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August 2013

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Need To Know: Pivotal Time Frames

August 29, 2013 – Comments (0)

WATCH THE TIME OF DAY FOR PIVOTAL MOVES 
Presented by Nick Santiago October 26, 2009 08:35AM 

Often most stocks and indexes will reverse or pivot from their initial move around one of the pivotal time frames. The first of these major pivotal time frames is 10:00 am, or first half hour of trading. While this time frame is pivotal, it is not 100% and does not cause the same reaction every trading day. Therefore, it is always important to put it together with  another resistance level or possibly a pattern to increase the odds of a short term trend change. Through considering the time frame along with multiple factors such as price and pattern, you will determine which time frame is most relevant. The next pivotal intraday time frames are 10:30 and 11:00 am ET, however, they are minor. The time frames during and after lunch are also minor. The major afternoon time frames are 2:30 pm, 3:00 pm, and 3:30 pm. Understanding these time frames and what makes them major or minor at a given moment is key to profitable trading. Experiment with the time frames and you see how often these are good turning points throughout the day.
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Alert: Mega Bounce On ICICI Bank Limited On Horizon

August 28, 2013 – Comments (0) | RELATED TICKERS: IBN

ICICI Bank Limited (NYSE:IBN) is an Indian bank. The Indian stock market has been crushed and this stock has fallen with it. This is one of the largest banks in India. ICICI Bank has fallen from $48.44 in May to its 52 week low of $24.94 today. The stock opened sharply lower and reversed. This reversal near the $24.50 major double bottom from 2011 shows a possible near term mega bounce in progress.

The bounce on ICICI should take the stock all the way back to $30.00. This opens up a great risk reward trade in the near term. Cheers!

Gareth Soloway
InTheMoneyStocks  [more]

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High Percentage Bounce Level For GOOGLE

August 27, 2013 – Comments (0) | RELATED TICKERS: GOOGL

Google Inc. (NASDAQ:GOOG) is falling sharply with the stock market today. Many are asking where to go long for a bounce. The level is simple and easy to find. This level is $841.50. Should this level hit in the next day or two, look for a solid $20.00 bounce.

Gareth Soloway
InTheMoneyStocks.com  [more]

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JPMorgan Trend Line Breaking: What It Means

August 27, 2013 – Comments (0) | RELATED TICKERS: JPM

JPMorgan Chase (NYSE:JPM) has broken through a major trend line stretching all the way back into 2012. This tells of further weakness in the stock as well as the general market. Just be aware, as this market inches into the holiday weekend, they could float the general market before further downside. Please note the chart below to see the trend line break. Near downside support would be the 200 moving average at $49.25.

Gareth Soloway
InTheMoneyStocks.com
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Quick Trade: S&P Scalp Level Revealed

August 27, 2013 – Comments (0) | RELATED TICKERS: SPY

The markets are tanking early in the morning. This is stemming from fears over Syria and the comments made by Secretary of State John Kerry. Intervention will occur and oil prices are spiking. With the S&P Futures dropping sharply, the play is at the double bottom from August 21st, 2013 at 1631.50. If you do not trade the S&P Futures then the SPY level is $163.90.

Cheers to a great trading day. A generally quiet holiday week has turned out to be a monster with great opportunities everywhere. 

Gareth Soloway
InTheMoneyStocks.com
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Trade Lesson: When To NOT Sell Short

August 26, 2013 – Comments (0)

This lesson was published by Nick Santiago in August 5th of 2010. The lessons and principles still apply to this very day... 

Today, the market indexes have been in a long sideways range inching higher off the intra-day lows. The overall volume is extremely light as the highly followed SPDR S&P 500 ETF (NYSE:SPY) has traded just 103 million shares as of 3:00 pm EST. This could be the lightest volume day in the past three months. However, this does not mean there is a lack of opportunity for profit - as traders, we know better!

As many advanced traders know, during light volume it is a difficult time to sell short the market. Hence the old market adage, "never short a dull market." As a general rule, light volume always favors the upside and the past three trading sessions have proved that. Often many inexperienced traders will try and sell short the market intra-day and find that the indexes can push through resistance levels fairly easily during these light volume periods. This is because there are very few institutional sellers at these levels. Remember, it is the institutions that move the markets not the small investor trading 100 shares. The same goes for most lunch time periods and into holiday weekends. As a trader, you must know and recognize the most optimal times to trade the markets and what side to be on. Whether trading is our job or just a means to supplement your income, take it seriously and do not take on justified risk.  

