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September 2011

Recs

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Is Technology The Next Sector To Breakdown?

September 30, 2011 – Comments (0) | RELATED TICKERS: DIA , PG , QQQ

The technology heavy NASDAQ Composite has held up better than the other major stock indexes such as the Dow Jones Industrial Average, S&P 500 Index and the Russell 2000. As long as the NASDAQ Composite holds up and does not breakdown, this tells us that people are still willing to take on risk. Please remember, most stocks in the NASDAQ Composite do not issue dividends. The majority of stocks in the NASDAQ are considered growth stocks, therefore, if this sector breaks down it is a sign that investors believe that the chance of growth is over for the time being.

Recently, the Dow Jones Industrial Average (DJIA) has been beginning to hold up better than the other major stock indexes. This tells us that investors are trying to find yields and have given up on growth. Please understand that all of the 30 companies in the DJIA pay a dividend and are considered multi-national blue chip stocks. Therefore, if you buy a stock such as Procter & Gamble Co (NYSE:PG) you know you will receive a dividend and you hope that the stock will not decline as fast as other stocks. For example, PG stock is one of the few stocks that are trading above all of the major daily chart moving averages. At this time, there are very few stocks that have been able to recapture the daily chart 50 moving average. When stocks trade below the daily chart 50 Moving average most institutional traders will view the stock as being in a weak technical position. Obviously, PG stock is in a strong technical position at this time.

The bottom line, when the Dow Jones Industrial Average is stronger than the other major stock indexes it is a negative for growth stocks. If this remains the NASDAQ Composite could be under some severe selling pressure. It is safe to say that these markets will remain very volatile in the near term. Traders should be aware that the technology sector could be the next major indexes to breakdown.

Nicholas Santiago
InTheMoneyStocks.com
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Financial Stocks Are Talking

September 30, 2011 – Comments (0) | RELATED TICKERS: XLF , JPM , MS

On days like this, where the stock markets are down sharply at the start of the day there is only one place to look for guidance, it is the financial stocks. As long as the financial stocks remain weak traders must expect lower prices on the major stock indexes. If and when the financial stocks bounce that is when the major stock indexes will catch a small bid and trade higher.

J.P. Morgan Chase & Co (NYSE:JPM) is the most important stock in the United States and possibly the world. This stock has lead the stock markets higher and lower throughout 2011. Traders should always watch and monitor JPM stock at all times. This morning, JPM stock is trading lower by 0.58 cents to $30.81 a share. This financial giant will have some minor intra-day support around the $30.43 area. Should that near term support level breakdown the next intra-day support areas will be around the $30.00 and $29.50 levels.

Other leading financial stocks that traders should follow are Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America Corp (NYSE:BAC). All of these leading financial stocks look horrible on the daily chart at this time. This is how the financial stocks talk to us.

Nicholas Santiago
InTheMoneyStocks.com


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It Is Time To Bring Out Buffett

September 29, 2011 – Comments (3) | RELATED TICKERS: XLF , BAC , JPM

This afternoon, the major stock indexes have once again rolled over reversing a 200.0 point rally on the Dow Jones Industrial Average (DJIA). The talking heads in the financial media continue to talk about the recovery from the 2008 financial crisis, meanwhile, we are still in that very same crisis. Stocks such as J.P. Morgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), and other financial giants continue to look terrible on the charts. Investors are still waiting to hear and see the central banks inflate the markets higher again in that typical Keynesian fashion. So far, we can see how much that money creation approach has gotten us. The stock markets have not yet gone into panic mode, however, stock prices continue to decline and fear is beginning to creep in.

Tomorrow, the world's most famous investor, Warren Buffett, is going to appear on CNBC. You know things must be getting bad when everyone's favorite Keynesian is going to make a television appearance. Sure, he will tell everyone to buy stocks when people are fearful, however, he knows that he will be bailed out  by the government if his trade goes bad. He was bailed out in 2008 when he invested in Goldman Sachs. That was just about as a trade as I have ever seen. Now Mr. Buffet has invested in Bank of America, many investors jumped right on his band wagon when he bought those preferred shares. That stock is underwater from that time and a lot of investors are underwater with him. This guy has benefited from bailouts more than anyone on the planet. You know things are getting bad when Warren Buffet has to come out from Omaha and make his save the market TV appearance.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

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Buying Opportunity As DOJ Joins SEC On China Stocks

September 29, 2011 – Comments (0) | RELATED TICKERS: BIDU , SOHU , SINA

Today, word hit the markets that the U.S. Department of Justice is helping the Securities & Exchange Commission look into “accounting irregularities” among U.S. listed Chinese stocks. This sent companies like Baidu.com, Inc. (ADR) (NASDAQ:BIDU) and Sohu.com Inc. (NASDAQ:SOHU) down over 10%. Other Chinese stocks listed on the U.S. exchanges dropped as well.

While this news is causing some selling, it is probably the best possible outcome and should be cheered. It also may be setting up for the best investment opportunities over the next decade. In the last year, Chinese companies like RINO International Corporation and many others have been exposed as frauds. This has made investors run from all small and mid cap Chinese names. Whether legitimate or not, investors are not willing to take the risk of buying them.  The DOJ and SEC action will hopefully cleanse the system of bogus companies. Out from under the ashes will emerge companies trading at P/E's of 1,2,3 and 4 that are legitimate. This will be the place to be in the next decade and these valuations will not last long.

Now is not the time to jump in to these small and mid cap names. However, once the DOJ and SEC do their jobs, the sun will rise and those that survive will be some of the best values in the stock market.

Gareth Soloway
InTheMoneyStocks.com

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Why The Stock Market Rally Will Hold Today

September 29, 2011 – Comments (1) | RELATED TICKERS: SPY , DIA , QQQ

The stock market opened sharply higher today. This move took the Dow Jones Industrial Average up by more than 200 points. In the last two days, similar up moves have taken place but sharp selling has come in late in the day and driven the markets back down. Today, the markets are seeing sharp selling again from the gap higher. While this looks almost identical to the last few days, there are some major differences.

First, the sharp sell off is occurring very early in the day. This is far different than the last two days. The last two days saw the sharp decline late in the day. Often times, early selling is done to lure in the shorts who are eager to believe another roll over is coming. When trading the markets, always remember, nothing is easy or that simple. Second, the last few rallies were based on myth and rumor out of Europe. Today, the markets actually saw a vote from Germany that took a major bailout deal one step closer. Fact is always better than fiction.

These factors make the sell off today more likely to reverse, moving higher and holding gains.

Gareth Soloway
InTheMoneyStocks.com

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Recs

4

Forget Europe, This Is Worse

September 29, 2011 – Comments (0) | RELATED TICKERS: FXI , FXE , NTES

As you all know, the banking crisis in the European Union is an absolute disaster. Most of the countries in the European Union are insolvent and they will have to likely default at some point. Whether or not there is a structured default remains to be seen. At this time, the European Union is likely pass this European Financial Stability Facility (EFSF) to help bailout all of the Euro-zone banks in the near term. This plan is simply paying off debt with more debt. While it may keep the European Union together for a little while longer there are still going to be major problems in the region for a long time to come.

Believe it or not, there is a bigger problem lingering in the global economy. It is not the European debt crisis, it is not the massive U.S. debt crisis that grows every day. It is a Chinese slowdown that could cause the stock markets to decline further. The Shanghai Index (China) made a new 52 week closing low last night. China is the growth engine of the world, they produce most of the goods that people buy and use in the world. The Shanghai Index has actually lead the global stock markets for years now. If you look at the March 2009 low on the S&P 500 Index and the rest of the major stock indexes in the United States you can easily see that the Shanghai Index actually bottomed in November 2008. This is clearly indicating to us that the Shanghai Index is the leading economy in the world.

China is facing many problems at this time. The country has a housing bubble in place. Real estate prices are much too expensive compared to the average wage. Next, the Chinese economy is facing high inflation. This is obvious in Chinese housing and the cost of food for the people who live in the nation. The Chinese are also starting to face an uprising in the labor force. The Chinese workers are demanding raises and better work conditions. These are all problems that are happening right now in this massive country. People must understand that the nation has a population of 1.3 billion. Any economic slowdown will hurt that country.

This morning, the Chinese ADR's are behaving terrible. Leading stocks such as Baidu Inc. (NASDAQ:BIDU), Sina Corp (NASDAQ:SINA), and Sohu.com Inc. (NYSE:SOHU), and Netease.com Inc. (NASDAQ:NTES) are declining sharply lower on a day when the stock markets in the United States are rallying higher. This is not the type of action that is healthy. Remember, it has been Chinese investments around the world that everyone has been hanging their hopes on. If the Chinese stop investing in different places around the world the entire global market will slowdown. This is worse than the European crisis.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

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Will This Early Rally Fade Again?

September 29, 2011 – Comments (0) | RELATED TICKERS: UUP , X , CAT

Nearly every day the major stock indexes gap up sharply or gap down sharply. The stock market participants are extremely focused on every rumor or word coming out of the European Union. Who really knows what to believe at this point? One day Greece is going to be bailed out again, the next day Greece is going to default. One day Germany says they will bailout the Euro Union, the next day they will not. This news is absolute insanity for anyone that trades off of news or the so called fundamentals.

What we do know as a trader is that the major stock indexes in the world have traded inverse to the U.S. Dollar Index. Therefore, as long as the U.S. Dollar Index declines the major stock indexes will usually inflate and trade higher. On the flip side, if by some chance the U.S. Dollar Index rallies or trades higher throughout the session the markets will likely decline and sell off again. The movement of the U.S. Dollar Index is the real driving force in the stock market. Who cares about economic reports these days? They are revised and never tell anyone the true story. Traders should just remember that the markets will trade inverse to the U.S. Dollar Index.

Some stock sectors that will trade higher on the back of a weak U.S. Dollar Index are energy, industrial metals, and believe it or not, technology. Should the U.S. Dollar Index decline throughout the trading session stocks such as U.S. Steel Corp (NYSE:X), Caterpillar Inc. (NYSE:CAT), and Chevron Corp (NYSE:CVX) could see higher prices. These same stocks will likely fade or decline if the U.S. Dollar Index rallies higher. Traders should watch for intra-day support on the U.S. Dollar Index futures (DX Z1) around the $78.15, and $78.00 levels. As long as the U.S. Dollar remains weak this rally could hold up into the close. If the U.S. Dollar rallies traders should watch out below.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

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There Is Only One Way To Get It Up

September 28, 2011 – Comments (2) | RELATED TICKERS: XOM , XLE , CVX

As you may know, the major stock market indexes have been struggling since topping out in May 2011. Since that time, there has only been one way to get this market to trade higher; the U.S. Dollar Index has to decline. That's right, unless the U.S. Dollar Index sells off or declines the stock markets cannot seem to trade higher. In fact, when the U.S. Dollar Index strengthens everything deflates and trades lower. Several months ago when oil and commodity prices were soaring higher it was simply because the U.S. Dollar Index was weak and making new lows. Now that the U.S. Dollar Index has traded off the August lows by $4.00 the markets drop on any U.S. Dollar pop. 

Leading energy stocks such as Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVX) have rolled over as soon as the U.S. Dollar Index caught a bid. Today, leading commodity stocks such as Cliffs Natural Resources Inc (NYSE:CLF), Southern Copper Corp (NYSE:SCCO), and Nucor Corp (NYSE:NUE) are all selling off sharply as the U.S. Dollar Index trades higher on the session. Traders can watch for intra-day resistance on the U.S. Dollar Index around the $78.52 level and more resistance around the $78.75 area. Remember, when the U.S. Dollar Index rallies the major stock indexes will decline. The only way this market trades higher is when the dollar dips. 

