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inthemoneystock (< 20)

August 2011

Recs

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Slip Sliding Away

August 31, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , BIDU

The major stock indexes started the morning trading sharply higher. At 10:00 am EST the SPDR Dow Jones Industrial Average(NYSE:DIA) traded as high as $116.97 a share. Since that high pivot the major stock indexes have been slowly declining throughout the session. The highly traded and followed DIA is now trading lower by 0.09 cents to $115.26 a share. The SPDR S&P 500 Index Trust(NYSE:SPY) and Powershares QQQ Trust (NASDAQ:QQQ) have also declined sharply this afternoon reversing earlier gains. Traders can watch for intra-day support on the DIA around the $114.95 and $114.00 areas.

Some leading stocks that have sold off today include Biadu Inc.(NASDAQ:BIDU), Netflix Inc.(NASDAQ:NFLX), and International Business Machines Corp.(NYSE:IBM). When the leading stocks in the market fail to hold early gains it is a sign of some short term intra-day selling pressure.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

The Master Stock Market Outlook Revealed

August 31, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

The markets are floating higher on the day. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $122.86, +1.18 (+0.97%). The ADP Private Sector Employment numbers were released this morning at 8:15am ET. They came in with a gain of 91,000. This number was solid and the markets liked it. However, all eyes are on the Federal Reserve for their next meeting on September 21st and 22nd. Ben Bernanke made it clear last week at Jackson Hole that there was likely new easing coming to the United States, in some form. The markets, much like a drug addict, cheered these comments. While economic data will continue to flow towards that meeting, the markets will continue to look forward to QE3. The Federal Reserve is going to have to live up to some major policy announcements. Should they not deliver, the markets may see some major downside in September.

The rally has been solid so far. Since last Friday's low, the markets have jumped 8.5%. Short term, this is an extended move but unlikely to see a major drop in the near term. Consolidation in the form of a pause is most likely. The outlook continues to be bullish for the markets with a random down day thrown into the mix. The SPY continues to have an upside target of $124.40, then $126.25.  The upside will also be aided by the coming Labor Day Holiday weekend. Holiday weekends often see a float on light volume on either side. This must be taken as the likely scenario.

While the markets look to continue higher for the next week or two, the easy gains are definitely already in. The markets likely only have another 3% upside potential. In addition, the markets will not see their 52 week highs again. On the SPY, this level was $137.18. The upside rally will last until September 9th, 2011. After that date hits, downside could come quickly at any point in the following two weeks.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Gold Miners Daughter

August 31, 2011 – Comments (0) | RELATED TICKERS: GDXJ , GDX , HL

The Market Vectors Junior Gold Miners ETF(NYSE:GDXJ) is trading higher by 0.06 cents to $37.41 a share. The popular ETF of the smaller gold mining stocks has rallied sharply higher since August 5, 2011 when it traded as low as $31.62 a share. Traders can watch for intra-day support around the $36.85 level. Should the GDXJ rally or trade higher on the session the next important intra-day resistance level is around the $38.00 area. The daily chart for the GDXJ remains in good technical shape by trading above the daily chart 50 and 200 moving averages.

Some gold mining stocks that are part of the GDXJ include Allied Neveda Gold Corp Allied(AMEX:ANV), Hecla Mining Co.(NYSE:HL), and numerous gold mining stocks that trade on the Toronto Stock Exchange. The important daily chart resistance for the GDXJ is around the $40.00 level at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Bernanke Is The Banker That Cried Wolf

August 31, 2011 – Comments (0) | RELATED TICKERS: JPM , BAC , MS

The stock markets have rallied higher over the past week for several reasons. The first and most important reason for the stock market rally has been the comments of the Federal Reserve. Since the Jackson Hole speech by Federal Reserve Chairman Ben Bernanke the stock markets have rallied higher on expectations of a September quantitative easing.

Nearly every investor is expecting the Federal Reserve to begin another round of quantitative easing. It is important for all traders and investors to realize that the Federal Reserve just ended their last $600 billion QE-2 program in late June 2011. The last round of quantitative easing(QE-2) caused massive inflation around the world. Food riots broke out all over the Middle East and Northern Africa shortly after QE-2 was implemented in November 2010. Now since the Federal Reserve knows that traders and investors will chase the markets higher on any thought of a QE-3 program the central bank can simply hint that QE-3 is close without ever doing it.

How long will the stock market continue to believe the Federal Reserve? This is the billion dollar question that everyone is asking. The next FOMC meeting is on September 20-21 regarding any policy changes by the Federal Reserve Bank. This tells us that the central bank could dangle the carrot in front of the institutional traders and investors until that September meeting.

Short term traders should continue to watch the action in the financial stocks. Leading financial stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), Bank of America Corp.(NYSE:BAC), Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C) will tell traders everything they need to know. If and when these stocks begin to sell off that is a warning sign that traders are no longer buying the Bernanke put.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Trade Lesson: Understanding Bottoming And Topping Tails

August 30, 2011 – Comments (1)

Most traders do not put all the pieces of the puzzle together when learning and using technical analysis. Let's talk about topping and bottoming tails. Simply put, a bottoming tail is a bullish signal and a topping tail is bearish. A bottoming tail MUST occur at the lows of a chart. This means that no point on the chart in recent history can be lower. Next, the tail must be substantial, not just a little thing barely seen by the eye. Additionally, the close of the candle must be in the upper 25% when measuring from the lows to the highs. If all these factors match up, you may have a bottoming tail. The same things apply for a topping tail.

Now to throw in the one key that most traders miss and costs them money. To truly keep your winning odds at 90% or better, you must also factor in the market. The below chart is of Corinthian Colleges, Inc. (NASDAQ:COCO) . You can see, a great bottoming tail formed based on all factors mentioned above. However, one factor would keep Chief Market Strategists away from this trade for now. While the stock had a great recovery, it still closed lower. That would not matter if the market for the trading day was flat or lower as well. However, the U.S. stock markets rallied 3-4% the day before. The fact that this still could not end the day higher tells us to give it a little time and then re-evaluate the trade.

Always look at the trading day in the markets and match it up to the stock chart. Too many traders see a pattern and ignore the macro action on the markets. If you want to be a complete trader, start with the micro view of the stock, then expand your view to the macro market. If all things align, a 90% success rate trade will be your reward.

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The Stock Market Playbook For The Next Week

August 29, 2011 – Comments (0) | RELATED TICKERS: SPY , JPM , CAT

The markets are nearing a key resistance level. This should be short term resistance but probably not the end of the move up. The level on the S&P 500 is 1207. On the SPDR S&P 500 ETF (NYSE:SPY) the level coincides perfectly with $121.20. This level happens to be the pivot high from August 17th, 2011. The likely scenario is a stall-out here for a day or two, then a push through it to the $124.00 to $126.00 area. Once this next level it achieved, look for a significant pull back in the markets.

Reading the charts is everything. It told of the pivot bottom in the markets three weeks ago and the targets of each bounce and pull back. Learning how to decipher the charts is like having a crystal ball.

Gains are wide spread in most sectors. Financial plays are leading the pack. They have been the most oversold. JPMorgan Chase & Co. (NYSE:JPM) is trading at $37.21 +1.00 (+2.76%), Caterpillar Inc. (NYSE:CAT) is trading at $88.20 +3.04 (+3.57%) and Apple Inc. (NASDAQ:AAPL) is trading at $389.07 +5.49 (+1.43%).

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

The Key To The Stock Market Rally Exposed

August 29, 2011 – Comments (5) | RELATED TICKERS: BAC , GS , C

The bank stocks have finally started to participate in the market rally. This first started with Warren Buffett investing $5 billion in Bank of America Corp (NYSE:BAC) last week. Logic dictates the President of the United States asked Buffett to give the markets a boost of confidence. In addition, Buffett gets a 6% yearly dividend from the preferred shares and the option to buy 700 million shares of Bank of America at $7.14. This is a sweet deal but to be expected from a seasoned capitalist like the Oracle of Omaha. This action gave the financial sector a one day boost. Now Europe is giving it a more sustained rally.

Any sustained rally must contain gains by the financial sector. Remember, the banks are at the core of what is going on in Europe and the massive fear that has spread from their debt crisis. If you look at any bank chart you will see they have been a leading indicator of the recent downside and the hardcore issues hitting Europe. Bank shares like Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C) and Wells Fargo & Company (NYSE:WFC) all made their yearly highs at the start of 2011. The weakness was a golden indicator of what was to come.

Now they have started to rally. While the rally may be short lived, it does show a build in confidence in the markets that will last through the holiday weekend of Labor Day. If you want to know the health of the market, simply follow the financial sector.

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Small Caps: Profiting From The Continued Rally

August 29, 2011 – Comments (0) | RELATED TICKERS: SPY , AAPL , IBM

The markets are sharply higher again today. A mega reversal took place on Friday and solidified choppy upside through the Labor Day holiday weekend. The markets have now had three higher pivot lows since the SPDR S&P 500 ETF (NYSE:SPY) hit the low of $110.27 on August 9th, 2011. These higher lows continue to tell intelligent traders and investors that the market has a little more upside for the next week or two. A possible upside target on the SPY would be $124.00 - $126.00. In that range, major resistance will begin to pound the markets.

Many stocks have already surged higher over the last couple weeks. Most investors are now looking for the next beaten down area to profit from. While stocks like Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM) have already jumped, small caps may be the next area to find bargains.

Many small cap plays are extremely low on the charts. Look for plays discounted at their 52 week lows that do not have company specific negative news. In other words, find small cap and even some mid cap plays that have been hammered due to the markets weakness and not bad earnings or another bad press released. A few long ideas are AgFeed Industries, Inc. (NASDAQ:FEED) and Origin Agritech Ltd. (NASDAQ:SEED), two Chinese small cap agriculture plays.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Special Sector Report - Get Ready!

August 29, 2011 – Comments (0) | RELATED TICKERS: SO , AEP , DUK

All of the major stock indexes have been extremely volatile since the May 2, 2011 high on the S&P 500 Index. Most leading stocks continue to trade below their daily chart 50 and 200 moving averages. While many stocks continue to struggle, there is one sector that has held up very well and continues to signal strength. The group of stocks that remain very strong at this time is the utility sector. In this report, we shall examine three different leading utility stocks that continue to look strong on the charts. It is important for traders to remember that most utility stocks will usually trade higher in a low interest rate environment. Recently, the Federal Reserve stated that they will keep the Fed funds rate at zero – quarter percent until 2013. Utility stocks could continue to be market leaders for quite some time to come as long as rates remain low.

The first stock that we shall examine is Southern Company (NYSE:SO). This leading utility company offers electric service primarily in Alabama, Georgia, Florida, and Mississippi; and serves approximately 4.4 million retail customers. This stock recently made a new 52 week high last week at $41.30 a share.  SO is slightly overbought at the moment and may need to consolidate before trading higher. Therefore, should the stock pullback traders can watch for daily chart support around the $39.00 area. Should the stock continue to rally higher there will be resistance around the $43.00 level.


 
American Electric Power Inc. (NYSE:AEP) is another leading utility company. This stock topped out on July 5, 2011 at $38.98 a share. Traders and investors must continue to watch the $39.00 area for resistance. It is important to remember that this stock has surged higher since August 9, 2011 when the stock traded as low as $33.09 a share. Therefore, the stock may need to pullback or consolidate before trading higher, Traders can watch for short term support around the $35.00 level. 




Other leading utility stocks that are holding up very well include Consolidated Edison Inc. (NYSE:ED), and Duke Energy Corp. (NYSE:DUK). Traders must remember that many investors buy utility stocks for the dividend payouts. Most often utility stocks will trade higher in a low interest rate environment. If yields rise on 10 and 30 year bonds it would be prudent to expect these stocks to trade lower. Understand what moves stocks and sectors, master your charts and make money.    [more]

Recs

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Bernanke Bounce Could Be In Play

August 26, 2011 – Comments (0) | RELATED TICKERS: SPY , JWN , RVBD

This morning, the Bernank told the market exactly what they had already expected, no QE-3 right now. He did hint that it is possible in the September, however, he is keeping the market guessing. The Federal Reserve has lost a lot of credibility over the past five years and another quantitative easing night have put the nail in the coffin for the central bank.

The markets immediately flushed lower after the speech, however, it has bounced higher off the morning lows. At this time, it is critical for the SPDR S&P 500 Trust to trade and close above the $116.00 level on the hourly chart. Should that occur the SPY will have a potential intra-day upside target to the $116.95 area. Traders must stay tuned as this is going to get very interesting.

Should the market rally higher today traders should watch for strength in Nordstrom Inc(NYSE:JWN), Amazon.com Inc.(NASDAQ:AMZN), and Riverbed Technology Inc.(NASDAQ:RVBD). Some of these stocks may have already taken off to the upside at the time of the writing, therefore, always use good technical analysis before trading anything that is extended.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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Intra-day Strength Can Make You Money

August 26, 2011 – Comments (0) | RELATED TICKERS: SSO , COH , VMW

Traders and investors are waiting for the Federal Reserve Bank Chairman Ben Bernanke to speak this morning at 10:00 am EST. This could be one of the most highly anticipated speeches of the year. The major stock market indexes have been under heavy selling pressure all morning ahead the speech, therefore, this tells us that the investing public is betting that the market will be weak today. Now, by some chance the market begins to rally after the speech by Chairman Bernanke it would be prudent to look at stocks that have been strong intra-day. Traders should look at stocks that are holding up well before the speech takes place. These stocks will lead the markets higher should the stock market rally after the Bernanke speech. If the stock market continues to decline after the Bernanke speech then it really will not matter.

Some leading stocks that are holding up well this morning include VMWare Inc.(NYSE:VMW), Coach Inc.(NYSE:COH), and F5 Networks Inc.(NASDAQ:FFIV). While it may be slim pickings out there these are some stocks that could be movers on the back of any rally. These stocks are simply showing us intra-day strength. Now we must simply sit back and see how the markets react to the Bernanke speech.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

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The First Hour Is The Only Hour For Day Traders

August 25, 2011 – Comments (0) | RELATED TICKERS: SDS , CHK , BRCM

Anyone who has ever traded these markets for any considerable amount of time knows that the first hour to ninety minutes of the day is the best part of the day. This is a time period when there is volume in the market. Day traders can actually trade off of good support and resistance level. Active markets are always the best markets for trading.

If you have ever looked at an intra-day chart of a stock or index you will notice that the trading volume declines dramatically after the first hour to ninety minutes of the session. The morning period is when day traders must seize the moment. This is when the markets are active, once 11:00 am rolls around the markets become manipulated by the institutional traders. The institutions simply aim to stop out small retail futures traders. Just look at the choppy sideways range today after 11:00 am and you will see what I mean.

This type of game playing goes on everyday in all active stocks and indexes. Sure, once in a while the markets will be active throughout the entire session, however, that is not normally the case. All leading stocks such as Google Inc.(NASDAQ:GOOG), Chesapeake Energy Corp.(NYSE:CHK), and Broadcom Corp.(NYSE:BRCM) become difficult to trade after the morning session. These are just a few of the countless stocks that will trade in an erratic manner after the first ninety minutes of the day. Day traders should focus on the morning session and leave the three hour lunch time game playing to the institutions.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Investigate The Dirty Stock Market

August 25, 2011 – Comments (0) | RELATED TICKERS: GLD , GDX , DZZ

Ever wonder why stocks, commodities and currencies move prior to news? Many times it seems like key big boys, money managers and institutions got word ahead of the average investor. The fact is, they do. I am calling for a direct investigation into the latest gold collapse that saw the precious metal drop from over $1,900 to $1,700 per ounce. After a two day massive drop, the CME raised the margin requirements on gold.

While I gave out the short call on gold. I still think an investigation should be completed. The drop was far too massive to be a "lucky guess" by institutional players. Somehow, someone leaked this news and the big boys dumped right into the small investor buying.

Today, after the news hit, the SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $171.42, -0.23 (-0.13%). After that type of news, to see gold barely down on the day tells smart traders that everyone that wanted to exit did so prior to the news.

