Use access key #2 to skip to page content.

inthemoneystock (< 20)

September 2010

Recs

0

Markets Inch Lower Then Saved By Dollar, Again

September 29, 2010 – Comments (0)

The markets sold off early in the session today as volume was decent. By 11:00am ET, the volume began to dry up which usually helps the markets float higher.  The SPDR S&P 500 ETF (NYSE:SPY) is lower by just $0.11 at $114.56.  In addition, the U.S. Dollar began to inch lower which also props the markets up.  This propping of the market has become the norm of late and should continue to be expected as long as the markets continue to have light volume.  The thought process is the propping is done by the Federal Reserve as they have the ability to print money thus lower the Dollar. In addition, the Federal Reserve is conducting POMO (Permanent Open Market Operations).  Through a round about method, propping the markets up by buying equities. There had been a lot of talk that this has been going on with the top Nasdaq 100 stocks. Stocks like Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) among others. To gain more insight, analysis, guidance and swing trades, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

0

Can The U.S. Dollar Index Decline Enough To Spark Another Rally?

September 29, 2010 – Comments (0)

By now we all know when the U.S. Dollar Index declines the stocks market indexes around the world inflate and trade higher. Almost everyday we see the market start out weak and then rally back higher by the end of the session. Since June 7th, 2010 the U.S. Dollar Index has declined by more than 10.0 percent. Will the institutional money that has sold the U.S. Dollar Index drive it down even further since it is already severely over sold? If they do then look for another stock market move higher.

  [more]

Recs

4

The Tea Party Will End The Printing Party

September 29, 2010 – Comments (4)

As we all know by now most Americans are sick and tired of the Democrats and the Republicans. Just look at President Obama's approval rating which is now around 46 percent. They are certainly not happy with him and the Congress approval rating is even lower. However, as bad as his approval rating is the former president and administration was just as poor and at times possibly even worst. Simply put the American people want to take back their country and believe that both parties are spending addicts on the back of the American individual that works and pays taxes. The United States has accumulated a $13.5 trillion debt. Who is going to pay for this?

The Tea party wants to pay down debt and cut spending which is the opposite of what the Democrats and the Republicans have done over the past 30 years. This is a movement that is growing exponentially among the working American public. The Tea Party is filled with former Republicans and Democrats. This movement knows that the current path the traditional two party system has taken America is unsustainable and will lead to the demise of the country. After all the S&P 500 Index is still around 27.0 percent below its 2000 and 2007 highs. Do the American people want another lost decade in the economy?

Here are the reasons why the Tea Party will spoil the current market rally:

The first reason is because the Tea Party will stop the printing of money by the Federal Reserve Bank. As the central bank continues to print money and floods the system will liquidity the U.S. Dollar Index declines. Therefore, even if stocks go up they are actually worth much less because they are denominated in U.S. Dollars. Why do you think gold is making new all time highs right now? Gold is a way of telling how much money is being printed. Gold is the only true currency in the world. Fiat money systems eventually all fail.

The second reason why the stock market will roll over is because the spending party in Washington by the Democrats and the Republicans will be over. The Tea Party will most likely stop all the special interest programs that currently seem to be so popular. At this time the spending is out of control and really cannot be calculated. The 2500 plus page laws that Congress writes are filled with so many different pork filled special items. For an example, new rules about gold being put in the health care bill. What does gold have to do with a health care bill? Has anyone ever read a 2500 page bill before it becomes a law? I seriously doubt it.

The next reason why the Tea Party will end the way America currently operates is because they will get rid of the too big to fail rule that is currently in place. Do you realize that these giant banks still have tons of toxic assets that have been shoved under the rug for the time being. Just because the country has now switched to Enron accounting this does not mean that this nuclear waste can stay hidden forever. Banks such as J.P. Morgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC), and Bank of America Corp. (NYSE:BAC) have actually become bigger than they were in 2008. Then when you consider that regional banks fail every week they actually have less competition. This will not be tolerated by the Tea Party. Nouriel Roubini says, "if the banks are too big to fail they are too big to exist." The Tea Party agrees. Please note that the banks have been lagging the rest of the stock market since the Labor Day rally began.

The Tea Party is a true breath of fresh air. As long as the Tea Party does not get corrupted and remains a movement, this country is about to reinvent itself. There will be pain. A mother is usually in agony for a short period before giving birth. However, that pain is forgotten when the child is born. This is what is happening now in America. Go Tea Party!





Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

0

IBM May Have Its Eyes Set On $139, All Time High

September 27, 2010 – Comments (1)

International Business Machines Corp. (NYSE:IBM) recently broke out of a trading range it has been in for almost a year. The $122.00 to $134.00 range has lasted since last November. Recently, IBM broke out of that range and began to climb. The stocks is extremely extended but it may have its eyes set on the $139.19, the all time high in from 1999. This high may be the next major resistance level.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

2

Key Level To Watch

September 27, 2010 – Comments (0)

The markets are fractionally lower today after hammering into a major double top level on Friday and retesting it at the open today. The SPDR S&P 500 ETF (NYSE:SPY) opened at the highs from Friday which happens to be the key double top resistance at $114.85.  Note the chart below. The markets sold quickly after opening at this point and are trading at the lows of the day. Volume is anemic as no economic news was released. If the $114.85 level cannot be breached within the next day or so, it could spell trouble for the markets. In addition, any drop in the market must have volume behind it to be legitimate. If volume is not present, do not put too much emphasis on the fall unless it takes out $112.20.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

0

WYNN Under Pressure. Watch These Levels.

September 27, 2010 – Comments (0)

WYNN Resorts Ltd.(NASDAQ:WYNN) is trading lower this morning by $1.95 to $88.27. This stock has pulled back over the past week after trading as high as $95.87 on September 21st. The stock will have some intra-day support around the $88.00 area. Should this level fail to hold the next short term intra-day support levels will be $87.00 and $86.00.

Recs

0

More Of The Same Today

September 27, 2010 – Comments (0)

This morning the major stock market indexes are trading slightly lower. This type of action usually takes place after the dramatic point rally that the markets made last Friday when the Dow Jones Industrial Average closed higher by 180.00 points. Generally, the next trading day will be a flat to slightly negative trading session and that is exactly what we are experiencing today.

It is very important to remember that the stock market trades inverse to the U.S Dollar Index. As the Dollar rallies the stock market indexes deflate or trade lower. The opposite is true when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Therefore, the action in the U.S. Dollar Index dictates where this market is going to trade. This morning the U.S. Dollar Index is trading slightly higher by 0.15 cents to $79.45. Please note that the major stock market indexes are all trading slightly lower this morning. Should the dollar decline you can expect the stock market indexes to rally higher. It really is just more of the same.

  [more]

Recs

2

Gold Mining Stocks Inch Higher

September 27, 2010 – Comments (0)

This morning the gold mining sector is starting the trading day slightly higher. The Market Vectors-Gold Miners ETF(NYSE:GDX) has rallied by more than 15.0 percent since July 28th, 2010 when the ETF was trading as low as $46.80. This leading gold mining ETF looks slightly overbought here and may need to pullback soon or consolidate, however, the trend is very strong and remains nicely intact. Should the GDX pullback or consolidate there will be near term support around the $53.00 level. Intra-day the GDX will have resistance around the $56.10 - $56.50 area.

Newmont Mining Corp.(NYSE:NEM) is the leading gold mining stock in the mining sector. This stock made a short term top on September 22nd, 2010. At this time this pullback looks to be nothing more than possible bullish consolidation after a major move higher. The stock was short term over bought and due for a breather. Should Newmont Mining Corp. pullback further there is a lot of support around the $60.50 - $60.50 level.

There are a few other leading mining stocks that are trading higher this morning such as Agnico Eagle Mines Ltd.(NYSE:AEM), and Yamana Gold Inc.(NYSE:AUY). Remember the mining stocks may need a breather as they have all made a sharp move higher over the past two months.


  [more]

Recs

0

Small Caps On Watch List

September 24, 2010 – Comments (0)

Small caps continue to flourish in this strong market environment. Of late I have highlighted China Infrastructure Investment Corp (NASDAQ:CIIC) and Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM). Both Chinese plays that have been at the lows of the charts. BSPM has started to awaken with a move to $2.68 today after the alert a week ago at $2.35. That is already over a 10% move higher. CIIC still continues to fly under the radar but should get some activity soon. The chart is near perfect for a massive move on any volume. It continues to trade around the $0.64 level.

Other small caps hitting the radar are General Steel Holdings, Inc. (NYSE:GSI) and Sutor Technology Group Ltd. (NASDAQ:SUTR). Both are Chinese steel plays that are near the lows of their charts. With the markets soaring, these should get picked up soon.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

0

Markets Rage Higher As Technology Continues To Lead

September 24, 2010 – Comments (0)

Technology has truly been the leader of this rally over the last month. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) has soared from $42.97 to a high today of $49.65. That is a 15.50% rally in just one month. Truly amazing. Stocks like Apple Inc. (NASDAQ:AAPL) have gone from $235.56 to a high today of $293.53.  This is a whopping 25% jump in a month. Amazon.com, Inc. (NASDAQ:AMZN) has also soared, jumping from a major gap down on last quarters earnings announcement. At that time, it opened at $105.80 and today hit a high of $159.76. This is a 51% move.

