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inthemoneystock (< 20)

July 2014

Recs

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Marathon Petroleum Corp Sprinting Into Key Resistance

July 31, 2014 – Comments (0) | RELATED TICKERS: MPC

Shares of oil refiner Marathon Petroleum Corp (NYSE:MPC) are racing higher today, as the stock is up over 6.0%. This is a very impressive move as the overall markets are seeing some severe selling pressure. The company reported earnings today that beat the street expectations, couple that with a sharp decline in Crude Oil and you have the perfect elixir for a strong move up in the share price. However, Marathon Petroleum Corp (NYSE:MPC) is into a fair bit of resistance as seen on the chart below. A break through of this down sloping trendline and you could see a move right back up to the 52 weeks highs.  [more]

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CNBC Owes Bill Ackman An Apology: Herbalife Ltd. Back To Lows

July 31, 2014 – Comments (0) | RELATED TICKERS: HLF

CNBC hammered Bill Ackman following his 'epic' presentation on Herbalife Ltd. (NYSE:HLF). According to Ackman, this presentation was going to divulge major fraud at the company. Following his showcase event, the stock popped higher by over 25% and CNBC roasted him for days. To an intelligent trader, this pop was no more than a short squeeze that would be over within days. Sure enough, the stock has fallen sharply, back to near its 52 week. This clearly shows Ackman has a good basis for his concerns and CNBC should have him on and say 'I'm sorry'.

Gareth Soloway
InTheMoneyStocks.com
  [more]

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Cycle Takes Hold, Looks To Confirm: SPDR S&P 500 ETF Trust

July 31, 2014 – Comments (0) | RELATED TICKERS: SPY

For months prior, the investing public was told a major cycle was approaching. According to research, this cycle could pose a major top in the markets and lead to the first 10% correction in years. The cycle period hit in mid-July. No sooner did it hit, the markets began to stall and chop sideways. This showed the start of the cycle as institutional sellers began to unload into retail buyers. When the markets have volatile moves up and down from day to day, this screams of distribution. Two days ago the S&P 500 closed below an epic trend line. This was step one to the major break down beginning. Step two was to see the Confirmation Signal. The massive move down today should officially confirm the break and the downswing in the cycle leading to an eventual 10% drop in the markets. While there will be buy the dip bounces, the S&P could see as much as a 200 point drop before all is said and done. For those that were preparing for the cycle by putting their money in cash or short, congrats. You will be paid handsomely.

Gareth Soloway
InTheMoneyStocks.com

  [more]

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L-3 Communications Holdings Inc: Catching A Falling Knife

July 31, 2014 – Comments (0) | RELATED TICKERS: LLL

This morning, leading provider of communication and electronic systems to the U.S. military L-3 Communications Holdings Inc (NYSE:LLL) is plunging by 14.0 percent. According to the Wall Street Journal the company disclosed accounting irregularities linked to its aerospace logistics support contract. Traders and investors should now watch for some intra-day support for L-3 Communications stock around the $101.00 level. 





Nick Santiago
InTheMoneyStocks.com  [more]

Recs

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Understanding The Market Sell On Strong GDP Numbers

July 30, 2014 – Comments (0)

The GDP (gross domestic product), a measure of economic growth, came in at a very strong 4%growth today. This number initially spiked the markets sharply higher, yet since the open, the markets have fallen and gone negative. Why did this happen? Just like most answers, it all comesback to the Federal Reserve. The markets are anticipating that the stronger than expected GDP number will force the Federal Reserve to curb their stimulus faster and raise interest rates quicker.The markets are very addicted to the money printing done by the Fed and low interest rates. In fact,it has been argued very strongly that the Federal Reserve stimulus known as quantitative easing has resulted in a market bubble by artificially keeping interest rates low. Should interest rates start to head higher, the bubble may burst.  [more]

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Coach Inc Intra Day Bullish Pattern: Long Day Trade

July 30, 2014 – Comments (0) | RELATED TICKERS: COH

Coach Inc (NYSE:COH) is making a bullish consolidation pattern on the intra-day chart. The key here is that the pattern is forming above the 200 moving average and is happening while the markets are reversing sharply off early gains. When this pattern forms any stock like Coach Inc and the markets are falling, it shows relative strength compared to the markets. This is even more bullish. Please note that at 2PM ET, the Federal Reserve will release a major statement.

Gareth Soloway
InTheMoneyStocks.com

  [more]

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This SPDR S&P 500 ETF Trendline Break Could Spell Massive Downside

July 30, 2014 – Comments (0) | RELATED TICKERS: SPY

To start the trading day, the market futures were up a fair amount as the second quarter GDP print came in higher than expected, a 4% increase. Everyone seemed to be rejoicing and loving this key economic data point. However, since that release the market has started to fall.

Why is this happening you ask?