Nick Santiago
InTheMoneyStocks.com
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Tesla: Blow Off Top Possible

August 26, 2013 – Comments (0) | RELATED TICKERS: TSLA , F , GM

Tesla Motors Inc (NASDAQ:TSLA) continues to power higher, ignoring valuation issues. The hype continues to be the story here and it has carried it up over 300% in 2013. Today however, the stock is speaking a new tune on a technical basis. First, the stock has a three bar surge on the daily. We find that major moves end on three bar surges. Next, the stock has an intra day topping tail on huge volume. This signals distribution and a possible top. Last, the market cap of this company is now almost 50% of Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM). One last thing that should be mentioned, everyone, including the milkman is now talking about how great Tesla is. The great market and stock tops are always put in when the average investors get the most bullish.

Gareth Soloway
InTheMoneyStocks.com
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NASDAQ Gets Halted: Shady Wall Street Continues

August 22, 2013 – Comments (1) | RELATED TICKERS: QQQ , GS

Just yesterday, an 'upgrade' to the systems of Goldman Sachs caused major losses to the bank. Rumors put it at over $100 million. The governing bodies stepped in and negated all the losses. Today, the NASDAQ has been halted due to a trading 'glitch'.

One has to wonder what shady activity is going on here. Did the NASDAQ get hacked and 'they' just do not want to tell the public? Whatever the reason is, it shows who wins out every time. The markets were halted not because the little guy may take a small loss but because the institutions have billions of Dollars at risk with these high frequency trading programs. Things are so screwed now towards pampering the institutions, the only true way a small investor can safely navigate is to be in and out short term.

Gareth Soloway
InTheMoneyStocks.com
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Chevron Bounces Hard After Alert Given: More To Come

August 22, 2013 – Comments (0) | RELATED TICKERS: CVX

Yesterday, I alerted everyone of a major level on Chevron Corporation (NYSE:CVX). This level dictated a bounce higher and was a near term long. Sure enough, the stock is trading up over a Dollar from that alert and more is coming. If you bought yesterday on the posted article, you are enjoying great gains today. Cheers!

The stock should continue to bounce higher to a near term target of $122.00. Enjoy the profits folks. This is what it is all about. I am neither a long term bull or bear, just a swing trader who hops on the short side and long side when the charts alert it. 

Gareth Soloway
InTheMoneyStocks.com
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Don't Force Your Will On The Market, Take What It Gives You

August 21, 2013 – Comments (0) | RELATED TICKERS: AAPL , CSCO , INTC

It was the legendary trader Jesse Livermore who said,  "there is only one side of the market and it is not the bull side or the bear side, but the right side." In other words, Mr. Livermore was not picking sides or teams when it came to trading. Too often traders and investors have this bias about the stock market and fail to capitalize on the opportunities that the stock market gives us every trading day. 

A couple of years ago I read an article about Micheal Burry. He was a hedge fund manager from 2000 – 2008. He made his fame and fortune by betting against sub-prime mortgages. What I found so interesting was  that he said he rarely shorted stocks and most other equities, he usually bought stocks most of the time. But when he saw the opportunity to bet against sub-prime mortgages, he took the bet. You see, he took what the market was offering, he didn't force his will on the stock market. When the stock market told him that it was ready to break or fall he simply started to load up on the short side trades. 

Something else I find traders and investors doing wrong is that they often look to get even with a stock after taking a loss in the equity. In other words, if they have lost money in a particular trade they try and get  revenge on that stock. If there is any lesson to take from this article, it is to not take trading personally. The market is always right, until it isn’t. Remember, the CEO of a company does not know who is trading in their equity. Do not take stocks personal. Just trade every stock the in same manner by using charts and patterns.  