With all these tech stocks racing higher, the main questions must be asked.  How long can the rally last? How high can these go?  From a traders perspective the rally is extended. However, what we are now seeing appears to be end of quarter buying by fund managers who want to show they held some of these stocks. This is called window dressing. Tech stocks should be near a pull back range but it may wait until the last few days of the quarter or early to mid next week. In addition, many of these tech stocks have been highly shorted. Each day shorts are being forced to cover and that is adding to the buy side. Add that all into the mix with the fact that economists, the media and the President have been pumping a recovery, it gives u this monster tech rally. Again, watch early to late next week.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

1

After Reversal Yesterday, Markets Rip Higher On Dollar Drop

September 24, 2010 – Comments (0)

The markets dropped sharply yesterday at the open only to recover and trade flat to higher until 3pm ET. At that time, the markets flushed sharply back to the lows of the day.  This was an ugly reversal, one that could have been significant. However, the powers that be had a different idea, one that did not involve a pull back in the markets. Through a crushing of the U.S. Dollar, the markets jumped higher today, negating the drop yesterday. This now causes the charts to show a neutral to bullish sign in the short term assuming this rally holds on this Friday.

The SPDR S&P 500 ETF (NYSE:SPY) is higher by $2.15 to $114.65 (+1.91%). The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower by $0.23 to $22.98 (-0.99%). This continues to show the inverse relationship the markets have with the Dollar. Dollar down, markets up. It is as simple as that and allows in many cases for the Federal Reserve which has a print money philosophy to continue to prop the markets up.

The strongest stocks today are Amazon.com, Inc. (NASDAQ:AMZN), which got upgraded today and International Business Machines Corp. (NYSE:IBM) which may have broken out of its $122.00 to $132.00 range.  Caterpillar Inc. (NYSE:CAT) is also having a monster day up 3.66%. 

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

0

KBH Home Reports, However, Home Builders Look Stretched

September 24, 2010 – Comments (0)

This morning most of the home builder stocks are all trading higher after KB Home(NYSE:KBH) reported earning. One can really toss up a coin and decide for themselves if the report was a positive or a negative. Sometimes investors can only wonder what type of accounting is used to derive at the numbers that some of these companies report. KB Home is trading higher by 0.30 cents to $12.00 a share. The stock has traded slightly off the high of the day. KB Home will have intra-day support at the $11.75 and $11.50 levels. The daily chart of KB Home should have very good resistance around the $12.50 level should it somehow trade higher.

Other leading home builder stocks that are trading higher are Toll Brothers Inc.(NYSE:TOL), Lennar Corp.(NYSE:LEN), and D.R. Horton Inc.(NYSE:DHI). These stock are all trading higher by about 2.0 percent on the session. However, all of these home-builder stocks look to have daily chart resistance slightly higher from current levels.



  [more]

Recs

0

Dollar Down, Gold Up. What Does It All Mean?

September 24, 2010 – Comments (0)

This morning December spot gold is trading at the new all time high of $1300.00 an ounce. Ever since Federal Reserve Bank Chairman Ben Bernanke gave a speech in Jackson Hole, Wyoming on August 27th indicating that the central bank could and will do more to flood the market with liquidity should the economy start to slow down. Since that time the stock market has gone into rally mode. However, gold began taking off to the upside around July 28th. This tells us that quantitative easing was already taking place and money was being printed and pumped into the very fragile system. How much higher can gold go from here? Well, how much more money can the Federal Reserve Bank print without the stock market reacting negative?

The U.S. Dollar Index has continued to tumble sharply lower since June 7th, 2010 when it reached a yearly high at $88.70. At one point in May and June of 2010 gold and the U.S. Dollar Index actually traded higher together as gold was part of the fear trade. Now gold is obviously part of the inflation trade. Therefore, when the U.S. Dollar Index declines the stock markets will inflate and trade higher. As we all know by now the opposite is true when the U.S. Dollar Index rallies or trades higher the major stock market indexes will decline and deflate lower. This morning the U.S. Dollar Index is trading at $79.38.

At this time the Federal Reserve Bank has successfully printed the stock market out of trouble whenever it looks close to a major breakdown as it did in late June. The Federal Reserve Bank and the global central banks are try desperately to inflate this economy back to health. So far it has worked, however, an individual or a family could not borrow or print there way out of a problem. Therefore, should the printing presses ever stop or should the money dilute to a worthless status it will not be a pretty situation for the new global economy. That is even true for the highly praised savior of the world, the Chinese economy. Who will the Chinese have to export their goods to? In any case, today the stock markets are back in jubilee mode and the inflation rally is still alive. Stay tuned as this could get very interesting soon.



Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

0

China Precision Steel Rips Higher, Sympathy Plays to Go Next

September 23, 2010 – Comments (0)

China Precision Steel, Inc. (NASDAQ:CPSL) has taken off to the upside over the last two days.  It has soared from $1.51 yesterday at the open, to a high today of $1.93.  That is a 28% move in two days. These Chinese steel stocks have been near their 52 week lows while China demand keeps on chugging. 