Nicholas Santiago
InTheMoneyStocks.com


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Recs

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Targets On Three Major Stocks

September 28, 2011 – Comments (0) | RELATED TICKERS: INTC , IBM , AMZN

While most of the market has been under recent pressure, three stocks have stood out and defied the market downturn. They have pushed higher and are all heading towards master levels. These levels will be revealed and should they hit, will be a long term pivot top according to proprietary technical signals.

Amazon.com, Inc. (NASDAQ:AMZN) is soaring today, trading at $235.16, +10.95 (+4.88%) . This is a monster gain as the company is set to unveil its iPad-like device. Amazon.com has continued to grind higher, stretching its P/E to over 100. While this device is expected to be a great thing, it may not justify the lofty valuation. The master level to watch is $250.00. This round number is working like a magnet to draw the stock to it. Once hit, expect a sharp pull back.

Intel Corporation (NASDAQ:INTC) has been a stock that has also defied gravity. In many ways, this company has been reborn, finding a way to increase earnings and give solid guidance. The stock over the last month has jumped from just over $19.00 to near $23.00. While it is stalling at current levels, any further spike will take it to $24.00. This will be the level for a major pull back.

International Business Machines Corp. (NYSE:IBM) has had a monster three day move. IBM opened on Monday at $167.00. The stock hit a high today of $180.75. For one of the largest companies in the world, this gain in market cap is extreme. IBM is just a small shot away from the 52 week high of $185.63. This will act as a major level on the stock. A sharp pull back is likely.

Gareth Soloway
InTheMoneyStocks.com

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Recs

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Future Stock Market Guide Revealed

September 28, 2011 – Comments (0) | RELATED TICKERS: DIA , GS , JPM

Today is a major day. Simply put, the S&P 500 is trading right on a major break down, break out trend line.
Should the markets close lower, sharp downside is expected in the coming days. If the markets close higher, neutral to upside continues into next week. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) $111.97, +0.26 (+0.23%).

The markets continue to hope that Europe will reach some sort of major bailout deal. Germany continues to be one of the major resistance points. The possible deal is what has driven the markets higher over the last few days.

The positives and negatives of today's market are easily seen. First, on a positive note the volume is light. The next few days will be the Rosh Hashanah holiday. This may keep volume light overall and that favors the upside. On the negative side, bank stocks and copper are not performing well today. These are both looked at as major leading indicators. With the markets hanging around the flat line, Goldman Sachs Group, Inc. (NYSE:GS) is trading at $98.76, -0.79 (-0.79%). In addition, JPMorgan Chase & Co. (NYSE:JPM) is trading at $31.44, -0.13 (-0.41%).  Copper is trading down sharply as well. The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSE:JJC) is trading at $41.82, -2.30 (-5.21%).

Gareth Soloway
InTheMoneyStocks.com


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Recs

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The Chart Tells Us Everything

September 28, 2011 – Comments (0) | RELATED TICKERS: UUP , UDN , QLD

The major stock indexes continue to trade inverse to the U.S. Dollar Index. As soon as the opening bell rings at the New York Stock Exchange traders should simply follow a chart of the U.S. Dollar Index futures (DX Z1), or the PowerShares DB US Dollar Index Bullish (NYSE:UUP). When the U.S. Dollar Index dips the major stock indexes will inflate and trade higher. The opposite is true when the U.S. Dollar Index rallies or trade higher as the major stock indexes will usually decline and trade lower. Traders and investors must follow the U.S. Dollar Index chart at all times.

Most commodities and energy stocks will usually trade higher on a weaker U.S. Dollar. It is also important to note that the major stock indexes will also rally or inflate higher if the U.S. Dollar Index declines. Recently, the NASDAQ Composite has been the strongest major stock index in the market, therefore, if the U.S. Dollar Index declines traders can watch for a bounce in the tech heavy stock index. It is always important to remember that just about everything will deflate if and when the U.S. Dollar Index moves higher. Often this inverse relationship will trade inversely tick for tick throughout the trading day. The one time of the session that the U.S. Dollar Index will not have the same effect on the markets is when the trading volume is extremely light. Traders can see this by looking a chart of the SPDR S&P 500 Trust (NYSE:SPY) just prior to a major holiday.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Pick Your Poison

September 27, 2011 – Comments (0) | RELATED TICKERS: DXD , DDM , FXE

In order for the stock market to rally or trade higher the U.S. Dollar Index has to decline. This has been proven repeatedly over the past ten years. Traders can simply look at an intra-day chart of the U.S. Dollar Index and see how quickly the SPDR Dow Jones Industrial Average (NYSE:DIA) will deflate and trade lower as soon as the U.S. Dollar Index catches a bid higher. This afternoon, the Dow Jones Industrial Average (DJIA) was trading higher by more than 300.0 points, as soon as the U.S. Dollar Index found a low intra-day the DJIA dropped by more than 100.00 points in thirty minutes to curb the intra-day gains.

It is still rather amazing how investors get so excited about a rising stock market when the U.S. Dollar Index drops or declines lower. A weaker U.S. Dollar Index is a direct tax on the U.S. people. The dollar will buy less goods and services as it becomes diluted. The price of gasoline, heating oil, food, commodities, and almost everything else that people need to survive will become more expensive. The politicians talk about strong U.S. Dollar policy, however, the dollar has been weak since topping out in 2001 at $120.00 per contract. This decline in the U.S. Dollar Index coincided with the tech bubble. Today, the U.S. Dollar Index trades at $77.70 per contract which is about a 36.0 percent decline from the 2001 high. So there you have it, if you want a strong stock market it will come at the cost of a weaker U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Three Stocks That Could Spell Trouble For Market Rally

September 27, 2011 – Comments (0) | RELATED TICKERS: JPM , AAPL , IBM

The markets continue to hold their gains today. The Dow Jones Industrial Average is trading higher by just under 300 points. Rumors are flying from Europe. It appears a major bailout plan is in the words and could be unveiled in days. While the bulls are jumping for joy, three stocks signal a warning to the entire market and the sustainability of this rally.

The bank stocks have been and will be the key to any sustainable rally in the market. They were the leading indicator on the way down and their push up over the last two days has taken the the whole market higher. Their exposure to the housing market and European situation has put them on the cutting edge of the next market move. JPMorgan Chase & Co. (NYSE:JPM)  is known as the leader of this group. In today's action, JPMorgan is trading higher, but at the lows of the day while the S&P 500 hits the highs of the day. This is something that should be watched closely.

The NASDAQ is also soaring. As the technology index trades at the highs of the day, the two most important leading tech stocks are performing poorly. Apple Inc. (NASDAQ:AAPL) is trading at $406.34, +3.17 (+0.79%). While it is up, compared to the NASDAQ's gain of almost 3%, it is a poor performer. In addition, the second leading technology stock is negative. Amazon.com, Inc. (NASDAQ:AMZN)  is trading at $227.61, -2.24 (-0.97%) . This is another warning signal on a market that continues to trade on optimism and joy.

While the rally is solid and must be respected, these leading stocks should be monitored. Smart traders are seeing a soaring market with no major leadership right now. The overall rally will not last without these three leaders participating.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Lost Cause: Stock Markets Surge On Hopes And Dreams

September 27, 2011 – Comments (1) | RELATED TICKERS: SPY , DIA , QQQ

The markets are surging today on major optimism over the European debt scenario. Late yesterday, news broke that the powers in Europe are preparing to handle the crisis with major initiatives. These initiatives will mirror those done by the United States in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.89, +2.65 (+2.28%).

The markets continue to go through panic and fear, then hopes and dreams. This possible deal will turn out to be reality soon. However, it will not save this market in the short term. It will not restart the global economic engine or save European countries from collapsing down the line. It will work as a small band-aid.

To see the reality of the situation, one must just look at the recent New Home Sales data. This data was the worst on record in terms of buys over the last 6 months. Without the housing market, the economy will not recover. In addition, unemployment has remained at the highs for years now. Lastly, let's not forget the next collapse on the horizon in the United States. States like California are just as bad off as Italy and Greece. Will they get the next bailout?

This sharp bounce in the markets will fade. New lows will be seen and panic will set back in.

Gareth Soloway
InTheMoneyStocks.com

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Recs

2

J.P. Morgan Chase Is Still The Stock Market Barometer

September 27, 2011 – Comments (1) | RELATED TICKERS: KBW , JPM , DB

If you want to know what the stock market is doing just follow J.P. Morgan Chase & Co (NYSE:JPM). This stock is the leading financial company in the United States and possibly the entire world, therefore, it will generally lead the major stock indexes. At this time, there is a banking crisis going on around the world. Sure, the European banks might be where all of the recent focus is, however, all of these banks have some exposure to European debt and that is why these bailouts are being talked about or tried by the central banks. JPM stock has staged a sharp three day rally and so has the major stock market indexes. If JPM stock begins to slide this short term rally could end as quickly as it began.

Other financial stocks that are trading higher today include Goldman Sachs Group Inc (NYSE:GS), Deutsche Bank AG (NYSE:DB), and Credit Suisse Group (NYSE:DB). All of these stocks are very important and should be followed, however, JPM stock is certainly the most important and a stock market barometer.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Precious Metals Shine Early

September 27, 2011 – Comments (0) | RELATED TICKERS: GLD , SLV , AUY

This morning, the precious metals are all trading sharply higher. The catalyst for the rally in gold and silver is the European Union bailout plan. Traders should be aware that if this European Union bailout plan turns out to be a hoax the major stock indexes and the precious metals could decline again. At this time, the move higher in the precious metals are signaling inflation in the markets and the economy.

The SPDR Gold Shares (NYSE:GLD) are trading higher by $3.90 to $161.55 a share. Traders should watch for intra-day resistance around the $162.00 and $164.50 levels. The intra-day support levels for the GLD will be around the $158.00 area.

Silver is also trading sharply higher this morning. The iShares Silver Trust (NYSE:SLV) is trading higher by $1.81 to $31.58 a share. Traders can watch for intra-day resistance around the $32.00 and $32.50 levels. The SLV will have intra-day support around the $29.75 area.

Many of the leading gold mining stocks are trading higher. The popular Market Vectors Gold Miners ETF (NYSE:GDX) is trading higher by $1.28 to $58.61 a share. Other gold mining stocks that are advancing today include Yamana Gold Inc (NYSE:AUY), Agnico Eagle Mines Ltd (NYSE:AEM), and Randgold Resources Ltd (NASDAQ:GOLD).

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Rally In Stocks Means Weaker U.S. Dollar Index

September 27, 2011 – Comments (0) | RELATED TICKERS: CLF , UUP , USO

This morning, the important U.S. Dollar Index futures (DX Z1) are declining sharply lower by 0.88 cents to $78.18 per contract. When the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Yesterday afternoon the U.S. Dollar Index dropped as there was news reported that the European Union will implement a massive bailout plan. Whether or not this news is true when the DXY declines the stock markets will inflate. Should by chance the U.S. Dollar Index begin to inflate or trade higher the major stock indexes could pullback or sell off from the morning highs.