Well, with the data coming in better than expected, and the economy on seemingly improved footing, the FED (which concludes its two day meeting today) will continue to taper and possibly raise rates sooner than the markets would like. So while you will hear a ton of reason why the market will bounce or fall today, I will simply be looking for a break of this very important trend line noted in the following chart of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). If this line does break, then that will trigger a technical chart formation called a "Head and Shoulders" pattern, and that line is considered the neckline. This pattern is bearish and telling us there is more downside to come.




Parm Mann
InTheMoneyStocks.com  [more]

Recs

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Support Levels When It Drops Like ROK

July 30, 2014 – Comments (0) | RELATED TICKERS: ROK

This morning, the leading provider of industrial automation power, control, and information solutions Rockwell Automation (NYSE:ROK) is coming under sharp selling pressure. The company reported earnings that were below expectations. Traders and investors should note that Rockwell Automation (NYSE:ROK) stock has now fallen below its important 200-day moving average. The current formation puts the stock in a weak technical position on the charts. Swing traders should now watch for near term support around the $110.24 level. There will also be more support around the $104.58, and $98.90 levels should the stock decline further.  [more]

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Small Cap Stocks Show Investor Risk Tolerance Crumbling

July 29, 2014 – Comments (0) | RELATED TICKERS: SPY , IWM

The S&P 500 is trading just under an all-time high of 2,000. The markets have had small pullbacks recently but nothing even close to a correction. While most of the media and analysts are calling for a move higher, some are starting to signal caution. The reason for caution has become apparent from various leading indicator signals that should be noted by any investor looking to be on the cutting edge of the next stock market move. First, the small cap index, the iShares Russell 2000 Index (NYSEARCA:IWM) is already down by over 5% off its all-time highs. Why is this concerning? Small caps are the highest risk area. When investors start to move out of the market they sell that sector first. Next, home builders are collapsing, down 10% from their highs. This was the leading reason for an economic recovery. The massive sell on these stocks is a major concern to economists and market analysts such as myself. These signals tell of a correction that may not be far off.

Analysis on the markets shows they are still resilient. It is becoming very likely we will see the stock market have one final move up. This move will close the S&P above 2,000 and the NASDAQ above 4,500. Think of this as the last gasp for a broken market. The catalyst for this move could come in the next few days as the first look at GDP will be reported Wednesday morning at 8:30am ET. Wednesday afternoon will see the FOMC Policy Statement followed by the Non Farm Payrolls Report on Friday.


Gareth Soloway
InTheMoneyStocks.com

  [more]

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SPDR S&P 500 ETF Flat While These Pros Earn +30% Net Gain

July 29, 2014 – Comments (0) | RELATED TICKERS: SPY

While the S&P has essentially gone nowhere over the past few months, some traders have earned a documented net gain of over 35% without assuming high risk. Did I mention this profit was earned in less than four months? To be more precise, over the past three weeks since July 7, these traders put out a total of fifteen trades. Of the 15 trades, 12 were closed out for a profit. That is great, profitable stats by any standard.   [more]

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UPS Slides Below 200-Day Moving Average

July 29, 2014 – Comments (0) | RELATED TICKERS: UPS

This morning, the leading package delivery company United Parcel Service, Inc. (NYSE:UPS) is declining lower by $3.53 to $99.21 a share. Earlier today, the company reported earnings that were lower than the estimates, Q2 profit fell by 58.0 percent. United Parcel Service, Inc. (NYSE:UPS) lowered its full-year outlook for adjusted earnings to $4.90 to $5 a share from $5.05 a share. Traders and investors should now note that the current stock price is now trading below the important 50, and 200-day moving averages. These moving averages are watched closely by many institutional and retail stock traders. Often, when a stock declines below these moving averages it is viewed as a weak technical chart position for the stock. Traders and investors should now watch the $94.00 level as the next important near term support area. This support level on the chart was a prior pivot in February 2014. It should be noted that prior chart pivots will usually be defended by the institutional money when retested.  [more]

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The Best Leading Indicator Now: SPDR KBW Regional Banking

July 28, 2014 – Comments (0) | RELATED TICKERS: KRE

Everyday on financial news outlets we hear different market opinions and predictions. These "experts" get in front of the camera and tell us where they think the markets are headed, whether the economy is on solid footing or not, what the fed's next move might be etc. Most often, these "predictions" are made based on fundamentals which lag the real market action. Remember, if you are going to trade based on the earnings report of a company or other financial reports, this information is almost always baked into the cake before its released to the general public. One thing we know, which has been proven over time, is that the charts tell the story of the future, far better than any talking head in the media or falsified financial report. With that in mind, I will detail out one of my current tools which help to gain a peek into the future; the SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE).

After looking at the chart of the SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE), I found it to be quite interesting and ahead of the markets to the downside. We have all heard how in 2007 the markets topped out and then rolled over in the fall of 2008, as Lehman Brothers went under. The SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE) had peaked out many months before the S&P 500, in fact it topped in December of 2006 (almost 1 year ahead). In 2010 this ETF put in a high basically around the same time as the rest of the major indexes, and then the S&P 500 had a 17% correction. However, in 2011 the Regional Banking ETF made its high early in the year (January 2011), while the markets didn't top out until May 2011. That high was followed by a decline in the S&P 500 to the tune of almost 22% (some say bear market status).

