, and $87.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Swiss Cheese Rally With Holes Everywhere

June 09, 2011 – Comments (0)

The major stock market indexes are all surging higher this afternoon. The rally is broad based as energy, commodities, agriculture, retail, and technology are all trading higher. While this move is very strong today on the surface there are still some pockets of weakness in the market place that should be noted.

First, the volume in today's rally is very weak. The SPDR S&P 500 Trust(NYSE:SPY) is trading just 102 million shares as of 3:00 pm EST. The average daily trading volume over the past six trading day decline is around 200 million shares. Therefore, today's rally looks to be just an oversold bounce. Many investors and traders will usually look for massive volume to come into the market as a sign of capitulation. That has not yet occurred. If you want to see an example of that type of capitulation volume look at the March 16, 2011 low.

Second, many leading stocks are struggling to trade in positive territory. Apple Inc.(NASDAQ:AAPL) is the leading and most popular stock in the entire market. Apple Inc. is struggling to stay in positive territory this afternoon despite the Dow Jones Industrial Average trading higher by over 120.00 points. Other leading stocks that are trading lower on the session include F5 Networks Inc.(NASDAQ:FFIV), Google Inc.(NASDAQ:GOOG), Qualcomm Inc.(NASDAQ:QCOM), and Simon Property Group Inc.(NYSE:SPG).

When market leaders struggle to trade higher it is a warning sign that this move higher in the markets today is very suspect and may not last very long. Traders and investors should understand that the major stock indexes are very oversold on the daily charts and bounces will occur. Remember the old market adage, “nothing goes down in a straight line.”


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Market Update: Stocks Rally

June 09, 2011 – Comments (0)

The markets are rallying today as investors are scooping up cheap stocks. After a six day fall, and financial stocks hitting multi year lows, a bounce day seems to be in the cards. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $121.50, +1.20 (+1.00%)
 while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $55.54, +0.15 (+0.27%).

The markets are holding their gains today based mainly on the bank stocks and transports. The financial plays have been killed lately but finally are seeing an oversold bounce. In addition, while the Dollar opened higher, it has faded all day long. As the Dollar has faded, it has pushed the markets slowly higher. Remember, during market hours the markets trade inverse to the Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.18, +0.05 (+0.24%). The key to this helping the markets is not that it is up, but more that when the markets opened today, the UUP was at $21.24 and has faded all day.

Technology is definitely the weakest sector. Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) are both slightly negative, keeping the Nasdaq from having big gains.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Did You Buy: Financial Stocks Rally Sharply

June 09, 2011 – Comments (1)

Banks are leading the market for the first time in weeks. News break, the market is rallying solidly for the first time in what seems to be weeks. This is no coincidence and most likely a key to further upside in the market. Goldman Sachs Group, Inc. (NYSE:GS) is jumping +2.99 to $134.58 (+2.27%) while Wells Fargo & Company (NYSE:WFC) is trading at $26.07, +0.71 (+2.80%) and Morgan Stanley (NYSE:MS) is at $22.55, +0.62 (+2.83%).

These are significant gains for the financial stocks which have been under continued pressure all year. Many banks are down close to 30% from their 2011 highs. Just recently, bank stocks have had an overload of bearish sentiment from analysts and the media. In addition, they have all hit major multi year pivot support lows. The fact that these all are coinciding leaves this pro trader to assume a bounce was coming. The bounce is here. It should last for almost a week, maybe longer on the financial plays. 

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

Predicted: Stock Market Rallies

June 09, 2011 – Comments (0) | RELATED TICKERS: SPY , BAC , GE

If you were following my Rant and Rave blog articles at InTheMoneyStocks.com, this rally was accurately called. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.45, +1.03 (+0.80%). The reasons to expect a rally today were simple. First, options expiration is next week. This may not seem significant but it is. Institutions sell a majority of the options to retail investors and smaller hedge funds. With the mega bearish sentiment, a huge amount of puts had been bought in the last month. A put is a bet the market will go down. Those puts are significantly in the money and the large institutions are set to take big losses. The one way to reduce those losses and possibly turn them into a profit is to have the market bounce. Considering the power of these mega institutions, the markets were going to bounce. 

In addition, when studying charts like General Electric Company (NYSE:GE) or other market leaders like Bank of America Corporation (NYSE:BAC), it is clearly seen that these stocks are into support levels that are massive. The likelihood of these stocks not bouncing at these levels was remote.