As you may already know, most commodity and energy stocks will usually be the first to trade higher when the DXY declines. Stocks and ETF's such as Cliffs Natural Resources Inc (NYSE:CLF), United States Oil Fund (NYSE:USO), United States Gasoline Fund (NYSE:UGA), and the iPath DJ-UBS Copper TR Sub-Index ETN (NYSE:JJC) are all trading higher ahead of the opening bell. It is important to understand that most energy and commodity stocks where extremely oversold, therefore, it is not surprising to see a bounce in the commodity complex. Traders must be aware, if the U.S. Dollar Index rallies or catches a bid higher the commodity and energy stocks could begin to pullback and sell off.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

2

Beware: Smart Traders Know This Chart Setup

September 26, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , SLV

The markets continue to float neutral to higher today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $114.43, +0.89 (+0.79%). After a top to bottom drop on the Dow Jones Industrial Average last week of 900 points, the markets are slowly inching up. While most amateurs would think this is bullish, smart traders realize this is a a bearish setup called an in spirit of bear flag. Ultimately, this is setting up for another drop. When will this next drop occur? The charts are pointing to later this week. Possibly as early as Wednesday. The SPY first target is $110.00. The second target is $104.50.

Silver and gold continued to crash today. The SPDR Gold Trust (ETF) (NYSE:GLD)  hit a low of $154.19. Last Wednesday, the GLD closed at $173.59. Silver had an even bigger collapse. The  iShares Silver Trust (ETF) (NYSE:SLV)  hit a low today of $27.41. Last Wednesday, the SLV closed at $38.56. This drop in three trading days was 29%. This is a crash, no matter how you look at it.

While the precious metals hit major lows, the bounce back has been amazing. Both silver and gold are moving back towards the flat line and may turn positive today.

Bank stocks are leading the charge today while technology is faltering. Bank stocks like JPMorgan Chase & Co. (NYSE:JPM) are trading at $30.45, +0.86 (+2.91%). Apple Inc. (NASDAQ:AAPL)  is trading at $399.53, -4.77 (-1.18%) .

Gareth Soloway
InTheMoneyStocks.com


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Recs

1

Has Apple Fallen From The Tree?

September 26, 2011 – Comments (1) | RELATED TICKERS: AAPL , QQQ , QID

This morning, the worlds leading technology stock Apple Inc (NASDAQ:AAPL) is trading lower by $12.70 to $391.61 a share. This stock has been a markets leader for years now. The stock just made a new all time high on September 20, 2011 at $422.86 a share. APPL stock is the largest component of the PowererShares QQQ Trust (NASDAQ:QQQ) or better known as the NASDAQ 100. APPL stock accounts for roughly 15.0 percent of the QQQ stock index. Traders can watch for intra-day support on APPL stock around the $391.50, and $388.00 levels.

APPL stock is still trading above the daily chart 20, 50, and 200 moving averages. This tells us that the stock is still in an uptrend and in a strong technical position on the charts. Should the stock break and close below the daily chart 50 moving average that would put the stock in a vulnerable position on the charts. Therefore, the decline this morning can simply be viewed as a pullback or profit taking until the stock breaks further. In any case, it is worth noting that APPL stock is declining on a day when the stock market is trading higher. This tells us that the stock is starting to lose relative strength in the near term. This is not a bullish sign for the leading tech stock in the world.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

The Master Of The Markets

September 26, 2011 – Comments (0) | RELATED TICKERS: FCX , AKS , COP

This morning, the major stock market indexes are starting the day higher in anticipation of another European Union bailout. There are rumors and news reports out there saying that the European bailout fund will be increased, other reports say that Greece will remain in the European Union. The truth is that nobody really knows what is really going on in Europe. What traders do know is that the U.S. Dollar Index (DXY) will usually trade inverse to the major stock indexes. When the DXY trades higher or rallies the major stock indexes will deflate and decline lower. The opposite is true when the DXY declines or sells off, the major stock indexes will inflate and trade higher. Since the opening bell rang this morning, the U.S. Dollar Index has rallied off of the morning lows. This bounce in the U.S. Dollar Index has caused the major stock indexes to deflate from the pre-market highs already.

Traders and investors should remember that the commodity and energy stocks will usually be the first group of stocks that will react to the U.S. Dollar Index. When the U.S. Dollar Index declines or pulls back traders should watch for stocks such as ConocoPhillips (NYSE:COP), Freeport McMoRan Copper & Gold Inc (NYSE:FCX), BHP Billiton Ltd (NYSE:BHP), and AK Steel Holdings Corp (NYSE:AKS) to catch a bid and trade higher. These same leading stocks will usually decline and sell off on any strength in the U.S. Dollar Index.

The U.S. Dollar Index futures (DX Z1) are trading lower by 0.22 cents to $79.00 per contract. Traders should watch for short term intra-day resistance on the DX futures around the $$79.17 and $79.27 levels. The action in the U.S. Dollar Index is truly the master of these markets.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Where To Buy: Precious Metals Collapse

September 23, 2011 – Comments (0) | RELATED TICKERS: GLD , SLV , FCX

Precious metals have crashed today. The SPDR Gold Trust (ETF) (NYSE:GLD), is trading at $160.45, -8.60 (-5.09%) and the iShares Silver Trust (ETF) (NYSE:SLV) is trading at $29.79, -5.13 (-14.69%). In the last few days, silver has collapsed more than 25%. This fall was long overdue as amateur investors had been buying these metals up recklessly.

The buy level for these two metals in the short term is right in the current area. The GLD hit major support at $159.50 and the SLV at $29.50. Both these levels were triggered. While a sharp bounce will come in, be extra careful. It will not last long and both these metals will head lower.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Futures Off The Lows, Here Is Why

September 23, 2011 – Comments (0) | RELATED TICKERS: UUP , FCX , SCCO

The major stock market indexes have rallied off of the pre-market morning lows. Once again, when the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. The U.S. Dollar Index could be the most important chart for any trader or investor to follow at this time. If, the U.S. Dollar Index can plummet lower the stock market could probably rally. Is this really a sign of a healthy economy and market? The answer to that question is no, however, as a trader this is something that we must all know and understand.

Traders should realize that energy and commodity stocks will usually react the most to a weak U.S. Dollar Index. Commodity stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), U.S. Steel Corp (NYSE:X), and Exxon Mobil Corp (NYSE:XOM) are likely to see bounces on any U.S. Dollar Index weakness. Traders that do not have access to the U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSE:UUP).

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

Last Ditch Effort Did Not Work

September 22, 2011 – Comments (0) | RELATED TICKERS: DIA , EWG , EWP

This afternoon, the major stock indexes are still under severe selling pressure. The Dow Jones Industrial Average is trading lower by more than 440.00 points to 10,674.00. The one factor that is helping the stock indexes from declining lower is the quick drop in the U.S. Dollar Index. Around 2:20 pm EST there was news released that the European Union was looking to quickly capitalize the banks in the Euro-zone. We have to chuckle, what have they been doing for the past two years? All of the sudden they are going to quickly flood the banks with money, this is scary when you think about it.

In any case, the U.S. Dollar Index futures sold off by 0.40 cents in seconds and this caused a spike higher in the major stock indexes. Often when markets are selling off this sharply the institutions will try anything to cause a short squeeze to get the markets to trade higher. At this stage of the game most traders and investors must be wondering why the European Union is even in place. Greece could simply just be the tip of the iceberg. What is going to happen with Italy, Spain, and France over the next six months? That is the question that traders are asking themselves now. The days where the institutions drop the U.S. Dollar Index and cause a short squeeze might be over for the time being.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

3

Predicting The Stock Market Collapse

September 22, 2011 – Comments (1) | RELATED TICKERS: SPY , GLD , UUP

The stock market continues its collapse today. The Federal Reserve did virtually nothing to alleviate the global slow down fears and the markets responded with massive downside. At this point, the Dow Jones Industrial Average has fallen over 600 points in the last two days. Today, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $113.05, -3.58 (-3.07%).

Knowing the future is key to profits in the stock market. Whether the markets are surging higher or collapsing, there is money to be made. The sell off yesterday did not take a genius to call.

1. Factored Fed: The markets had been floating higher over the last two weeks on anticipation of major intervention by the Federal Reserve. While the markets were moving higher, things in Europe continued to get worse. This move higher was baking into the cake some major QE3 and manipulation by the Federal Reserve. Simply put, the bar was set far too high. Major intervention was factored in, anything less was going to cause a collapse.

2. Bear Flag: Technical analysis is the key to knowing the future. When looking at the daily chart on the S&P 500 or Dow Jones Industrial Average, a massive bear flag had formed. A bear flag is a bearish pattern which forms when a large drop occurs, then sideways to up action follows for a period of time.   [more]

Recs

0

Is The Gold Move Signaling Deflation?

September 22, 2011 – Comments (0) | RELATED TICKERS: GLD , DGP

This morning, every major stock index is coming under pressure. Recently, when the stock markets decline the prices in gold have moved higher. Today, gold is selling off very sharply trading lower by $65.00 to $1739.80 an ounce. The SPDR Gold Shares (NYSE:GLD) are trading lower by $5.45 to $168.15 an ounce. This is one of the rare occasions that gold and the stock markets are declining together. It seems that the safe haven trade is the U.S. Dollar, and U.S. Treasuries at the moment.

The last time gold and the stock markets declined together this sharply we have to go back to 2008. This time around it may not be exactly the same scenario, however, there are many similarities. In 2008, the stock markets declined as deflation in the major stock indexes took hold. Deflation could once again be taking hold despite all of the massive central bank intervention.

The central banks including the Federal Reserve always want to create a controlled inflationary environment. After all, they are in the business of creating money out of thin air. When deflation takes place it will take everything lower including the precious metals. When prices decline enough investors will then step in and pick up assets that they feel have value, This is why deflation is not such a bad thing, unless you are a banker of course. Deflation will make goods cheaper for everyone. At this time, gold looks to be signaling deflation. Traders should remember, when and if the central banks create another quantitative easing program gold will be the first asset class to trade higher again. Until that time, gold could deflate with the rest of the stock markets around the world.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

It's All About This Chart

September 22, 2011 – Comments (0) | RELATED TICKERS: UUP , AKS , OIH

Once again, the major stock indexes are declining as the U.S. Dollar Index futures(DXY) soar higher today. This morning, the DXY is trading higher by $1.15 to $79.01 per contract. The only way that this stock market bounces or rallies higher off the morning lows is if the DXY pulls back or declines intra-day. Over the past ten years the only way the DXY has been the tool or vehicle used to inflate this stock market higher.

Last night and this morning, all of the global markets have come under major selling pressure. Stocks and ETF's such as Southern Copper Corp (NYSE:SCCO), Oil Services Holders Trust (NYSE:OIH), AK Steel Holding Corp (NYSE:AKS) and Chevron Corp (NYSE:CVX) are just a few leading stocks that will trade inverse to the U.S. Dollar Index. Simply put, when the DXY dips the markets will flip. If the U.S. Dollar Index rallies higher again these markets will be sold throughout the day. Right now, it is all about the U.S. Dollar Index chart.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

The Too Big To Fail Banks Drop After The Bernank

September 21, 2011 – Comments (1) | RELATED TICKERS: JPM , XLF , C

This afternoon, the major stock indexes are declining after the Federal Reserve said that they would implement a $400 billion bond swap called Operation Twist. Most investors and traders expected this news from the central bank. The FOMC also stated that they would keep the Fed funds interest rate at zero to a quarter percent for the foreseeable future which is again no surprise to the markets.