CPSL may continue to run higher, however, the risk reward their is no longer great. Instead, traders will soon look for the sympathy plays, other China steel plays that have not run yet. The two stocks I like are General Steel Holdings, Inc. (NYSE:GSI) and Sutor Technology Group Ltd. (NASDAQ:SUTR).  GSI is trading at $2.68, the chart looks ripe for a massive move and SUTR is trading at $1.74, also at the lows and looking like any buyers would send this thing shooting higher.

The key here are comments made by the CEO of GSI, Henry Yu. "Demand continues to be robust. These comments were made recently on August 6th.

As CPSL runs higher, it is highly likely GSI and SUTR will catch fire. Watch these closely.  

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Disclosure: Chief Market Strategist Gareth Soloway owns SUTR and GSI.
  [more]

Recs

0

Markets Continue Their Upward Swing

September 23, 2010 – Comments (0)

The markets opened sharply lower today, only to reverse and head higher. After ugly European PMI economic data and U.S. Jobless Claims that came in slightly worse than last week, the markets saw their first major red open in weeks.  The SPDR S&P 500 ETF (NYSE:SPY) dropped down to $112.49 after closing yesterday at $113.42.  No sooner did the markets make a brief mover lower, they then reversed sharply to the upside. At 10am ET, the markets were off their lows and more economic news was released. Leading Indicators were reported up 0.3%, slightly better than Wall Street expected. In addition, Existing Homes Sales came in better than expected, up over 7%.  The markets shot higher.  By 11:30am ET, the markets had turned higher for the day.

This bullish bias continues to be inbred in the markets for now. It must be respected. In addition, the dollar opened higher today but then fell off a cliff quickly. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading at $23.23.  That was a $0.09 move higher on the day. It has now fallen to $23.17, just $0.03 higher on the day. Always remember, the markets rally on a weak dollar or a dropping dollar. As you can see, the dollar fell off the highs, the markets rallied to the positive side.

The leading stocks continue to be Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN), both making new 52 week highs today. The weakest leading stock continues to be Goldman Sachs Group, Inc. (NYSE:GS).  This stock has had trouble catching a bid any of the last two weeks since it topped out at the daily 200 moving average.  Join the Research Center to get more in depth analysis, guidance, swing trades and education.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

2

Gold Is Stalling Out Today

September 23, 2010 – Comments (0)

The SPDR Gold Shares(NYSE:GLD) is trading lower on the session by 0.19 cents to $126.00 a share. The recent rise in gold has been very strong as of late. This tells us the Federal Reserve Bank will continue to print money and keep the liquidity in the market. The GLD will have intra-day support around the $125.50 area.

Most of the gold mining stocks are all under pressure this morning. Newmont Mining Corp.(NYSE:NEM), and Randgold Resources Ltd.(NASDAQ:NEM) are two leading gold mining stocks that are trading lower this morning. These stock have had a very sharp move higher recently and are short term overbought. Therefore, a pullback in these names is very possible.

  [more]

Recs

0

AKAM Flexing Some Muscle

September 23, 2010 – Comments (0)

Akamai Technologies Inc. has showed some good strength this morning despite the major indexes being under pressure. Watch for short term resistance on AKAM around the $51.40 - $51.55 area. After a short term consolidation the stock may setup again for another move higher as it is showing good relative strength.

Recs

1

This Chart Will Tell The Tale Of The Tape

September 23, 2010 – Comments (0)

Right now the recent stock market rally has occurred on the back of the falling U.S. Dollar Index. Just look at the pre-market activity how the S&P 500 Index futures have come off their lows ahead of the opening bell as the U.S. Dollar Index declined by nearly 0.30 cents from the 7:00 am EST highs. At that time the U.S. Dollar Index reached a high of $80.15. As of 9:18 am EST the U.S. Dollar Index is now trading at $79.85. It's the same old game as you may know. When the dollar declines the stock market indexes will simply inflate and trade higher. The opposite is true when the U.S. Dollar Index trades higher or catches a bid the major stock indexes decline or deflate lower. Can the U.S. Dollar continue to drop so that the major stock averages will inflate higher again? We shall see.

  [more]

Recs

1

Markets Bounce Again As The Light Volume Remains

September 22, 2010 – Comments (0)

The major stock market indexes have all reversed the early session declines. The move higher in the indexes come as the volume remains extremely light and the U.S. Dollar Index extremely weak. The SPDR Dow Jones Industrial Average ETF(NYSE:DIA) will have short term intra-day resistance around the $107.80 area. 

Recs

0

Key Stocks To Watch

September 22, 2010 – Comments (0)

International Business Machines Corp. ( NYSE:IBM) remains in a range between $122.00 and $132.00.  This tech stock listed on the NYSE has been in this range since late 2009. It is currently trading at the high end of the range. Watch it closely for a break out above $132.00.  If it cannot break out soon, look for it to fall back down to the low end of the range at $122.00.