Since then the SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE) has basically been in lock-step with the overall markets and had a nice ascent higher. That is until a few months ago when it made a high of $42.79. This security has since made a lower high and has clearly diverged from the S&P 500. You can even make a case that there is a potential head and shoulders being formed on the daily and weekly charts (depends where you draw your neckline). All these facts I have presented have nothing to do with fundamental analysis and is purely based on technicals and chart reading. So while the pundits and talking heads on TV carry on with their opinions, I will look to the charts as the real crystal ball, and eliminate all that white noise. Keep a close eye on the KRE chart as it appears to be talking to us right now.




Parm Mann
InTheMoneyStocks.com  [more]

Recs

1

The U.S. Economy House Of Cards, D.R. Horton, Inc.

July 25, 2014 – Comments (0) | RELATED TICKERS: DHI

If anyone needed proof that there was a disconnect between Wall St. and Main St. then look no further than the housing stocks, in particular D.R. Horton, Inc. (NYSE:DHI). The stock plummeted an eye popping 11.5% in a single day, and basically took down the entire sector. The results were disappointing to investors to say the least, as U.S. sales of newly built houses dropped 8.1 percent in June to a 406,000. So what happened to this "recovery" that we all keep hearing about?  [more]

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Baidu Inc Hits Key Level: Beware Of Earnings Today

July 24, 2014 – Comments (2) | RELATED TICKERS: BIDU

Baidu Inc (NASDAQ:BIDU) reports earnings after the market close today. This stock has hit a major level of resistance today at $205. While any stock is a gamble into earnings, this epic move higher into this key level puts the stock at a higher risk of a sell off. Consider that the stock has also rallied from $140 in April 2014 to the high today of $205.50. That is a whopping 47%. I post this not so much as a short signal and trade as a cautionary flag to anyone holding the stock on the long side.

Gareth Soloway
InTheMoneyStocks.com
  [more]

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Boeing Is Coming In For A Landing, Watch This Level

July 24, 2014 – Comments (0) | RELATED TICKERS: BA

Leading aerospace manufacturer The Boeing Company is trading lower again this morning. The stock has come under major distribution in 2014 after peaking out in January at $144.57 a share. Today, the Boeing Company stock is trading lower by $2.13 to $124.58 a share. Many traders and investors are now hearing that business is slowing down for The Boeing Company. Earlier today, the stock was downgraded by BofA/Merrill Neutral from Buy citing potential cancellations in orders and shrinking military programs. Traders and investors must now look to the charts to find important support levels where the stock could stage a bounce and create a trading opportunity. At this time, The Boeing Company stock should have important support around the $117.75 level in the near term. This was a level where the stock broke out in October 2013. Often, prior break-out levels will serve as important support when retested.





Nick Santiago
InTheMoneyStocks.com  [more]

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Herbalife Ltd. Technicals Overpowered Bill Ackman's Ego

July 24, 2014 – Comments (0) | RELATED TICKERS: HLF


Looking at the recent Herbalife Ltd. (NYSE:HLF) drama, there is no reason any investor should find themselves in the situation like Bill Ackman placed himself and his investors in. Have you ever let a position go from profitable to a losing trade, without a clear way of managing it? Well, Herbalife Ltd. (NYSE:HLF) is a prime example of why as an investor, you must know how to read the charts and leave your ego at the door. If Ackman did that, not only would he have saved himself millions, he would have made double that.  [more]

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iShares Dow Jones Transport. Avg. Hits Key Max Trend Line: Shares To Fall

July 23, 2014 – Comments (0) | RELATED TICKERS: IYT

The iShares Dow Jones Transport. Avg. (NYSEARCA:IYT) has soared over the last 18 months, running from $86.50 to $152.00. This is a whopping 75% increase in value. Today a major resistance level was hit. This will finally put in a top in the iShares Dow Jones Transport. Avg. (NYSEARCA:IYT). A 10% pull back would be in order here. 

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

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VMW Inc Is Trading Higher, But For How Long?

July 23, 2014 – Comments (0) | RELATED TICKERS: VMW

This morning, the leading virtualization infrastructure solutions provider VMW Inc (NYSE:VMW) is trading higher after report earnings. While the stock is trading higher today on the back of the news it could be coming under distribution in the near future. You see, the weekly time-frame on VMW has been consolidating in a very bearish manner over the past three months. Traders and investors should note that anytime a stock consolidates sideways after a major decline it is setting up to resume selling in that direction again. This pattern is very evident on the weekly and monthly charts. When a break-down does occur in the stock the projected target would be for a decline into the $85.00 area. 