The financial stocks are leading the markets lower. The leading financial stock in the United States is J.P. Morgan Chase & Co. (NYSE:JPM). This financial giant is trading lower by 0.85 cents to $31.40 a share. JPM stock is now trading very close to its low for the year which was made on September 12, 2011 at $31.21 a share. Traders can watch for intra-day support around the $30.95 area.

Other leading financial stocks that are declining this afternoon include Citigroup Inc.(NYSE:C), Bank of America Corp. (NYSE:BAC), and Wells Fargo & Co. (NYSE:WFC). It is important to note that all of these banks were downgraded by the rating agency Moodys earlier in the day. If the too big to fail financial stocks continue to trade lower this afternoon the major stock indexes could see lower prices in the coming days. At this time, the large banks have not broken their recent lows on the daily chart, therefore, a bounce from here is still possible.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

Outlook Positive: Solar Stock Puts In A Bottom

September 21, 2011 – Comments (0) | RELATED TICKERS: TSL , JASO , SPWRA.DL

Solar stocks have been pounded due to many factors, however, there is light and profits at the end of this tunnel. First, the price of solar panels being sold to the public has plummeted. This is due to an oversupply coming from China and all over the world, along with better technology to make them cheaper. In addition, as Europe crumbles, austerity measures are causing major cuts in subsidies to alternate energy. Europe has been the leading spender on solar power.

Having said all this, solar stocks may be a great buy at current levels. Bad news has been priced in at this point. Solar companies are trading at very reasonable P/E's. In addition, First Solar, Inc. (NASDAQ:FSLR) reversed off its master 2007 support point. It now has a bottoming tail on the daily chart and is trading at a future P/E of under 10.

Solar has been in the news lately in a negative light. Solyndra's bankruptcy filing was a pet project of President Obama. This has become somewhat of a sore spot for the current administration. While this seems like a negative for solar, it tells smart traders that companies are exiting the field. Only the strong will survive and margins may start to increase again.

The key to the solar sector buying opportunity is to view the current valuation. Stocks like SunPower Corporation (NASDAQ:SPWRA), Trina Solar Limited (ADR) (NYSE:TSL), JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) are all trading at levels that make them attractive. With First Solar's bottoming tail reversal off a master level from 2007, it gives even more confidence to the trade. Factor the weak players are exiting and you have a recipe for profits from investment. These low stock prices may not last long.

Gareth Soloway
InTheMoneyStocks.com


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Recs

2

Bernanke Play-Book

September 21, 2011 – Comments (0) | RELATED TICKERS: AGQ , SLV , GLD

This afternoon, the FOMC will announce there interest rate policy and make a statement about the economy. Most traders and investors are eagerly awaiting the for the central banks action. At this time, many trader and investors are expecting the Federal Reserve to implement its Operation Twist program. Other investors are expecting the Fed to announce another quantitative easing program. While it is unlikely that the central bank will announce another quantitative easing program traders can never rule anything out when it comes to Chairman Ben Bernanke. The Federal Reserve just ended its last $600 billion QE-2 program on June 30, 2011, therefore, if the central bank were to initiate another quantitative easing program so soon it would really signal to the markets that the global economy is extremely weak. We just have to wait and see what the central bank says this afternoon.

Traders should look to buy gold and silver on any announcement of another quantitative easing program. The last time the Federal Reserve announced its last quantitative easing program back in late August 2010 the precious metals soared higher. The SPDR Gold Shares climbed by more than $60.00 a share in less than a year. The iShares Silver Trust (NYSE:SLV) climbed by $30.00 in less than eight months. Gold and silver should be on everyones radar if the Federal Reserve announces a QE-3 program. If the Federal Reserve simply announces its Operation Twist program then the markets will have a lot of this already baked into the cake. It's the Bernank's move, we can only try and trade it.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

0

The U.S. Dollar Index Still Dominates Every Market Move

September 21, 2011 – Comments (0) | RELATED TICKERS: AAPL , FCX , ANR

Traders and investors can look anywhere they want to find out what moves this stock market higher. Some traders are looking at lower bond yields for market guidance, others are looking at the leading stocks Such as Apple Inc. (NASDAQ:AAPL) to see where the markets are headed. The truth of the matter is that the markets are simply moving inverse to the U.S. Dollar Index. Traders can look the chart of the U.S. Dollar Index futures (DX Z1) and easily see the inverse relationship between the dollar and the major stock market indexes. This relationship did not begin today or this week, it has been in place way for ten years. If it is not broke don't fix it. Sure, there are times when the markets will not trade inverse to the U.S. Dollar Index, however, that will usually happen when the stock markets have extremely light volume. For example, around the Christmas and New Years holidays when the trading volume is extremely light and there are simply no sellers the U.S. Dollar Index will have little effect on the markets. Other then that time the U.S. Dollar Index will trade inverse to the major stock indexes.

Traders can watch for leading commodity and energy stocks to pullback and sell off when the U.S. Dollar Index moves higher. The opposite is true when the U.S. Dollar Index declines, the leading commodity and energy stocks will usually inflate and trade higher. This morning, the U.S. Dollar Index futures are trading higher by 0.20 cents to $77.72 per contract and the many leading commodity stocks are selling off at the start of the day. Stocks such as Freeport McMoRan Copper & Gold Inc. (NYSE:FCX), Alpha Natural Resources Inc. (NYSE:ANR), and Cliffs Natural Resources Inc. (NYSE:CLF) are all trading lower to start the session. If the U.S. Dollar Index declines at some point this morning traders can look for these stocks to catch a bid along with the major stock indexes. Simply put, it is the action in the U.S. Dollar Index that dominates every market move.

Nicholas Santiago
InTheMoneyStocks.com


  [more]

Recs

0

There Are Big Holes In This Rally

September 20, 2011 – Comments (0) | RELATED TICKERS: KBW , CS , X

This afternoon, the major stock indexes are trying to stage another positive close. Since September 12, 2011 the S&P 500 Index has rallied higher by over 60.0 points to close above the 1200.00 level. While the bounce has been very sharp in the major stock indexes there are still a lot of problems with this market

Traders and investors may have now realized that the financial stocks in the United States and Europe remain very weak. There is really no need to look at any other financial stock other than J.P. Morgan Chase & Co.(NYSE:JPM) to see that this sector is extremely weak at this time. What is the problem with the bank stocks in the United States? These banks get to borrow money at zero percent from the Federal Reserve while they pay you nothing for keeping money in a savings account. Why are these large financial giants struggling on the charts? The European banks look even worse. The financial stocks are a negative for the stock markets.   

Next we have the poor action in the industrial metals. Copper, steel, iron ore, and metallurgic coal continue to struggle. These sectors used to be stock market leaders, now they are laggards. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp. (NYSE:SCCO), United States Steel Corp. (NYSE:X), Cliffs Natural Resources Inc.(NYSE:CLF), and others look horrible on the charts. This is not a healthy sign for the stock markets.

Has anyone looked at a chart of the Shanghai Index (China) lately? This chart is breaking down and looks terrible at this time. The Chinese markets have lead the stock markets higher for the past eight years. This country is supposed to be the growth engine of the world, meanwhile, the daily chart looks like China is in a bear market. China is supposed to be a manufacturing powerhouse, however, that market looks like it now has its own set of issues, most notably inflation.

Many traders and investors are expecting miracles out of Ben Bernanke tomorrow. The Bernank did pull an Ace out of his sleeve in September 2010 when he introduced the $600 billion QE-2 program. Will he do it again is the big question. This is something that we will not know until tomorrow. In any case, the odds are favoring  that the Bernank will have to pass on QE-3 for the time being since he just ended QE-2 on June 30, 2011. While QE-3 is unlikely we should never under estimate Chairman Bernanke since he loves to cause short squeezes in the market. The only problem for the Bernank at this time is that there are not many shorts left in this market. Tomorrow is certainly going to be an interesting day. Either way, this recent rally is filled with holes.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Stock Markets Advance On QE3 Hopes

September 20, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , AAPL

The markets are driving higher today on expectations of some major quantitative easing by the Federal Reserve. Tomorrow is the big day. Ben Bernanke and his fellow Federal Reserve cronies will release their policy statement. In his last few speeches, Ben Bernanke has eluded to more easing. Because of this, the markets have high expectations. Today, short covering and buying are taking hold on anticipation of major new measures. The Federal Reserve must now deliver or face a massive drop in the markets.  The SPDR S&P 500 ETF (NYSE:SPY)  is trading at $121.69, +1.38 (+1.15%).

Should the Federal Reserve dissapoint the markets tomorrow, the down side could be huge. A Dow Jones Industrial drop of 500 points would not be out of this realm. However, Ben Bernanke is well aware of this. It must be assumed he will do his best to deliver.

Apple Inc. (NASDAQ:AAPL) is surging sharply again. The stock is trading at new all time highs, hitting $422.00. The stock continue to be a major safe haven in an otherwise uncertain future. While the stock is strong, it is far to extended to be a buy. Wait for a pull back.

Gareth Soloway
InTheMoneyStocks.com


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Recs

2

Fed Euphoria

September 20, 2011 – Comments (0) | RELATED TICKERS: SPY , UUP

This morning, the major stock markets indexes are holding up very well despite French banks trading lower and a possible Greek default. The stock markets are obviously betting on another wave of inflation creation by the the Federal Reserve and the other central banks to keep the stock markets in rally mode. Tomorrow, the Federal Reserve Bank (U.S. central bank) will announce its interest rate and policy decision.

Traders and investors are expecting the Federal Reserve to implement Operation Twist tomorrow. This is when the central bank will replace short-term U.S. Treasuries in its $1.65 trillion portfolio with long term bonds. This action by the Federal Reserve may already be priced into the stock market and the long term effects should be minimal. A real surprise to the markets would be another quantitative easing program called QE-3. This would send commodities and the stock markets higher just the way it did late last year when the Federal Reserve began its $600 billion QE-2 program. That program just ended on June 30, 2011. It caused massive inflation around the world.

Many investors believe that the Federal Reserve's $600 billion QE-2 program was the cause of the food riots in the Middle East and Northern Africa last year. When the central banks create more U.S. Dollars this makes everything that people need for survival such as food, energy, and commodities more expensive.       [more]

Recs

0

Casino Hit Blackjack Early, Should You Double Down?

September 20, 2011 – Comments (1) | RELATED TICKERS: WYNN , BYD , LVS

This morning, the major casino stocks are all trading higher again. Since the August 9, 2011 stock market pivot low the casino stocks have soared. The move in the leading casino stocks have been nothing short of spectacular, however, this rally in the casino stocks is starting to get long in the tooth. Stocks that have moves this strong in such a short period of time will usually need to pullback or consolidate very soon.    

Wynn Resorts Ltd (NASDAQ:WYNN) is the leading casino stock in the markets today. This stock traded as low as $123.69 a share on August 8. 2011. This morning WYNN stock is trading higher by $1.84 to $160.15 a share. The stock is now trading back above all of the major moving averages which puts WYNN stock in a strong technical chart position. The only problem with WYNN stock is that it is now getting extended and overbought on the daily chart. Traders should watch for resistance around the $163.00 area in the near term.  

Other leading casino stocks that are trading higher include Las Vegas Sands Corp.(NYSE:LVS), and MGM Resorts International (NYSE:MGM), and Boyd Gaming Corp. (NYSE:BYD). All of these stocks are looking fine on the daily chart at this time. The only problem with these stocks are that they look poised for a pullback or some consolidation very soon.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

This Is The Only Chart You Will Need Today

September 20, 2011 – Comments (0) | RELATED TICKERS: UUP , USO , COP

Traders and investors must follow the U.S. Dollar Index (DXY) very closely. The major stock market indexes are trading inverse to the U.S. Dollar Index at this time. If the DXY declines or pulls back intra-day the major stock indexes will inflate and trade higher. The opposite is true if the DXY trades higher, obviously the major stock indexes will deflate and decline lower.  