Another mistake that many traders make is that they fall in love with particular stocks. In 2012, many traders were in love with Apple Inc (NASDAQ:AAPL). The stock was being upgraded everyday by countless major firms. Individual traders and investors would talk about the next great i-phone release like it was curing cancer. The truth is, at that time there was smart phone saturation taking place in the market and the stock was under slow institutional distribution. As you all know, Apple Inc stock topped out just above $700.00 a share and dropped by more than  200 points in four months - a call which we traded for profit. The current Apple chart looks more like Cisco Systems (NASDAQ:CSCO), and Intel Corp (NASDAQ:INTC) from the 2000 top these days. In other words, the stock market knows that the company can no longer achieve the growth it once had. Every stock goes through this cycle, it is not just Apple Inc. The point here is to not fall in love with a stock or company, stocks are for trading not marrying. 

The moral of the story is to not force your will on the market, just take what it gives you. Every trading day the stock market will give us opportunities. If the charts tell us the level looks good for a trade we take it. If the chart does not tell us that the level is solid then we leave it alone. Trading is all about buying major support and selling major resistance. The minor support/resistance levels should be left for the amateurs. This does not mean that we will win on every trade, but it does allow us to have the odds in favor and that is really all a trader can ask for.     

Nick Santiago
InTheMoneyStocks.com   
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Gold Mining Stocks Are One Of The Only Things Shining These Days

August 20, 2013 – Comments (0) | RELATED TICKERS: GDX , GOLD , AUY

This morning, the leading gold mining stocks are trading higher at the start of the trading session. This important industry group has been rebounding higher since late June 2013. Traders that want to track  the entire gold mining sector can follow the Market Vectors Gold Miners ETF (NYSEARCA:GDX). Today, the GDX is trading higher by 0.79 cents to $30.02 a share. Short term traders should watch for intra-day resistance around the $30.35, and $31.00 levels.

Some of the leading gold mining stocks that are trading higher today include Yamana Gold Inc. (USA) (NYSE:AUY), Goldcorp Inc. (USA) (NYSE:GG), and Barrick Gold Corporation (USA) (NYSE:ABX). Traders should note that gold and gold mining stocks will generally perform better when the U.S. Dollar Index futures (DX-U3) are weak. Today, the U.S. Dollar Index is trading lower by 0.36 cents to $80.90 per contract.

Nicholas Santiago
InTheMoneyStocks.com
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Where They Will Bounce: The Chevron And Exxon Collapse

August 19, 2013 – Comments (0) | RELATED TICKERS: CVX , XOM

Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) have spiraled lower after they each announced earnings that were extremely disappointing to Wall Street. Chevron has dropped from a 52 week highs of $127.83 to its current level of $118. 64 while Exxon has dropped from $95.49 to $86.87. These falls have come in a matter of weeks.

Both stocks are in near term oversold territory. Exxon could see a low of $86.00 while Chevron has major support at $117.50. These levels should give the stocks a near term bounce prior to another flush lower.

Gareth Soloway
InTheMoneyStocks.com

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Apache Gets Tomahawk Chopped

August 19, 2013 – Comments (1) | RELATED TICKERS: APA

This morning, leading independent oil and gas explorer and developer Apache Corp (NYSE:APA) is coming under sharp selling pressure. Today, the stock is trading lower by $2.56 to $76.43 a share. Earlier today, the stock was downgraded to hold from buy at Stifel. Short term day traders should watch for an important intra-day support level around the $75.50 level. This is an area where the stock could see an intra-day bounce. It is important to note that the stock is signaling weak relative strength to the major stock indexes on an intra-day basis, so if the major stock indexes drop or decline sharply APA stock is vulnerable to trade lower as well.

Nicholas Santiago
InTheMoneyStocks.com 
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J.P. Morgan Chase & Co Drops, Watch This Level

August 19, 2013 – Comments (0) | RELATED TICKERS: JPM

This morning, J.P. Morgan Chase & Co (NYSE:JPM) is coming under early selling pressure. The leading financial stock is falling after a government investigation was launched into its Chinese hiring practices. The company has also come under pressure recently after the London whale trading scandal lead to two arrests and caused the bank a $6.2 billion loss. Recently, the financial giant agreed to pay $410 million to settle charges with the Federal Energy Regulatory Commission for manipulating electricity prices. 

Today, JPM stock is trading lower by 0.86 cents to $52.42 a share. Day traders should watch for intra-day support around the $51.49 level. This is an area where the stock could see an intra-day bounce. The next major intra-day support level would be at the $50.20 level. 