Nick Santiago
InTheMoneyStocks.com  [more]

Recs

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Xilinx Inc Hits A Short Circuit

July 23, 2014 – Comments (0) | RELATED TICKERS: XLNX

This morning, the leading semiconductor equipment stock Xilinx Inc (NASDAQ:XLNX) is coming under major distribution after reporting a weaker than expected earnings outlook. Today, Xilinx Inc stock is trading lower by $7.17 to $40.99 a share. Anytime a stock comes under this degree of selling it is always prudent to look at the larger time frames for important support levels. Traders and investors should note that the stock will have near term daily chart support around the $37.62 level. This would be a level where the stock would likely stage a near term bounce. Should that chart level fail the next weekly chart support level is around the $33.80 area. This larger time-frame level would also be an area where traders can expect a bounce.



Nick Santiago
InTheMoneyStocks.com  [more]

Recs

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Poor Earnings (This Quarter) Speak To Systemic Issue Within Wall Street

July 22, 2014 – Comments (3) | RELATED TICKERS: KO , MCD , UTX

The consumer is not spending like they used to. This is fact and can be seen in the economic numbers as well as the earnings reports from companies in recent days. What investors need to know is that the fact that consumers are not spending now is nothing different than over the last few years. There has been no immediate change in consumer habits this quarter or in 2014. So why are companies like The Coca-Cola Company (NYSE:KO), United Technologies Corporation (NYSE:UTX) and McDonald's Corporation (NYSE:MCD) all trading down on earnings? The answer is simple. Since the economy collapsed in 2008-9, companies have used many tactics to simulate earnings growth. The first was job cuts. By cutting thousands of jobs, most publicly traded companies were able to show great earnings numbers. While there was no real growth underneath these numbers, it still helped lower the P/E ratio on these companies and the S&P 500. Another tactic these companies have used in the past was stock buyback programs. By eliminating the shares in the company, earnings PER SHARE are boosted artificially. Companies have been high on buybacks because money is extremely cheap due to the Federal Reserve's policies. As these tactics are accomplished, companies lose their bullets in the gun. What we are seeing now and will see in the next few years is a slowing of earnings growth because these tactics have been used up. Earnings growth will slow even more when interest rates (cheap money) head higher.

Earnings that disappoint Wall Street will continue. Charts that are at 52 week highs into earnings can be shorted in most cases. This trend will continue and investors will eventually realize the scam these companies have played over the last five years. 


Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

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Chinese Stocks Hot: These Names Will Run

July 21, 2014 – Comments (1) | RELATED TICKERS: SINA , BIDU , RENN

Chinese stocks are heating up in epic fashion as the U.S. stock market hits bumps on global stability worries. This is happening as U.S. equities become more and more over priced and recent economic data in China looks promising to investors. Leading the charge is Baidu Inc (NASDAQ:BIDU) trading at $197.13, +5.96 (3.12%). This is a new all-time high. While now is NOT the time to buy BIDU, there are other mid-cap and small-cap Chinese ADR's that will catch fire as the momentum spreads. Stocks like E Commerce China Dangdang Inc (NYSE:DANG) and Renren Inc (NYSE:RENN) are two Chinese plays to watch and the price action on SINA Corp (NASDAQ:SINA) today looks very promising. These China plays may be in the beginning stages of big moves in the next few weeks and should be on alert. In addition, this run should be sustainable in Chinese names into the Alibaba IPO (early August) and is quite possibly one of the reasons many ADR's are beginning to surge higher.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

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Defense Might Be The Best Offense, Northrop Grumman Corporation

July 18, 2014 – Comments (0) | RELATED TICKERS: NOC


The stock market has been on a roll again this year. It has moved up on a seemingly undeterred ascent all year, aside from a bit of a hiccup it suffered in January. Whatever has been thrown at these markets, they always seem to shrug it off as people come in and buy any short-lived dips. One sector that has not really participated in the party has been the defense sector. Names like Northrop Grumman Corporation (NYSE:NOC) have just moved sideways, while the S&P 500 has kept climbing. Is this trend about to change?

You are probably thinking to yourself "why would this guy look at this under performing sector?" The markets can go on pretending for so long, but at some point they will have come to terms with geo-political events. Since the beginning of the year there has been tensions brewing with Russia and the U.S. While Obama has tried to handle such situations with diplomacy, that will only work for so long, before the US has to take military action (hopefully not). With the unfortunate tragedy of Malaysian Airlines flight MH17 being shot down. One has to wonder if this is the catalyst that will force the U.S. government to act militarily.

This event is tragic in nature and there has been loss of human life. However, the world will still go on and markets will move. That is why I have focused on the defense sector and Northrop Grumman Corporation (NYSE:NOC), as these companies in this sector could see a boost in share price if tensions escalate further. Technically speaking, you could say this name has been basing all year and is building energy to push higher. If the U.S. does use military action, that could be the spark that moves Northrop Grumman Corporation (NYSE:NOC) shares higher.