As if those reasons were not enough to cause a bounce, sentiment on television and in the media was as bearish as it has been in months. This creates a bearish feeling among the retail viewing public. In turn, the retail investor sells marking a short term low in the markets. This has always been the way the markets work, today is no different.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Financial Stocks Lead Markets Higher

June 09, 2011 – Comments (0)

The major financial stocks have been one of the weakest sectors for most of 2011. Nearly every trading day since early May, which was the start of the stock market correction, the financial stocks have come under severe selling pressure. This morning, the financial stocks are actually catching a bid in the market and leading the major stock indexes higher. The financial stocks account for roughly 14.0 percent of the broad based S&P 500 Index.

Leading financial stocks such as Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS) and Wells Fargo & Co.(NYSE:WFC) are all trading higher this morning. These stocks look to be catching a bid from a sharp oversold condition on the daily charts. It is important to note, that while these leading financial stocks are trading higher today they are still very weak trading below the daily chart 50 and 200 moving averages. This tells us that today's rally in the financial stocks could be short lived.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Early Market Bounce, Can It Hold Into The Close?

June 09, 2011 – Comments (2) | RELATED TICKERS: SSO , NFLX , XOM

This morning, the major stock market indexes are having another early bounce higher. Over the past six trading sessions the major stock indexes have closed in negative territory. The last time that the major stock indexes accomplished this feat was in February 2009. This was just prior to the first quantitative easing(QE-1) or U.S. Treasury purchasing program by the Federal Reserve. At this time, we all know that the Federal Reserve is ending their current $600 billion QE-2 program at the end of June 2011. Over the past week, we have seen the major stock indexes rally intra-day only to sell off into the close. This type of action at the end of the trading day is a sign of market weakness.

These markets are very oversold at this point. The S&P 500 Index has declined lower by nearly 7.0 percent since the May 2011 high. At this time, this appears to be just a normal correction, however, all of the problems that caused this decline still persist and this is a reason for caution. Traders and investors will continue to focus on all the problems in Europe, Asia, and the United States as long as the major stock indexes remain weak. Many investors believe that the Federal Reserve(U.S. Central bank) is out of ammunition for the near term and cannot reload new stimulus until the markets stage a true correction. We shall see soon enough as the chatter of QE-3 is being talked about by every investors at this time.

Should the major stock indexes rally today it looks to be just an oversold bounce. It is always very important to see a secondary higher close, or what we would call a follow through day. Traders should watch the leading stocks for clues to see if the markets can stage a multi-day bounce. Some of these market leading stocks include Apple Inc.(NASDAQ:AAPL), Netflix Inc.(NASDAQ:NFLX), Exxon Mobil Corp.(NYSE:X), and J.P. Morgan Chase & Co.(NYSE:JPM). When these stocks do well it is a good sign that the major stock indexes will also do well. It is simply a game of follow the leader. Lets see if this market can finish the day in the green by the close before we say this market has found a near term low. Remember, one day does not make a trend.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Struggling To Stay Above Water

June 08, 2011 – Comments (0)

The major stock indexes are all struggling this afternoon to get into positive territory. The Dow Jones Industrial Average, NASDAQ Composite, and the S&P 500 Index have been sold off sharply by the institutional traders since the beginning of May 2011. The major stock indexes are down by about 7.0 percent since making a new high on May 2, 2011.

Last summer, was the last time that the major stock index had a severe correction. During that correction the indexes sold off for four months and pulled back around 16.0 percent. The catalyst for the decline at that time was a Goldman Sachs(NYSE:GS) indictment by the SEC, a Greek credit crisis, the BP(NYSE:BP) oil leak in the Gulf of Mexico and the unforgettable May 6, 2010 flash crash. That stock market sell off lead to the famous QE-2 announcement in Jackson Hole, Wyoming by the Federal Reserve Chairman Ben Bernanke in late August 2010. Could this current stock market correction be a replay of last years action? Will Ben Bernanke decide that the United States economy needs another dose of money creation? Is the economy going to be allowed to stand on it's own two feet? These are the questions that many traders and investors are asking themselves.

Many investors believe that Chairman Bernanke could be out of economic bullets to inflate the economy higher. After all, the Fed funds rate, which is the overnight lending rate to the large banks, has been at zero percent since December 2008. Meanwhile, the large banks can charge customers an average of 17.0 percent on credit cards and pay you almost nothing on a savings account. Many senior citizens and people on fixed incomes depend on their bank interest to make up their loss of earnings power. Unfortunately, these savers get punished. These same people who primarily live on fixed incomes also have to face much more expensive prices for all of their necessities such as gasoline, heating fuel, food, and almost everything else that one needs to survive. It is amazing how things have changed over the years.