Some stocks that will generally decline on the back of a stronger U.S. Dollar Index (DXY) will be the United States Oil Fund (NYSE:USO), ConocoPhillips (NYSE:COP), BHP Billiton Ltd. (NYSE:BHP), and Rio Tinto plc (NYSE:RIO). These same stocks will often catch a bid and trade higher on a weaker U.S. Dollar Index. Traders should remember, this market is being moved by the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Falling U.S. Dollar Saves The Day

September 19, 2011 – Comments (0) | RELATED TICKERS: UDN , SSO , SDS

It is pretty sad when the only way to get the stock market to trade higher is by selling off the U.S. Dollar Index (DX Z1). The U.S. Dollar Index measures the value of the U.S. Dollar versus six leading currencies such as the Euro 58.6%, Japanese Yen 12.6 %, Pound Sterling 11.9%, Canadian Dollar 9.1%, Swedish Krona 4.2%, and the Swiss Franc 3.6%. When the world's reserve currency declines the major stock indexes will inflate and trade higher. Politicians continue to say that they want a strong U.S. Dollar Index, however, the Federal Reserve continues to create cash reserves at an alarming rate. Just look at how the U.S. Dollar Index has traded over the past 10 years and you will see the amount of capital that has been created over the same period.

Today, the U.S. Dollar Index futures (DX Z1) are trading higher by 0.63 cents to $77.66 per contract. Traders can easily see how the the major stock indexes will trade higher when the U.S. Dollar Index declines and sells off. In other words, the stock markets are trading in an inverse lockstep relationship to the U.S. Dollar Index. This morning, the U.S. Dollar Index futures made a high around the $78.06 levels at 10:20 am EST. This was around the same time that the stock market indexes bottomed on the trading session. Every trader must keep an eye on the U.S. Dollar Index at this time.

Many investors have wondered what is so terrible about having a weak U.S. Dollar Index? The negative to a weak U.S. Dollar Index is higher food, and energy prices. A weak U.S. Dollar is also a direct tax on the American people, especially those that are on fixed incomes. Remember, when the U.S. Dollar declines goods that people need to survive become more expensive.  

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Key Stock Market Movers With Master Levels

September 19, 2011 – Comments (0) | RELATED TICKERS: AAPL , NFLX , FSLR

The markets are still sharply lower on the day. European worries continue. Volume has vanished and all eyes are on now on the Federal Reserve over the next two days. They will be giving their FOMC Policy Statement on Wednesday. The markets are hoping for some new insight on current economic conditions and a new round of quantitative easing.  While the markets are lower, these key stocks are making moves.

Apple Inc. (NASDAQ:AAPL) hit a new 52 week high of $411.50. This is a leading tech stock and a rare positive mover in an otherwise dismal market. The outlook for Apple remains rosy despite a possible recession looming.

First Solar, Inc. (NASDAQ:FSLR) hit a new 52 week low today at $80.59. This stock took out its $85.00 level 2008 low and could now trade to $75.00. First Solar is down over 50% since its 2011 high. Solar stocks in general have been under significant pressure as margins have been falling and European demand has collapsed.

Netflix, Inc. (NASDAQ:NFLX) fell sharply last week. After getting a small bounce early in the day, it has turned to the negative side again. The key support levels are $148.00, $127.00 and $95.00. The $148.00 level hit today at the lows.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

0

Key Stock Market Movers With Master Levels

September 19, 2011 – Comments (0) | RELATED TICKERS: AAPL , NFLX , FSLR

The markets are still sharply lower on the day. European worries continue. Volume has vanished and all eyes are on now on the Federal Reserve over the next two days. They will be giving their FOMC Policy Statement on Wednesday. The markets are hoping for some new insight on current economic conditions and a new round of quantitative easing.  While the markets are lower, these key stocks are making moves.

Apple Inc. (NASDAQ:AAPL) hit a new 52 week high of $411.50. This is a leading tech stock and a rare positive mover in an otherwise dismal market. The outlook for Apple remains rosy despite a possible recession looming.

First Solar, Inc. (NASDAQ:FSLR) hit a new 52 week low today at $80.59. This stock took out its $85.00 level 2008 low and could now trade to $75.00. First Solar is down over 50% since its 2011 high. Solar stocks in general have been under significant pressure as margins have been falling and European demand has collapsed.

Netflix, Inc. (NASDAQ:NFLX) fell sharply last week. After getting a small bounce early in the day, it has turned to the negative side again. The key support levels are $148.00, $127.00 and $95.00. The $148.00 level hit today at the lows.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

0

Key Signals Sets Up Major Market Move

September 19, 2011 – Comments (0) | RELATED TICKERS: SPY , GLD , AAPL

The stock market is dropping today after rumors surfaced of a possible Greek default as early as tomorrow. While this is just a rumor, the possibility remains high that it will happen in the future. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.51, -2.01 (-1.65%). While this drop seems sharp, it is likely it will not accelerate in the next day or two. Even a small up move could be possible. The theory behind this is based on the Federal Reserve Policy Statement on Wednesday. The markets are hoping for some sort of QE3. This hope will keep them from collapsing until we get the word from the Federal Reserve. Once that happens, all bets are off. Depending on their action, the markets will fly higher or collapse.

While the markets are down sharply, some interesting factors are at work. First, with a sharp drop in the markets and panic in Europe, gold would usually be soaring. This is not the case. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $173.45, -2.58 (-1.47%). With gold not trading inverse to the markets, one must wonder if the markets may inch back up throughout the day, towards the flat line.

Next, Apple Inc. (NASDAQ:AAPL) is sharply higher, trading at $406.88, +6.38 (1.59%). This is a leading stock and could also be telling of a continued market bounce today. In addition, Amazon.com, Inc. (NASDAQ:AMZN) has turned positive as well. This is another leading indicator for the markets.

Lastly, for long term stability in the markets, the banks must catch a bid. This has not happened today. This tells intelligent traders that the market may not fall much more in the next few days, but most likely will tumble in the next few weeks, after the Federal Reserve.

Gareth Soloway
nTheMoneyStocks.com

  [more]

Recs

0

The Greenback Says It All

September 19, 2011 – Comments (0) | RELATED TICKERS: UUP , XOM , SCCO

Once again, the major stock indexes are coming under heavy selling pressure. The decline this morning is broad based as all of the leading sectors are declining. Generally, when the markets are lower it is due to a stronger U.S. Dollar Index. This morning, the U.S. Dollar Index futures (DX Z1) are trading lower by 0.93 cents to $77.96 per contract. Traders that do not have a chart of the U.S. Dollar Index can follow the PowerShares DB U.S. Dollar Index Bullish Fund (NYSE:UUP). When the U.S. Dollar Index rallies higher the major stock indexes will usually decline and deflate lower. The opposite effect will usually occur when the U.S. Dollar Index declines, stocks will usually inflate and trade higher.

Commodity and energy stocks will usually be the first sectors to decline when the U.S. Dollar Index is strong. This morning, leading stocks such as Exxon Mobil Corp.(NYSE:XOM), Cliffs Natural Resources Inc.(NYSE:CLF), and Southern Copper Corp.(NYSE:SCCO) are all coming under heavy selling pressure. Should the U.S. Dollar Index pullback throughout the session that is when these leading stocks will most likely catch a bid off their intra-day lows. Should the U.S. Dollar Index continue to rally the leading energy and commodity stocks will likely decline further throughout the day.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

This Chart Moves Markets

September 16, 2011 – Comments (0) | RELATED TICKERS: SCCO , AKS , RIO

This week the major stock indexes have traded sharply higher. The Dow Jones Industrial Average (DJIA) has staged four consecutive winning session. The last time the DJIA has rallied for four consecutive sessions we have to go back to late June. Today is also options expiration which is also part of the reason for the rally. When there are too many put options in the market around expiration the institutions will usually take stocks the other way, in this case higher. The real reason for the rally is actually very simple, it is the decline in the U.S. Dollar Index. When the U.S. Dollar Index pulls back the major stock indexes will inflate and trade higher.

Since Monday morning, the U.S. Dollar Index (DX Z1) has sold off very sharply trading down by $1.29 to $77.03 a share. While this may not seem like much of a pullback it is really a big move when it comes to the U.S. Dollar Index. The U.S. Dollar Index also effects stocks intra-day when it declines. Leading commodity and energy stocks will often rally and trade higher on any U.S. Dollar Index pullback. Traders can follow stocks such as Southern Copper Corp (NYSE:SCCO), AK Steel Holdings Corp (NYSE:AKS), BHP Billiton Ltd (NYSE:BHP), and Rio Tinto plc (NYSE:RIO) to see how these leading stocks will trade inverse to the U.S. Dollar Index intra-day. Traders should remember that the major stock indexes will also inflate higher when the U.S. Dollar Index declines, that can easily be seen by comparing a dollar chart with the S&P 500 or the Dow Jones Industrial Average. The action in the U.S. Dollar Index is what moves the markets.

Nicholas Santiago
InTheMoneyStocks.com





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Recs

1

Tell The Future By The Stock Market Close

September 15, 2011 – Comments (0) | RELATED TICKERS: SPY , IBM , QQQ

The stock market is trading solidly higher today. Intervention by the ECB helped push the global markets higher. The SPDR S&P 500 ETF (NYSE:SPY)  is trading at $120.83, +1.46 (+1.22%) . The key to knowing whether or not the stock market will go higher is simple. Find a major pivot and watch to see whether the markets close above or below.

The master pivot on the SPY is $121.00. Confirming this level as a major pivot is today's high of $120.99. In addition, this area is the previous high on September 8th, 2011. Should the SPY close above this high, the markets will have legs until $124.00.

Overall, the markets are enjoying a little bit of reassurance by the ECB and hopes of major QE3 from the Federal Reserve next week. The leaders are leading like Exxon Mobil Corporation (NYSE:XOM), International Business Machines Corp. (NYSE:IBM), Google Inc. (NASDAQ:GOOG).

Simply put, a SPY close below that pivot level is a short on the markets. If we close above, avoid shorts until at least the $124.00 level.

Gareth Soloway
InTheMoneyStocks.com




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Recs

3

Secrets: Europe Is Even Worse Than The Public Knows

September 15, 2011 – Comments (1) | RELATED TICKERS: SPY , DIA , QQQ

The markets are trading on shaky ground today. The Lehman Brothers collapse anniversary is not without some fireworks. The big news of the day came from ECB. They decided to launch a three-month loans program in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. This initially caused a solid market rally but may be short lived.

The markets are stuck, trying to determine whether or not this was a precautionary measure or possibly a signal telling the world things were at the collapsing point. The more we see the workings of Europe, the more a collapse seems possible. This makes the action today by the ECB more like a panic to an impending collapse.

As of now investors seem to be willing to buy the market. This most likely has less to do with the ECB news and more to do with next weeks Federal Reserve policy meeting. The markets continue to hope for QE3. Ultimately, this ECB news was not good and probably spells more trouble for the markets down the line. The big question is, when will it hit?

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Financials Rally Early, Can They Hold Up?