Parm Mann
InTheMoneyStocks.com

  [more]

Recs

1

This Should Scare You: Markets Show Signal

July 16, 2014 – Comments (2) | RELATED TICKERS: AAPL , INTC , JPM

The S&P 500 is trading at 1980.52 +7.24. While the markets are up slightly, they should be up far more considering the hugely positive news we have seen today. Let's start with yesterday morning. Both JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) reported stellar earnings. Both stocks saw solid gains on the day and the markets could not muster a rally, closing lower. Today, the market should seemingly be euphoric after amazing earnings from Intel Corporation (NASDAQ:INTC), a buyout offer for a huge premium on Time Warner Inc (NYSE:TWX) and a major collaboration between International Business Machines Corp. (NYSE:IBM) and Apple Inc. (NASDAQ:AAPL). All these stocks mentioned are jumping higher and are large components of the market. However, the markets are slightly higher on the day. This lack of reaction to great news is something that should make every investor sit up and take note. The cracks in the glass are beginning to weaken the fabric of the markets. If the markets can only inch up slightly on great news, what happens when it is only neutral news or even negative news? One thing to also watch is that the S&P 500 has not taken out the highs from July 3rd. This is a major level to follow in the short term.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

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Cree, Inc. Breaking Key Level: Drop Likely

July 15, 2014 – Comments (0) | RELATED TICKERS: CREE

Cree, Inc. (NASDAQ:CREE) has just broken a key level on the daily chart. This will likely see a price drop from its current price of $48.66, -0.57 (-1.16%) to $44.75 and ultimately $33.75. Over the last few months, the Cree, Inc. daily chart has formed a classic in-spirit-of bear flag pattern. If you connect the lows of this flag pattern you can see that the price of Cree, Inc. has broken down below this trend line. This signals an initiation of a fall that could last for months. Please note the chart below of Cree, Inc.  [more]

Recs

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Lexmark International Inc Nears 50-Day Moving Average

July 15, 2014 – Comments (0) | RELATED TICKERS: LXK

This morning, the leading printer maker Lexmark International Inc (NYSE:LXK) is declining lower by $3.00 to $46.44 a share. Traders and investors should note that Lexmark International Inc stock is now approaching the 50-day moving average at $45.37. This area will be near term support for the stock should the level get tested today. There will also be more daily and intra-day chart support around the $44.30 level. Lexmark International Inc stock pivoted around the $44.30 level on June 12, 2014 before breaking out to new highs. These former pivot levels will be support for Lexmark International Inc stock when retested.  [more]

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Deutsche Bank AG Or Bailout Bank?

July 14, 2014 – Comments (0) | RELATED TICKERS: DB

So here we go again with another banking crisis in the Eurozone. How many times have we heard this phrase over the last few years. This latest disruption is coming from Portuguese bank Banco Espirito Santo, the second largest in the nation. This is just a few years removed from the country itself requiring a bailout from the EU, as it received a 78-billion euros in rescue funds in May 2011. So how have all these bailouts affected one of Europe's largest banks, Deutsche Bank AG (USA) (NYSE:DB)?  [more]

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Alcoa Inc Upside Target Revealed

July 14, 2014 – Comments (0) | RELATED TICKERS: AA

Alcoa Inc (NYSE:AA) has been ripping higher in 2014, surging over 50% on the year. Just since October 2013, the stock is up over 100%. Many investors are beginning to speculate on a major top in the stock. Based on technical analysis, Alcoa Inc has the potential to rally to $18.10. That level is a high reward sell signal that can ultimately be shorted when it hits. One thing to note is that Alcoa has a major double top, spanning back to early 2011. The level is $18.10. Should Alcoa Inc get to this level, it becomes a solid shorting opportunity.  [more]

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Alcoa Inc Upside Target Revealed

July 14, 2014 – Comments (0) | RELATED TICKERS: AA

Alcoa Inc (NYSE:AA) has been ripping higher in 2014, surging over 50% on the year. Just since October 2013, the stock is up over 100%. Many investors are beginning to speculate on a major top in the stock. Based on technical analysis, Alcoa Inc has the potential to rally to $18.10. That level is a high reward sell signal that can ultimately be shorted when it hits. One thing to note is that Alcoa has a major double top, spanning back to early 2011. The level is $18.10. Should Alcoa Inc get to this level, it becomes a solid shorting opportunity.  [more]

Recs

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Gold Miners Fall, But They Are Not Out For The Count

July 14, 2014 – Comments (0) | RELATED TICKERS: GDX

This morning, just about every leading gold mining stock is trading lower to start the day. Gold futures (GC-Q4) are staging their worst trading day in 2014 declining by $28.00 to $1309.50 an ounce. Traders and investors should now watch for gold mining stocks to form some type of bullish chart pattern before expecting a meaningful bounce. At this time, the popular Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading lower by 0.46 cents to $26.86 a share. Should the current sell off in the Market Vectors Gold Miners ETF continue the next major support level will be around the 423.50 level. This was a key resistance level for the Market Vectors Gold Miners ETF on June 11, 2014, it will now be a key support level if it is retested.  [more]