  [more]

Recs

0

Revealed: The Keys That Told Of A Market Drop

September 22, 2010 – Comments (0)

In general, the markets soar on a big drop in the dollar. Over the last couple days, that has not been happening. Today the SPDR S&P 500 ETF (NYSE:SPY) is dropping sharply to $113.25, -$0.73 into the 200 moving average on the 10 minute chart. In many previous articles, I have noted how there were many disconnects in the market. Bonds were soaring, the dollar collapsing, gold jumping to new all time highs and the market was holding steady.  This is not usual, in fact, it is extremely unusual.  In my previous articles I pointed to this as a main negative divergence that would most likely see a drop in the markets shortly. A drop in the markets? But every analyst, media mogul and market guru has been calling for a continued rally? Well if you do not know by now, I could not care less about what everyone else is saying, I speak my mind and continue to be right a majority of the time.

If bond prices are spiking, big money is running for cover. That is the first signal that must be noted. In addition, the last two days, the dollar has been smoked to the downside. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $23.12, -$0.19 (-0.82%) on the day. The dollar and the markets have an inverse relationship.  When the dollar falls, the markets are supposed to go higher. Yesterday, the markets remained flat with a huge fall and today, the dollar is getting smoked again, and the markets are lower.  The next signal of a market pull back has been gold. Gold has been charging higher, hitting new all time highs day after day.  Spot gold is approaching $1,300 per ounce. The SPDR Gold Trust (ETF) (NYSE:GLD) hit an all time high today of $126.63. Gold has always been a safety play and a place where traders stash cash when fear starts to rise. According to the media, there is no fear whatsoever. This can also be looked at as a psychology play, going the opposite way of the crowd.  Bottom line is this, the signals have been there and continue to be there. I have pointed them out in the previous days and with the market dropping today, it looks more clear than ever. 

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

0

Commodity Stocks Surge As the Dollar Hits 4 Month Lows

September 22, 2010 – Comments (0)

This morning the U.S. Dollar Index is is trading lower by 0.79 cents to $79.65. This decline in the U.S. Dollar Index brings the dollar to a fresh new four month low. As we all know by now when the dollar declines the stock market indexes will inflate and trade higher. Most effected by the move in the U.S. Dollar Index will be commodities since they are all traded in dollars. Today most leading commodity stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Southern Copper Corp.(NYSE:SCCO) are all trading sharply higher.

Spot oil and gold are both higher as well on the back of the declining U.S. Dollar Index. Gold is surging to a new all time high at $1295.00 an ounce. Should the U.S. Dollar Index find a support area and stage a bounce this could stall out the move in the commodity names and put pressure on the stock markets.

  [more]

Recs

1

What is the New High In Gold Telling Us?

September 22, 2010 – Comments (0)

Since the August 25th stock market pivot low the major stock indexes have rallied higher by 10.0 percent. This is a major point move in less than four weeks. In the past the stock market would rarely move 10.0 percent in a year. These days we are seeing these 10.0 percent type of moves during rallies and corrections. The talking heads in the media are now getting very bullish pointing to the actions of the Federal Reserve Bank as one of the catalysts.

If you look at a chart of the SPDR Gold Shares(NYSE:GLD) you will notice that the popular ETF made a pivot low on July 28th, 2010 at $113.08. This morning the GLD is trading over $126.00 a share. That is nearly a 12.0 percent jump in the GLD in just 39 trading days. The point that I'm trying to make here is that gold is the way to tell when money is being created or printed. The U.S. Dollar Index topped out on June 7th, 2010 at $88.70. this morning the U.S. Dollar Index is trading around $79.70. This is nearly a 10.0 percent decline in the dollar since that June high. We all know by now if you want to get the stock market higher the dollar must decline.

Simply put when gold increases it is telling us that the Federal Reserve Bank is continually providing liquidity to the markets. Yesterday the Federal Reserve Bank kept the fed funds rate at zero percent. This rate is what the Federal Reserve Bank charges the large major banks such as J.P. Morgan Chase & Co.(NYSE:JPM), Bank of America Corp.(NYSE:BAC), and Wells Fargo & Co.(NYSE:WFC) for overnight borrowing. Therefore, these banks can borrow money for nothing and simply buy U.S. Treasury notes and make money. When you include the banks credit card business in which they sometimes charge very high interest rates they actually have a sweetheart deal. When you think about it the banks do not have to make any traditional loans in order to make money.