We can only wonder if their will be a QE-3 in the near future. At this time, the major stock market indexes are really not down enough for the Federal Reserve to go into panic mode, however, these guys watch every tick in the market everyday. President Obama is also feeling the pressure as his approval rating plummets on a daily basis when it comes to the economy. Until the last few weeks, the stock market would rally when the U.S. Dollar Index declined, that relationship is not working the way it has in the past. When the U.S. Dollar Index declines the stock market inflates very little. This tells you that the institutional investors are losing faith in the Federal Reserve Bank's methods. Stay tuned, this looks like it is going to be a bumpy 2011 for stocks.

Nicholas Santiago
IntehMoneyStocks.com   [more]

Recs

1

Stock Market Update: Markets Fight A Stronger Dollar

June 08, 2011 – Comments (1)

The markets are trading on the flat line today which is a victory. The big question is, can it hold and build the day into a positive move. The reason for the victory today is simple. The Dollar is spiking higher on the session off of more bearish news out of Greece. This is hitting the Euro, thus spiking the Dollar.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.11, +0.08 (+0.38%) while the SPDR S&P 500 ETF (NYSE:SPY) are trading at $129.10, +.14 (+.11%).

With the markets trading neutral on a day when the Dollar is higher, a bullish bias must be taken for today and the rest of the week. This is a technical divergence that indicates a bounce is on the horizon in the markets. In addition, we all know options expiration is next week. With all the retail investors loading up on puts, it is very unlikely the institutions will allow the market to head lower, causing them to take big losses. More than likely the markets will get a bounce, drawing many of those puts to expire worthless.

Oil is the standout commodity of the day. OPEC's meeting over the last couple days ended in a stalemate. This has never happened before. Ultimately, oil output was expected to rise and will now stay the same. In addition, this disagreement inside OPEC must be looked at as another destabilizing aspect in the Middle East. The United States Oil Fund LP (NYSE:USO) is trading sharply higher at $40.14, +1.09 (+2.79%).

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Bearish Sentiment Signals Near Term Bottom On Financials

June 08, 2011 – Comments (1) | RELATED TICKERS: JPM , C , WFC

Banks have been punished all year long. After making highs in early 2011, stocks like Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C) have all come crashing down. Goldman Sachs hit a high of $175.34 in January before selling off to its recent price of $133.25. Both Bank of America and Citigroup have performed equally as poorly as have others.

There is a persistent fear of massive new regulations coming to the financial institutions in the next few months. These upcoming regulations sparked a question by Jamie Dimon from JPMorgan Chase & Co. (NYSE:JPM) to Ben Bernanke yesterday during his speech. The question essentially spoke to the possibility of these new regulations causing banks not to lend.  In addition, Dimon brought to the forefront the possibility that if the banks do not lend, a new recession may begin.

There is a plethora of negativity on the banks. They have sold sharply in recent months and continue to be under pressure. Many of these stocks are into key technical levels reached in the last few days.

The bottom line is this. The combination of these technical levels and the crescendo of negativity probably dictate a near term solid bounce. Long plays can be initiated in this general vicinity on stocks like Bank of America, Citigroup, Morgan Stanley (NYSE:MS) and others.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

CAT, From Leader To Laggard

June 08, 2011 – Comments (0)

In early May 2011, Caterpillar Inc.(NYSE:CAT) was the hottest stock in the entire market. The leading mining equipment stock topped out at $116.55 a share on May 2, 2010. Since that pivot high, the stock has sold off sharply lower trading at $98.74 a share this morning. Traders can watch for some short term intra-day support around the $97.90 area.

Other mining equipment manufacturers that are trading lower this morning include Joy Global Inc.(NASDAQ:JOYG), and Deere & Co.(NYSE:DE). These two stocks will generally trade in tandem with Caterpillar which is the leading stock in the sector.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Integrated Energy Stocks Fuel Higher

June 08, 2011 – Comments (0) | RELATED TICKERS: CVX , XOM , COP

The major stock indexes continue to struggle this morning as the leading indexes trade slightly lower on the session. The large integrated energy stocks are the one strong sector today bucking the recent stock market trend. The energy stocks account for roughly 16.0 percent of the S&P 500 Index.