Nicholas Santiago
InTheMoneyStocks.com
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The First Hour Is For Day Traders

August 16, 2013 – Comments (0)

When it comes to trading, active markets are always the best. If you have traded the markets for a considerable amount of time, you know that the best part of the trading day is within the first hour to ninety minutes. This is a time period when there is typically high volume in the market. Higher volume indicates more participation in the markets, especially by institutions. This activity allows for the key support/resistance levels found on charts to be great trading points.

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, as the markets are most active then. Once 11:00am ET rolls around the markets become manipulated by the institutional traders during the light volume. The institutions aim to stop out the small retail futures traders for a loss. Also they will push the retail options trader contracts worthless at expiration. Remember, it is not the retail trader moving markets. The unfortunate case for most inexperienced retail traders is that they are often late to the game; they buy the top after the move higher occurred and sell the low before the bounce higher begins. As a retail trader, you need to understand what the institutions are doing, how they trade, and use it to your advantage. 

Take a look at the choppy sideways range experienced in the chart below after 11:00am ET, you will see an example of this. This type of game playing goes on everyday in all active stocks, indexes and options. 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.(GOOG), Chesapeake Energy Corp.(CHK), and Broadcom Corp.(BRCM) become difficult to trade after the early 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. Keeping this in mind, day traders should focus on the morning session. Leave the three hour lunch time game playing to the institutions who take the money of the inexperienced.

Knowing exactly what the institutions do and the games they play will allow you to increase your profitability, and decrease your potential for losing. Enjoy your profits and only trade when the time is right. 

Nick Santiago
InTheMoneyStocks.com
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A Rare Day of Fear or Just the Typical Early Morning Drop?

August 15, 2013 – Comments (2) | RELATED TICKERS: SMH , IYT , RTH

Nearly every trading session over the past month the major stock indexes have dipped in the first 90 minutes of the day only to rally back throughout the lunch hour and often into the close. Today, the major stock indexes are plunging sharply lower at the start of the trading session. 

Will this early sell off result in another stock market bounce that erases most of the early morning declines? Perhaps, but this time the decline is being led by the important NASDAQ Composite Index and the Russell 2000 Index. You see, the NASDAQ, and the Russell 2000 Index represent real risk taking because investors are looking for growth when they buy equities in these indexes. The Dow Jones Industrial Average is filled with dividend paying blue chip stocks which are often bought for income, this is unlike the NASDAQ and the Russell 2000 which have very few dividend paying stocks in them. So when the NASDAQ, and the Russell 2000 Index lead the major stock indexes lower it could be very meaningful and signal real distribution by the institutions.

Some leading sectors that traders should follow include the iShares Dow  Jones Transportation Average (NYSEARCA:IYT), Market Vectors Semiconductor ETF (NYSEARCA:SMH), and Market Vectors Retail ETF (NYSEARCA:RTH). All of these important industry groups are falling lower today which is a negative indication. Over the past six months it has been very rare to see all of these equities trade lower simultaneously, it could be an indication that today's sell off could be significant.

Nicholas Santiago
InTheMoneyStocks  [more]

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Classic Head And Shoulders On Google

August 14, 2013 – Comments (0) | RELATED TICKERS: GOOGL , AAPL

Google Inc (NASDAQ:GOOG) continues to fall today after triggering a classic head and shoulder break down. Most likely Google is weak as money is flowing from that stock into Apple Inc. (NASDAQ:AAPL). The Google head and shoulder pattern will hit target around $840.00.

Gareth Soloway
InTheMoneyStocks.com
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U.S. Airways Signals Near Term Bottom

August 14, 2013 – Comments (0) | RELATED TICKERS: LCC

US Airways Group Inc (NYSE:LCC) has formed a bottoming tail on the daily chart after hitting the 200 moving average. This signals a high likelihood of a near term bottom in the stock.

Just days ago, the Department of Justice canned the merger between US Airways and American Airlines. This merger has long been in the pipeline and is obviously a big disappointment for the two companies. U.S. Airways dropped hard yesterday and early today.