The sad thing about this type of action is that it happens on a daily basis. Whether a buyout, new regulation, earnings announcement or other,  the big boys get the tip. As the little investor buys, the big player is unloading. The only way to combat this is to do exactly what I did use the charts to tell the future. I posted a short GLD trade at $181.64. At $174.64 half the short was covered and at $170.64, the other half.

Gareth Soloway
InTheMoneyStocks.com
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Recs

7

Buffet, Bank Of America Close To Bust And Bernanke

August 25, 2011 – Comments (0) | RELATED TICKERS: BAC , GS , DIA

The markets continue to be in a wild phase. Just this morning, Warren Buffet took a $5 billion stake in Bank of America Corp (NYSE:BAC). This deal is a sweet deal for him but caution flags must go up. The last time the Oracle of Omaha took a stake in a bank it was Goldman Sachs Group, Inc. (NYSE:GS) during the 2008 credit crisis. Rumor has it he was asked to do it by the President of the United States in order to restore calm and confidence to the markets. In addition, any more panic could have caused the collapse of that bank and other major players. It must be asked, whether or not Bank of America was close to insolvency in recent weeks. In addition, was he asked to do this to restore confidence to the markets?

Regardless of the motives, what's done is done. He will probably make billions on the sweet deal just like with Goldman Sachs. The markets surged higher on the news. However, an over bought short term market, a master resistance level tagged and a speech by Federal Reserve Chairman Ben Bernanke all caused profit taking from the opening gap higher. The markets are down 1% across the board after being higher by 1%.

Tomorrow, Ben Bernanke gives his speech at Jackson Hole. Most analysts are saying the markets will drop sharply and make new lows. Their reasoning is that he will not directly announce any new major job creating, quantitative easing policy, thus the market will be disappointed. While this is a possibility, when everyone is saying one thing, it is often prudent to look for the other. Ben Bernanke is well aware that the markets are looking at him under a microscope. Whether or not the markets see some selling, it is unlikely the markets will head directly to the recent lows and lower. It is very possible to see a rally. Should the recent rally continue in the coming weeks, Bank of America – Buffet news tells us more storm clouds are on the horizon. Be prepared.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

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Buffett Bounce Evaporates, All Eyes On The Bernank Tomorrow

August 25, 2011 – Comments (1) | RELATED TICKERS: DIA , JPM , VMW

The major stock indexes have declined faster than they rallied after the announcement of the Bank of America deal with angel investor Warren Buffett. At first, many traders and investors thought this was good news, now it is really turning out to be a negative report for the investing public. This shows the world that perhaps even the banks in the United States may need more capital. All of the leading financial stocks have faded from their gap higher open. Stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), and Goldman Sachs Group Inc.(NYSE:GS) have given back most of the early morning gains. Leading tech stocks such as VMWare Inc.(NYSE:VMW), and Amazon.com Inc.(NASDAQ:AMZN) are also under some selling pressure.

Tomorrow, the Federal Reserve Chairman Ben Bernanke will speak in Jackson Hole, Wyoming. More pressure than ever will be on Chairman Bernanke to try and say something to help prop this market up. It was just one year ago that Chairman Bernanke signaled to investors that he would do another round of quantitative easing coined QE-2. That QE-2 program just ended in June and it is unlikely that Chairman Bernanke will announce another round of quantitative easing.

Many traders seem to be are taking profits off the table this morning since they know that Bank of America was in worst shape then originally thought. We can only wonder what will be said tomorrow and more importantly how the market will react after the Bernanke speech.



Nicholas Santiago
InTheMoneyStocks  [more]

Recs

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Three Reasons Why The BAC-Buffet Deal Is A Bad Omen

August 25, 2011 – Comments (2) | RELATED TICKERS: BAC , KBW , KBE

This morning, the stock market is in jubilee mode over the multi-billion dollar investment in Bank of America Corp.(NYSE:BAC) by Berkshire Hathaway's Warren Buffett. Once again, the man that has profited the most from government bailout's is coming to the rescue of another failing financial institution. This investment tells us that this economy is really in trouble and more government bailouts may be needed again.

Here are a few key reasons that tell us that this deal is forecasting problems ahead.

1. It was just a few day's ago that Bank of America stated that they did not need any capital, now we know that was not true. The second largest bank in the United States needed capital and they needed it bad. We can only wonder how long this deal will help to lift the market. Just look at 2008, this could be a repeat of things to come.

2. The Warren Buffett investment in BAC stock also tells us that the European banks are not the only banks in serious trouble. The leading banks in the United States are in serious trouble as well. If there is one cockroach there is usually a million.

3. Warren Buffett has made a career of investing in troubled companies for the sake of the economy. The last time he made an investment such as this one was back in 2008 with Goldman Sachs Group Inc.(NYSE:GS). It is important to remember that Goldman Sachs was bailed out by the tax payer in what was called the TARP program. Buffett knows that the U.S. taxpayer will bail him out if he is wrong and Bank of America stock does go belly up.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Bank Of America Hits Paydirt For Now

August 25, 2011 – Comments (0) | RELATED TICKERS: BAC , C , XLF

Once again, it goes to show you how the market always knows the truth. Bank Of America Corp.(NYSE:BAC) gets Warren Buffet as an investor this morning. This investment that was made public around 9:10 am EST, it is causing a massive short squeeze in the Bank of America stock. BAC stock is trading higher by more than $1.50 to $8.55 a share. Traders can watch for other financial stocks to trade higher in sympathy to the BAC stock. Other leading stocks that could trade higher this morning include J.P. Morgan Chase & Co.(NYSE:JPM), Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C).

Traders and investors can expect a short term bounce from this news. It is important to remember that Warren Buffet invested in Goldman Sachs Group Inc.(NYSE:GS) in 2008 when the stock was $125.00 a share. Goldman Sachs stock traded as low as $47.00 a share and only survived because of a government bailout. It is safe to say that the U.S. government will be back stopping this deal for their most beloved billionaire.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

7

The Gold Rush Is Over For Now, However, It Will Be Back

August 24, 2011 – Comments (0) | RELATED TICKERS: DZZ , AGQ , GS

Anyone one that knows anything about the ebb and flow of the markets knows that gold was severely overbought. Therefore, it is simply time for gold to pullback or even have a meaningful correction at this time. After all, gold has outperformed every asset class over the past 10 years. In 2001, gold was trading around $255.00 an ounce. Earlier this week, gold traded as high as $1917.90 and ounce before pulling back. This afternoon gold is declining lower by $97.00 to $1764.00 an ounce. It is very important for traders and investors to remember that nothing goes up in a straight line.

Here are some signs for traders and investors to know when things are extended and due for a correction. First, the talking heads and the major institutions upgrade the asset continually. Recently, gold has been tauted by many as the safe haven trade that could not decline. Last week, J.P. Morgan Chase just upgraded gold to $2500.00 an ounce. Whenever brokerage firms start to throw out upgrades like this the asset whether it be gold or Apple Inc.(NASDAQ:AAPL) will need to correct. Perhaps you remember the famous Goldman Sachs call for oil in July 2008. At that time, Goldman Sachs called for oil to trade up to $250.00 a barrel. At that time WTI oil was trading at $145.00 a barrel and very overbought on the charts. A few days later oil began one of its greatest declines that we traders have ever seen declining by over $100.00 a barrel. In November 2008, the same thing happened with Google Inc.(NASDAQ:GOOG) when the stock was trading over $700.00 a share. Some famous talking head on one of the popular cable financial channels was upgrading the stocks on a daily basis. Popular brokerage firms were basically upgrading the stock to ridiculous levels. One firm upgraded the stock to $1500.00 in the next 12 months. That was the upgrade that broke the camels back, Google stock plummeted lower by $300.00 over the following year. There are countless examples of this happening over and over. Maybe you all remember Taser International Inc.(NASDAQ:TASR) in 2004, this stock was another classic example of continuous brokerage firm upgrades.

Gold is a currency, it is not in a bubble. Gold cannot be printed or created by the click of a mouse. Gold must be found in the ground and the process to get it is long and drawn out. Central banks want it because they know it is the only real form of currency. It has been this way since biblical times and it always will be this way. Many people believe that gold is a useless relic, that is not true. Gold is one of the best conductors of electricity and has countless industrial uses. The problem is that gold is so rare that businesses cannot afford to use it for industrial purposes. Gold is selling off today and that is good for people that may want to buy gold in the future. This is nothing more than a long overdue correction for the precious metal. After a correction, traders and investors will be once again be buying the precious metal.


Nigholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Alert: Key Small Cap Stocks Start Waking Up

August 24, 2011 – Comments (1) | RELATED TICKERS: OXGN , FEEDQ

Rotation of money is one of the key principles that every trader must understand. When any market comes off a big fall, the first stocks to bounce are large caps. This is because they are the safest and investors are still scared, thus risk adverse. Once the large caps shoot up dramatically, money rotates to mid cap stocks and finally to small caps. Yesterday the market staged an impressive rally. Large and mid cap stocks surged higher. For the most part, small cap high risk plays stayed at their lows. Today, with a pause in the market and large caps taking a break, some money is rotating into small caps. While they have not really taken off, they are inching higher and if the rally continues, choice names are definitely a buy.

The key to finding a perfect small cap big percentage gainer is looking for past high fliers that were crushed, not because of negative stock specific news but because the market collapsed. A true intelligent small cap investor knows that when a market gets weak, small caps tumble because they are the highest risk area of the market. When the market strengthens, small cap investors will rotate to the past runners, finding them and jumping on board. However, it is up to the best, elite investors to get in first.

I will list some former huge running small caps that may be headed for big gains in the coming weeks, assuming the market stabilizes. The first is OXiGENE, Inc. (NASDAQ:OXGN). The stock is currently trading at $1.50, down from $6.38 on May 13th, 2011. A combination of short sellers and market conditions crushed this beauty. While it is unlikely that the stock will get back to those highs without significant news, the drop was not company specific, thus a huge bounce is in order. It is likely this stock will make its way back over $2.00 in the near future.

AgFeed Industries, Inc. (NASDAQ:FEED) is a China small cap play that was trading at $2.05 prior to the market weakness. The stock collapsed as traders ran from risky Chinese plays. Within two weeks FEED was under a Dollar. After making a nice consolidation base, the stock now appears to be ready to head back to the $1.30 level and possibly higher. Should the markets stabilize, the risk reward here is very solid. Other small caps on watch include Seven Arts Pictures PLC (NASDAQ:SAPX), Clean Diesel Technologies, Inc. (NASDAQ:CDTI).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

The Market Action: Stocks Preparing For Bernanke

August 24, 2011 – Comments (0) | RELATED TICKERS: SPY , QQQ , DIA

The stock market is chopping around the flat line today as it digests the gains from yesterday. After a major technical breakout created a massive move higher, all eyes are turning towards an annual speech by Federal Reserve Chairman Ben Bernanke on Friday. The market is hoping and praying for some new stimulus measures to initiate growth in the U.S. economy. The markets will likely trend neutral to higher into that meeting as shorts continue to exit positions.

If Bernanke disappoints, the markets may see a pull back. However, based on the charts this pull back should not take stocks to new lows. This would just be a pull back that would ultimately be negated by a move higher next week. In addition, should Ben Bernanke deliver a positive statement on Friday, the markets could easily continue their party higher.

It is somewhat unlikely the Federal Reserve Chairman will give the markets actual action. However, positive backing to the economy and reassurance is likely to occur. Regardless of the comments Bernanke makes on Friday, and the initial reaction, the markets should chop higher into the holiday weekend of Labor Day. Upside potential on the SPDR S&P 500 ETF (NYSE:SPY) is first at $119.50, then $121.00.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Cloud Stocks Still Remain In A Rain Shower

August 24, 2011 – Comments (0)

The cloud computing stocks have been beaten up throughout the month of August along with all of the major stock indexes. Yesterday, this important group of cloud technology stocks had a good rally as the tech heavy NASDAQ Composite traded higher by 100.00 points from a very oversold condition. At this time, all of the popular cloud computing stocks seem to be trading with the major stock indexes. This is what happens when major stock indexes decline in such a dramatic fashion, leading stocks will simply follow the markets. Today, many of the cloud computing stocks look to be pausing or pulling back a little from yesterday's large point advance. Traders should not expect all that much from the cloud computing stocks until the major stock indexes can settle down and begin to trade higher.

Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting and cloud computing technology company. This stock is trading lower by 0.53 cents to $34.15 a share. This stock will have intra-day support around the $33.70 and $33.00 levels. Traders must remember that this stock will most likely follow the NASDAQ Composite at this time.

F5 Networks Inc.(NASDAQ:FFIV) is a leading computer networking stock. This leading cloud computing stock is trading lower by $1.92 to $72.09 a share. Traders can watch for intra-day support around the $71.40 and $70.65 levels. This stock will also trade along with the NASDAQ 100 stocks.

Other leading cloud computing stocks that are under some mild selling pressure today include Salesforce.com Inc.(NYSE:CRM), and Citrix Systems Inc.(NASDAQ:CTXS). It seems that the entire industry group of cloud computing stocks are trading together at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The J.P. Morgan Barometer Tells Traders Everything They Need To Know

August 24, 2011 – Comments (0) | RELATED TICKERS: JPM , BLK , CS

The major stock market indexes have certainly been volatile during the month of August. The recent stock market swings in both directions have been outright violent at times. Many traders and investors have had to even step back and allow the markets to calm down at times before trying initiate a long or short position. There has been one stock that has foretold the action in the major stock indexes, this stock is J.P. Morgan Chase & Co. (NYSE:JPM). When JPM stock trades higher on the day the major stock market indexes trade higher, when JPM stock declines the major stock indexes seem to decline. After all, this is a banking crisis, so why not follow the most important bank in the United States and arguably the entire world. This morning, JPM stock is trading higher by 0.23 cents to $35.02 a share. Traders can watch for short term intra-day resistance around the $35.50 area. Should the important financial giant decline during the session the stock will have intra-day support around the $34.00 level.

Other important financial stocks that traders should follow closely include Blackrock Inc.(NYSE:BLK), Credit Suisse Group AG (NYSE:CS), and Deutsche Bank AG (NYSE:DB). These financial institutions are some of the most powerful in the world. Each of these stocks can lead the markets at any given time, however, JPM stock is the most important.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Aftershocks To The Upside So Far

August 23, 2011 – Comments (0) | RELATED TICKERS: SSO , SPY , DIA

The major stock indexes were all trading higher this afternoon before a 5.9 magnitude earthquake stuck the Northern Virginia area. Tremors where felt throughout the New York metropolitan area and as far as Michigan. The major stock indexes initially sold off when the earthquake took place, however, the markets look to have recovered quickly.

This morning, the SPDR S&P 500 Index (NYSE:SPY) staged a breakout pattern on the 10 minute charts. The target for the SPY on this pattern is around the $116.50 area. Believe it or not, the pattern did not break formation when traders hit the sell around 1:50 pm EST when the earthquake took place. Traders should always remain cautious in case of an aftershock or another possible earthquake. This is why it is extremely important to always protect trades with trailing stops.

The final hour of the session is always the real test for the major stock indexes these days. At this time, the markets look as if they have an above average chance of closing up strongly today. Recently, the major stock market indexes have not been able to hold the early gains into the close.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

The Stock Charts Tell Everything

August 23, 2011 – Comments (0) | RELATED TICKERS: SPY , AMZN , CVX

Stocks are advancing sharply across the board. This happened after the S&P 500 held the all important 1122 level. This level was the key low for the last three trading days. The move in the markets appears to be a melt up, as short covering starts ahead of a major speech by Federal Reserve Chairman Ben Bernanke on Friday. Last year, Ben Bernanke used this meeting to announce QE2. The markets are hoping for some positive statements this time around.

The move today took out a major pivot trend line to the upside. This line can be easily found by connecting the highs of the last three trading days. Today, after hitting the trend line and pulling back, the markets ripped through it. Technical traders are aware that this signals further upside. The markets are likely to trade choppy to higher through the Labor Day holiday weekend. This breakout of the trend line can be seen on the chart below.