This morning, Exxon Mobil Corp.(NYSE:XOM) is surging higher by $1.64 to $81.64 a share. The company announced a major oil discovery in the Gulf of Mexico. This news is helping to lift the shares of the stock this morning. XOM stock should have intra-day resistance around the $82.12 level. The stock could see an intra-day pullback around this area.

In sympathy to the Exxon Mobil news, stocks such as Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP) are trading higher as well this morning. Traders can look for intra-day resistance on CVX around the 100.50, and 101.00 levels. COP stock will have intra-day resistance around the $72.00, and $72.50 area. Whenever stocks trade higher in sympathy it is prudent to follow the leading stock for overall direction. In other words, XOM is the leader this morning.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

To QE-3 Or Not To QE-3, That Is The Question

June 07, 2011 – Comments (1) | RELATED TICKERS: C , BAC , JPM

Almost every investor is standing by waiting for the Federal Reserve Chairman, Ben Bernanke, to make some type of comment regarding another round of quantitative easing. In other words, will there be QE-3 if the markets keep falling. It is important to note that the key bank lending rate, which is called the fed funds rate, has been at 0% since December 2008. when you add the current U.S. Treasury purchasing program to the picture it actually makes the key bank lending rate more like minus 0.75 percent. This is a calculation comes from Ben Bernanke himself in his latest interview with 60 Minutes. Is it true that the stock market can only trade higher if the Federal Reserve increases the cash reserves? So it seems at this time.

The highly followed and traded "too big to fail" banks have been declining sharply over the past few months. Today, leading bank stocks such as Bank of America Corp.(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), Citigroup Inc.(NYSE:C), and others are trading at new monthly lows. Is this the sign of a healthy economy? At some point, the Federal Reserve will have to make a decision on whether to do another stimulus plan or let the markets fall where they may. Many prominent politicians such as Ron Paul(R-Texas) feel that the central bank should eventually be abolished due to the bubbles that have been manufactured over the past 100 years. Since the Federal Bank is the third central bank that the United States has had since being formed the country has been through this process before. Ron Paul's sentiment about the central bank is now picking up steam with many other politicians as he is the Chairman of the Financial Subcommittee overseeing the Federal Reserve.

Oh well, we shall see soon enough if Chairman Bernanke hints that another round of U.S. Treasury purchases will take place anytime soon. Ben Bernanke is scheduled to speak at a conference in Atlanta, Georgia at 3:45 pm this afternoon.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

2

Copper Stocks Hurt As Worries Continue In Peru

June 07, 2011 – Comments (0) | RELATED TICKERS: SCCO

As election results were tallied, Ollanta Humala was the reported winner with 52.6% of the vote. Humala is known as a left-wing nationalist that may bring the country the way of Hugo Chavez. The stock market in Peru collapsed 14% on these results as fears of nationalization spread quickly. Stocks all over the world with ties to Peru also collapsed. Precious metals miner Compania de Minas Buenaventura SA (NYSE:BVN) dropped from $42.00 to $35.75 and copper producer Southern Copper Corporation (NYSE:SCCO) fell 10% on this news.

In the short term these stocks will most likely remain under significant pressure until more clarification can be gained. While their valuation seems attractive, if nationalization does become a reality, they will go much lower.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Markets Float Ahead Of Bernanke Speech

June 07, 2011 – Comments (1)

The markets are floating slightly higher today as the Dollar has fallen sharply once again. Federal Reserve Chairman Ben Bernanke is set to speak at 3:35pm ET today. Knowing this, gave Wall Street a good idea that the markets would most likely see weakness in the Dollar and an up market.  The market expects Bernanke to say positive things and always be a friend to the markets, thus the markets positive today.  The SPDR S&P 500 ETF (NYSE:SPY) $129.63, +0.59 (+0.45%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.04, -0.11 (-0.52%).

The strongest sectors today seem to be commodity plays like Chevron Corporation (NYSE:CVX) and Halliburton Company (NYSE:HAL). These stocks are solidly higher today after taking a hit over the last few weeks.

The weakest sector today is again bank stocks. Goldman Sachs Group, Inc. (NYSE:GS) is negative along with Wells Fargo & Company (NYSE:WFC).