September 15, 2011 – Comments (0) | RELATED TICKERS: JPM , CS , DB

This morning the leading financial stocks are trading higher on the session after the coordinated central bank liquidity announcement. As we all know by now, when the financial stocks rally the stock markets will usually trade higher as well. After all, this is a global banking crisis since late 2007.

Traders should simply follow one stock very closely today, that stock is J.P. Morgan Chase & Co.(NYSE:JPM). This stock is the leading financial institution in the United States and possibly the entire world. When this stock declines the markets will most likely follow. The daily chart of JPM still looks very poor on the charts. The stock is trading below its daily chart 50, and 200 moving averages which put the stock in a weak technical position and a confirmed down trend. Until JPM's stock can recapture the daily chart 50 major moving average it is very sensitive to another sell off. Today JPM is trading higher by 0.56 cents to $33.36 a share. The stock will have intra-day support around the $32.50 area should it decline from its current level in today's session.

Other leading financial stocks that are trading higher today include Goldman Sachs Group Inc.(NYSE:GS), Credit Suisse Group (NYSE:CS), and Deutsche Bank AG (NYSE:DB). All of these stocks are very important to follow at this time, however, JPM stock will tell us everything we need to know.

Nicholas Santiago
InTheMoneyStocks.com



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Recs

3

Watch This Chart, Things Could Get Crazy

September 15, 2011 – Comments (0) | RELATED TICKERS: UDN , SCCO , FCX

This morning, the central bankers of the world have staged a coordinated effort to provide U.S. Dollar liquidity. In other words, the central banks will try to crush the U.S. Dollar in order to inflate the stock market higher. Traders must continue to watch a chart of the U.S. Dollar Index very closely. Over the past three trading sessions the U.S. Dollar Index has declined sharply causing the stock markets to inflate and stage a three day rally. Simply put, the U.S. Dollar Index is trading in an inverse lockstep relationship to the U.S. Dollar.

This news tells us all how bad things really are economically around the world. We all knew that Europe was a mess, however, the central bankers actions today are telling us that things could be as serious as they were in 2008. If the U.S. Dollar Index begins to rally today traders should be prepared for some serious stock market declines. Many traders and investors have lost a lot of faith in the central banks since the markets have plummeted after the Federal Reserve ended it's $600 billion QE-2 program in late June 2011. It seems that the stock markets can only move higher when the U.S. Dollar Index declines. Until this inverse relationship proves to us that it has ended continue to watch the U.S. Dollar Index very closely.

Some stocks that will usually trade higher if the U.S. Dollar Index declines are Southern Copper Corp(NYSE:SCCO), Freeport McMoRan Inc(NYSE:FCX), ConocoPhillips(NYSE:COP), and United States Steel Corp(NYSE:X). If and should the U.S. Dollar Index rally throughout the trading day these stocks will most likely decline sharply.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

3

Forget The European Ménage à trois Here Is The Reason For The Rally

September 14, 2011 – Comments (6) | RELATED TICKERS: UDN , UUP , DDM

The major stock indexes have soared sharply higher this afternoon. The catalyst for the rally according to the media is the fact that Germany's Angela Merkel, France's Nicolas Sarkozy, and Greece's George Papandreou all agree that Greece should be part of the European Union. Greek bond yields are now favoring that Greece will eventually have to default, however, many investors are now speculating that Europe will introduce its own form of the bank bailout plan called TARP. While this news may be positive for Greece it is really not positive for the rest of the European Union. Spain, Italy, Portugal, Ireland, and even France may need to be bailed out. This TARP program will need to be very large if this is going to work for a while.

Today, the major stock indexes in the United States bottomed out around 10:20 am EST, this was the same exact time that the U.S. Dollar Index(DXY) topped out. Once the U.S. Dollar Index began to decline and sell off the stock markets started to soar higher. Nothing has changed over the past ten years, when the U.S. Dollar Index declines the stock markets inflate and trade higher. If you look at a chart of the U.S. Dollar Index you will see that the DXY is trading in an inverse lockstep relationship to the major stock indexes since the opening bell. Every trader should be watching the U.S. Dollar Index extremely closely at this time. Should the U.S. Dollar Index begin to rally or trade higher this stock market will likely decline very quickly. It is the U.S. Dollar that moves markets, not the news that is coming out of Europe.    

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Stock Market Analysis: Keys Of the Day

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

The markets are floating higher after a rocky start. After initially opening higher, the SPDR S&P 500 ETF (NYSE:SPY)  inched into the $118.50 level. This level was resistance and coincided with a sell-off that took the SPY down almost a full two dollars. After holding a key support line, the combination of light volume and a European rally helped the markets move back towards theirs highs.

The markets continue to look towards Europe for any indication of calm. They are getting that today. Every move in the U.S. markets has been directly related to European issues of late.

The technical levels are easy to find and fill dictate the next move in the markets. As of now, if you connect the lows of the SPY going back to August 6th, 2011, there is a major trend line. On a closing basis, if the markets stay above this trend line, they can inch higher. If they break below, the markets will collapse. In addition, the upside resistance level to watch is $119.00. This is gap fill from September 8th, 2011.

Gareth Soloway
InTheMoneyStocks.com



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Recs

0

When The Dollar Pops The Markets Drop

September 14, 2011 – Comments (0) | RELATED TICKERS: CLF , CVX , FCX

All traders should now be watching the U.S. Dollar Index very closely. This morning, as soon as the U.S. Dollar Index futures (DX U1) caught a bid and started to trade higher the major stock indexes began to sell off. Right now, the markets are trading inverse to the U.S. Dollar Index, especially after the opening bell rings at the New York Stock Exchange. Traders should remember that this is also Wednesday before options expiration which is generally very volatile and turbulent. Traders should expect the unexpected in the major stock indexes and in the U.S. Dollar Index.

 The leading stock sectors that will generally trade inverse to the U.S. Dollar Index will be the commodities and energy sectors. Therefore, traders could watch stocks such as Chevron Corp.(NYSE:CVX), Cliffs Natural Resources Inc.(NYSE:CLF), and Freeport McMoRan Inc.(NYSE:FCX) to trade inverse to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Whipsaw Wednesday, Expect The Unexpected

September 14, 2011 – Comments (0) | RELATED TICKERS: VMW , AAPL , NFLX

Traders and investors must remember that this coming Friday is options expiration. It is not only options expiration, it is also quadruple witching options expiration. This is when options are scheduled to expire on stock index futures, stock index options, single stock futures, and stock options. Therefore, this week is likely to be even more volatile and turbulent leading up to the options expiration this coming Friday.

 As many of you may know, this is a time when the large financial institutions will play a lot of games. Often the small retail options trader will get faked right out of their shoes during options expiration week. Just think about how many retail options traders bought puts before the close on Friday September 9, 2011 when the Dow Jones Industrial Average closed lower by over 300.00 points. Many of these same retail options traders closed out those put positions at a lose this week as the markets reversed higher since Monday. Traders and investors must remember that these institutions have enough capital on hand to shake out the small retail traders that are holding near term options contracts. This game of big fish eats little fish takes place each and every month before options expiration.

Some leading stocks that are often very volatile before options expiration include Netflix Inc.(NASDAQ:NFLX), VMWare Inc.(NYSE:VMW), Amazon.com Inc.(NASDAQ:AMZN), and Apple Inc.(NASDAQ:AAPL). Traders should expect the unexpected especially in these stocks during this trading week.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Shake And Bake Using The U.S. Dollar Index

September 13, 2011 – Comments (0) | RELATED TICKERS: UUP , DDM , DXD

Once the U.S. Dollar Index futures (DX U1) traded higher this afternoon the major stock indexes sold off. The Dow Jones Industrial Average just reversed a 70.0 point rally and are now trading in negative territory. Should the U.S. Dollar Index decline and sell off again the major stock indexes could reverse and move right back up. Simply put, the major stock indexes are trading inverse to the U.S. Dollar Index.

Options expiration is this coming Friday, therefore, traders should expect a lot of institutional game playing throughout the rest of the week. Stocks could be positive one minute and just as easily be negative a few minutes later. Traders should expect the volatility to continue into Friday.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

The Ultimate Indicator

September 13, 2011 – Comments (0) | RELATED TICKERS: WFC , JPM , GS

Many traders and investors will follow all sorts of oscillators and indicators searching for the holy grail of the stock markets. This one stocks has been the only only indicator that you need to see at this time, it is J.P. Morgan Chase & Co.(NYSE:JPM). Today, JPM stock has really failed to trade higher after the first thirty minutes of the day. When this stock is behaving poorly it is a warning that the major stock indexes could come under some selling pressure this afternoon. JPM stock is trading higher by just 0.05 cents to $32.47 a share. The stock will have some short term intra-day support around the $32.00 level.

Other leading financial stocks such as Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS), and Wells Fargo & Co.(NYSE:WFC) are showing much better relative strength compared to JPM stock. While these stocks are stronger intra-day, it is JPM stock that leads the majors stock market indexes.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

Gold Can Tell The Future

September 13, 2011 – Comments (0) | RELATED TICKERS: GLD , SPY , DIA

What would you give to know the future? Well it appears more and more that gold may be telling Wall Street just that. It has happened many times over the last few months and yesterday it happened again. The markets were looking ugly heading into Monday morning. Fears from Europe continued to pound Wall Street traders and the Dow Jones Industrial Average futures were setting up for a 200 point decline. However, while the markets were scary, gold was not confirming the move. The SPDR Gold Trust (ETF) (NYSE:GLD)  was sharply lower. Many people scratched their heads at this. The amateur thought process could not understand why gold was not sharply higher on massive fear. Remember, gold generally spikes higher on fear.

The fall in gold was telling of a reversal on the horizon. This was an amazing leading indicator telling of a future market reversal. Sure enough, the Dow turned around late in the day, surging over 250 points off their lows. Gold remained down. This was a great tell and should be monitored constantly as a leading indicator.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Using The Bank Stocks As Your Crystal Ball

September 13, 2011 – Comments (0) | RELATED TICKERS: JPM , BAC , WFC

The bank stocks continue to be the leading indicator for any sustainable move in the stock market. Looking back to the beginning of 2011, stocks like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC) all put in their yearly highs within the first couple months of the year. This was months before the S&P 500 had topped out on May 2nd, 2011. Their top was a clear leading indicator of the market top that was soon to follow. Bank of America has dropped more than 50% from its yearly highs and others have fallen almost as much.

To understand why the financial stocks are the leading indicator of the U.S. markets one must note the major default issues in Europe. The U.S banks have exposure to some of the debt through derivatives and other means. In addition, any mass problems in Europe are now a global issue. Any lack of recovery or further slowdown in the world, only goes further to hurt the housing market in the U.S. This means more defaults and more problems for the banks. The issues go far deeper but let's keep it as simple as possible.

On a short term basis yesterday was a great example of the bank stocks leading the market. Yesterday, the markets were in panic mode over Europe once again. However, the bank stocks were surprisingly strong. Even the weakest of the group, Bank of America was flat to positive a good portion of the day when the markets were down sharply. Sure enough, the markets turned around and closed with a move higher.

Again today, the bank stocks are strong. Sure enough, the markets are higher.

Gareth Soloway
InTheMoneyStocks.com


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Recs

1

Transports Surge Early, Can They Be Trusted?

September 13, 2011 – Comments (0) | RELATED TICKERS: IYT , FDX , UPS

This morning, the Dow Jones Transportation Average (DJT) is surging higher by over 100.00 points to 4464.20. The iShares Dow Jones Transportation Average (NYSE:IYT) is trading higher by $2.01 to $80.69 a share. Traders and investors will usually follow the transports very closely because they will often signal economic expansion and contraction. Many traders that follow Dow Theory will also watch the transports to see if they confirm the move in the Dow Jones Industrial Average. Therefore, it is safe to say that the transportation index is a leading indicator. Short term traders can watch for intra-day resistance on the IYT around the $81.25 and $82.00 levels.