Now that we know gold is telling us that the money supply is extremely loose when does this artificial dilution of the U.S. Dollar stop? What are the repercussions of all this money creation and liquidity? Since 2006, M3 money supply is no longer published or revealed to the public by the Federal Reserve Bank(US central bank). The Federal Reserve Bank stated that it was simply not in the budget to keep revealing the M3 money supply data to the public. These are the same people that print money for a living. How can it not be in the budget? In any case this is where gold comes in. Gold is now telling us that the printing presses by the Fed have been running on overtime. At this time the stock markets seem to love it. However, at some point this flood of liquidity will become a negative for the stock markets.




Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

5

Is Gold The Fed's Worst Nightmare?

September 21, 2010 – Comments (4)

The SPDR Gold Shares made a new all time high this afternoon after the Federal Reserve Bank said that they would keep the fed funds rate at zero percent. The Federal Reserve Bank also said that they would do whatever they need to in order to keep the markets higher. These comments launched the market indexes and gold sharply higher. When gold rallies it is telling the world that the central banks are diluting their currencies by printing more money. Spot gold is now flirting with the $1300.00 level. The Federal Reserve Bank no longer shares M3 money supply with the public. Therefore, the public no longer knows exactly how much money is in circulation at any one time. However, the increase in gold is a pretty good barometer of how much money is being created.   [more]

Recs

4

Beware The Oil Signals

September 21, 2010 – Comments (1)

As the rally in September has been impressive and gigantic, one thing is concerning. Oil has not rallied much, especially considering the drop in the dollar. The United States Oil Fund LP (ETF) (NYSE:USO) is only up 3-5% from the recent lows while the S&P 500 is higher by around 10%. In addition, the dollar has dropped substantially which should strengthen oil as well. This has not happened. Oil is one of the major economic leading indicators as any uptick in the global growth story, creates a rise in oil as future demand increases.

While this massive rally has turned even the strongest bears into bulls, the media giddy and the retail investing is once again putting their hard earned money into the markets, I remain skeptical.  Oil should be soaring much more than it is if this rally is truly based one an economic shift to recovery and momentum.   [more]

Recs

0

Everywhere You Turn, Bulls Galore

September 21, 2010 – Comments (1)

From the President, down to the retail investor, the bulls are back in full force. Just three weeks ago, many were ready to jump out the window claiming the double dip recession was in play, things were as bad as they could be and there was no end in sight. Truly amazing, the switch that has ocurred.

The markets are trading flat to slightly lower after a 10% rally in September so far. The SPDR S&P 500 ETF (NYSE:SPY) is lower by $0.30 to $113.90 (-0.26%). The market is unlikely to make any major moves prior to the Federal Reserve announcement on interest rates at 2:15pm ET. Volume has remained light as well prior.  The dollar is weaker again today, inching lower. With the economy looking stronger, it is unlikely the Federal Reserve will do anything but continue to ease using quantitative easing methods. They will not tighten. Knowing that, the dollar should continue to remain weak as we are seeing it.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) sits at $23.47, -0.10 (-0.42%).

As bullish sentiment increases, retail money starts flowing back in the markets. With the S&P 500 up 10% for the month, is this a fake rally or one that will continue for months to come.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

2

Bull Stampede, Or Is It Time To Worry Yet?

September 21, 2010 – Comments (0)

It is not uncommon to see a rally begin or start around a holiday. Recently that was exactly what occurred before the Labor Day holiday. On August 25th the S&P 500 Index traded as low as 1039.83. Since that low the S&P 500 Index has rallied higher by nearly 10.0 percent. Yesterday the S&P 500 Index closed at 1142.00. This rally has been very explosive when you look at the size of the gains in such a short amount of time.

It is very important to realize that there are a few problems with this huge point rally. The first and most obvious negative for this rally is that the volume in this surge higher has been extremely light. In normal times when the markets trade higher on light volume it is often a sign of weakness. However, a case can be made that since the March 2009 low the volume has been light on almost every move higher in the market. Is this just the way it is now or is this a giant warning sign of things to come? Only time will tell.

The other major negative for the stock market is that the stock indexes have seemed to struggle in 2010 despite the huge amount of stimulus in Europe and in the United States. It is important to remember that if things were really better in the world the central banks in the United States and Europe would not have the overnight bank lending rates at or near zero percent. In the United States the Federal Reserve Bank has kept the fed funds rate(overnight lending rate to the large major banks) at zero percent since December 2008. We can all remember what damage the Federal Reserve Bank Chairman Alan Greenspan caused when he lowered the fed funds rate to 1.00 percent in 2002. That low rate in 2002 could have very well been the cause of the 2008 credit crisis that rattled the world markets.

The next major negative for this rally is the recent decline in President Obama's approval rating. The late great Sir John Templeton used to say, “as a president's approval rating goes, so goes the market”. We can all remember what happened to the stock market in 2008 as President Bush's approval rating plummeted. It lead to one of the greatest stock market declines in nearly 100 years.