The markets are likely to hold small gains into Ben Bernanke's speech today. The markets are still jittery over the European debt crisis and the U.S. jobs picture. This is unlikely to change in the short term. However, with Bernanke speaking and the Dollar falling, a small up day or two may be possible.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Goldman Sachs Leads The Financial Stocks Lower

June 07, 2011 – Comments (0) | RELATED TICKERS: GS , WFC , C

Goldman Sachs Group Inc.(NYSE:GS) has been one of the weakest stocks in the stock market as of late. The stock topped out in mid-January 2011 at $175.43 a share and has been steadily declining. The stock is trading below its daily chart 20, 50, and 200 moving averages which put the stock in a confirmed downtrend. At this time, it seems that almost every bounce in this leading financial stock is being met with selling pressure. This morning, GS stock is trading lower by 0.24 cents to $133.65 a share. The stock started the day sharply higher at the open, trading as high as $135.76 a share before fading lower. Traders can watch for short term intra-day support around the $132.99 and $132.00 levels.

Other leading financial stocks that are trading lower this morning include Morgan Stanley(NYSE:MS), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). Traders must be aware that the financial sector has lead the markets lower over the past month.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Retail On The Move

June 07, 2011 – Comments (0)

This morning, the retail sector is showing early strength. The Retail Holders Trust(NYSE:RTH) is trading higher by $1.21 to $106.46 a share. When the retail sector shows intra-day strength it is usually a sign that the major stock indexes will hold up for the day. Over the past week, the retail stocks have been very weak, declining sharply over the past four trading sessions. This index is now oversold and looks to be bouncing higher this morning. Traders should watch for intra-day resistance on the RTH around the $107.00 level.

Other leading retail stocks that are trading higher this morning are Target Corp.(NYSE:TGT), Costco Wholesale Corp.(NASDAQ:COST), and TJX Cos Inc.(NYSE:TJX). These leading retail stocks will usually track the action in the RTH, therefore, when the RTH looks to be coming into resistance it would be prudent to expect intra-day resistance in these stocks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Too Big To Fail Leads The Markets Lower

June 06, 2011 – Comments (0)

The large major banks are leading the major stock market indexes lower for a fourth consecutive trading session. It is important to remember that the four largest banks and many of the leading brokerage firms have been under pressure since the start of May 2011. These stocks are all short term oversold on the daily charts at this time, therefore, it is possible to see small bounces in these stocks in the near term.

J.P. Morgan Chase & Co.(NYSE:JPM) is the strongest financial stock out of the 'too big to fail' institutions. This stock is trading lower this afternoon by $1.05 to $40.52 a share. When this leading stock fails to catch a bid higher it is usually a good sign that the entire sector is struggling and likely trading lower. JPM stock will have some intra-day support around the $40.35 and $40.00 area level.

Goldman Sachs Group Inc.(NYSE:GS) remains in a daily chart down trend. The stock is trading below its daily chart 50, and 200 moving averages which put this leading financial institution in a weak technical position. The stock will have some short term intra-day support around the $132.00, and $131.00 levels.

Well Fargo & Co.(NYSE:GS) is one of the leading bank stocks in the stock market. Today, the stock was downgraded by Rochdale Securities with a $22.00 price target. WFC stock is trading lower by 0.59 cents to $26.28 a share. WFC will have intra-day support around the $26.00 level. This is another leading bank stock that is trading in a confirmed daily chart down trend at this time.

Other leading 'too big to fail' financial stocks that are trading lower this afternoon include Bank of America Corp.(NYSE:BAC), Citigroup Inc.(NYSE:C), Morgan Stanley(NYSE:MS), and American International Group Inc.(NYSE:AIG). At this time, the large 'too big to fail' institutions are leading the stock markets lower.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Lunch Update: Markets Hold Slightly Negative

June 06, 2011 – Comments (0)

The markets are hovering slightly negative on the day as the economic picture of Europe and the United States continues to look grim. The Dollar has been slowly inching higher throughout the day, keeping the markets from surging back towards the flat line. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.13, +0.04 (+0.19%). A Dollar that moves higher keeps pressure on the markets.  The markets trade inverse to the Dollar.

While gold and silver are surging on the global uncertainty, oil is falling. The United States Oil Fund LP (ETF) (NYSE:USO) is trading at $39.23, -0.43 (-1.08%). The reason why oil is lower is slightly do to the stronger Dollar but more due to the outlook for global demand. As the jobs picture in the United States gets worse and the financial problems of Europe mount, it is likely the global economy will remain weaker for a longer period than expected. This means less future demand for oil and thus lower prices.