The key winners today can be found easily. The easiest place to look is at the former strongest stocks like Amazon.com, Inc. (NASDAQ:AMZN), which is trading at $188.44, +10.90 (+6.14%) and Chevron Corporation (NYSE:CVX) which is trading at $95.90, +2.60 (+2.79%).

The biggest loser of the day is gold. The previous metal is seeing major selling as global fears decline. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $180.74, -3.85 (-2.09%).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Up Move: Stock Market Holds Master Level

August 23, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , GS

Once again, the stock market held a major pivot point bottom and has since moved higher. This pivot point on the SPDR S&P 500 ETF (NYSE:SPY) was at $112.50. Each of the last three trading days, the markets have hit this level. Each time it has held. Today is the master pivot day. If it holds today, the markets go into a choppy upside move for the next two weeks. In addition to the downside pivot level, there is an upside master resistance point. This level can be found by connecting the pivot highs from the last four trading days. It can also be seen on the chart below. Should the markets break above this line, it will confirm the upward move.

Gold is lower today. This is a key component for any rally in the stock market. Gold rises on fear. As fear has been jumping, gold has seen an epic move up. Finally, today it is moving lower. This signals a possible pivot top in gold short term and also adds credence to the market starting an upward move. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $183.07, -1.52 (-0.82%).

Lastly, banks stocks flushed early. Banks have dragged the markets sharply lower in recent weeks on worry over debt exposure in Europe. However, after an initial flush, stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp (NYSE:BAC) have all turned positive. Not only have they reversed from major early losses, but a bottoming tail is now on the daily chart bottoms. This again, adds credence to a possible move up coming on the markets.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Gold Miners Retreat

August 23, 2011 – Comments (0) | RELATED TICKERS: GDX , NEM , AEM

Many of the leading gold mining stocks have rallied sharply higher from August 5, 2011. At that time, the popular Market Vectors Gold Miners ETF (NYSE:GDX) was trading as low as $53.77 a share. The leading gold mining stocks are pausing today from their recent advance. This morning, the GDX is trading lower by 0.75 cents to $62.94 a share. The current pattern on the GDX daily chart remains very strong, however, after such a strong advance a pullback or some consolidation should not be ruled out before the GDX moves higher. It also important to note that the gold mining stock have lagged the precious metal this year. Traders can watch for intra-day support on the GDX around the $62.35 area. The GDX will have intra-day resistance around the $63.70 area, and $64.50 levels.

Some leading gold mining stocks that are declining this morning include Randgold Resources LTD(NYSE:GOLD), Agnico Eagle Mines LTD(NYSE:AEM), and Newmont Mining Corp.(NYSE:NEM). These stocks will usually trade in a very similar fashion. Traders should continue to watch the GDX support and resistance levels as guide for the gold mining sector.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

When The Dollar Pops the Markets Drop

August 23, 2011 – Comments (0) | RELATED TICKERS: CVX , SCCO , NUE

Once again, the major stock market indexes have given up the early pre-market gains. The decline in the futures market took place as soon as the U.S. Dollar Index began to trade higher. Traders and investors have seen this inverse relationship between the U.S. Dollar Index and the major stock market indexes over the past few years. If you watch a chart of the U.S. Dollar Index this morning, you will see that the stock market indexes simply decline lower as the U.S. Dollar Index rallies off of its morning lows. All traders must keep a close eye on the U.S. Dollar Index at all times.

Traders must remember that the most sensitive industry groups to the U.S. Dollar will be the energy and industrial metals sectors. Whenever the U.S. Dollar Index trades higher these industry groups will usually come under pressure. Traders should watch for leading stocks such as Chevron Corp.(NYSE:CVX), Southern Copper Corp.(NYSE:SCCO), and Nucor Corp.(NYSE:NUE) to all come under pressure if the U.S. Dollar Index continues to gain strength this morning. The opposite effect is likely to occur if the U.S. Dollar Index declined or pulled back at some point throughout the trading session. The U.S. Dollar Index chart should be followed by every trader at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

When The Dollar Pops the Markets Drop

August 23, 2011 – Comments (0) | RELATED TICKERS: CVX , SCCO , NUE

Once again, the major stock market indexes have given up the early pre-market gains. The decline in the futures market took place as soon as the U.S. Dollar Index began to trade higher. Traders and investors have seen this inverse relationship between the U.S. Dollar Index and the major stock market indexes over the past few years. If you watch a chart of the U.S. Dollar Index this morning, you will see that the stock market indexes simply decline lower as the U.S. Dollar Index rallies off of its morning lows. All traders must keep a close eye on the U.S. Dollar Index at all times.

Traders must remember that the most sensitive industry groups to the U.S. Dollar will be the energy and industrial metals sectors. Whenever the U.S. Dollar Index trades higher these industry groups will usually come under pressure. Traders should watch for leading stocks such as Chevron Corp.(NYSE:CVX), Southern Copper Corp.(NYSE:SCCO), and Nucor Corp.(NYSE:NUE) to all come under pressure if the U.S. Dollar Index continues to gain strength this morning. The opposite effect is likely to occur if the U.S. Dollar Index declined or pulled back at some point throughout the trading session. The U.S. Dollar Index chart should be followed by every trader at this time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Another Early Rally Goes Up In Smoke

August 22, 2011 – Comments (0) | RELATED TICKERS: C , WFC , GOOGL

Traders should remember the old market adage, it is not how they open them, it is how they close them. This morning, the major stock indexes started the morning sharply higher, however, that rally began to fade once the opening bell rang at the New York Stock Exchange. Traders are really showing very little buying conviction as almost every intra-day bounce is being met with selling pressure. The SPDR Dow Jones Industrial Average (NYSE:DIA) traded as higher as $110.30 a share. This afternoon, the DIA is trading higher by just 0.63cents to $108.53 a share. Should the DIA somehow rally higher throughout the final hour of the session there will be intra-day resistance around the $109.30 area. The intra-day support for the DIA will be around the $107.75 area.

There are some leading stocks that are still trading in positive territory this afternoon. Stocks such as Apple Inc.(NASDAQ:AAPL), Google Inc.(NASDAQ:GOOG), and Exxon Mobil Corp.(NYSE:XOM) are all trading higher on the session. The leading stock that are not trading higher are the financial stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). The financial stocks are the sector of the market that needs to bounce if the overall stock indexes are to hold their early gains into the close. Until the financial stocks can find a low and stage a rally the major stock indexes can be in for some very volatile and turbulent action.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

The Case For A Bottom Wins

August 22, 2011 – Comments (0) | RELATED TICKERS: CAT , MMM , AAPL

The markets are holding just around the flat line today. Panic still remains and many believe another collapse is around the corner. While the average investor is beginning to panic, seasoned traders are avoiding emotion and looking at reality. When looking at reality they are buying for the short term, looking for a bounce. There are many signals pointing to the fact that the lows were in on August 9th, 2011 when the S&P 500 had a 70 point reversal off the lows.

First, the short term lows back on August 9th have not been taken out. Technically, this current pull back is a higher low. As long as that holds, it signals a move up coming. In addition, gold is at obscene levels. As it approaches 1900 per ounce, every small investor is jumping on the gold wagon. In the short term this spells distribution by institutions and a pull back. If gold falls from its over extended levels, money will flow into stocks. Next, Federal Reserve Chairman Ben Bernanke is speaking at Jackson Hole on Friday. This is an annual event and just last year, at the very same event, he debuted the idea of QE2. This will keep shorts from shorting later this week and some shorts will cover. It may give the markets a short term bid. Lastly, the Labor Day Holiday weekend is fast approaching. It is rare to see a market collapse into a holiday. Generally, as volume dries up the markets rise.

These factors are all contingent on the pivot low holding on the S&P 500. This level on the SPY is $110.25. The SPY is the tracking ETF for the S&P. Many key stocks are at major support levels. A strong bounce should be around the corner.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Major Pivot Right Here Will Predict Next Move

August 22, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

The markets opened sharply higher as fears subsided across the globe. European markets saw some calm and the U.S. indexes surged higher into the stock markets open. Since the 9:30am ET open, the markets have faded continually all morning long. As the lunch hour arrives, the S&P 500 is flirting with the flat line.

The couple hours will determine whether or not this market collapses over the next few days. The SPDR S&P 500 ETF (NYSE:SPY) fell to a low of $112.65. This was the master gap fill level from the close on Friday. If the markets break through the lows of Friday and close below, the market will ultimately have another leg down and retest the pivot double bottom at $110.25. Again, the current level on the markets is insanely key to whether or not the markets inch higher in the coming days or head to the lows from two weeks ago. This is the pivot point of pivot points.

Gareth Soloway
InTheMoneyStocks.com

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Recs

2

Commodity Stocks Stage A Feeble Bounce

August 22, 2011 – Comments (0) | RELATED TICKERS: FCX , CLF , SCCO

This morning, the major stock indexes are trading higher on the session. The early stock rally is broad based as most leading stock sectors are trading higher. The leading commodity stocks have faded sharply from their gap higher open. This tells us that the leading commodity stocks are one of the weakest sectors at this time.

Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading higher by 0.47 cents to $ $42.41 a share. This stock has plummeted sharply lower over the past month. Traders can watch for intra-day support around the $41.70 area. Should the stock somehow rally higher throughout the trading day there will be intra-day resistance around the $43.00 and $43.50 levels.

Cliffs Natural Resources Inc.(NYSE:CLF) is another leading commodity stock that focuses on iron ore pellet production. Iron ore pellets are used to produce steel and steel products. This morning, CLF stock is trading higher by $1.86 to $69.51 a share. This stock will have intra-day resistance around the $70.00 and $71.00 areas. Should this stock decline intra-day traders can watch the $67.80 and $66.90 area for intra-day support. The daily chart of CLF looks very similar to FCX and many other leading commodity stocks as it remains near the recent lows.

Southern Copper Corp.(NYSE:SCCO) is another leading copper producer that has come under tremendous selling pressure since July 20, 2011. This stock is actually trading off of its recent lows on the daily chart. Therefore, it is showing us that it has better relative strength than FCX and CLF in the near term. SCCO stock is trading higher by 0.23 cents to $30.11 a share. Traders should watch for intra-day support around the $30.00 and $29.50 levels. Should SCCO rally higher traders should watch the $30.50 and $31.00 levels.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

JPM Is The Stock Market Barometer

August 22, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , MS

When there is a banking crisis traders and investors should follow the bank stocks. The leading bank stock in the United States is J.P. Morgan Chase & Co.(NYSE:JPM). Sure, other financial stocks such as Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS) and Bank of America Corp.(NYSE:BAC) are important, however, traders can cut to the chase and simply follow the leader. The leader is J.P. Morgan Chase, this stock has lead the markets higher and lower since 2007 and it should continue to lead the stock markets going forward. This financial giant topped out in February 2011 at $48.36 a share. Since that high pivot, JPM stock has made a series of lower highs leading the major stock indexes lower throughout 2011.

This morning, JPM stock is trading higher by just 0.10 cents to $33.44 a share. The stock started the trading day at $35.14 a share. As soon as this stock began to fade lower so did the major stock indexes. Should JPM stock begin to trade higher, it would be likely that the major stock indexes will follow. Until then, this is the most important stock that traders must follow. This stock is truly a barometer for the major stock market indexes. Traders can watch for intra-day support on JPM stock around the $39.15 and $39.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Casino Stocks Hit Blackjack Early

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

The major stock markets are catching a bid higher. One sector that has been beaten up lately has been the casino stocks, however, this morning these stocks are surging higher from the morning lows. Wynn Resorts LTD (NASDAQ:WYNN), Las Vegas Sands Corp. (NYSE:LVS), and MGM Resorts International (NYSE:MGM) are all trading higher on the session.

The most important casino stock is Wynn Resorts LTD (NASDAQ:WYNN). This stock is the leading casino name and the other stocks in the sector will usually follow in the footsteps of WYNN stock. Short term traders should watch for intra-day resistance around the $140.50, and $142.80 levels. The stock could see short term intra-day pullbacks around these resistance areas.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

500 Point Down Days Are Starting To Feel Normal

August 18, 2011 – Comments (1) | RELATED TICKERS: DIA , XLF , BAC

Anyone that has traded the stock markets in 2007, 2008, and 2009 knows that these massive declines used to occur on a daily basis. At that time, the problems for the major stock indexes was the failing banks. If you fast forward into 2011, the problem is once again the failing banks. This time it is the European Union banks that are getting the bad press more than the U.S. banks, however, bank stocks such as bank of America Corp.(NYSE:BAC), and Citigroup Inc.(NYSE:C) look to be in a lot of trouble. Can you believe that BAC stock was trading at $15.31 a share on January 14, 2011? Today, BAC stock is trading lower by 0.52 cents to $6.94 a share. There really is not much more room to fall before the stock reaches zero. Citigroup stock is really not doing to much better. It is important for traders to remember that this stock did a ten for one reverse split earlier this year, therefore, the stock is really trading around $2.74 a share in pre-split terms.

What is wrong with this financial system? Perhaps the question that we should ask is, what is right with the financial system? These banks that were sold to the public as being to big to fail are now these same financial institutions that are even bigger. What would happen if these banks were simply allowed to fail without being bailed out? These banks would simply go into bankruptcy court and be broken apart. The good assets would be sold off and the bad assets would go bust. Isn't this the way capitalism was designed to work. This may ultimately be what happens after all these bailout efforts fail.

Right now, every talking head in the media is blaming Europe for the problems effecting the stock market. Sure, the Europe Union is a mess, however, this problem involves all banks across the globe. Traders and investors know it has been the large financial stocks that lead the markets lower since 2007. These same financial institutions are still causing the same problems to this very day. There has never been a period in time when the banks stocks have behaved this poorly in a low interest rate environment. Usually, when interest rates are so low banks will make loans and markets will inflate higher. This time around everything is deflating in an extremely low interest rate environment. The reason is because banks are really not lending and there is also a lack of qualified borrowers. The economic climate has certainly changed over the past ten years. The only solution to fix this problem is simply to let these banks fail. It does not matter if these banks are in Europe or in the United States, they must simply be allowed to fail. In due time it will probably happen anyway.

These stock markets are very oversold once again. Sure, there are always possible bounces that will occur in the markets from time to time, however, until some of these markets and capitalism are allowed to function the way they were designed we will simply just repeat the current cycle over and over. Now these 500 point down days are starting to feel normal again traders will have to just take it one day at a time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Buy Or Sell: Green Stocks In A Red Market

August 18, 2011 – Comments (0) | RELATED TICKERS: SODA , SINA , SOHU

As the markets continue to tumble, a few green stocks show clearly on the radar. Stocks higher on a day like today show impressive strength. The question becomes, do investors sell these stocks into strength or hold them for further gains.

The first part of the answer is to analyze whether or not the markets will head higher or lower from here. As long as the pivot low from last Tuesday holds on the S&P 500, smart investors believe the market could be just pulling back today on renewed fear. That leads Wall Street big players to look to hold the strong stocks for further gains.

The charts of the individual stocks must be analyzed as the next step. The first stock to look at is Sodastream International Limited (NASDAQ:SODA). It is trading at $39.58, +0.78 (+2.01%). The key to this stock is the drop from the 52 week high of $79.72 in the last few weeks. That is an ugly fall and a technical bounce is partially the reason for the up move today. This portion is a neutral as a technical oversold bounce can fade. The positive factor is the bottoming tail on the chart yesterday. A bottoming tail signals a reversal in trend and may cause further upside. With the compilation of possible upside in the stock market from these levels and the bottoming tail, this stock could see another 10% bounce or more in the short term.

SINA Corporation (NASDAQ:SINA) is sharply higher today, trading at $99.17, +6.27(+6.75%). The company reported earnings that were better than Wall Street estimates. This is company specific news and may fade after a day or two of upside. While the S&P 500 still holds the lows, questions on the technical chart pop up. There is a down sloping trend line from the highs of SINA earlier this year. The current price is still below that level. Any significant bounce in the markets should see SINA pop back into that trend line. However, that trend line is a sell signal once hit.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Stock Market Panic Sell Or Buying Opportunity

August 18, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , AMZN

The markets are getting crushed today after global worries resurfaced and U.S. economic numbers were just plain ugly. The selling started in Europe early this morning and continued at 10am ET when the Philly Fed Index came in at -30.7. The combination of these two factors sent investors running for the hills, selling everything in sight.