Gareth Soloway
InTheMoneyStocks.com
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Railroad Stocks Head Southbound

August 14, 2013 – Comments (0) | RELATED TICKERS: KSU , UNP , NSC

This morning, the leading railroad stocks are all a bit weak to start the day. The railroad stocks are a major part of the Dow Jones Transportation Index which is lower by 0.77 percent on the session. One of the leading railroad stocks that are declining lower is Kansas City Southern (NYSE:KSU). Today, KSU stock is trading lower by $2.05 to $107.16 a share. Day traders should watch the $105.35 level for intra-day support. That is still a bit away, but the level should be decent if the stock trades down there. 

Other leading railroad stocks that are declining lower include Union Pacific Corporation (NYSE:UNP), Norfolk Southern Corp (NYSE:NSC), Genesee & Wyoming Inc (NYSE:GWR), and Canadian National Railway (USA) (NYSE:CNI). Often, the railroad stock will trade in tandem with each other. All of these railroad stocks still look weak on the daily charts, and intra-day charts.

Nicholas Santiago
InTheMoneyStocks.com
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Rackspace Drops, Watch This Level

August 14, 2013 – Comments (0) | RELATED TICKERS: CRM , RAX , FFIV

Rackspace Hosting Inc (NYSE:RAX) is a leading internet hosting company that uses the cloud technology. Today, RAX stock is falling lower by $1.16 to $45.95 a share. Day traders can watch for some intra-day support around the $45.50 level. Please remember, this stock is showing weak relative strength today so if the major stock indexes decline this stock could trade lower on the day. 

Nicholas Santiago
InTheMoneyStocks.com
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Amazon Stock Appears Lost In The Forest

August 13, 2013 – Comments (0) | RELATED TICKERS: AMZN

For the first time in ages, Amazon.com, Inc. (NASDAQ:AMZN) appears to be destined for a bigger fall. It truly looks like the stock is lost with slow selling by institutions. Recently, Amazon reported earnings. At first, the stock fell lower but then quickly recovered to surge, making new all time highs. The earnings were again horrid, putting the P/E ratio for AMZN well north of 1000. In the past, the stock has always fought back to move sharply higher. This time looks different.

First, the pop after earnings was pure short covering. Tons of traders shorted the stock into earnings only to have it fall a minor amount on the report. As they covered, the stock price rose. Remember, covering a short is buying. As the stock popped, more shorts covered. By the end of the day, all the shorts that held just for earnings were out. Now the stock could resume its normal course based on the earnings announcement. That normal course was down.

Since that one day pop on earnings, Amazon has done nothing but go lower. Even in an up market, the stock heads lower. At this point, all bounces can be shorted in my opinion. I think the company is fantastic. I buy tons from Amazon.com. However, valuation makes no sense here. The stock will head to $220.00 by the end of 2013.  [more]

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Higher Bond Yields Punish Housing Stocks Again

August 13, 2013 – Comments (0) | RELATED TICKERS: MHK , LEN , TOL

One of the most important charts that any trader can follow at this stage of the game is the chart of the 10-year U.S. Treasury yield. Today, the yield on the 10-year U.S. Treasury Note is 2.71 percent. Higher bond yields have adversely affected the most housing stocks, commercial real estate stocks, mortgage REITS, and utility stocks. 

The housing stocks are the most obvious industry group that is coming under selling pressure when interest rates rise. Leading housing stocks such as Lennar Corp. (NYSE:LEN), KB Home (NYSE:KBH), Toll Brothers Inc. (NYSE:TOL), and others in the sector are all trading sharply lower on the session. Traders that would like to follow the entire home builder sector can follow the iShares Dow Jones US Home Construction ETF (NYSERACA:ITB). Short term day traders should watch for intra-day support on the ITB around the $20.65 level. 

Nicholas Santiago
InTheMoneyStocks.com  [more]

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Is The Hyperloop Behind The Intra-day Airline Stock Plunge?

August 13, 2013 – Comments (1) | RELATED TICKERS: UAL , DAL , TSLA

This morning, the leading airline stocks are all plunging lower at the start of the trading session. Leading airline stocks such as United Continental Holdings, Inc. (NYSE:UAL), Delta Air Lines Inc. (NYSE:DAL), and US Airways Group, Inc. (NYSE:LCC) are all trading lower by more than 4.0 percent. 