Technology shares seem to be keeping the markets from having a large down day. Stocks like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Dell Inc. (NASDAQ:DELL) are all having solid up days.  Financial stocks are again performing poorly, though sitting on major support levels.  Commodity plays are also under significant pressure today.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Markets Bounce Off Master Level

June 06, 2011 – Comments (0) | RELATED TICKERS: BAC , GLD , GE

The markets sold off early in the session, tagging a master pivot low from April 18th, 2011. This low on the SPDR S&P 500 ETF (NYSE:SPY) was at $129.55. This level represents a short term major support for the market and it is very possible a multi day bounce will occur. In addition, sentiment is about as bearish as it has been in 2011. This also works as a solid contrarian indicator telling us a small bounce is on the horizon. 

Key stocks are also hitting major support areas which tell Wall Street traders to also expect the markets to gain traction. If the major components of the Dow Jones Industrial Average are hitting support then the Dow Jones Industrial Average should be at support as well. Bank of America Corporation (NYSE:BAC), General Electric Company (NYSE:GE) and others are all at or very near major support levels.

Investors are heading for safety today as gold and silver are up sharply. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $151.38, +1.16 (+0.77%) while the iShares Silver Trust (ETF) (NYSE:SLV) is trading at $36.18, +0.84 (+2.38%). With continued worries out of Greece, Portugal and other European countries and the United States struggling with jobs, investors are running for the safety of gold and silver.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Gold and Silver In Play Today

June 06, 2011 – Comments (0)

This morning, the major stock market indexes are all coming under pressure for the fifth consecutive week. Most leading stocks and commodities are trading lower this morning, however, precious metals are showing some very strong intra-day strength. Gold and silver are both trading higher on the trading session.

The SPDR Gold Shares(NYSE:GLD) are trading higher by 0.97 cents to $151.18 a share. There is some short term intra-day resistance for the GLD around the $151.50 area. Should the GLD trade higher the next intra-day resistance level will be around the $152.50 level.

The iShares Silver Trust(NYSE:SLV) is surging higher by 0.91 cents to $36.26 a share. There will be some minor intra-day resistance around the $36.35 area. Should the SLV trade through this resistance point the $37.00 area would be the next important resistance level on the intra-day charts.

Traders should remember that there are many problems going on around the world at this time. The precious metals are usually bought in times of uncertainty. They will often also trade higher if the U.S. Dollar Index declines or trades lower.



Nicholas Santiago
InTheMoneyStocks.com  [more]

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Commodity Stocks Show Early Strength

June 06, 2011 – Comments (0)

This morning, many of the leading commodity stocks are showing some early gains. Often, when the U.S. Dollar Index declines intra-day this will usually help to inflate the major commodity and stock markets. Therefore, should the U.S. Dollar Index rally higher during the trading session it would be prudent to expect the leading commodity stocks to pullback or decline intra-day.

Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is the leading copper stock in the market. The stock is trading higher by 0.91 cents to $50.84 a share. Traders can watch for intra-day resistance around $51.00 and $51.75 levels.

Cliffs Natural Resources Inc.(NYSE:CLF) is a leading iron ore pellet producer. This morning, the stock is trading higher by $1.07 to $88.36 a share. Traders can watch for intra-day resistance around the $88.750 area. Should the stock trade above this resistance area the next intra-day resistance level will be around the $89.25 level.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

When All Else Fails, Drop The U.S. Dollar Index

June 03, 2011 – Comments (0)

Since the March 2009 stock market lows, there has been only one way to cause a rally in the major stock market indexes and that has been drop the U.S. Dollar Index. Even today, the U.S. Dollar Index is declining sharply lower, this is helping to inflate the major stock indexes off the lows. You should all know by now, that the U.S. Dollar Index chart is the most important chart that traders can have on their screens


Nicholas Santiago
InTheMoneyStocks.com  [more]

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Oil Services Stocks Show Strength

June 03, 2011 – Comments (0)

This morning, the oil services stocks are all trading higher after a gap lower open. The highly popular Oil Services Holder Trust(NYSE:OIH) is trading higher by 0.77 cents to $152.45 a share. Traders must watch for intra-day resistance around the $153.00 and $154.25 levels.

Halliburton Co.(NYSE:HAL) is a leading oil services company. The stock is trading higher by 0.35 cents to $50.50 a share. HAL stock will have short term intra-day resistance around the $51.00 and $51.50 levels. Should HAL pullback in the session traders can watch for intra-day support around the $49.75 area.

Schlumberger Ltd.(NYSE:SLB) is another leading oil services company that is showing very good intra-day strength this morning. This stock is trading higher by $1.20 to $81.50 a share. Traders can watch for intra-day resistance around the $86.00 level. There will be more resistance around the $85.75 area should the stock continue to rally intra-day.