Investors all over the globe are wondering if this is a buying opportunity or should they dump all positions and run for cover. When emotion is removed, one must look at the fall today as a pull back. In the last week, the SPDR S&P 500 ETF (NYSE:SPY) went from $110.27 to $121.20. The SPY is trading at $114.63, -5.04 (-4.21%). This happens to be a .618 Fibonacci pull back. In addition, all smart traders recognize that as long as the low of $110.27 is not taken out, the bottom continues to be in.

Other keys that may support this thesis are the charts of bellwether leaders like International Business Machines Corp. (NYSE:IBM), Amazon.com, Inc. (NASDAQ:AMZN). IBM and Amazon.com hit their 200 daily moving averages for the first time in a year today. The 200 moving average is known as one of the major support trend lines in technical analysis. This level should cause a bounce in both stocks.

Removing emotion is the key to a truly profitable and successful investor. The average investor follows the hype on TV and usually buys the highs and sells the lows. Focus on the technical levels and find the path to profits.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Banks Will Tell Us Everything We Need To Know

August 18, 2011 – Comments (0) | RELATED TICKERS: JPM , CS , UBS

The large financial Stocks have lead the markets lower throughout 2011. This morning, bank stocks around the world are declining sharply lower. The leading bank stock in the United States is J.P. Morgan Chase & Co.(NYSE:JPM). This market leading financial stock is declining lower by $1.92 to $34.56 a share. The low for JPM stock was made last week at $33.69 a share on August 9, 2011. This low is going to be a critical level for JPM to hold as support. Believe it or not, as long as this low is not breached on a closing basis JPM stock could still possibly form a possible higher low pattern on the daily chart which could turn out to be short term bullish. These are the little things that technical traders watch for. Sure, the stock market is down sharply this morning, however, this is sometimes how short term lows are carved out. Most lows are made with a higher low chart pattern setup.

Many other leading financial stocks are declining sharply this morning. Stocks such as Credit Suisse Group (NYSE:CS), UBS AG (NYSE:UBS), and HSBC Holdings plc (NYSE:HBC) are near new lows for the year. These are all European bank stocks that have large global exposure. These stocks will also give us clues to see if the major stock markets can hold the recent lows that were made last week. As long as these leading banks hold up the major stock indexes could continue to trade above the recent lows. If these leading bank stocks break down the major stock indexes could see steeper declines in the near term. 

The stock markets are going to be very vulnerable throughout the rest of the year. As a trader, it is important to simply be on the right side of the trade at the correct time. Options expiration is also on Friday, therefore, this market will have increased volatility into the close on Friday afternoon. The large financial stocks will tell us everything we need to know for the short term.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

The U.S. Dollar Index Soars As Fear Takes Over

August 18, 2011 – Comments (0) | RELATED TICKERS: UUP , COP , ANR

This morning, the U.S. Dollar Index futures (DX U1) are soaring higher by 0.53 cents to $74.29 per contract. As we all know by now, when the U.S. Dollar Index trades higher the major stock indexes will usually come under selling pressure. Selling pressure might be an understatement, the Dow Jones Industrial Average is trading lower by more than 320.00 points to start the day. The next important intra-day resistance area for the U.S. Dollar Index futures will be around the $74.50, and $74.67, and $75.00 areas.

Traders must always watch for weakness in the commodity and energy sectors whenever the U.S. Dollar Index surges higher. Leading stocks such as ConocoPhillips(NYSE:COP), Alpha Natural Resources Inc.(NYSE:ANR), and Southern Copper Corp.(NYSE:SCCO) are all coming under heavy selling pressure on the back of the stronger U.S. Dollar Index. Should the U.S. Dollar Index pullback throughout the trading session these stocks could bounce off the early morning lows. Traders must follow the U.S. Dollar Index very closely throughout the rest of the day. The major stock indexes are still trading inverse to the U.S. Dollar Index.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

This Is The Real Shark Week

August 17, 2011 – Comments (0) | RELATED TICKERS: CRM , VMW , NFLX

All day traders should know this, the week leading into options expiration is an extremely tough period to trade. This is a time when the large institutional trading desks will play a lot games with the small retail options traders. Just look at the major stock indexes this week on any intra-day time frame, they have carved out a pattern that looks like the Wasatch Mountains. The intra-day swings can make any trader sea sick if they did not take a dose of Dramamine before the opening bell.

Yesterday, there was a solid head and shoulders top pattern which carved out perfectly on the 10 minute chart. The target for the topping pattern signaled a nice potential $1.50 decline, however, the pattern failed forty minutes after triggering. Today, another head and shoulder top formed on the intra-day chart signaling a nice $2.00 decline from the trigger to the target. This pattern also failed in just thirty minutes after the trade set up triggered. You see, knowing that this is options expiration week helps experienced day traders realize that the nice clean chart setups that usually play out like clockwork can and will usually fail. This is a week of game playing by the institutional trading desks.

Often, when you day trade after the first two hours of the day during options expiration you are essentially swimming with sharks. Thats right, you are swimming with great white sharks. The only difference is that the average day trader does not have a cage(knowledge) around him to protect him from the erratic intra-day swings. Some of the leading stocks that will be most volatile are the large technology stocks such as Apple Inc.(NASDAQ:AAPL), NetFlix Inc.(NASDAQ:NFLX), VMWare Inc.(NYSE:VMW), and Salesforce.com(NYSE:CRM). Just take a look at these stocks this week and you will easily see the volatile action in these names. It is best for day traders to take it slow during the week of options expiration as the action is usually trend-less. The week leading into options expiration is the real shark week for day traders.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Banks And Oil Keep Market From Collapsing

August 17, 2011 – Comments (1) | RELATED TICKERS: SPY , WFC , BAC

After early strong gains, the stock markets started to sell. This was driven by a stronger Dollar in late morning trading and continued fear from Europe. The markets are hovering in a range over the last three trading days. This is known as consolidation and bullish as long as the pattern does not break dramatically to the downside. The level on the SPDR S&P 500 ETF (NYSE:SPY) that must hold is $117.00.

The banks and oil plays are still hovering on the positive side today. The banks have been the weakest sector over the last six months and are clinging to a minor technical bounce. With the markets lower across the board, Bank of America Corp (NYSE:BAC) is trading at $7.42, +0.02 (+0.27%) and Wells Fargo & Company (NYSE:WFC) is trading $24.62, +0.07 (+0.29%).  Oil stocks continue to be generally higher even with a lower market. This is on the back of a recent big bounce in oil and even today, the energy source is slightly higher. There is talk of continued global printing of money. As long as this happens, all commodities should see a rise. Exxon Mobil Corporation (NYSE:XOM) is trading at $73.66, +0.16 (+0.22%).

Investors remain very nervous. Right now the charts are signaling continued consolidation and then another move higher towards the $125.00 level on the SPY. That view will hold true unless the $117.00 level is taken out. 

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

The Stock Market Searches For Life And Direction

August 17, 2011 – Comments (0) | RELATED TICKERS: DELL.DL , HPQ , CVX

The stock market surged higher out of the gate today. Yesterday, Chancellor Merkel and President Sarkozy had a press conference where they ripped southern Europe and said straighten up or get out of the Eurozone. This initially shocked the market into selling yesterday. However, the markets showed amazing resiliency and bounced back off the lunch time lows. This bounce back was something not seen in the markets for weeks and a bullish signal short term. Sure enough, the markets continued their party today with solid gains in the first hour of trading.

While the markets are positive, they pulled back sharply off the highs of the day. This pull back from the highs is coinciding with a strong move up in the Dollar. The stock market moves inverse to the U.S. Dollar. As the Dollar has gained strength, the markets have pulled back.

Dell Inc. (NASDAQ:DELL) reported financial results yesterday after the market closed. These numbers were not received well by analysts, missing expectations. The stock is sharply lower today, trading at $14.38, -1.42 (-8.99%). This drop in Dell is taking its toll on other large old school technology stocks like Hewlett-Packard Company (NYSE:HPQ).

The strong plays of the day are the banks and key oil leading stocks. Chevron Corporation (NYSE:CVX) is trading at $98.49, +1.13 (+1.16%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $36.82, +0.79 (+2.19%).

The key to a continued bounce in the markets is a flat or positive day. Should the markets end the day sharply lower, it would be likely more downside would follow. Volume has slowed which is a positive. This means the panic has subsided for now.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

The Inverse Relationship That You Should Know

August 17, 2011 – Comments (0) | RELATED TICKERS: UDN , FCX , CLF

Once again, the S&P 500 Index is trading inverse to the U.S. Dollar Index. Traders can clearly look at the chart below and see how the major stock indexes deflate as soon as the U.S. Dollar Index trades higher. While this inverse relationship has been intact for over ten years, it is even more correlated these days.

Traders must watch the leading commodity and energy stocks closely when the U.S. Dollar Index trades higher. These stocks are the most susceptible to a decline when the U.S. Dollar Index rallies. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Chevron Corp.(NYSE:CVX), and Cliffs Natural Resources Inc.(NYSE:CLF) are a few leading stocks that can decline quickly when the U.S. Dollar Index trades higher. Traders can watch for intra-day resistance on the U.S. Dollar Index futures (DX U1) around the $73.85 and $74.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks On Fire, This Is All You Need To Follow

August 17, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , C

This morning, the too big to fail financial institutions are surging higher. When the large financial stocks rally it is a sign that investors are willing to take on risk. After all, it has been the financial stocks that have lead the markets lower since May 2011. As long as this sector shows strength the major stock indexes should hold up. Should the large financial stocks begin to decline intra-day you will see how quickly this stock market can sell off.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the market. This morning, JPM stock is trading higher by $1.05 to $37.08 a share. Traders can watch for intra-day resistance on JPM around the $37.60 area.

Other leading financial stocks that are trading higher this morning include Goldman Sachs Group Inc. (NYSE:GS), Citigroup Inc.(NYSE:C), and Wells Fargo & Co.(NYSE:WFC). These stocks will usually follow the action in JPM, therefore, JPM stock is the most important large financial stock to follow.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Transports Rebound Early

August 17, 2011 – Comments (0) | RELATED TICKERS: IYT , UPS , UNP

This morning, the Dow Jones Transportation Index is trading higher by 1.02 percent. The iShares Dow Jones Transportation Average (NYSE:IYT) is trading higher by 0.84 cents to $83.59 a share. Often when the transportation index trades higher it is a sign of economic strength and expansion. It is important to note that this important index has been bludgeoned in the month of July. The transportation index made a pivot low on August 9, 2011 along with the major stock indexes. Short term traders can watch for intra-day resistance around the $84.00 area on the IYT.

Other leading transportation stocks that are trading higher this morning include United Parcel Service, Inc. (NYSE:UPS), Union Pacific Corp.(NYSE:UNP), and Delta Air Lines Inc. (NYSE:DAL). As long as the transportation index continues to climb the major stock indexes should hold up well in this very volatile environment. Please understand, these markets should be extremely volatile this week leading up to options expiration which is this Friday.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Volatile Environment Leading Up To Options Ex

August 16, 2011 – Comments (0) | RELATED TICKERS: NFLX , AKAM , SNDK

Believe it or not, this Friday is options expiration for the month of August. After experiencing last week's crazy action in the stock market this week could see more of the same type of wild intra-day swings. Often during the week of options expiration the major stock indexes and the popular stocks will trade in a very volatile and choppy fashion. Traders should expect more intra-day ups and downs throughout the rest of the trading week into the close on Friday. This is a week of institutional game playing. It is important to remember that it is the institutions that move markets and not the individual trader.

You see, the institutions will usually look to see where the small retail options traders have placed there bets. If the small retail options trader has bought a fair amount of puts on the market during last week's decline it is a good chance that the large institutions will rally the market this week. The opposite would be true if the small retail options trader bought call options last week, then the institutional traders would usually drive the markets lower this week. It is important to note that many of the small options traders will rarely, if ever, hold their position into the Friday expiration. Usually, the small retail trader is simply looking to capture a gain in the premium paid for the option. If they have a loss, they will either close out the position for a loss or let the options position expire worthless. Rarely, if ever are the small retail options traders looking to take possession of the stock. Most small retail options traders simply do not have the money to buy stocks directly and that is why they are playing options in the first place. The institutional traders know this and will capitalize every month.

How do the institutional traders know when a small retail options trader takes a position? This is easy, when a small retail options trader takes a position they will usually buy just a small number of contracts. An institution will not initiate a one or two contract position instead they will take a thousand contract position or more. These days there are elaborate computer programs that keep track of the small number of contracts purchased. This is why it is important for the small retail options trader to not buy the option during the current month. The small retail options trader should always buy an option contract a month out and that will give them a fighting chance against the big money institutions.

Most games will be played by the institutions in the popular stocks and on the indexes. Therefore, stocks such as Netflix Inc.(NASDAQ:NFLX), Amazon Inc.(NASDAQ:AMZN), Sandisk Corp.(NASDAQ:SNDK), and Akamai Technologies Inc.(NASDAQ:AKAM) and others will usually see very volatile action this week. This is a week to expect the unexpected. There will usually be lots of rumors and ridiculous reports being released into the Friday expiration. This is a time to be short term and protective of all trades. When you combine options expiration and the recent activity in the stock market get ready for an increase in volatility this week.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Stock Markets Retreat After Harsh Remarks From Sarkozy And Merkel

August 16, 2011 – Comments (0) | RELATED TICKERS: IBM , CAT , MMM

The stock market had recovered all its early losses to turn briefly positive on the day. This was impressive to say the least as there is still underlying fear everywhere. Europe is still a mess and experiencing an epic default risk. This move up to the flat line coincided with the 12pm ET press conference between the leaders of Germany and France. President Sarkozy and Chancellor Merkel took a hard line against the southern countries in Europe. Balanced budget amendments were thrown around as well as a possible financial transaction tax. This was not what the market was hoping to hear and the selling started quickly. An hour after being flat on the day, the Dow Jones Industrial Average was down 166 points. Since those lows, the markets have started to recover slightly, but remain sharply lower.

The closing bell will determine everything on this market. Do the markets go up tomorrow and the rest of the week or sharply down? A slightly lower or flat close would be extremely bullish for the markets. A close at the lows of the day would be very bearish.

On a technical note, it is amazing how the low of the morning session was the pivot low from yesterday and the high of the day was a perfect gap fill. In a world where valuation seems to have no place, the technical levels are the true tell of a move in the markets.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Resilient Stock Market Shows Future Upside

August 16, 2011 – Comments (1) | RELATED TICKERS: HPQ , DELL.DL , GOOGL

The stock market is trading slightly lower. This is a classic pull back after a 100 point S&P 500 move in the last week. Essentially, the markets are digesting the recent bounce and looking at the big picture. The heads of Germany and France met today and will hold a conference call at noon. Wall Street will be watching closely for any signs of a big plan.

The markets are showing significant resilience. Especially for a down market where panic still remains. In the early morning session, the S&P futures were sharply lower, down 18 points. The Dow Jones Industrial Average was setting up for a drop of over 150 points. However, positive economic reports and buying pressure moved the markets from those lows to just minor losses on the day.

The standouts on the gainer side are Hewlett-Packard Company (NYSE:HPQ) $32.83, +0.40 (+1.23%) and  Dell Inc. (NASDAQ:DELL) $15.66, +0.16 (+1.03%). The standouts on the losing side are much easier to see with more red on the screen. Google Inc. (NASDAQ:GOOG) is seeing some follow through today to the downside after they bought Motorola Mobility Holdings Inc (NYSE:MMI). The general consensus is that Google overpaid, thus the stock is taking a hit, trading at $542.41, -14.82 (-2.66%).  Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is also taking a hit today after the China regulatory body attacked the company for lack of oversight on ads. The last thing BIDU needs is the Chinese government on top of them and investors are fleeing today. The stock is trading at $137.50, -7.14 (-4.94%).