Yesterday, the founder of Tesla Motors, Inc. (TSLA) Elon Musk announced a new transportation venture called the hyperloop. This is a tube system that can transport passengers at extremely high speeds. Mr. Musk said that a trip from Los Angeles to San Francisco would take about 30 minutes. He also stated that the fare for the trip would be less than an airline or a traditional railroad ticket. Elon Musk has been known to make the unrealistic a reality, so this announcement could be affecting the airline stocks today.

For those of you that have studied cycles should know that the transportation sector seems to go through a revolutionary change every hundred years. It was roughly 100 years from the steamboat to the airplane which debuted in 1914. It is now 2013 which is nearly 100 years from 1914 so it should be no surprise to us that another revolutionary form of transportation is about to be developed. 

Nicholas Santiago
InTheMoneyStocks.com   [more]

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Trading Alert: J.C. Penney Stock Starts To Trend Higher

August 12, 2013 – Comments (0) | RELATED TICKERS: JCP

J.C. Penney Company, Inc. (NYSE:JCP) has started to trend higher in the trading session. This could be setting up for a pop.  This stock has been hammered in the last week over fears the company has lost funding and calls from hedge fund investor Ackman for a replacement of the current CEO. These recent issues, all unsubstantiated could spell a low before a major short squeeze. Short term resistance is $13.65, $14.10 and $14.60. The chart tells of a solid chance of a pop.

Gareth Soloway
InTheMoneyStocks.com  [more]

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Exxon Mobil & Chevron Can't Catch Steam

August 12, 2013 – Comments (0) | RELATED TICKERS: XOM , CVX

Two of the world's largest integrated energy stocks are struggling to catch a bid at the start of the trading session. These two stocks are Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVX). Day traders can watch XOM stock for intra-day support around the $89.85 level. CVX stock will have very good intra-day support around the $120.50 level. These are both support areas that should see intra-day bounces for these two giant energy stocks. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

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Gold Mining Stocks Soar, Know This Level

August 12, 2013 – Comments (0) | RELATED TICKERS: GDX , GG , NEM

This morning, the leading gold mining stocks are soaring higher to start the trading day. Leading gold mining stocks such as Newmont Mining Corp (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX), and Goldcorp Inc. (USA) (NYSE:GG) are all higher by more than 4.0 percent on the trading session. This important industry group has been rallying lately from a severely oversold condition. 

Traders that want to follow the entire gold mining sector can follow the Market Vectors Gold Miners ETF (NYSEARCA:GDX). Today, the GDX is trading higher by $1.34 to $27.81 a share. Short term day traders should watch for intra-day resistance around the $28.38 level. This is an important resistance level where the GDX can pull back on the session.    

Nicholas Santiago
InTheMoneyStocks  [more]

Recs

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Follow the Leader JPM

August 08, 2013 – Comments (0) | RELATED TICKERS: JPM

J.P. Morgan Chase & Co (NYSE:JPM) is by far the most important financial stock in the entire stock market. In fact, the company is the real bank of America. It has lead the major stock market indexes lower in 2008, and higher since the stock market bottomed in 2009. Today, the financial giant is trading lower by 0.78 cents to $54.52 a share. Day traders should watch for intra-day support around the $54.25 level. Should this level fail to hold up the next important intra-day support level for JPM stock will be around the $53.50 area. Traders should follow the leader if you want to know where the major market indexes are headed.

Nicholas Santiago
InTheMoneyStocks.com

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Follow the Leader JPM

August 08, 2013 – Comments (0) | RELATED TICKERS: JPM

J.P. Morgan Chase & Co (NYSE:JPM) is by far the most important financial stock in the entire stock market. In fact, the company is the real bank of America. It has lead the major stock market indexes lower in 2008, and higher since the stock market bottomed in 2009. Today, the financial giant is trading lower by 0.78 cents to $54.52 a share. Day traders should watch for intra-day support around the $54.25 level. Should this level fail to hold up the next important intra-day support level for JPM stock will be around the $53.50 area. Traders should follow the leader if you want to know where the major market indexes are headed.

Nicholas Santiago
InTheMoneyStocks.com

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This Trend Line Is Everything Today

August 07, 2013 – Comments (0) | RELATED TICKERS: SPY

This trend line on the S&P 500 (SPY) is the key for the next few days. A close above, expect upside. A close below, markets could remain weak. This trend line comes from the lows yesterday to the opening highs of today. The market has just tagged this line with forty minutes remaining in the trading day. Let's watch this into the close today.