Remember 2010 has been up and down all year. This afternoon the Federal Reserve Bank will announce their rate decision. The market is not expecting any surprises out of the U.S. central bank and rates are very likely to remain unchanged at zero percent. While these markets have exploded higher in the past three trading weeks it is now getting a little overdone and likely a time start worrying again.




Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

0

Google Rocks Higher, Suring Into Key Double Top

September 20, 2010 – Comments (0)

Google Inc. (NASDAQ:GOOG) lives again, following a now two day move of almost $30.00 higher. While this move is solid, Google has now surged into a double top from early August. This level is at the $509.00 range and will be heavy resistance in the next few days. Note the chart below. To gain more insight, analysis, guidance and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

1

Markets Surge Ahead Of Obama And Federal Reserve

September 20, 2010 – Comments (1)

On light volume, the markets jumped higher this morning ahead of the Town Hall Meeting with President Obama. In addition, the market continues to look forward to the Federal Reserve comments tomorrow after their policy meeting at 2:15pm ET. The SPDR S&P 500 ETF (NYSE:SPY) is higher by $1.27 to $113.76 (+1.13%).  This move comes after continued weakness in the dollar. The dollar opened flat as the markets opened flat to slightly higher. Then as the dollar collapsed lower, the markets shot higher.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower by $0.07 to $23.53 (-0.30%). Always remember, the markets go inverse to the dollar. Therefore, the dollar dropping only helps the markets move higher into this Obama Town Hall Meeting.

The markets are hoping to hear bullish comments from Obama. Namely, talk on job creation and tax cuts.  Even if the markets do not get exactly what they want, it is likely no major selling will occur as the Federal Reserve meeting tomorrow will keep things on hold.


Gold is hitting new all time highs again today while oil is moving higher as well. Gold moving up is concerning to the markets as this is generally a fear indicator or major inflation hedge. Either way, be on the look out for one of those factors to show their ugly faces soon.   [more]

Recs

0

Tale Of The Buck

September 20, 2010 – Comments (0)

This morning the U.S. Dollar Index has continued to rally throughout the morning. As many of our readers know when the U.S. Dollar Index trades higher the stock market indexes will often deflate and trade lower. When the U.S. Dollar Index declines the major stock market indexes will often inflate and trade higher. This morning the S&P 500 e-mini futures are trading higher by 3.00 points ahead of the opening bell at the New York Stock Exchange. However, the S&P 500 e-mini futures were much higher before the before the U.S. Dollar Index caught a bid sharply higher from it's morning low. 

Today President Obama will host a town hall style meeting that will be televised. Therefore, the markets will often hold up as the leader of the free world speaks. However, it is the action in the U.S. Dollar Index that will drive the stock markets.

  [more]

Recs

3

The Street Is Buzzing About This Pattern

September 17, 2010 – Comments (0)

Everyone on Wall Street is now buzzing about the 'inverse head and shoulders' pattern that the S&P 500 Index has now carved out on the daily charts. This is a bullish pattern that often predicts the price target once the stock breaks out above the neckline or sideways trend line. In this particular case the pattern has a target of $125.00 on the SPDR S&P 500 ETF(NYSE:SPY) should the pattern trigger. Usually, these patterns will have a tendency to play out once they trigger, however, sometimes they will fail. Since the March 2009 low most of the 'inverse head and shoulders'(bullish)  patterns have played out to the upside while the 'head and shoulder' top patterns which is bearish have failed. You can check the failed head and shoulder top patterns that failed by looking at any chart in July 2009 and July 2010. We shall see very soon if this pattern triggers and if it reaches it's upside potential target.




Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

1

Market Whips On Options Expiration

September 17, 2010 – Comments (0)

The market jumped higher, sold to turn negative, surged back towards the highs of the day and has how turned back to the flat line, all in the first two hours of the trading day. For those of you following the market over the last few weeks, this does not sound like the norm. The volatile moves today are very unusual and are most likely due to options expiration.  This will quiet down by the noon hour.  Markets are likely to be flat for the day.

The SPDR S&P 500 ETF (NYSE:SPY) is trading at $112.42, - $0.03. The SPY has been as high as $113.15 and as low as $112.18.  The dollar is slightly higher on the day with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $23.60. +$0.06 (+0.25%).  A strong dollar usually puts some pressure on the markets and may be one of the reasons the market has given up its solid gains after great earnings from Oracle Corporation (NASDAQ:ORCL) and Research In Motion Limited (USA) (NASDAQ:RIMM).

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

  [more]

Recs

2

Some keys To The Puzzle

September 17, 2010 – Comments (0)

The U.S. Dollar Index is one of the most important charts in the stock market. Simply put every major move or reaction higher in this stock market is about inflating stocks when the U.S. Dollar Index declines. The opposite is true when the U.S. Dollar index rallies the stock market will usually sell off and deflate. At this time the Federal Reserve Bank and the U.S. Treasury have been doing everything possible to inflate this market back to health.