The markets are showing significant strength today considering the early losses. A flat or slightly lower day would be very healthy and could signal more gains in the next week.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Gold Rush Again

August 16, 2011 – Comments (0) | RELATED TICKERS: GDP , GLD , AGQ

Gold is off to the races once again as central banks continue to look for a way to keep European Union countries from defaulting. At this time, gold seems to be the only safe haven currency in the world that investors have any faith in. The SPDR Gold Shares(NYSE:GLD) are trading higher by $1.90 to $173.70 a share. Traders can watch for some minor intra-day resistance around the $174.00 level. Should the GLD trade through that area the next important resistance area for the GLD will be around the $175.00 level.

Often silver will follow gold very closely. Silver is considered the poor mans gold by many traders and investors. This morning, the iShares Silver Trust(NYSE:SLV) is trading higher by 0.19 cents to $38.86 a share. Traders must remember that silver is also an industrial metal, therefore, this precious metal will lag gold when the industrial metals are weak. Some of the industrial metals that are weak today include copper, iron, and steel.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Tech Has Early Short Circuit

August 16, 2011 – Comments (0) | RELATED TICKERS: AAPL , AMZN , GOOGL

This morning, it is the tech heavy NASDAQ Composite that is leading all of the major stock indexes lower. The NASDAQ Composite is declining lower by 1.49 percent. Many of the market leading NASDAQ stocks are coming under heavy selling pressure and this is certainly weighing down the index.

Apple Inc.(NASDAQ:AAPL) is the second largest stock by market capitalization behind Exxon Mobil Corp.(NYSE:XOM). This morning, AAPL stock is trading lower by $2.95 to $380.40 a share. Traders can watch for short term support around the $379.50 area and more support around the $376.75 level.

Baidu Inc.(NASDAQ:BIDU) is the leading internet stock in China. This morning, BIDU stock is trading lower by $8.65 to $136.05 a share. Traders should watch for intra-day support around the $133.00 area. This stock is a major component of the NASDAQ 100 Index and should be followed very closely.

Other leading technology stocks that are declining lower include Google Inc.(NASDAQ:GOOG), and Amazon.com Inc.(NASDAQ:AMZN). At this time, the major stocks are all trading together with the major stock indexes. Therefore, if the U.S. Dollar index declines it is very likely that most leading technology stocks will trade higher off of the morning lows.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Energy Stocks Lose Steam Early

August 16, 2011 – Comments (0)

This morning, the leading energy stocks are coming under early selling pressure. The catalyst for the early decline in many of the energy stocks is due to the stronger U.S. Dollar Index. When the U.S. Dollar Index trades higher on the trading session the major energy and commodity stocks will come under selling pressure.

Exxon Mobil Corp.(NYSE:XOM) is the most important integrated energy stock in the market. This stock also has the largest market capitalization in the world, therefore, when XOM stock moves the markets will move. The stock is trading lower by 0.82 cents to $73.46 a share. Traders can watch for intra-day support around the $73.00, and $72.00 levels.

Other leading energy stocks that are declining lower this morning include Chevron Corp.(NYSE:CVX), ConocoPhillips(NYSE:COP) and Devon Energy Corp.(NYSE:DVN). Traders must keep a close eye on the U.S. Dollar Index. Should the U.S. Dollar Index begin to fade or decline throughout the trading session it would be prudent to expect the energy stocks to bounce higher off the morning lows. On the flip side, if the U.S. Dollar Index begins to rally or trade higher traders should expect the energy stocks to come under further selling pressure.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Three Cloud Computing Stocks That Could Be Takeover Candidates

August 15, 2011 – Comments (0) | RELATED TICKERS: RVBD , RAX

This afternoon, the street is buzzing over the Google Inc.(NASDAQ:GOOG) buyout of Motorola Mobility Holdings Inc.(NYSE:MMI). Most investors on Wall Street were betting that InterDigital Inc.(NASDAQ:IDCC) was the leading candidate for a Google takeover. It just proves that any company with good intellectual properties and important patents could be a takeover target. While investors are focusing on the mobile handset makers today it is the cloud computing stocks that should be watched as takeover candidates.

In 2010, the cloud computing stocks where getting taken over by many of the old technology giants. Recently, stocks such as Cisco Systems Inc.(NASDAQ:CSCO), Microsoft Corp.(NASDAQ:MSFT), and Intel Corp.(NASDAQ:INTC) have really struggled. Any of these tech giants could be in the market for a leading cloud computing company.

The first stock that comes to mind as a takeover candidate would be Citrix Systems Inc.(NASDAQ:CTXS). This company is a leader in business software and services solutions. More and more small to large businesses are using the Citrix Systems applications and products everyday. Keep this stock on the list for a potential takeover by one of the large tech giants that no longer excite investors. Citrix Systems is an exciting stock. This afternoon, CTSX stock is trading higher by 0.95 cents to $61.70 a share.

Riverbed Technology Inc.(NASDAQ:RVBD) is a leading networking stock in the cloud computing space. This stock sold off sharply after reporting earnings July 19, 2011 that were below investors expectations. RVBD stock now looks very attractive around the current levels as a takeover candidate. Companies such as Cisco Systems would certainly consider buying a leading networking stock such as RVBD. After all, Cisco has been struggling for multiple quarters and just the reduction in competition is a positive for the networking giant. RVBD stock is trading higher by $1.43 to $26.00 a share.

Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting and cloud computing company. This stock has sold off sharply since July 7, 2011 when it traded as high as $46.17 a share. This afternoon, RAX stock is trading around the $37.50 level. Rackspace Hosting is profitable and growing, making this stock a good takeover candidate. Many of the large technology companies from the 1990's could be interested in this company.

Other cloud computing stocks that could be a leading takeover candidate include F5 Networks Inc.(NASDAQ:FFIV), Aruba Networks Inc.(NASDAQ:ARUN), and Juniper Networks Inc.(NASDAQ:JNPR). Once again, the old technology giants from the 1990's should be on the prowl for a takeover.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Stock Markets Look To Merkel And Sarkozy For More Upside

August 15, 2011 – Comments (0) | RELATED TICKERS: SPY , BAC , JPM

The markets are higher on the day a panic has subsided. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.26, +1.14 (+0.97%) on 89,607,142 in volume. All eyes have turned towards Merkel and Sarkozy, the two leaders from Germany and France. They will be meeting tomorrow to discuss key initiatives to help the Eurozone.

The stock market leaders today are banks. In the fear and volatility over the last few weeks, the bank stocks took the biggest hit. It makes sense that as calm returns, these stocks would see a continued solid bounce. Bank of America Corp (NYSE:BAC) is trading at $7.49, +0.30 (+4.17%) and JPMorgan Chase & Co. (NYSE:JPM)  is trading at $36.57, +0.66 (+1.84%).

Technology seems to be the weakest on the day after Google Inc. (NASDAQ:GOOG) bought out Motorola Mobility Holdings Inc (NYSE:MMI) for $40.00 per share. This is causing some selling in Google which in turn is causing selling in some other internet plays like Baidu.com, Inc. (ADR) (NASDAQ:BIDU) and Amazon.com, Inc. (NASDAQ:AMZN).  Many technology stocks have seen a rapid share price increase over the last few trading days as well. The market seems to need a small pause to digest the gains.

The market continue to look towards the Merkel Sarkozy meeting tomorrow. Great news and optimism could give more legs to the latest bounce while no news and pessimism could give rise to another sharp, quick sell off.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

As Long As The Banks Pop, Markets Will Not Stop

August 15, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , MS

This morning, the leading bank stocks are all trading higher on the session. This move in the large financial stocks is giving investors and traders confidence to step in and buy the major stock indexes. When the large financial stocks decline or trade lower it is a sign that confidence is eroding in the marketplace.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading bank stock in the United States. This morning, JPM stock is trading higher by 0.93 cents to $36.84 a share. As long as this stock continues to trade higher throughout the trading session it would be prudent to expect the major stock indexes to remain strong. Should JPM stock begin to come under selling pressure traders should expect the market indexes to pullback as well.

At this time, JPM stock and the large financial companies are essentially the stock market. The European Union crisis is really a banking crisis. The large financial stocks have indicated exactly where the markets were going to trade before the recent decline. Traders should continue to follow the large financial stocks very closely. Some of the other large financial stocks that are trading higher this morning include Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS), and Bank of America Corp.(NYSE:BAC).


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Early Market Strength, Here Is Why

August 15, 2011 – Comments (0) | RELATED TICKERS: UDN , XOM , SCCO

This morning, all of the major stock indexes are trading sharply higher. Traders and investors are in jubilee mode as there were a few take over announcements before the opening bell. Obviously, the major news was the Google Inc.(NASDAQ:GOOG) buyout of Motorola Mobility Holdings Inc.(NYSE:MMI) for $12.5 billion. While the take over news is dominating the headlines traders should continue to follow the U.S. Dollar Index.

The U.S. Dollar Index futures (DX U1) are trading lower by 0.71 cents to $74.03 per contract. As we all know by now, when the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. This morning, leading stocks such as Exxon Mobil Corp.(NYSE:XOM), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF) are all trading higher at the start of the session. Traders should watch to see if the U.S. Dollar Index bounces off of the morning lows. Should the U.S. Dollar Index rally higher most of the leading commodity and energy stocks could pullback and deflate since these are most sensitive to the U.S. Dollar. As long as the U.S. Dollar Index continues to decline lower this morning the major stock indexes should remain inflated.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Every Trade Is Bank Trade

August 12, 2011 – Comments (0) | RELATED TICKERS: JPM , WFC , BAC

It can easily be seen by most traders that when the bank stocks trade higher the major stock indexes trade higher. Obviously, the opposite is true when the large bank stocks decline the major stock indexes will usually follow. If we go back in time, we will realize that every bailout whether it was the TARP bailout or the bailout of Greece was essentially a bank bailout. Who really cares if a bank goes under? In a capitalist society companies are supposed to be allowed to fail and then file bankruptcy. The good parts of a business will be sold off, the bad parts will no longer exist. However, these banks have not been allowed to fail and have become even bigger since 2008. The four large major banks in the United States monopolize the market in the country while smaller banks go under every week.

J.P. Morgan Chase & Co.(NYSE:JPM) is regarded as the best bank in the United States. This stock has underperformed the stock market since February 2011 when the stock traded as high as $48.00 a share. If the best bank is struggling what can we expect from rest of the too big to fail institutions such as Well Fargo & Co.(NYSE:WFC), Citigroup Inc.(NYSE:C), and Bank of America Corp.(NYSE:BAC)? Just look at the price action in BAC stock, the stock has been decimated recently. This is not the sign of a healthy financial institution. We can only wonder how these banks would fare if they had to use the old mark to market accounting rules. Right now these banks use a mark to model accounting standard. Are you kidding me, model to what?

The major stock market indexes are extremely oversold at this time. Therefore, a bounce higher in these markets cannot be ruled out at this time. It is a very good idea to keep an eye on these leading bank stocks as they have signaled the problems in the economy before they occurred. These are the market leaders on both the upside and downside right now. In essence, every trade is a bank trade.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Polar Opposites Today

August 12, 2011 – Comments (0) | RELATED TICKERS: UUP , FCX , SCCO

The inverse relationship between the U.S. Dollar Index and the major stock market indexes is very well intact. Traders can look at an overnight chart of the U.S. Dollar Index futures and simply see when the U.S. Dollar Index made a top around 3:00 am EST the S&P 500 Index futures made a low. These charts are polar opposites at this time. When the U.S. Dollar Index inflates higher the major stock indexes will deflate lower. This U.S. Dollar Index chart should be followed closely by traders at all times.

Some leading stocks that have deflated lower as the U.S. Dollar Index bounces higher this morning include Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Chesapeake Energy Corp.(NYSE:CHK). Most commodity and energy stocks will usually deflate and trade lower quickly on the back of any strength in the U.S. Dollar Index. It is also important to note that the major stock indexes will deflate and trade lower as well if the U.S. Dollar Index trades higher.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Oil Services Stocks Show Early Strength

August 12, 2011 – Comments (0) | RELATED TICKERS: OIH , HAL , RIG

The oil services stocks are trading higher to start the day. These stocks have been decimated along with everything else in the stock market over the past three weeks. This morning the Oil Services Holders Trust(NYSE:OIH) is trading higher by $2.08 to $133.37 a share. Traders should watch for short term intra-day resistance around the $135.00 area. Should the OIH sell off or decline throughout the session traders should watch the $129.50 area as short term intra-day support.

Other leading oil services stocks that are trading higher include Halliburton Co.(NYSE:HAL), Schlumberger LTD(NYSE:SLB), and Transocean LTD(NYSE:RIG). These stocks will often trade right with the OIH as they are all part of the basket of stocks in the Oil Holders Trust. Traders should expect continued volatility in this environment.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Gold Down, Gold Miners Up

August 11, 2011 – Comments (0) | RELATED TICKERS: GDX , NEM , AEM

Spot gold is trading lower this afternoon as the CME raised margin requirements last night. The SPDR Gold Shares(NYSE:GLD) are trading lower by $4.09 to $170.49 a share. While the precious metal is trading lower on the session it is the gold mining stocks that are participating in the stock market rally.

The Market Vectors Gold Mining ETF(NYSE:GDX) is trading higher by 0.77 cents to $60.07 a share. Leading mining stocks such as Newmont Mining Corp.(NYSE:NEM), Agnico Eagle Mines LTD.(NYSE:AEM), and Yamana Gold Inc.(NYSE:AUY) are all trading higher on the day despite the decline in spot gold. This move higher in the gold mining stocks tell us that the ming stocks are trading like companies and not just following the price of gold.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

The Final Hour Is The Real Test

August 11, 2011 – Comments (0) | RELATED TICKERS: VMW , RAX , CRM

Day after day, the major stock indexes seem to give up the early gains in the final hour of the trading session. This afternoon, the Dow Jones Industrial Average is trading higher by 400.00 points to 11,118.00. This rally higher is broad based as every sector seems to catching a bid higher. All is well in Mayberry at the moment. The final dreaded 3:00 pm hour is upon us. This is a time many many institutional traders have been pressing the sell button over the past three weeks. Let us make no bones about it, these markets are very oversold and due for a bounce. Therefore, it is very possible that the markets will end the day in positive territory for only the third time in the month of August.

This afternoon, many of the market leading stocks are trading higher. Stocks such as VMWare Inc.(NYSE:VMW), Salesforce.com Inc.(NYSE:CRM), and Rackspace Hosting Inc.(NYSE:RAX) are surging higher. The tech heavy NASDAQ Composite is trading higher by more than 100.00 points. In fact, all thirty stocks in the Dow Jones Industrial Average(DJIA) are trading positive today. It looks as if the stock market has a chance to close in the green. Traders should be aware that there could be some profit taking before the close as many traders and investors are nervous to hold overnight. Either way, the final hour of the session is going to be the real test for these markets this afternoon.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Read The Stock Market Correctly And Profit

August 11, 2011 – Comments (1) | RELATED TICKERS: SPY , MMM , CAT

The stock market is holding a majority of the gains. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $115.32, +3.03 (+2.70%). The key to this market is whether or not the gains can be held into the close. Just yesterday, the markets sold sharply in the final ninety minutes of trading. This is on the mind of every trader and will be a major test.

The reason for the late day sell yesterday was due to European fears. Traders did not want to hold any positions into the close of trading due to continued rumors of a bank collapse and a possible French credit rating downgrade. If the markets hold their gains today, more upside is likely tomorrow and next week. In other words, today is the day to make or break the markets.

It is important to remember, a technical bottom was put in two days ago when the SPY hit the $110.27 level. Even with the 500 point flush on the Dow Jones Industrial Average yesterday, that low was never taken out. For technical traders, yesterday was a buying opportunity. For the other 99% of the world, it was a panic sell day. Obviously the non emotional technical traders are winning this battle with massive profits today.