Gareth Soloway
InTheMoneyStocks.com  [more]

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TSLA Set To Report Earnings: What Does Sharp Drop Mean

August 07, 2013 – Comments (0) | RELATED TICKERS: TSLA , GS

Tesla Motors Inc (NASDAQ:TSLA) is dropping over 5% on the day. The company is set to report earnings after the market closes today. In 2013, the stock has soared almost 500%, hitting an all time high on Monday of $145.73. So why today is the stock dropping sharply before earnings?

Speculation has to focus on institutional selling since the volume is huge. Could this be institutions selling as they believe the stock will disappoint and fall? With the stock being up so high, a pull back is likely. In addition, recently Goldman Sachs (NYSE:GS) gave Tesla a price target of $85 per share.

All of this points to institutions shorting and selling the stock ahead of earnings. They are expected to report a whisper number loss of $0.05 per share. Revenue will be key as well as future guidance. This will be fun to watch. Cheers!

Gareth Soloway
InTheMoneyStocks.com
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ExOne & 3D Systems Print Morning Declines

August 07, 2013 – Comments (0)

This morning, the hot 3-D printing stocks are coming under some selling pressure. The three leading stocks in the industry group are ExOne Co (NASDAQ:XONE), 3D Systems Corporation (NYSE:DDD), and Stratasys, Ltd. (NASDAQ:SSYS). All of these stocks continue to look weak on the intra-day charts. Day traders can watch for intra-day support on DDD stock around the $44.20 level. It should be noted that DDD has the highest volume so it will generally be the most liquid stock when day trading.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Union Pacific and the Railroads Weigh on Transports

August 07, 2013 – Comments (0) | RELATED TICKERS: CSX , UNP , IYT

This morning, most of the leading railroad stocks are declining at the start of the trading session. This move lower in the railroad stocks is certainly putting pressure on the transportation sector. Some of the leading railroad stocks that are falling on the session include Union Pacific Corporation (NYSE:UNP), Kansas City Southern (NYSE:KSU), Genesee & Wyoming Inc (NYSE:GWR), and Canadian Pacific Railway Limited (USA) (NYSE:CP). 

Today, the iShares Dow Jones Transport Avg. (ETF) (NYSEARCA:IYT) is trading lower by $1.30 to $115.20 a share. Day traders can watch for intra-day support around the $114.50 level, this is the spot where traders could see a bounce.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

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Leading Indicator JPMorgan: What It Tells Us

August 06, 2013 – Comments (1) | RELATED TICKERS: JPM , SPY

If you were to match up the charts of JPMorgan Chase & Co. (NYSE:JPM) with the S&P 500, you would see the leading financial firm is lagging. Considering this stock is known to take the markets up and down, it must be noted. To best illustrate this, look at the new all time highs on the S&P 500, hit on Thursday and Friday this past week. As the S&P 500 was pushing to new all time highs, JPMorgan was stalled, unable to make new highs.

Keep this in mind as the markets began to show weakness over the last few days. This could be a larger signal than anyone would guess.   [more]

Recs

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A Major Difference Between Now And Then: A Stock Market Signal

August 06, 2013 – Comments (0)

The markets are having their second down day in a row. This is coming off a surge last week to new all time highs on all major indexes. So why are these two small down days any different than small down days in the past? There is only one difference, however it is a strange and important one. The fall over the last two days has happened on the lightest trading days of the year. All it takes is a few small retail buyers to push the market up on extremely light trading days. However, we are not seeing that. There has been little to no institutional buying for a long time, but the retail investor continued to push the markets up. Now that is not happening. Could this be a bigger signal that most would believe? Without large institutions buying and now small investors not buying, could the upside be coming to an end?

Gareth Soloway
InTheMoneyStocks.com
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Recs

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Oil Service Stocks Drop, Watch This Level

August 06, 2013 – Comments (0) | RELATED TICKERS: OIH , HAL , BHI

Most of the leading oil service stocks are falling lower during today's trading session. The important Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading lower by 0.55 cents to $45.15 a share. Short term day traders should watch for intra-day support on the OIH around the $44.85 level. This is an area where day traders can look for a short term intra-day bounce.