Over the past few days the U.S. Dollar Index has sold off and declined giving the major stock market averages a rally this week. While everything looks good on the surface of this recent rally it is important to note that most leading commodity stocks have not participated this week. Cliffs Natural Resources Inc.(NYSE:CLF) is a leading iron ore pellet producer that will usually trade sharply higher when the U.S. Dollar declines. This stock has actually fallen over the past few days. Other leading commodity stocks that have been somewhat weak in the past few days have been U.S. Steel Corp.(NYSE:X), Freeport McMoRan Inc.(NYSE:FCX), Nucor Corp.(NYSE:NUE), and AK Steel Holding Corp.(NYSE:AKS). Now it is very possible that all of these leading commodity stocks are weak due to the recent decline in the Shanghai Index(Chinese stock market) over the last few days. China is certainly part of the equation and must be watched very closely in the next few weeks.

This week is also quadruple witching options expiration which usually makes for a volatile and choppy week. However, this market has steadily traded higher all week on very light volume. Regardless of the recent market action it still seems that the stock markets will trade inverse to the U.S. Dollar Index. That is just the way it has been over the past few years and until that changes that is the way it is. When the commodity stocks start to fail this is a very good indication that this rally is coming to an end.



Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
  [more]

Recs

1

Direct TV Soar To New High

September 16, 2010 – Comments (0)

DirectTV(NASDAQ:DTV) has climbed to a new high today for 2010. The stock has rallied higher by more than 20.0 percent since the early July low when it traded at $33.25. By all means this is a very strong chart move and a very strong stock. The next resistance levels to watch for this stock are the $42.00 area and much more at the $45.25 level. Both resistance levels could see pullbacks.

Dish Network Corp.(NASDAQ:DISH) unfortunately does not have as strong of a chart as DirectTV. This stock is very range bound and trading near the lows for the year. Dish is also trading below it's daily 50 and 200 moving averages which indicate weakness. Therefore, should the current market rally begin to decline this stock is likely to come under severe pressure. Dish Network will have daily chart resistance around the $19.75 - $20.00 level should the stock continue to trade higher. The next major downside support level for the stock is around the $16.50 level.


  [more]

Recs

0

Same Game. Different Day

September 16, 2010 – Comments (0)

When the institutional money needs the market to rise they simply drive down the U.S. Dollar Index. The U.S. Dollar Index was making a nice bullish consolidation pattern that failed right around 2:00 pm EST. Once the dollar declined the markets caught a sharp bid into the high of the day. Recently the Japanese were criticized for manipulating the Yen. At least they admitted it. Who is to blame for manipulating the U.S. Dollar Index in the U.S. when it happens nearly everyday.

  [more]

Recs

1

Basing Chinese Stocks Heating Up

September 16, 2010 – Comments (0)

While the China market has pulled back in recent days, the Shanghai Index has been a leader for the last few months. Just recently we have seen the U.S. markets catch fire as the economic outlook appears much better. Just in the last few days, some Chinese ADR's have started to rip higher on buyback news or what seems to be short squeezes. Just yesterday, out of the blue Fuqi International, Inc. (NASDAQ:FUQI) shot higher, surging from a price of $4.98. Today, the stock hit a high of $7.30.  This is an amazing gain of 46.58% in just two days. In addition, China MediaExpress Holdings Inc (NASDAQ:CCME) announced a $30 million share buyback, sending the stock higher by almost 12% today.

The key to these China plays seems to be their low price to earnings ratio and the massive amount of shorts that have piled on, expecting some sort of major depression that just does not seem to be on the near term horizon. Over the last few days, shorts have been getting nervous as many of these charts have been basing at their 52 week lows. It seems like many of these plays are like TNT with the fuse just waiting to be lit.

I have been accumulating some of these plays and continue to do so. The key is to look for China ADR's trading at their dead lows that have solid profits and growth. Many of these have price to earnings ratios of 3-4.  Some examples are Zoom Technologies, Inc. (NASDAQ:ZOOM), Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM) and China Infrastructure Investment Corp (NASDAQ:CIIC). ZOOM had news yesterday that seemed to float under the radar. They received a proposal for a line of credit of $44 million from the Bank of China. This was not noticed but is positive as many feared ZOOM would have to dilute to raise capital for growth.  That now should be off the table. The stock is profitable and at the lows of the chart. It looks low risk, high reward here.

BSPM and CIIC are both solid cases for being the next short squeeze as well. Both trading at the lows of their charts with solid growth. There are others as well that look intriguing but I will cover them at a later date. As of now, keep an eye on other China plays at the dead lows of their chart that have profits, it may be the next big mover. 

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com



  [more]

Featured Broker Partners


Advertisement