Some leading transport stocks that are rallying higher include FedEx Corp.(NYSE:FDX), United Parcel Service Inc.(NYSE:UPS), and CSX Corp.(NYSE:CSX). These leading transport stocks will often follow the action in the IYT. Recently, when the transports rally for a few days they seem to come under selling pressure again, therefore, traders should take everything on a short term basis at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

This Chart Continues To Dominate Every Market Move

September 13, 2011 – Comments (0) | RELATED TICKERS: X , SCCO , NUE

Yesterday's late afternoon rally was being accredited to the Chinese buying Italian debt. Whether or not this is true remains to be seen. What is true and did happen was the late afternoon decline in the U.S. Dollar Index. As we all know by now, when the U.S. Dollar Index dips the major stock market indexes flip. Everything inflated higher yesterday afternoon as the U.S. Dollar Index declined into the closing bell. Traders and investors must continue to follow the U.S. Dollar Index very closely once the opening bell rings at the New York Stock Exchange each and everyday.

The energy and commodity sectors are most sensitive to the U.S. Dollar Index. Stocks such as Southern Copper Corp.(NYSE:SCCO), Nucor Corp.(NYSE:NUE), and U.S. Steel Corp.(NYSE:X) will usually trade inverse to the U.S. Dollar Index. This morning, all of these stocks are just stalling after advancing higher yesterday afternoon. Should the U.S. Dollar Index begin to move higher this morning it would be prudent to expect these stocks to pullback or decline intra-day. The U.S. Dollar Index futures (DX U1) will have some short term intra-day support around the $$76.80 level.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

0

Chip Off The Old Block

September 12, 2011 – Comments (1) | RELATED TICKERS: SMH , SNDK , MRVL

This afternoon, the major stock indexes are coming under selling pressure once again. Most leading commodity, energy, and financial stocks are trading lower across the board. The one area of strength in this market is coming from the semiconductor stocks. These stocks are not trading higher by all that much, however, they are continuing to hold up well in a very tough stock market environment.

The Semiconductor Holders Trust (NYSE:SMH) is trading higher by 0.18 cents to $28.70 a share. The SMH has actually remained above its recent pivot low made on September 9, 2011 at $27.28 a share. The SMH will have intra-day support around the $28.50 area should it pullback. The intra-day upside potential will be around the $29.00 area. Please only expect the upside if the major stock indexes start to bounce off the afternoon lows.

Other leading semiconductor stocks that are trading higher this afternoon include Sandisk Corp.(NASDAQ:SNDK), Intel Corp.(NASDAQ:INTC), and Marvell Technology Group Inc.(NASDAQ:MRVL). Often when the semiconductor stocks can rally or bounce despite a weak overall stock market it could be a signal that a tech bounce could be very close. Traders must continue to be very careful in this type of environment.

Nicholas Santiago
InTheMoneyStocks.com




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Recs

1

Stock Market Master Pivot Levels Revealed

September 12, 2011 – Comments (0) | RELATED TICKERS: SPY , AMZN , AAPL

The stock market continues to hover on the downside but with minimal losses. Europe took a major blow today again as continued fears of default rattle the chains of stability. The September 6th low is holding today thus far at $114.50, on the SPDR S&P 500 ETF (NYSE:SPY). This is the major pivot point for the day. One of the key reasons why this level is so important to technical traders, is because a break of $114.50 would cease the high low moves in the market. Once a lower low is made, the markets will most likely collapse down to the SPY double bottom at $110.27 and then eventually see $104.50.

For technical traders, a close between $114.50 and $115.25 gives master traders a neutral bias into tomorrow. A close above that range would be bullish and below very bearish. Monitor these levels and remember this week is options expiration. Many whips will be seen.

Technology has been a key to the recovery in the markets off the lows. Stocks like Amazon.com, Inc.(NASDAQ:AMZN)  and Intel Corporation (NASDAQ:INTC) are nicely higher. In addition, many other leading stocks like Apple Inc. (NASDAQ:AAPL) are only fractionally lower. When leading stocks show strength, eyes must turn towards a possible move higher. Even a bank stock like Bank of America Corp (NYSE:BAC) is flat on the day.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Let The Games Begin

September 12, 2011 – Comments (0) | RELATED TICKERS: NFLX , GOOGL , AMZN

Hopefully many traders and investors know that this Friday is options expiration. Often during the trading week leading up to the expiration there will be a lot of games being played by the large institutional trading desks. You see, this is a time when the small retail options traders will most likely be shaken out of their near term options position. The institutions will usually look to see where the small retail options traders have placed there bets. Once the elaborate computer programs sniff out where the popular bet has been placed the institutional money will move the stock in the other direction. This is why options expiration week is always so volatile, erratic, and tricky.

It is important to always remember that many small retail options traders will rarely ever exercise a stock, they are simply looking to capture a gain in the premium paid. Most options traders will generally close out the position before the actual expiration of the option. This is another reason why the entire trading week leading up to options expiration is so volatile. Traders should also be aware that this is a week where rumors run rampant in the market place.

Traders and investors will see the most volatility on the popular trading stocks. Stocks such as Apple Inc.(NASDAQ:AAPL), Netflix Inc.(NASDAQ:NFLX), Amazon.com Inc.(NASDAQ:AMZN), and Biadu Inc.(NASDAQ:BIDU) will usually be extremely active and volatile throughout the trading week. It is important to remember most traders that are purchasing options simply do not have the capital to directly purchase the stock and the institutions know that, therefore, the institutions will take advantage of this and try to shake out the small retail options trader throughout the entire week.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Gold Dips, However, It Is Still The Golden Investment

September 12, 2011 – Comments (0) | RELATED TICKERS: GDX , GOLD , NEM

This morning, spot gold is declining lower by $21.00 to $1838 per ounce. Gold has been extremely volatile over the past month. Many traders and investors have been fleeing the precious metal due to rumors of another margin hike by the CME Group. So far, the CME Group has increased margins for gold on two separate occasions since August 10, 2011. Traders may remember, it took four separate margin hikes in silver to cause the price to decline sharply. It is important to note that gold has been in a ten year bull market, therefore, a correction in the precious metal will actually be beneficial as the chart is somewhat overbought and extended on the larger time frames. This morning, the highly popular SPDR Gold Shares are trading lower by $2.38 to $178.26 a share. The GLD will have intra-day support around the $176.00 and $174.50 levels intra-day.

Gold mining stocks are also pulling back today with the precious metal. The highly popular Market Vectors Gold Miners ETF (NYSE:GDX) is trading lower by 0.72 to $65.09 a share. Traders can watch for some short term intra-day support around the $64.00 area. Other leading gold mining stocks that are pulling back include Agnico Eagle Mines LTD (NYSE:AEM), Newmont Mining Corp.(NYSE:NEM), and Randgold Resources LTD(NASDAQ:GOLD).

Nicholas Santiago
InTheMoneyStocks.com


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Recs

2

Do Not Stop Looking At This Chart

September 12, 2011 – Comments (0) | RELATED TICKERS: UUP , XOM , COP

Traders must continue to watch a chart of the U.S. Dollar Index. This morning, the U.S. Dollar Index futures (DX U1) has pulled back a bit from its overnight high. This pullback in the DXY has helped the major stock market indexes to bounce a little off the morning lows. When the DXY declines the major stock indexes will usually inflate and trade higher. Should the DXY rally higher throughout the trading session traders should expect the major stock indexes to see some more selling pressure as the markets continue to deflate.

Energy and commodity stocks are very sensitive to the action in the DXY, therefore, these stocks will usually trade inverse to the U.S. Dollar Index. Traders can watch leading stocks such as Exxon Mobil Corp.(NYSE:XOM), ConocoPhillips(NYSE:COP), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) to be under pressure on the back of a stronger U.S. Dollar Index. Should the U.S. Dollar Index decline or fade from the open these stocks are likely to bounce off the morning lows.

Nicholas Santiago
InTheMoneyStocks.com



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Recs

0

Pro Traders Play Book - Major Action!

September 12, 2011 – Comments (0) | RELATED TICKERS: KLAC , NVLS , LRCX

Did These Stocks Actually End The Week Positive?

As you know the major stock market indexes continue to struggle. Almost every sector has come under heavy selling pressure since late July 2011. Most traders and investors are now wondering where strength can be found in the market, and if there is any sector worthy of an investment. Well, while long term investing may be out of favor these days there are always trading opportunities available to those who can understand the charts. This report, we shall examine three stocks that held up well last week and the opportunities they may present. These stocks showed some short term relative strength and will most likely trade higher if the major stock markets can stage a short term bounce or rally. Conversely, if the major stock indexes continue to decline these stocks will likely fall prey to the downside momentum. The stocks that showed strength despite the overall stock markets weakness last week were semiconductor equipment makers. Let's examine and reveal exactly what you need to know about these stocks going into the following week.

Lam Research Corp (NASDAQ:LRCX) is a leading semiconductor equipment maker company. Last week, LRCX ended higher by just $1.22 to close at $37.18 a share on Friday. Please understand, LRCX has been in a down trend since topping out in early March 2011 at $59.10 a share. Last week, LRCX continued to hold above the important $35.00 support level which is now a minor level, therefore, should the $35.00 area get tested again the stock would be susceptible to fail and breakdown. Should the major stock indexes rally higher next week traders can look for LRCX to trade higher. This stock will face near term resistance around the $38.50, and $41.00 levels. Please remember, the current stock market is really nothing more than a short term trading environment. Should LRCX breakdown and close below the $35.00 level on the daily chart the stock will have short term support around the $34.00, and $31.25 levels. Make careful note of these levels on your charts and trade them accordingly.



Novellus Systems Inc (NASDAQ:NVLS) is another leading semiconductor equipment maker that actually finished the week higher. The stock closed higher by just 0.95 cents to $28.12 a share for the week. Nonetheless, it was still a gain. In fact, both LRCX, and NVLS closed higher on Friday when the Dow Jones Industrial Average and the NASDAQ Composite ended the session lower by more than 2.00 percent. This tells us that there is some short term relative strength in the industry group. Should the major stock market indexes trade higher next week NVLS is a candidate to see higher prices. The stock will have short term daily chart resistance around the $30.00, and $31.50 levels. Should the stock break and close below its recent low pivot of $26.14 the next support levels will be around the $24.25, and $22.50 levels.



KLA Tencor Corp (NASDAQ:KLAC) is a leading semiconductor equipment and material manufacturer. This stock also followed LRCX, and NVLS, by closing higher on the trading week. This stock closed higher by just 0.64 cents to $35.46 a share. While the stock did not soar higher it was positive in a weak and fragile stock market. Should this stock trade higher from the current level there should be near term resistance around the $38.00, and $39.50 levels. Should KLAC sell off and close below the recent pivot low of $33.20 the stock will have near term support around the $29.75 level.






 Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Euro-zone Breakdown

September 09, 2011 – Comments (0) | RELATED TICKERS: FXI , EWP , EWQ

This afternoon, the popular and highly followed German DAX closed lower by over 4.00 percent to 5189.93. This is a fresh new 52 week closing low for the most important stock index in the European Union. The iShares MSCI Germany Index Fund ETF (NYSE:EWG) is trading lower by 0.92 cents to $17.89 a share. Traders must now watch for the next support area on the EWG which is at $16.75. This support pivot was made on the daily chart going back to July 2009. After that next support level the March 2009 lows will be back in play as the next major support area for the EWG. In other words, there looks to be further downside in the cards for the EWG.