Nicholas Santiago
InTheMoneyStocks.com
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Airline Stocks Show Small Air Pocket Of Strength

June 03, 2011 – Comments (0)

As we all know, the major stock market indexes are plummeting lower after the government job report was released this morning before the opening bell. There is one sector that is trading higher despite the overall stock market downdraft, that strength is in the the major airline stocks. This industry group is actually showing some intra-day strength this morning by trading higher since the open. Certainly, the lower oil prices will usually help to lift this sector and that seems to be what is happening today. Should oil rally higher throughout the session the airline stocks could stall out and decline.

AMR Corp.(NYSE:AMR) is trading higher by 0.06 cents to $6.09 a share. This stock has strong intra-day chart support around the $5.96 level. Should AMR fail to hold above this level the stock could trade lower to the $5.78 level. The upside resistance points for AMR stock are $6.13 and $6.25.

Delta AirLines Inc.(NYSE:DAL) has sold off sharply since May 20th, 2011 when it traded as high as $11.60 a share. This morning, DAL stock is trading higher by 0.03 cents to $9.65 a share. DAL stock will have intra-day resistance around the $9.75 and $9.90 levels. The intra-day support levels for DAL are around the $9.55 and $9.32 levels.

It is important to remember, if oil rebounds or trades higher on the session this will usually help to cause a sell off in the airline sector. On the flip side, if oil declines further it could help the airline sector to catch a small bid higher intra-day. Most of the daily charts for the airline stocks indicate that these stocks may have a little more downside in the coming week.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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

June 02, 2011 – Comments (1)

The major stock indexes have been on a wild roller coaster ride today. The U.S. Dollar Index has sold off sharply lower since 11:30 am EST. As we all know by now, when the U.S. Dollar Index declines the major stock and commodity indexes inflate and trade higher. The U.S. Dollar Index is trading lower by 0.34 cents and that seems to be good enough to help keep these markets trading off the lows.

Some leading stocks that usually trade higher on the back of a falling U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Cliffs Natural Resources Inc.(NYSE:CLF), and AK Steel Holdings Corp.(NYSE:AKS). These stocks can usually be bought when the U.S. Dollar Index breaks down or declines intra-day. On the flip side, Should the U.S. Dollar Index catch a bid and rally higher these stocks will usually be the first to decline and sell off.



Nicholas Santiago
InTheMoneyStocks.com
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Market Alert: Stocks Lower Ahead Of Key Jobs Report

June 02, 2011 – Comments (0)

The markets are floating lower today on the back of continued worries over the economy. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.32, -.55 (-.42%).  The ADP Private Sector Employment numbers shocked the markets yesterday and are continuing to weigh today. Investors are hesitant to go long ahead of tomorrows Non Farm Payrolls number and Unemployment Report.

The employment numbers gave Wall Street a major reality check. If employment numbers are that week and QE2 is still going on, what will happen when QE2 finishes later this month? In addition, almost all economic reports have been ugly of late, including housing numbers which show another leg down in motion.

Banks are leading the downside after it was reported that Goldman Sachs Group, Inc. (NYSE:GS) got a subpoena from a New York prosecutor. This sent all bank stocks lower early. Since that point, they have recovered off their lows but with the Dollar starting to spike, commodity stocks are now getting hammered. Chevron Corporation (NYSE:CVX) is trading at $100.48, -2.01 (-1.96%) while Exxon Mobil Corporation (NYSE:XOM) is at $80.79, -1.24 (-1.51%).

The markets will now await tomorrows Non Farm Payrolls Report. Until then, it is unlikely many investors will buy the markets due to uncertainty and fear. Should the Jobs Report come in better than expected tomorrow morning at 8:30am ET, the markets may get a relief rally into the weekend. Should the report come in showing a net loss of jobs, there is significant downside possible over the next week. Tomorrow is a pivotal day.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

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Copper Stocks Catch An Early Bid

June 02, 2011 – Comments (0)

This morning, two of the leading copper stocks are trading higher to start the day. Yesterday, copper stocks where crushed lower on heavy volume. Often, after a high volume rally or decline the next trading session stocks will retrace a little bit. That seems to be what is happening with the leading copper stocks today.

Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is considered the leading copper stock in the market. This stock declined sharply lower yesterday, however, today FCX stock is trading higher by 0.81 cents to $50.19 a share. Traders should watch for intra-day resistance around the $50.60 level. This is an area where the stock could see a significant intra-day pullback.