Recs

0

Lumber Liquidators Holdings Inc Guidance Should Scare Us All

July 10, 2014 – Comments (3) | RELATED TICKERS: LL

Lumber Liquidators Holdings Inc (NYSE:LL) reported ugly guidance yesterday after the market closed. The stock is taking a major pounding, trading at $55.68, -14.74 (-20.93%). Considering this company is right in the middle of the home improvement industry, we should all be very scared of what it means for the broader economy. Lumber Liquidators Holdings guidance had been expected to be growth of 6-7%. Instead, they guided to a loss of 6-7%. This is a huge change from expectations and analysts are trying to figure out if it is a broader economic signal. Home Depot and Lowes are taking hits today as well as the general consensus is this is not company specific.

The Federal Reserve has stated that they will end quantitative easing in October 2014. With signals like this, investors need to start getting very nervous about holding large long positions in the market. More earnings to come in the next few weeks should tell more.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Social? More Like Anti-Social Media, Twitter Inc

July 09, 2014 – Comments (0) | RELATED TICKERS: TWTR

High flying sectors have been under pressure this past week as people are fleeing from risky names like Twitter Inc (NYSE:TWTR). This social media name has been hit hard in the past few trading sessions along with its rivals such as, Facebook Inc (NASDAQ:FB), Pandora Media Inc (NYSE:P) and Yelp Inc (NYSE:YELP). These high beta names have really had quite the volatile year this year after such astronomical gains in 2013.

So why the sudden sell off in Twitter Inc (NYSE:TWTR) and the group? Well if you listen to the financial media, they will tell you the same things over and over again. When times are bad, this stock was overvalued, it has no earnings, its P/E is too high, people aren't tweeting as much...etc. When things are good they basically say the opposite and paint a rosy picture. I don't know about you, but all that talk gives me a headache bigger than the one felt by the bulls of this sector lately.

I look at charts and charts alone. They eliminate all that white noise and garbage, which is spewed out on a daily basis by the majority of the talking heads on TV. If you looked at the chart of Twitter Inc (NYSE:TWTR) you could have seen a break of the up sloping trend line, that had been in place since the lows were set in late May. There has definitely been some technical damage done to this name. However, that does not mean there are not opportunities to catch a trade on the long side for a bounce. On the chart below, I have included some levels of support which could provide a quick long trade. So while the media will keep giving dizzying reasons for an equities movement, I will look to the charts to tell me when anti-social, becomes social media again.

Parm Mann
InTheMoneyStocks.com

  [more]

Recs

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JPMorgan Chase & Co. Slides, Watch This Level

July 09, 2014 – Comments (0) | RELATED TICKERS: JPM

This morning, the leading global bank stock JPMorgan Chase & Co. (NYSE:JPM) is trading lower by 0.09 cents to $55.66 a share. Traders and investors should note that JPMorgan Chase & Co stock is the most important financial stock in the industry group. The stock has now made a lower high on the daily chart after topping out in March 2014 at $61.48 a share. Lower highs should always be viewed as a sign of weakness when looking at the charts. Today, day traders should JPMorgan Chase & Co stock around the $55.00 level, this should be solid intra-day support. This was a former resistance level in early June that will now be support when price retests the level. 



Nick Santiago
InTheMoneyStocks.com  [more]

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High Beta Stocks Take Hit: Early Signs Of Market Trouble

July 07, 2014 – Comments (1) | RELATED TICKERS: NFLX , IBB , TSLA

Stocks like Netflix, Inc. (NASDAQ:NFLX), Tesla Motors Inc (NASDAQ:TSLA) and even the iShares NASDAQ Biotechnology Index (NASDAQ:IBB) are all taking a heavy hit today. This is somewhat unusual on the first day back from a three day holiday weekend. Additionally, it is strange because these stocks have been leading the charge and taking the markets to new all-time highs recently.

As these high volatility stocks Netflix, Tesla and the Biotechnology Index take a hit today, it must make intelligent investors wonder if it is a signal of an impending pull back in the stock market. Usually, a light volume first day back from a holiday is a flat to positive day, with stocks floating higher. This is not what we are seeing today and screams of manipulation last week to get the day above 17,000. Either way, this weakness in high beta stocks should be noted.

One day does not change a trend, however, it does need to be watched closely. Any follow through in the coming days may spell trouble for the whole market, not just the high beta stocks.

Gareth Soloway
InTheMoneyStocks.com

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When The Drugs Stop, The Markets Will Drop, S&P 500 INDEX

July 07, 2014 – Comments (0)

The Federal Reserve has been in the money printing game in one form or another since November of 2008, when its first asset purchase program began. We are six years into this experiment and it is still a highly debated topic among the so called "financial experts" of the world. Whether they are economists or market commentators on financial networks such as CNBC or Bloomberg, everyone has an opinion on this program. So I will chime in as well, as the fed is slowly winding down QE3 (quantitative easing).