Some of the leading oil service stocks that are falling lower today include Baker Hughes Incorporated (NYSE:BHI), Halliburton Company (NYSE:HAL), and Schlumberger Limited. (NYSE:SLB). All of these stocks will generally trade in tandem with OIH, so traders can expect bounces in these names around the OIH support area. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

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Facebook Top: Where To Finally Short The Stock

August 05, 2013 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) has surged 50% since it reported earnings just two weeks ago. It was trading at $26.50 prior to earnings and hit a high today of $39.32. The stock is currently trading at $39.06, +1.01 (2.65%) on the day. Facebook has taken out the IPO price of $38.00 and many are wondering where it is headed next. The answer, based off the chart is simple. The all-time high of $42.00 is the short level for this high flier. This will also give the company an approximate market cap of $100 billion Dollars. This will be a huge resistance point. A pull back would be expected back to the $38.00 which would be an approximate 10% profit.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Could The Fed's Balance Sheet Be The Mother of All Bubbles?

August 05, 2013 – Comments (0)

Almost every major stock market advance in the past 100 years has led to some type of stock market bubble. The last great bubble was in 2007, this bubble formed primarily in the credit and housing sectors. At that time, people were flipping homes, borrowing from banks without showing documentation of income, and tapping the equity out of their house like an ATM giving out free money. What was the cause of this latest and greatest bubble? Greed was the real cause. However, the easy money policy by the Federal Reserve and almost every bank on the planet that was the root of the problem. 

Now it is important to understand why the Federal Reserve implemented an easy money policy in the first place. Well, in 2000 there was another market bubble that burst and it was in the technology sector. Do you remember in the late 1990's when every company in the world was adding a dot com to the end of their name to try and boost their share price? There where stocks that made no money at all that soared to new heights. Does anyone remember the Globe.com, CMGI, and countless others that traded to explosive price levels? The Globe.com traded from $9.00 to $90.00 on the day of its IPO. That bubble lasted longer than most people expected, but it did end very ugly. In fact, the NASDAQ Composite is the only major stock average that has still not made new highs from its 2000 peak of $5132.52. Today, the NASDAQ Composite trades at a $3691.50.        

These days there are many unconventional methods being used by the Federal Reserve in order to try and stimulate the economy. In the past, the central bank would just lower interest rates and that would make money more available. Remember, the former head of the Federal Reserve just lowered the fed funds rate to simply 1.0 percent in 2001. This was certainly one of the catalysts for the great housing and credit bubble once interest rates started to rise. Today, the current Federal Chairman Ben Bernanke has moved interest rates to basically zero percent. He made this move to lower the fed funds rate in December 2008 and it is still there to this day. In September 2012, Chairman Bernanke also decided to purchase $85 billion a month worth of U.S. Treasuries and mortgage backed securities. This is a lot of money printing or liquidity being thrown at the stock market, hence the effect has been new all-time highs in the Dow Jones Industrial Average and most other major stock indexes. Is this move higher in stocks another bubble in the making? Well, as long as the central bank does not cut QE-3 or raise interest rates everything looks great for the stock market at this time.

Currently, the Federal Reserve has about $4 trillion on its balance sheet. This is money that the central bank has printed to buy these securities. Eventually, the central bank will need to unwind there balance sheet and that $4 trillion at the central bank will need to be put back in the system. Theoretically, the central bank just creates this money out of  thin air, so could the great unwind of $4 trillion cause dramatic inflation? Perhaps it will, or perhaps the central bank will simply never unwind it and just continue to print more money to support asset prices. Can the stock market reap what it hasn't sown, or could the Fed's balance sheet of $4 trillion and counting be the mother of all bubbles? That is the great question that most economists should be asking themselves. 

The irony here is that very few people if any at the central bank actually predicted the 2000, and 2008 stock market bubbles. These powerful people at the central bank have MBA's, mathematicians, statisticians, PhD’s and other prominent title holders at their disposal. Maybe this time is different, but everything happens in threes from what we have seen in life. Could the third bubble actually be the Federal Reserve itself this time around? We shall see soon enough.       

Nicholas Santiago
InTheMoneyStocks.com
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