This is a broad based rally but the closing prints on the market are the one true key to whether or not it continues tomorrow.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

SODA Stock Fizzles But Lows Finally Hit

August 11, 2011 – Comments (0) | RELATED TICKERS: SODA , KO , PEP

Sodastream International Limited (NASDAQ:SODA) has been one of the leaders in an otherwise ugly market. However, this morning the company reported earnings that did not meet Wall Street expectations. In this bear market environment, any miss on earnings results in a massive stock price collapse. Today, SODA hit a low of $41.23. This looks to be a major support level and most likely markets the bottom in the stock for the day.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Large Financial Giants Trade Higher, Will They Hold?

August 11, 2011 – Comments (0) | RELATED TICKERS: JPM , WFC

All eyes are on the large financial stocks these days. After all, these financial giants have lead the markets lower since the spring of 2011. Obviously, the large financial stocks lead the stock markets. Today, the large financial stocks are trading higher on the session and this is helping the major stock indexes to also surge higher on the day.

J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the market. This morning, JPM stock is trading higher by $1.10 to $35.50 a share. Short term traders should watch for intra-day resistance around the $35.75 level. Should the stock trade above that resistance point the next important intra-day resistance area will be around the $36.50 area.

Other leading financial stocks that are trading higher this morning include Goldman Sachs Group Inc.(NYSE:GS), Wells Fargo & Co.(NYSE:WFC), and Morgan Stanley(NYSE:MS). Traders should continue to focus on JPM stock since that is the financial leader at this time. Most of the other financial stocks will generally follow the movement in JPM stock.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

It Is Not How They Open, It Is How They Close

August 11, 2011 – Comments (0) | RELATED TICKERS: XOM , DIA , NFLX

Nearly every trading session after July 21, 2011 the major stock market indexes have sold off into the close. The major stock indexes have not had a two day winning streak since July 21, 2011 when the S&P 500 traded as high as 1345.00. There have been only two trading sessions since July 21, 2011 when that time that the markets have closed positive, however, there has been no follow through to the upside action on the next trading day. On August 3, 2011 the stock market rallied sharply into the close only to stage a sharp gap lower open the following day. The same type of pattern occurred on August 9, 2011 when the Dow Jones closed higher by more than 400.0 points on extremely heavy volume. Unfortunately, the very next trading session the markets failed to trade higher by opening sharply lower before the open and closing at the low of the session yesterday.

This morning, the major stock indexes are catching another bid higher to start the trading day. The SPDR Dow Jones Industrial Average(NYSE:DIA) is trading higher by $1.18 to $108.35 a share. These big early rallies in the market have been seen before, however, by the close of trading the early rallies seem to fail. There have only been two positive trading session in the past fifteen trading session. The markets are overdue for a bounce from this extremely oversold condition on the daily charts. This morning, many leading stocks are trading higher such as Apple Inc.(NASDAQ:AAPL), Netflix Inc.(NASDAQ:NFLX), and Exxon Mobil corp.(NYSE:XOM). The markets look to be off to a good start, however, in this volatile environment by the time this article is complete these markets could be down on the session.

Traders and investors must simply be prepared for the extreme volatility that is taking place at this time. The only positive signs for this stock market is that it is so oversold and extended to the downside. Unfortunately, the problems that caused these declines do not seem to be going away anytime soon. It is very important to remember the old market adage that states, it is not how they open, it only matters how they close.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Some Stocks Are Bucking The Trend

August 10, 2011 – Comments (0) | RELATED TICKERS: LULU , CREE , SINA

Once again, the major stock indexes are trading sharply lower. The declines are broad based as most stocks and sectors are declining. Traders should note that despite the lower stock market there are a few leading stocks that are trading higher this afternoon.

Lululemon Athletica Inc.(NASDAQ:LULU) is a leading designer, manufacture, and distribution of athletic apparel and accessories for women and men. This stock is one of the few stocks that are trading above yesterday's closing high. This represents short term relative strength for LULU stock. The stock is trading higher by $1.86 to $52.27 a share. Traders should watch for intra-day resistance around the $54.00 level should the stock rally. If the stock declines There should be good intra-day support around the $49.75 level.

Cree Inc.(NASDAQ:CREE) is a leading semiconductor stock that has really been beaten up since topping out in December 2010. At that time the stock traded as high as $72.85 a share. This afternoon the stock is trading higher by $5.54 to $35.03 a share. The stock looks to have fair amount of daily chart resistance around the $36.00 level, therefore, the upside could limited today. Should the stock market indexes rally it would be prudent to expect Cree stock to test that $36.00 level. Cree stock will have intra-day support around the $34.00 and 32.00 levels.

Sina Corp.(NASDAQ:SINA) is a leading Chinese internet play. This stock is trading higher by $5.46 to $98.28 a share. Traders should watch for intra-day resistance around the $101.00 level. Should the stock pullback or decline lower during the session the $94.90 should serve as intra-day support.

Trader and investors must remember that these markets are extremely volatile right now. This trading environment could be this way for an extended period of time.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Late Day Rally? It May Be On In The Stock Market

August 10, 2011 – Comments (0) | RELATED TICKERS: SPY , GS , JPM

The markets are down sharply on the day. Europe continues to be experiencing a bank collapse. This mirrors the issues experienced in the United States in 2008. Yesterday, the Dow Jones Industrial Average surged 700 points off the lows of the day in the last two hours of trading. However, today the panic resumed and the Dow is lower by 345 points.

There is a silver lining here and it may spell rally on the horizon. The markets have only retraced fifty percent of the rally from yesterday. This is significant and shows that a possible pivot low is in the markets. In addition, looking at the intra day chart of the SPDR S&P 500 ETF (NYSE:SPY), it is just slowly going sideways on the day. This shows significant strength considering how scared the markets are with the European issues. It may signal a late day rally or a move up tomorrow.

Bank stocks continue to under significant pressure. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $113.58, -9.15 (-7.46%), JPMorgan Chase & Co. (NYSE:JPM) is trading at $35.26, -1.14 (-3.13%) and Bank of America Corp (NYSE:BAC) is trading at $7.12, -0.48 (-6.32%).

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Inside Scoup: Stock Market Buying Opportunity

August 10, 2011 – Comments (0) | RELATED TICKERS: DIA , SPY , QQQ

The markets are having another dramatic down day after a huge reversal rally yesterday. Europe is experiencing the same bank collapse the United States did in 2008. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $108.24, -4.13 (-3.68%), the SPDR S&P 500 ETF (NYSE:SPY) is at $113.54, -3.94 (-3.35%), and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) $51.38, -1.65 (-3.11%).

Many investors are wondering whether or not the markets are heading back to the lows yesterday and possibly lower. The panic has resurfaced after yesterday massive 700 point Dow Jones Industrial Average reversal.

On a technical basis, this market has a bottom in place from yesterday. This is seen because of the technical analysis bottoming tail on the daily chart and the major reversal. As long as the pivot low holds from yesterday at $110.27, the markets should see and most likely will see another move higher.  The one case for another leg down on the sell side would be if the pivot low of $110.27 was taken out on a daily closing basis.

The drop is being lead by banks. European banks like Deutsche Bank AG (USA) (NYSE:DB) continue to slide, trading at $41.06, -4.59 (-10.05%). Even U.S. banks like Bank of America Corp (NYSE:BAC) are sharply lower, trading at $6.93, -0.67 (-8.82%).  Watch the levels on the charts. Again, as long as the pivot low from yesterday holds, this market is technically a buy on all pull backs. While scary, this is how a logical, non emotion trader is to trade.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

2

A Federal Reserve Without A Plan

August 10, 2011 – Comments (3) | RELATED TICKERS: DIA , XLF , IWM

When is the last time that the Federal Reserve said that they will keep rates low until 2013? This is certainly the most bizarre statement that we have ever heard from the central bank. Sure, the stock market likes low rates, however, when the Federal Reserve makes comments like this it starts to sound and look like Japan. The Japanese economy has gone nowhere in twenty years. Did the Federal Reserve just tell us that we are in stagflation? There is very little confidence coming from the Federal Reserve these days.

The stock markets have crumbled after every quantitative easing program. In 2010, the stock market plummeted lower after QE-1. That stock market decline lead to the famous Jackson Hole announcement that the central bank would implement another round of quantitative easing called QE-2. The one year anniversary of the last QE-2 announcement is coming upon us later this month. Will the Federal Reserve announce another stimulus program at the next Jackson Hole, Wyoming event? Many traders and investors believe that it is these stimulus programs (quantitative easing) that have actually lead to these declines in the stock market.

The stock market now depends on stimulus from artificial interest rates in order to inflate and trade higher. This is very obvious, simply look at all of the recessions that we have had over the past 10 years and you will see that easy money has been the quick fix to every problem. In other words, a weak dollar policy is the cure that the central banks prescribe. When the powers that be continually keep the U.S. Dollar weak it causes inflation in the world and actually taxes the U.S. consumer. All the goods that the U.S. consumer purchases becomes more expensive. People on fixed incomes especially feel the negative effects of the weaker U.S. Dollar Index.

Albert Einstein used to say that insanity is doing the same thing over and over expecting a different result. Well, it is now time to realize that the Federal Reserve and our elected officials may simply be insane. As far as we can see they continue to just do the same mistakes over and over. These same officials even put into power the same people that caused the problem in the first place. Oh well, what can we do? This is simply how the world functions when the Fed does not have a plan.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

All Eyes Here

August 10, 2011 – Comments (0) | RELATED TICKERS: UUP , CVX , CLF

Traders must pay close attention to the U.S. Dollar Index. This morning, the U.S. Dollar Index has rallied sharply higher since 8:00 am EST. Yesterday, the U.S. Dollar Index plunged lower by before the closing bell helping to inflate the major stock and commodity indexes. Traders will notice when the U.S. Dollar Index declines the major stock indexes will inflate and rally higher. Obviously, the opposite is true when the U.S. Dollar Index rallies higher, stocks and commodities will decline.

Leading stocks such as Chevron Corp.(NYSE:CVX), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF) will usually react positive when the U.S. Dollar Index declines. These same market leaders will sell off when the U.S. Dollar Index trades higher. Traders and investors must keep their eyes glued to the U.S. Dollar Index chart at all times. This inverse relationship between the U.S. Dollar Index and the major stock indexes is especially important intra-day. The U.S. Dollar Index will have short term intra-day resistance around the $74.80 area.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Markets Down Again, Expect Another Volatile Session

August 10, 2011 – Comments (0) | RELATED TICKERS: FXI , EWH , SAN

Yesterday was the first trading session where the major stock indexes finished strong into the close since August 3, 2011. The Dow Jones Industrial Average finished higher by over 400.0 points by the closing bell. Is this move yesterday just an oversold bounce, or was it the start of a major bottom? These are the questions that many traders and investors are asking themselves. This morning, the S&P 500 Index e-mini futures (ES U1) are trading lower by 13.50 points to 1158.00 per contract. The catalyst for the decline this morning is still the same, U.S. debt and the European debt crisis.

Gold is trading higher again this morning by 21.0 points to $1764.00 an ounce. As long as these problems remain gold could continue to trade higher despite the precious metal being severely overbought. The problems in the world at this time do not look as if they will be solved anytime soon.

The Asian markets rallied higher last night, however, the gains were minimal compared to the recent declines. The Hang Seng (Hong Kong) was the big winner last night finishing higher by 2.34 percent. While there was a bounce in Asia, the move higher has been rather weak considering the U.S. markets rallied by 5.0 percent. The Shanghai Index (China) finished higher by 0.91 percent. This move is really not very impressive considering the Shanghai Index is the most important index in Asia.

WTI oil is climbing higher this morning by $2.59 to $81.80 per barrel. Traders should watch for extreme volatility in crude especially if the U.S. Dollar Index bounces higher throughout the day. WTI crude is likely to pullback if the major stock indexes continue to decline throughout the trading session.

Traders should expect another volatile trading as the major stock market indexes are not out of the woods. The problems in Europe seem to be getting worst by the day and there is really no end in sight. QE-3 rumors are circulating across Wall Street, however, yesterday the Fed did not indicate they would be doing another quantitative easing program. The Federal Reserve did indicate that they would keep the Fed funds rate at zero to a quarter percent until 2013.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Gold Surges After the Bernank

August 09, 2011 – Comments (0) | RELATED TICKERS: AGQ , ZSL , GLD

The SPDR Gold Shares(NYSE:GLD) have soared higher after the Federal Reserve said they will keep the Fed funds rates at zero percent until 2013. In other words, the central bank will keep rates as low as they can. The GLD is trading higher by $4.93 to $172.12 a share. Traders and investors should note that spot gold and the GLD are very extended and overbought on the daily charts. Therefore, traders should not rule out a near term pullback soon despite all of the money creation by the central banks.

Silver is not following gold at this time. The iShares Silver Trust is trading lower by $1.00 to $36.96 a share. Often silver will follow gold very closely, however, silver seems to be trading lower with the industrial metals such as copper, iron, and steel. Short term traders should watch for intra-day support on SLV around the $36.00 area.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Major Pops In Large And Small Cap Stocks

August 09, 2011 – Comments (1) | RELATED TICKERS: CAT , AAPL , OXGN

The markets are sharply higher as they get an oversold bounce ahead of the FOMC Policy Statement. In the last two weeks, the markets have dumped over 15%. Everything from major market leaders like Caterpillar Inc. (NYSE:CAT) and Apple Inc. (NASDAQ:AAPL) to small cap runners like OXiGENE, Inc. (NASDAQ:OXGN) have been pounded but are now surging dramatically higher.

As the markets wait for the Federal Reserve policy statement, the markets are jumping. Caterpillar is trading at $85.40, +2.80 (+3.39%), Apple is trading at $368.13, +14.92 (+4.22%) and even small cap OXiGENE is higher, trading at $1.74, +0.63 (+56.76%). These gains are coming on hopes that the Federal Reserve will announce something positive and blatantly oversold bounce.

The big question facing all investors and Wall Street is whether or not the bottom is in. While volume over the last few trading days does signal a short term bottom, it is likely the longer term bottom is not in yet due to not technical signals.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

2

Dangers: The Stock Market Hangs Hopes On Federal Reserve

August 09, 2011 – Comments (0) | RELATED TICKERS: DIA , SPY , QQQ

The stock market is popping today ahead of the FOMC Policy Statement at 2:15pm ET. The market is hoping Ben Bernanke reassures the world that it is not ending and that the economy will survive without a major double dip recession. In addition, the markets are hoping for some sign of QE3. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $109.99, +1.92 (+1.78%), the SPDR S&P 500 ETF (NYSE:SPY) is trading at $114.00, +1.74 (+1.55%) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $52.09, +1.50 (+2.97%).

The gains in the market today are on hope. The market is addicted to Federal Reserve intervention. This has the potential to create a crash like scenario should the markets not get what they want from Ben Bernanke today. If they do get the right mix of positive statements on the economy and QE3, a sharp short squeeze should follow, taking the markets even higher. This addiction to intervention in the long run will end badly but the markets are all about the short term.

The market has fallen over 15% in the last couple weeks. It is oversold but fear remains strong.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Does The Bernank Have Another Trick Up His Sleeve?

August 09, 2011 – Comments (0) | RELATED TICKERS: DIA , WFC , BAC

All eyes will be on the Federal Reserve Bank Chairman Ben Bernanke this afternoon as the central bank holds their FOMC meeting. The Bernank now holds a press conference where he will take questions from reporters. Every investor is now waiting to see if the Fed boss will talk about a possible QE-3 to help stimulate the economy. The last $600 billion quantitative easing program just ended on June 30, 2011. Normally, the Federal Reserve will wait several months before hinting at doing another U.S. Treasury purchasing program.

The central bank is expected to keep the Fed funds rate at zero to a quarter percent. This is the overnight lending rate to the large banks such as J.P. Morgan Chase & Co.(NYSE:JPM), Citigroup Inc.(NYSE:C), Wells Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). Considering the current economic climate, the Federal Reserve is not likely to make a statement that would rattle the markets more than they have already been lately.