As stated above the initial QE program began in late 2008 after the equity markets were sent reeling from the Lehman Brothers epic collapse. Back then the S&P 500 INDEX (INDEXCBOE:SPX) hit a multi-year low of 741.02 and eventually bottomed out in early March 2009 at 666.79. The first QE lasted until June of 2010 and clearly had an affect on the markets, as they had an amazing assent of 83% during its duration. The markets peaked in April of 2010 as investors geared up for the end of cheap money and they subsequently declined by 17%. Nearly heading back into bear market territory. There was definitely some sort of connection between the money printing and rising equity prices.

Then came along the implementation of QE2. While it did not officially begin until November 2010, it was all but announced by then Fed Chairman Ben Bernanke at the Jackson Hole symposium in August. This second round of money printing again gave the markets the drug they wanted, as it rallied higher but not as much as its first round of cheap money. As QE2 was coming to an end the S&P 500 INDEX (INDEXCBOE:SPX) had another case of withdrawal as it declined 21% from its peak in May 2011 to a low in October 2011. Now some were definitely seeing the link between cheap money and rising markets.

You might be wondering what halted the decline in 2011? It was the announcement of Operation Twist, another form of money printing by the fed. Just as you have seen the pattern of how the markets perform with money printing (drugs) and without. So too did the FOMC, as this time they fended off any market tantrums by not only extending Operation Twist, but by giving more cheap money in the form of QE3 which was announced in September of 2012. Oh and did I mention that it was open ended this time, meaning no one but the fed knew when it would end.

As Ben Bernanke's tenure as Fed Chair was winding down, he decided to give the markets a time frame for QE3 and in December 2013 it was decided that instead of going cold turkey by ending cheap money all at once, it would do it gradually with a taper of 10 Billion per month. During this run of money printing corporate America has taken full advantage, by using it to buy back shares, borrow money to issue special dividends or use it for acquisitions. Basically anything to boost their share price. This in turn has helped markets advance higher and make record all time highs. One has to wonder what will happen once the drug is finally taken away. If history is any guide then this market, which has not had any meaningful correction since 2011, could be in for a rude awakening.

Parm Mann
InTheMoneyStocks.com
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2 Simple Reasons Why Traders Go Broke

July 03, 2014 – Comments (0)

Trading and investing successfully in the stock market is not a simple feat. Those who think it is easy will certainly be taught a lesson by Mr. Market. However, that is not to say it can't be done. After trading stocks personally for just over a decade, I have witnessed first hand many of the pitfalls which catch the newbie and experienced traders off guard, ultimately costing them money. Avoiding these pitfalls and ensuring that you are aware of what it takes to win in the trading and investing arena is paramount. Below I will describe two simple, yet powerful and often overlooked reasons why many traders get their butts handed to them by the markets...


1) No Defined Strategy

Trading without a defined strategy is like showing up to a machine gun fight with a butter knife - do I need to tell you the outcome? Your defined strategy should be what guides you and allows you to make decisions based upon it, as opposed to being influenced by hype or outside noise. Consider this, without a defined plan for exiting a position, if the trade moves against you, emotion may come into play or you may second guess your "reasoning" for taking the trade in the first place. Once you welcome emotion/hype into your trading strategy, as opposed to rules based reasoning, you are sure to fail. Unless of course u get lucky here and there... but luck is certainly not a sustainable strategy for consistently profiting. To get to the point, I will speak on my strategy quickly. I trade based on technical analysis which is the method of using charts to determine where to buy/sell. I study the charts and locate the optimal levels for buying, selling, as well as how to manage a position while entered. This strategy allows me to determine the risk/reward of the trade BEFORE I enter it. If you did not get it, that last sentence was a powerful one... you must ALWAYS know how much you are willing to risk or earn BEFORE you take a trade, and having a defined strategy will help you answer that question. It will also help to alleviate much of the emotional aspect which can drain your account like crackhead in desperate need of a fix. Do you understand the severity of this simple premise?

2) Abide By Your Strategy

I could sum this up very simply with this one example... how many times have you told yourself that you will exit a losing trade at a certain level, yet when that level is hit, you decide to hold on longer? Once you make that decision to continue holding while it moves against you, you know what happens next... the stock continues lower. How many times has that happened to you? In my early years, I will admit that it happened a lot and cost me a ton of money. But wait, it gets worse! If I really felt like throwing more money away (because it was fun, but not really)... when some of these positions went against me, I bought more, all while the stock continued its downward ruin. If you have ever been caught in that same situation more than once, comment with your experince. The only difference from those years of the past to now, is that I know EXACTLY why I allowed that to happen back then; it was because I did not follow my strategy. Fast forward to today, I constantly reinforce these two simple principles and ensure I abide by them; I follow my strategy and I stick to it! When I step into the most competitive arena that is the stock market today, I have a rocket propelled grenade launcher instead of the butter knife I yielded in my early years. The weapon you choose and how prepared you are, is your decision.