Southern Copper Corp.(NYSE:SCCO) is another leading copper stock that is trading sharply higher on the trading session. SCCO stock is trading higher by 0.90 cents to $34.07 a share. Traders can watch for intra-day resistance on SCCO stock around the $34.30 level. Should the stock trade higher later in the session the next important resistance level will be around the $35.05 area. Both levels could see small pullbacks.


Nicholas Santiago
InTheMoneyStocks
  [more]

Recs

0

Banks Stocks Remain Weak

June 02, 2011 – Comments (0)

As we all know, the major stock indexes plummeted yesterday. The financial stocks lead the decline as every major bank and financial institution came under heavy selling pressure. This morning, the major financial stocks are once again coming under early selling pressure. It is important to note that many of the leading financial stocks are now coming into important support levels, therefore, it is possible to see some intra-day bounces on many of these leading stocks.

J.P. Morgan Chase & Co.(NYSE:JPM) is the most important bank stock in the stock market at this time. This stock looks to have very strong intra-day support around the $41.00 area. Should the stock fail to hold that support area the next important intra-day support level would be around the $44.45 level.

Other leading financial stocks that are trading lower this morning include Wells Fargo & Co.(NYSE:WFC), Bank of America Corp.(NYSE:BAC), and Citigroup Inc.(NYSE:C). Generally, these stocks will usually trade together, however, JPM is clearly the most important and will usually lead the sector.   [more]

Recs

2

Market Bloodbath, Imagine If The U.S. Dollar Index Was Higher

June 01, 2011 – Comments (0)

This afternoon, the major stock market indexes are getting pummeled. The Dow Jones Industrial Average is trading lower by more that 225.0 points in a broad based decline. Traders and investors are selling everything this afternoon as the European debt crisis seems to be getting worse by the minute. All of the U.S. economic data was also very poor today which is certainly adding fuel to the sell off. The Federal Reserve Bank's quantitative easing program is also scheduled to end later this month. Many investors are now wondering who is going to prop the stock markets up?

The U.S. Dollar Index has caught a sharp bid higher after starting the day in negative territory. The U.S. Dollar Index is now trading higher by 0.06 cents to $74.70 per contract. The low this morning for the U.S. Dollar Index was $74.34 around 11:00 am EST. This is certainly a major move higher for the U.S. Dollar Index intra-day. As we all know by now, when the U.S. Dollar Index trades higher the major stock indexes will deflate and trade lower. We can only imagine how low the major stock indexes would be down if the U.S. Dollar Index was trading higher?

Greece and other nations in the European Union continue to face major debt problems. After all, Greece received a bailout just one year ago by the European Union and the International Monetary Fund. They are already in need of restructuring. We can only wonder if Portugal, and Ireland, will need to be restructured as well. What is going to happen to Spain, Italy, and other nations that have not received an official bailout yet? These problems are not going to disappear anytime soon.


Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

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Master Analysis: Stock Markets Tumble

June 01, 2011 – Comments (0)

The markets continued their big drop into the lunch hour with the SPDR S&P 500 ETF (NYSE:SPY) hitting a low of $132.85. This fall was mainly due to panic over the ADP Private Sector Employment numbers which came in sharply lower than estimates. In addition, the ISM Index for May came in at 53.5%. Expectations were for a number upwards of 57%. This just continues the string of negative economic news the markets have received over the past couple months. Investors are seeing a pattern and realizing the economic picture is a lot darker than thought. The sellers are out in force today even with a weaker Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) $21.31, -0.03 (-0.14%).  Even with the small drop in the U.S. Dollar index, the markets are still sharply lower as they are paying far more attention to economic news. Usually, the markets will move inverse to the Dollar.

Financial stocks are leading the decline with JPMorgan Chase & Co. (NYSE:JPM) trading at $42.03, -1.21 (-2.80%). The banks have been the weakest of late and it is not surprising to see them dropping further today in a down market. The strongest stocks can be found in the technology sector with Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) both positive on the day.

The markets are near an inflection point. While still trading near their 52 week highs, there seems to be a realization starting that the recovery will not go on forever and things will not return to their 2007 levels. Ultimately there is far more downside in the markets than up and it appears the institutions are starting to unload over the last few weeks.  Play this market on the safe side. Cash may be king for a while as the Dollar has made a bottom in the short term.

Gareth Soloway
InTheMoneyStocks.com

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