The major stock indexes are rebounding today ahead of the Federal Reserve announcement. Traders can watch for intra-day resistance on the SPDR Dow Jones Industrial Average(NYSE:DIA) around the $111.00 and $111.50 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Repeat of 1997, This Time It Is The West

August 09, 2011 – Comments (1) | RELATED TICKERS: EWI , EWP , EWG

This recent stock market decline can now be compared to the 1997 Asian Financial Crisis also called the Asian Contagion. This time around it is the European Union collapse that is the leading catalyst for the declines in the stock market. Throughout history the markets have a tendency to repeat themselves in different regions. The debt that all Western countries have is really overwhelming when you think about it. What else could we expect when these numerous countries have higher debt than their national gross domestic product?

The United States is really not very different than Greece, or any other European Union nation when it comes to debt. This is also another problem for the world since the U.S. Dollar is the world's reserve currency. In the past, all of these stock market crashes were resolved by printing more cash and throwing the money at the problem. This is called creating liquidity. This will obviously be the remedy this time around as it has been in the past via QE-1, and QE-2. Whether or not creating cash reserves can fix the problem remains to be seen. This time around it seems as if the markets are not responding to the cheap money as well as it has in the past. After all, the Fed funds rate has been at zero percent since December 2008. This time around, once the $600 billion QE-2 ended the stock market has cratered. The major stock indexes are lower by nearly 20.0 percent since the May 2, 2011 high.

The European markets remain very fragile. The problems in Europe are being resolved by the same method that the Federal Reserve solved the problems in the United States, by buying government bonds. This is really just a band-aid on the problems that are in place in the Euro-zone. As the debt crisis begins to expand into Italy, Spain, and even France, the problems will simply become worst in due time. At this time, the stock markets are extremely oversold and bounces will occur. So far, every bounce has been met by selling. We shall see if these markets can firm up for a little while, however, the major problems for the European Union and the United States will be here for years to come. We can only hope that the Western countries do not face another Weimar Republic situation in the future. History has a tendency of repeating in future generations.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

As Oversold As We Have Seen It

August 08, 2011 – Comments (0) | RELATED TICKERS: AMZN , BAC , RAX

There is nothing but selling taking place at this time. Stocks are being sold with a vengeance. This tells us that there are a few large financial institutions that have been caught on the wrong side of this market. In the past, when a major hedge fund or prop desk was under water on a position the other big fish will press there short side bet and drive the nail in the coffin for the struggling firm. We can only wonder who is caught on the wrong side of Bank of America Corp.(NYSE:BAC) at this time. This stock has plummeted lower today by more than 15.0 percent. The rumors are circulating throughout Wall Street that some whale is caught on the wrong side of the tape. This is likely to be what is taking place at this time.

On the flip side, these markets are extremely oversold and extended. This market can certainly go lower over the course of the year, however, in the short term this market is due for some kind of significant bounce in the near term. There are so many stocks that have been decimated over the past two weeks. Many of these stocks are trading around important support levels. Volume has also been massive and this is generally a sign that the selling could be getting close to subsiding.

Often traders and investors usually sell out at these levels when fear increases, however, this is when traders should begin to take small shots at long positions for bounces. Should a stock market bounce occur it may not last very long, although if and when a bounce does take place the short term bounce could be significant. As a good rule of thumb, if you are uncertain just stand aside. There will always be better trading environments.

Some stocks that look attractive at this time include Amazon.com Inc.(NASDAQ:AMZN), Citrix Systems Inc.(NASDAQ:CTXS), and Rackspace Hosting Inc.(NYSE:RAX). All of these stocks have pulled back into significant support levels. Traders must still be cautious at this time, if the major stock market indexes continue to break lower everything will trade down with the indexes.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Head And Shoulder Pattern: Stock Markets Flush To Target

August 08, 2011 – Comments (0) | RELATED TICKERS: AMZN , CAT , F

The markets have now completed the head and shoulder pattern target at $115.00 on the SPDR S&P 500 ETF (NYSE:SPY). The head and shoulder pattern can be seen clearly on the chart below. This pattern was a classic technical bearish signal. In this situation, it completed in record time. With the completion of this pattern, it is highly likely the markets will find support for a short term bounce.

The downside today came on the back of a downgrade to the credit rating of the United States. The S&P downgraded the U.S. credit rating from AAA to AA+. Europe continues to be a mess while the ECB (European Central Bank) said it would start buying Italian and Spanish bonds to push down interest rates.

Key stocks are beginning to look very attractive. Amazon.com, Inc. (NASDAQ:AMZN) a master trend line support point at $193.00. Since then it has bounced sharply intra-day. Caterpillar Inc. (NYSE:CAT) and Ford Motor Company (NYSE:F) are also all at master support levels on the daily charts.

The key is to find a stock that is into major support and match it up to the S&P completion of the head and shoulders pattern. This gives it a higher percentage chance of success. Essentially, buy a position on support with a bounce in the market like the wind in your sails.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

2

Nothing Goes Down In Straight Line

August 08, 2011 – Comments (0) | RELATED TICKERS: DIA , DDM , SSO

The major stock indexes have plummeted sharply lower over the past two weeks. This morning, the Dow Jones Industrial Average is trading lower by nearly 300.00 points to 11,150.00. The selling pressure seems to be continuing as almost every sector besides gold and silver are trading sharply lower.

It is important to note that the stock market rarely declines straight down in a 90 degree free fall angle on the charts. Usually, markets that decline this much will usually stage a short term bounce soon. Please understand that these markets could ultimately decline much further, however, in the near term they are very oversold at this time. Many leading stocks are now trading down into important support areas. Therefore, patterns such as the current chart of the SPDR Dow Jones Industrial Average (NYSE:DIA) are likely to be a day or two away from a short term bounce. It is important for traders to remember that nothing goes down in a straight line for too long.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Play Leader Of The Pack

August 08, 2011 – Comments (0) | RELATED TICKERS: WFC , GS , XLF

This morning, the major stock indexes have opened sharply lower to start the day. All of the leading sectors are trading down except the large financial stocks. The too big to fail financial stocks have actually rallied right from the opening bell. Traders should remember that the financial stocks are the leading industry group to follow. If this group of stocks begins to rally, that would be positive for the overall markets. Should these stocks begin to break below the opening lows that would indicate further declines for the major stock indexes.

J.P. Morgan Chase & Co.(NYSE:JPM) opened the day around the $36.23 a share. In the first ten minutes of trading day the stock filled the gap from Friday trading as high as $37.72 a share. Traders can expect extreme volatility and wide intra-day swings. Should JPM stock somehow rally it would be a signal that the stock market might be close to a bounce from an extremely oversold condition.

Other leading financial stocks that are trading higher from the gap lower open include Wells Fargo & Co.(NYSE:WFC), and Goldman Sachs Group Inc.(NYSE:GS). These stocks will have wide intra-day swings. Therefore, traders must expect the added volatility when panic comes into the markets. If the financial stocks begin to lead the markets higher it is possible that a bounce will take place in many other sectors. Traders should watch the leading financial stocks very closely today.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

QE Euro Style

August 05, 2011 – Comments (0) | RELATED TICKERS: UUP , UDN , DGP

The European Central Bank(ECB) just announced that they will begin there own version of quantitative easing. The central bank said that they will buy Spanish and Italian bonds going forward. This news just spiked the S&P 500 Index. The SPDR S&P 500 Trust (NYSE:SPY) just bounced higher by more than three points in less than an hour. Traders should watch for short term resistance on the SPY around the $121.80 area.

Many traders have jumped into gold and silver on the news. The SPDR Gold Shares (NYSE:GLD) are now trading higher by 0.91 cents to $161.58 a share. Traders should watch for intra-day resistance around the $162.40 area if the GLD starts to run.

This is a very fast market right now as the major stock indexes are extremely sensitive to the news report out of Europe. The U.S. Dollar Index has also plunged lower helping to inflate and resuscitate the stock indexes. Expect more volatility as the day goes on.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Expect AfterShocks For Weeks To Come

August 05, 2011 – Comments (0)

Anytime the markets crash or plunge the way they did yesterday, it is prudent to expect heavy volatile markets for weeks to come. The month of August is usually very calm or tame historically. There is no question that we are in uncertain times when it comes to the debt issues in the United States and Europe.

The United States takes in $2.2 trillion a year and spends $3.7 trillion. That math does not make any sense and will need to really be addressed if the Unites States is going to survive as we known it. Europe is in a bit of a pickle. The European Union is made up of multiple nations, some produce goods and some don't. The European Union looks like a test project that simply went bad. Eventually, the European Union Union will have to be broken up. Countries such as Germany that actually produce and manufacture products that consumers want cannot keep the Euro-zone together single handedly. Spain, Italy, and even France are simply too big to bail out. The best thing for the world would be a European default. This will come in the next couple of years.

These stock markets are very oversold at this time. Anytime the Dow Jones Industrial Average declines by over 500.0 points in a single trading day on massive volume it will generally mark short term exhaustion selling. Therefore, it is possible to see small bounces in this market at this time. There has been a lot of technical damage done over the past ten trading days. Traders must now watch for the aftershocks that will occur over the next few weeks.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

For Your Eyes Only

August 05, 2011 – Comments (0) | RELATED TICKERS: SCCO , FCX , CLF

Traders better watch the chart of the U.S. Dollar Index very closely. Yesterday, the U.S. Dollar Index soared higher as the major stock indexes deflated and plummeted lower. This morning, the U.S. Dollar Index futures (DX U1) is trading lower by 0.37 cents to $75.00 per contract. When the U.S. Dollar Index rallies and trades higher the major stock and commodity indexes will deflate lower. At this time the inverse relationship between the U.S. Dollar Index and the stock and commodity markets is very much intact. The intra-day support levels on the U.S. Dollar Index are around the $74.83, and $74.60 levels.

Leading commodity stocks are usually the first stocks to come under pressure when the U.S. Dollar Index increases. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and Southern Copper Corp.(NYSE:SCCO) are likely to sell off on the back of a stronger U.S. Dollar Index. Leading energy stocks could also come under selling pressure on any dollar strength. Stocks such as Chevron Corp.(NYSE:CVX), ConocoPhillips(NYSE:COP), and Exxon Mobil Corp.(NYSE:XOM) will often decline on U.S. Dollar Index strength. All of the stocks mentioned will usually react positive should the U.S. Dollar Index decline throughout the trading day.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

3

Could This Be The Begining For The Down Jones?

August 04, 2011 – Comments (2) | RELATED TICKERS: DXD , SDS , QID

The Dow Jones Industrial Average(DJIA) and the rest of the major stock indexes are having one of the steepest one day declines since the May 6, 2010 flash crash. At this time, there are many selling signals that have triggered. Everyone is talking about the big head and shoulders top pattern that triggered two days ago on the daily chart. Other investors are talking about the Dow Theory sell signal that triggered yesterday when the Dow Jones Industrial Average and the Dow Jones Transportation Index made new lows. Yes, this market looks to be in trouble and the upside looks somewhat very grim.

The only positive sign for these markets is that they are very oversold. Often oversold markets will usually have a dead cat bounce. It is important to note that the Dow Jones Industrial Average has decline by 1200.0 points in just eleven trading sessions. This is a massive decline in such a short about of time. At the moment, the Dow Jones Industrial Average is testing it's March 16, 2011 low at 11,555.48. If this level fails to hold over the next couple of days the DJIA could plunge even further.

There are a lot of problems facing the stock markets. First, the U.S. Dollar Index is surging higher this afternoon. As we have seen throughout the past ten years, when the U.S. Dollar Index inflates the major stock and commodity markets deflate. Second, there are likely to be a few large financial institutions that are severely underwater at this time. These firms will have to liquidate and unwind their positions causing additional selling pressure. Just look at gold and silver today, these precious metals have staged sharp reversal days. When the precious metals decline it is not just because of margin rate increases, it is usually because some big hedge funds need liquidity to survive. Third, the debt problems in Europe continues to grow by the day. The problems started with Greece and it is now in in Ireland, Portugal, Spain, Belgium, Italy, and possibly France. Germany can't keep the European Union up by itself. The problems in the European Union is systemic and it is starting to be realized by investors around the world.

Often when panic starts to set in it is usually a sign that a low is close. That might be the case for the short term, however, the long term problems will continue. The Federal Reserve and other central banks will certainly try and get creative in the near term to try and prop this mess of a market up. We can only guess at how much of an effect they will have. This market is going to be very volatile for the rest of the year. All investors will be watching the U.S. Labor Department's July non-farm payroll report very closley tomorrow. 


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Stock Trade: Europe Issues, Gold Top, Dow Bottom

August 04, 2011 – Comments (0) | RELATED TICKERS: FXE , GLD , DIA

As Europe continues to implode, talk from the European Central Bank President Jean-Claude Trichet has quickly turned from hawkish to dovish. This means that European heads have now made a 180 degree turn from being anti inflation, to printing money and easy monetary policy. This is causing the Euro to collapse and the Dollar to spike. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $141.07, -1.55 (-1.09%).

The future is now clearer and it bodes well for a strong Dollar. The Euro will most likely continue to decline as Europe does what much of the rest of the world has been doing, print money.  This could be a very strong negative for gold in terms of U.S. Dollars. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a high of $163.87 but is now collapsing, trading at $160.75, -0.74 (-0.46%). In addition, gold is a very over crowded trade and it appears Wall Street pros are running for the exits.

The stock market is hovering off the lows for now. Volume is huge again, on pace to be bigger than yesterday. The Dow Jones Industrial Average hit a major double bottom on the daily chart from March 2011. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $115.98, -2.82 (-2.37%).

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Slaughter House Stock Market Trading

August 04, 2011 – Comments (0) | RELATED TICKERS: SPY , UUP , JPM

The markets are tanking today on the back of major global worries. Last night the futures were higher after Japan intervened in the currency markets to push down the Yen against the Dollar. However, that positive vibe was short lived. European markets opened and the massive fear returned. "That place is a mess!" says one trader. The SPDR S&P 500 ETF (NYSE:SPY)  is dropping by a whopping 3.35%, trading at $121.90 -4.27. The Dollar is soaring as people run to still the safest currency in the world. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.35, +0.28 (+1.33%).

This flush on the markets is reminiscent of 2008 in the U.S. markets as panic hits the highs. The bottoming tail and reversal from yesterday is ancient history. This is a major negation as traders run for cover. In addition, it was reported that Bank of New York is now charging large depositors to hold money. This is an amazing signal of the fear in the global picture. Basically, this bank is employing negative interest rates. Essentially, you pay them to hold your money. Other banks will probably follow.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

3

QE-3 On The Horizon, Or Just Another Rumor?

August 04, 2011 – Comments (0) | RELATED TICKERS: CVX , COP , SCCO

This morning, the U.S. Dollar Index is soaring sharply higher by $1.03 to $75.08. Traders and investors are now starting to bet that the Federal Reserve is going to begin another round of U.S. Treasury purchases called quantitative easing or QE 3. It does seem a little early for the central bank to begin another round of quantitative easing because they just ended the last round of quantitative easing in late June. How much more ammunition does the Federal Reserve Bank have right now if they do not buy U.S. Treasuries? Many investors believe that the Federal Reserve might be out of bullets.

Almost every investor and trader expects another round of quantitative easing by the Federal Reserve Bank at some point in the future. If you look at past history, the Federal Reserve usually spreads out their quantitative easing programs. Ironically, it was the same time last year that the major stock indexes came under heavy selling pressure. In August 2010, Ben Bernanke announced his QE-2 program in Jackson Hole, Wyoming. Will the Bernank give us an encore presentation this year in Jackson Hole? Well, believe it or not, some traders are starting to bet that another round of quantitative easing will be announced soon.