To sum this up, prior to entering any position, be it stock, futures, forex, commodity, anything, you must have a plan. For example, if you are trading based on the technicals of a chart, then you should have calculated your stop levels for both gain and loss PRIOR to entering the trade. Why would you ever consider buying a stock without knowing exactly how much you are willing to lose and gain before entering the position? Studying and analyzing the technical support and resistance levels of a chart will guide you and reveal if a trade has good risk/reward. Once you have located your support/resistance levels, considered the risk/reward factor and you have supporting reasoning for entering the trade based on a strategy, you must abide by your plan! Doing so will eliminate the emotional aspect of trading and allow you to act as machine like as possible, as opposed to an emotional human being influenced by outside factors and noise.


ALWAYS abide by your levels: If your predetermined stop level for a loss is hit, then EXIT the position. If you profit target is hit, take profits! Do not change the rules during the game, that is a sure fire way to lose money.

Personally, I trade based upon a strategy created by my two partners at InTheMoneyStocks. They have well over 2 decades of trading experience and for someone new to this game, having a successful mentor is one of the few ways you can increase your odds of success while avoiding the pitfalls that constantly take the amateurs money. This has allowed me to understand what it takes to be a successful trader and implement it in my personal trading, with a high rate of success. While I am no genius, I understand what it takes to profit from trading, I know you can too. Whatever you do, or however you choose to trade, always consider these two very simple steps. Your sanity along with your trading account will thank you.


Bryan Leighton
InTheMoneyStocks.com  [more]

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LeBron James Sides With Bulls, SPDR Dow Jones Industrial Average ETF

July 01, 2014 – Comments (0) | RELATED TICKERS: DIA

Back in 2003, as the US economy was coming out of a recession, the markets were slowly trying to get up off the mat. The tech wreck of 1999-2000 had sent the markets into a tail spin and all the major indexes suffered substantial losses; including America's sweetheart index the Dow, represented here by the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). So, while most people were looking at improving economic data and low interest rates as the reason for the turnaround, I was looking at the emergence of LeBron James.

Many of you are probably scratching your head and thinking, what is this guy talking about. Well hear me out, as some of the facts are quite interesting. On June 26, 2003, "King James" was drafted by the Cleveland Cavaliers. That day the Dow had a closing print of 9079.04. Over the next few years as James started to hit his stride in the NBA, the markets moved up higher right alongside the basketball phenom. In the 2006-07, LeBron James was playing the best basketball of his career to that point, and lead his Cavs to the final. They eventually lost out to the San Antonio Spurs in four straight games. Then a few months later on October 11, 2007, the markets topped out with the Dow closing at 14015.12. Over the next few years James would continue playing for his hometown Cleveland Cavaliers, but would not reach the finals again, and the markets would not reach those lofty levels during that same period.

In the summer 2010 King James was a free agent and speculation swirled around what team he would choose and on July 8, the much anticipated "DECISION" was announced. The basketball star was taking his 'talents to south beach' to play for the Miami Heat. That day the Dow had a closing price of 10138.99. So from the time LeBron was drafted, to the time he switched teams, the markets had gone up just over 11%, which is a bit uninspiring considering it was over 7 years. 

So how did the bulls of SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) feel after the superstar switched teams? Since the day of the historic move to Miami, you could say the markets really began to "HEAT" up. The Dow has blown past the previous high water mark of 14198.10 and gained nearly 70%, and seems to be hitting new record highs on a daily basis. After seeing this interesting correlation between LeBron James and the stock markets, one has to say that it won't be just the basketball world who is awaiting the free agent's decision. While it might be far fetched to say that LeBron has any effect on the markets, it is none the less interesting to note the timing in certain events.

Would you place your market wagers on the direction of Lebrons career? Comment and let me know your thoughts. Either way, as smart traders and investors we know there is always a great trade waiting for us; all we need to do is keep the odds in our favor.


Parm Mann
InTheMoneyStocks.com  [more]

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Chesapeake Energy Corp Breaks 50-Day Moving Average

July 01, 2014 – Comments (0) | RELATED TICKERS: CHK

This morning, the stock of the leading independent oil and gas production company Chesapeake Energy Corporation (NYSE:CHK) is falling lower by $1.92 to $29.16 a share. Earlier today, the company completed a spinoff of its oil services business Seventy Seven Energy (NYSE:SSE). This spinoff has caused Chesapeake Energy Corp (NYSE:CHK) stock to fall below its important 50-day moving average on the charts. Short term traders should watch for near term support around the $28.50 level. Should the stock fail to hold up around this level over the next few days there will be much more daily chart support around the $25.00 level. Both levels should be defended by the institutional money when reached initially. 





Nick Santiago
InTheMoneyStocks.com  [more]

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