When the U.S. Dollar Index trades higher the major stock and commodity indexes will usually deflate and trade lower. This morning, leading commodity stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), Southern Copper Corp.(NYSE:SCCO), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) are all declining sharply lower on the back of the stronger U.S. Dollar Index. Energy stock will also deflate quickly when the U.S. Dollar Index surges higher. Leading energy stocks such as Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP) are under heavy selling pressure this morning. Traders should expect further declines as long as the U.S. Dollar Index remains strong today. Should the U.S. Dollar Index decline or sell off then the markets may bounce a little.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

European Crisis Eclipses World Markets

August 04, 2011 – Comments (0)

Once again, the major stock indexes are tumbling lower after the European Union continues to remain under heavy selling pressure. Italy, Spain, and even France may need to be bailed out in the near future. Traders and investors must remember that Greece was already bailed out for a second time in a year. Ireland, and Portugal could face a similar fate. When do the problems in the European Union begin to finally be resolved? The answer to that question is unknown at this time. This morning, all of the European market indexes are trading sharply lower.

Germany is considered the strongest country economically in the European Union, however, even the German DAX has also been plummeting. This morning, the iShares MSCI Germany Index (NYSE:EWG) is declining lower by 0.87 cents to $23.22 a share. The iShares MSCI France Index (NYSE:EWQ) is trading lower by 0.92 cents to $23.03 a share. France is considered the second strongest country in the European Union. Many traders and investors are starting to see weakness in the French economy which is another negative for the global markets.

Traders and investors seem to be handcuffed by the action in the European Union. The problems in that region cannot be solved overnight and should continue throughout the rest of the year. There will be band aid fixes for the European Union, that is what we learned with Greece. These short term fixes will be the trading opportunities that the stock market presents. At this time, the European problems are the leading problems to follow.


Nicholas SantiagoInTheMoneyStocks.com  [more]

Recs

3

Shake That Tail

August 03, 2011 – Comments (1) | RELATED TICKERS: RAX , RVBD , SNDK

This morning, the sky was falling as the major stock indexes plummeted, however, after a heavy volume surge after the open the major stock indexes started to recover a bit off the lows. At one point, the Dow Jones Industrial Average(DJIA) was down by more than 150.00 points before bouncing higher. This afternoon, the DJIA is trading lower by just 20.00 points. The big question is whether this market can hold up into the closing bell. Traders should always remember the old market adage, it is not how the market starts, it only matters how the markets finish.

There are many stocks that are making potential bottoming tails on the charts. Leading stocks such as Rackspace Hosting Inc.(NYSE:RAX) has reversed its earlier declines and is now trading positive by 0.53 cents to $39.53 a share. VMWare Inc.(NYSE:VMW) also reversed higher and could be making a potential bottoming tail on the daily chart. These are leading stocks and that is why they must be followed closely. Other stock that have rallied sharply off of the morning lows include Sandisk Corp.(NASDAQ:SNDK) and Riverbed Technology Inc.(NASDAQ:RVBD).

When stocks rally off of the early morning lows this sharply it will often signal a possible near term bounce. It is still very important for stocks to see follow through in the coming days should they even hold up into the close. Tomorrow many traders and investors will be in pause mode ahead of the U.S. government job report on Friday morning. In the meantime, there are a lot of potential bottoming tails to look at on the charts.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Markets Close Green, These Are The Plays

August 03, 2011 – Comments (0) | RELATED TICKERS: MMM , CAT , IBM

The markets are attempting to recover from massive losses today. If the markets are able to squeeze out a flat close or slightly positive, many major stocks look to be amazing buys. The key to going long is the massive fear in the markets and the reversal signal of capitulation in the markets today, should a flat or positive close occur.

The first stocks to pop will be large cap players that were at or near their 52 week highs just weeks ago. Many of these stocks are performing well today. Possible plays will be 3M Company (NYSE:MMM), Caterpillar Inc. (NYSE:CAT), International Business Machines Corp. (NYSE:IBM). Other plays would also be Bank of America Corporation (NYSE:BAC) and Cisco Systems, Inc. (NASDAQ:CSCO).

The key is to see if this market closes flat or green today. That will be the signal of a high probability reversal in the markets.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Do You Buy: Panic Sends Markets Down

August 03, 2011 – Comments (0) | RELATED TICKERS: BBRY , MA , QQQ

The markets opened flat and started selling. After collapsing in the first hour of trading on comments out of Europe and panic in the United States, the markets caught a significant bid, surging towards the flat line. After almost achieving a neutral standing, the markets have starting to come back down. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $124.57, -0.92 (-.73%), the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) are trading at $56.14 -.13 (-.23%) and the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at  $117.45 -1.01 (-.85%).

The fear is palpable today in the markets. Wall Street traders are shaking in their boots. However, the VIX is not confirming this move. This is a major divergence and must be watched closely. The VIX is a volatility indicator and fear index. With it not confirming the move down in the markets, it may signal a sharp move on the horizon. To follow the VIX, watch the iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX).

The winners today are Research In Motion Limited (USA) (NASDAQ:RIMM) which is trading at $25.02, +0.87 (+3.60%) and MasterCard Incorporated (NYSE:MA) which is trading at $322.67, +24.18 (+8.10%). MasterCard is trading sharply higher on solid earnings.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

3

Epic Stock Market Reversal May Signal Bottom

August 03, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , SLV

Today the markets were crushed again, the SPDR S&P 500 ETF (NYSE:SPY) falling from a close yesterday of $125.49 to $123.53. This epic fall came on the back of continued worry about Italy, Spain and fear of a new possible deep recession in the United States. Volume was huge on the flush that took the markets into the 10:30am ET time frame. Then, all of a sudden things turned. As if the Plunge Protection Team came out to join the party and prop things up, the markets erased a majority of the steep losses. With volume continuing to be this high, it may be a sign of short term capitulation and depending where the markets close, maybe a bottoming tail. A bottoming tail is a reversal signal as well.

Gold and silver are surging today with the SPDR Gold Trust (ETF) (NYSE:GLD) trading at $162.47, +0.95 (+0.59%) and the iShares Silver Trust (ETF) (NYSE:SLV) trading at $40.61, +0.79 (+1.98%). Oil is taking a hit today, the United States Oil Fund LP (ETF) (NYSE:USO)  is trading at $35.98, -0.42 (-1.15%).

The key to determining where this market is headed in the next few days will depend on where the markets close today. The volume is signaling capitulation which is the height of fear. Generally, this is a bottom signal. The next step is to watch where the markets close. If a bottoming tail does appear, an up move in the markets over the next few days should follow.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

New 52 Week High List Shrinks To New Lows

August 03, 2011 – Comments (0) | RELATED TICKERS: CLH , ROG , AUY

This morning, there are less and less new 52 week highs on the New York Stock Exchange. When the new 52 week high list shrinks it tells us that the major stock indexes are coming under institutional selling pressure. The stocks that are making new 52 week highs include Clean Harbors Inc.(NYSE:CLH), Yamana Gold Inc.(NYSE:AUY), Rogers Corp.(NYSE:ROG), and Mastercard Inc.(NYSE:MA).

The amount of stocks that are hitting new 52 week lows is continuing to grow. This is usually a bearish sign for the major stock indexes. Traders should realize that the major stock indexes are oversold in the short term, therefore, a bounce in the markets cannot be ruled out in the near term. In any case, traders must still use caution in this environment.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Financial Stocks Hold The Cards

August 03, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , WFC

This morning, the major stock indexes are fading into the sunset once again by giving up the pre-market gains. Traders and investors are now starting to have fear that the major stock indexes can break sharply lower. There are a lot of stocks that are very oversold which tells us that a bounce could occur. It is the financial stocks that should be followed most closely this morning. If the financial stocks begin to break down then the important support levels that are in place on many leading stocks may collapse and trade lower. Therefore, as long as the financial stocks hold up the major stock indexes have a chance to bounce today.

J.P. Morgan Chase & Co.(NYSE:JPM) is the most important financial stock in the entire stock market. This financial giant is trading lower by 0.07 cents to $39.76 a share. Should JPM stock start to decline sharply lower the major stock indexes should come under heavy selling pressure. JPM stock will have short term intra-day support around the $39.50 area. Should the stock trade higher on the session there will be intra-day resistance around the $40.21 level.

Goldman Sachs Group Inc.(NYSE:GS) is considered the leading broker dealer in the entire stock market. This stock is actually trading higher this morning by $1.13 to $132.35 a share. Traders can watch for intra-day resistance around the $133.75 area. Should the stocks decline during the session the stock will have intra-day support around the $131.00 area.

Wells Fargo & Co.(NYSE:WFC), Bank of America Corp.(NYSE:BAC), and Morgan Stanley(NYSE:MS) are all trading flat on the session. This group of stocks is probably the most important group of stocks to follow today. If these stocks decline it could spell trouble for the major stock indexes once again.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Vampire Market

August 02, 2011 – Comments (0) | RELATED TICKERS: EWQ , EWI , EWG

Since July 21, 2011, the Dow Jones Industrial Average has dropped lower by 786.0 points, the popular stock index is now trading below the psychological 12,000 level. This is one fast and massive drop for all of the major stock indexes in such a short period of time. The debt ceiling bill has been passed by the politicians and the stock market participants do not care. If the politicians caved on the debt deal because of the stock market they sure look silly now. In any case, there is now blood in the street, we call this a vampire market. This is when the institutions either run for cover or they step in and buy stocks. It is important to remember that it is the institutions that move markets, not the small retail trader at home with a small online trading account.

The problems in the European Union seem to be getting worst by the day. Investors are now looking at France as another weak link in the already broken European Union. The iShares MSCI France Index Fund (NYSE:EWQ) has been plummeting lower since early May. Today the EWQ traded lower by 0.79 cents to $23.97 a share. The EWQ is short term oversold at the moment, however, the trend is down and the index is trading below all of the major moving averages. If the EWQ does not bounce soon the problems in the European Union are going to get a lot worst.

Other leading European stock indexes that are trading lower this afternoon include iShares MSCI Spain Index (NYSE:EWP), iShares MSCI Germany Index (NYSE:EWG), and iShares MSCI Italy Index (NYSE:EWI). All of these indexes are short term oversold at the moment, however, that does not mean they cannot trade lower. Yes, there is blood in the street right now, this is a vampire market.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

The Strongest Down Market Stocks To Buy

August 02, 2011 – Comments (0) | RELATED TICKERS: MMM , CREE , QQQ

As the markets hover around their lows on fears of a new global recession, certain stocks are looking more attractive than others. The markets are nearing a major break down based on the daily 200 moving average on the S&P 500. Wall Street players must be very careful when picking up anything long, choosing the correct stocks at the perfect levels.

3M Company (NYSE:MMM) is showing significant strength even while trading slightly lower on the day. With the S&P 500 down 1.5%, MMM is only lower by .70%. In addition, the S&P 500 is trading below the lows from yesterday, but MMM is trading above. This tells pro traders that MMM may be a solid play on the long side in an otherwise weak market.

Cree, Inc. (NASDAQ:CREE) is another strong player in the market today. As the S&P 500 hits new lows of the day, CREE is holding on the positive side trading at 33.17, +0.15 (+0.45%). In addition, CREE put in a solid technical bottom over a week ago. This is being confirmed by the strength in the stock today.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

2

Stock Markets Sell On Fears, Ignore Vote

August 02, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , SLV

The markets are looking past the Senate vote today at 12pm ET and they do not like what they see. It looks like the debt ceiling and spending cuts bill will pass and be signed into law by President Obama. However, the economic news continues to be ugly, Italy and Spain are a mess and the U.S. still faces a possible debt rating downgrade. This is sending the markets sharply lower today into the lunch hour. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.39, -1.39 (-1.08%).

Sentiment in the markets is very bearish based on all these factors. The debt deal is minor now as Wall Street looks towards a new recession. The selling today is broad based with money flowing into gold and silver for protection. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $160.00, +2.28 (+1.45%) and the iShares Silver Trust (ETF) (NYSE:SLV)  is trading at $39.31, +1.02 (+2.66%).

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Transports Sink Again

August 02, 2011 – Comments (0) | RELATED TICKERS: IYT , CSX , FDX

The important and highly followed transportation index is once again declining this morning. The iShares Dow Jones Transportation ETF (NYSE:IYT) is trading lower by $1.50 to $90.86 a share. The IYT has declined by over $10.00 since making a 52 week high on July 7, 2011. Many traders and investor follow the transport index very closely because this index usually represents economic growth and expansion. It is important to note that the IYT is now trading below the important 50 and 200 moving averages which puts the index in a weak technical position. The index is short term oversold at the moment. Traders can watch for some minor support around the current level.

Other leading transportation stocks that are declining this morning include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and Frontline LTD(NYSE:FRO). All of these stocks remain weak on the charts at this time, however, they are also very oversold in the near term. Oversold stocks will usually be candidates for short term bounces.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

The Dollar Goes Whistling Dixie

August 02, 2011 – Comments (0) | RELATED TICKERS: UUP , UDN , SSO

The U.S. Dollar Index is probably the most important chart that any trader can follow. This morning before the opening bell the U.S. Dollar Index futures (DX U1) traded as high as $74.91 per contract. Once the personal income data was released at 8:30 am EST, the U.S Dollar Index has reversed most of its pre-market gains by declining over 0.50 cents to $74.37 per contract.

It is important for traders to understand that a 0.50 cent move in U.S. Dollar Index can move the major stock market indexes. Traders can easily see how the major stock indexes rebounded higher as the U.S. Dollar Index declined. The inverse relationship between the stock market and the U.S. Dollar Index is still very much intact.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Gold Miners Still Lag the Metal

August 02, 2011 – Comments (0) | RELATED TICKERS: GDX , AUY , NEM

This morning, the gold mining stocks are trading slightly higher on the trading session. The popular Market Vectors Gold Miners ETF (NYSE:GDX) is trading higher by 0.56 cents to $57.90 a share. Recently, the GDX rolled over on the daily chart after trading as high as $61.71 a share on July 25, 2011. Meanwhile the SPDR Gold Shares (NYSE:GLD) are trading higher by $1.33 to 159.05 a share. This tells us that the gold mining stocks are obviously lagging the precious metal. Traders can watch for intra-day resistance on the GLD around the $58.25 area.

Other leading gold mining stocks that are trading higher this morning include Newmont Mining Corp. (NYSE:NEM), Yamana Gold Corp. (NYSE:AUY), and Agnico Eagle Mines LTD (NYSE:AEM). All of these stocks look to have limited upside on an intra-day basis.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Let Us Trade The Politicians

August 01, 2011 – Comments (0) | RELATED TICKERS: EWI , EWP , EWG

The major stock market indexes all sold off lower this morning after staging a sharp gap higher open. The catalyst for the stock market pop at the open was obviously the passing of a debt ceiling resolution in Washington. Shortly after it looked as if a compromise was made by both parties, statements from leading members of the Congress have said that they are not sure if they will vote for the deal. The stock market only wants to have certainty. Even if the debt ceiling was not increased the stock market would have declined for a few days and then found a low. If there is one thing that the politicians should have learned by now, it is that the markets hate uncertainty. How can someone really invest or trade when they do not know if the rules are going to be changed in the middle of the game? There simply is no certainty in anything that the politicians do.

This afternoon the House of Representatives was scheduled to vote on the debt ceiling compromise at 2:00 pm EST, however, that vote has been postponed until tonight. If traders want to know why the Dow Jones Industrial Average is in a 300 point intra-day range, this is the reason why. It is important to also note that the global markets are also facing uncertainty from politicians and bankers abroad.

Italy has been in the news as the latest country to need a bailout in the European Union. Earlier, yields spiked higher in Italian debt signaling further problems for that country. The same thing occurred in Spanish debt as yields spiked higher in that country, which is again very negative. This is just so much uncertainty surrounding these countries that traders must simply remain nimble in this type of environment.

The United States is supposed to be the leader of the free world. It does not seem like it is a free world anymore, nor does it seem as if the United States is the leader. It really seems that the Chinese are the leaders and we all know they are not free, they are still governed by a communist government. Last night, the Shanghai Index traded flat as a board. The Shanghai Index did not rally on the back of the U.S. Debt ceiling news. That was the first clue that told us this stock market could be weak after the opening bell. Maybe we should trade in these politicians for a news set of talking heads. These people simply cannot make a firm decision. Raise the debt or don't raise the debt, lets just make a decision already.


Nicholas Santiago
InTheMoneyStocks.com  [more]

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