Other leading European ETF's that are trading lower today include the iShares MSCI Spain Index (NYSE:EWP), iShares MSCI France Index (NYSE:EWQ), and iShares MSCI Italy Index (NYSE:EWI). All of these important European ETF's are trading lower by more than 4.00 percent today. Traders should remember that the EWG is the most important European ETF to follow since Germany may be the only solvent country in the Euro-zone. Remember it is always best to follow the leader.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

The Ultimate Stock Market Barometer Works Again

September 08, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , MS

Often traders and investors look at so many different indicators and charts in order to try and gauge the stock markets. While all of this could be helpful it sometimes easier to just follow the stock market leaders. Right now, and really since 2007, the stock market has been in a financial crisis. The European bond market is in shambles with Greek yields surging higher everyday. Italy, Spain, France, and the rest of the European Union are facing the same problems. The problems is not actually with the countries but with the banks that hold bonds from those nations. Therefore, this is a global banking crisis.

The most important bank in the United States and possibly the world is J.P. Morgan Chase & Co.(NYSE:JPM). Yes, believe it or not, it is not Goldman Sachs Group Inc.(NYSE:GS) or Morgan Stanley(NYSE:MS) that are the leading financial stocks, it is J.P. Morgan Chase. Traders can just follow this financial giant as it has telegraphed the major stock indexes for quite a while now. The same technique could be used if you were looking to track technology. Traders would then follow Apple Inc.(NASDAQ:AAPL). We would track APPL stock because is the leading technology stock in the world right now.

JPM stock is trading lower by $1.30 to $33.54 a share this afternoon. When JPM stock declines or sells off traders must expect the S&P 500 Index and the Dow Jones Industrial Average to be weak or decline throughout the day. It is very rare to see the major stock indexes trade higher when the leading financial stock in the world is declining. Follow JPM stock to get the pulse and temperature of this stock market.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

0

Using The Bank Stocks To Call The Market

September 08, 2011 – Comments (0) | RELATED TICKERS: SPY , BAC , JPM

The markets just heard from Federal Reserve Chairman Ben Bernanke. His comments on the economy were released at 1:30pm ET. They contained little to no new information. The markets were hoping he would throw a new bone of hope. At this stage, the markets are dipping slightly with the SPDR S&P 500 ETF (NYSE:SPY)$119.28, -1.01 (-0.84%). Overall, the markets should not drop significantly. Just a little selling is occuring after hopes turned out to be false on some new hint of QE3. All eyes continue to be on President Obama and his major speech tonight at 7pm ET.
Earlier today, the markets hovered flat to positive. While the markets were holding steady, and seeing green, the bank stocks were down. Stocks like Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS) saw red all day long. These stocks have been amazing leading indicators of market weakness. Today is just one example. It can be argued that the financial stocks, which topped out in January 2011 and fell all year, were leading indicators of the problems the market now is dealing with.

The bottom line is simple. Follow the financial stocks to find the true strength in the market. Should the financial plays become stronger, the markets could be making a longer term bottom. However, based on the one or two up days and then more downside they show these days, all market bounces can probably be used as a shorting or selling opportunity.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Which Stocks To Own: Obama Infrastructure Push

September 08, 2011 – Comments (0) | RELATED TICKERS: CAT , HAL , MMM

President Obama will make a major speech to the country this evening at 7pm ET. He is expected to discuss a plan for job growth. It is likely to involve some sort of infrastructure rebuilding. If an infrastructure plan is unveiled, what are the stock play's investors will buy?

The markets are trading around the flat line, prior to this big speech. The SPDR S&P 500 ETF (NYSE:SPY) is trading at 120.64+0.35 (+0.29%). The markets are coming off a big upswing yesterday, after Germany past a constitutionality vote for the bailouts of Greece and other European nations.

Should hundreds of billions of Dollars be put into rebuilding the countries infrastructure, key stocks will be in play. Billions may flow to them and investors may see a short term pop soon.  These stocks would likely be the best of breed. Stocks like Caterpillar Inc. (NYSE:CAT), Halliburton Company (NYSE:HAL), 3M Company (NYSE:MMM). Others may see some money flow as well.

Watch the Presidential speech tonight and keep a close eye on what the plans are for future money flow. While the government is cutting back, any word of money flow that was unexpected, could give specific stocks a jolt.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Does The Bernank Have Another Ace Up His Sleeve?

September 08, 2011 – Comments (0) | RELATED TICKERS: SSO , QLD , DIA

This afternoon, the Federal Reserve Bank Chairman Ben Bernanke will give a speech to the Economic Club of Minneapolis. Many traders and investors are wondering if Chairman Bernanke will hint at another round of stimulus via more U.S. Treasury purchases or perhaps his latest concoction called Operation Twist.

Traders must remember that the last round of quantitative easing ended in late June 2011. Last year before the Federal Reserve implemented its latest round of stimulus called QE-2 they said the reason was because the central bank had a mandate to increase jobs. Unfortunately, the latest job results have been very limited. In the month of August, the U.S. Labor Department posted that there was no new jobs created. Many investors are simply wondering if the last QE-2 program was simply a way to further capitalize the large banks that are too big to fail.

This time around the Bernank may need to wait a while before trying to inflate the stock market and the economy back up as he did in 2009. Since 2001, the central bank of the United States has kept the Fed funds rate extremely low. Many investors can now point to the low Fed funds rate as the cause for the housing and credit bubble of 2008. It is important to note that the Federal Reserve Bank now has rates at an all time low. The Fed funds rate has been at zero to a quarter percent (0.0 – 0.25%) since December 2008.

Traders should expect some volatility after the speech this afternoon by Chairman Bernanke. All of the major stock indexes are trading higher this morning, reversing a gap lower open. Traders are obviously optimistic that Chairman Bernanke will say something that will help lift stocks and not disrupt the markets.

Nicholas Santiago
InTheMoneyStocks.com



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Recs

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All Eyes On The Greenback

September 08, 2011 – Comments (0) | RELATED TICKERS: FCX , UUP , DVN

Traders must simply watch the U.S. Dollar Index very closely today. Once the opening bell rang at the New York Stock Exchange the U.S. Dollar Index began to decline from its intra-day high. We should all know by now, when the U.S. Dollar Index declines the major stock market indexes will usually inflate and trade higher. The U.S. Dollar Index futures (DX U1) traded as high as $76.06 before the opening bell, they are now trading at $75.77 per contract at 9:43 am EST. Traders can easily see how the major stock indexes have reversed the losses from the premarket as soon as the U.S. Dollar Index declined.

Generally, when the U.S. Dollar Index declines intra-day most commodity and energy stocks will trade higher. Traders should watch stocks such as Devon Energy Corp.(NYSE:DVN), Exxon Mobil Corp.(NYSE:XOM), and Freeport McMoRan Inc.(NYSE:FCX) to trade higher on the back of a weaker U.S. Dollar Index. Should the U.S. Dollar Index begin to trade higher these same leading stocks will usually retreat quickly to the downside. All Traders must continue to follow the action in the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

Cloud Stocks Skyrocket

September 07, 2011 – Comments (0) | RELATED TICKERS: RAX , CTXS , FFIV

The afternoon, the major stock indexes are soaring higher. Technology stocks are leading the rally higher with the NASDAQ Composite trading up by nearly 3.00 percent on the session. When the tech stocks rally we must always look at the important cloud computing stocks to be market movers.

Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting and cloud computing company. This stock has been beaten down since early July 2011 when the stock traded as high as $46.00 a share. Recently, the stock has been able to form a series of higher lows on the daily chart. The stock will still have daily chart resistance around the $38.00 level. The next major daily chart resistance level will be around the $40.25 area. Short term day traders can watch for intra-day resistance around the $36.25 and $36.85 levels. Should the stock decline intra-day traders can watch for intra-day support around the $35.15 area.

Other leading cloud computing stocks that are trading higher include F5 Networks Inc.(NASDAQ:FFIV), Citrix Systems Inc.(NASDAQ:CTXS), and Salesforce.com Inc.(NYSE:CRM). All of these leading cloud stocks have very similar pattens on the daily charts, therefore, traders must use caution after this rally concludes.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

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Knowing Stock Market Technical Levels Make You Rich

September 07, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

Over and over again the markets reward those investors and traders that use technical analysis. I am not talking about nonsense like stochastics, MACD or RSI. I am simply talking about looking at the chart and using common sense to determine price, pattern and time. To 99% of the public, this is a foreign language. However, it is the way to become filthy rich.

Let's give a great example. Going into Tuesday of this week, everyone knew the markets were going to take at tumble. The previous day, when the markets in the United States were on holiday, Europe took a major hit, dropping almost 5%. Right away, smart traders go to the charts, trying to figure out whether or not the markets will dump to the August 9th, 2011 low of $110.27 on the SPDR S&P 500 ETF (NYSE:SPY) or just gap lower and reverse higher.  A technical trader simply had to look at the chart and connect the pivot lows. If you connect all the lows from August 9th, they form a perfect trend line. The next step is to understand this line.

Understanding the line is simple. Should the market close below the trend line, the markets would be in break down mode and see the $110.27 SPY low within days. Should they rally back above that line, upside would follow for days.

Sure enough, the markets closed above the trend line and held off the bears. Traders who utilized this bought the market into the close yesterday. They are being rewarded with big time profits today. 

Gareth Soloway
InTheMoneyStocks.com



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Recs

1

USO Catches Fire, Watch These Resistance Levels

September 07, 2011 – Comments (1) | RELATED TICKERS: XOM , CVX , COP

This morning, oil is catching a bid higher on the back of a weaker U.S. Dollar. The popular and highly traded United States Oil Fund(NYSE:USO) is trading higher by 0.70 to $34.29 a share. Traders can watch for intra-day resistance around the $34.50 and $34.95 levels. It is also important for traders to follow the U.S. Dollar Index very closely. Whenever the U.S. Dollar Index strengthens intra-day oil will often pullback.

Many leading energy stocks are trading higher this morning as well. Leading integrated energy stocks such as Chevron Corp.(NYSE:CVX), Exxon Mobil Corp.(NYSE:XOM) and ConocoPhillips(NYSE:COP) are trading higher on the session. These stocks also have a tendency to trade inverse to the U.S. Dollar Index, therefore, traders must continue to follow the U.S. Dollar Index chart at all times.

Nicholas Santiago  [more]

Recs

1

Gold Gets Slammed Early, Watch This Support Area

September 07, 2011 – Comments (0) | RELATED TICKERS: GLD , NEM , AEM

This morning, the popular and highly followed SPDR Gold Shares(NYSE:GLD) are trading lower by $6.50 to $176.34 a share. Spot gold is declining lower by nearly $50.00 to $1823.00 an ounce. The last time gold sold off so sharply the CME Group increased margin requirements for the precious metal. Traders should remember that in late April 2011 it took four margin hikes by the the CME Group before silver rolled over sharply. The margin requirements for gold have been increased twice since August 10, 2011. The GLD will have intra-day support around the $175.50 and $174.00 levels. 

Some leading gold mining stocks that are trading lower today include Newmont Mining Corp.(NYSE:NEM), Agnico Eagle Mines LTD(NYSE:AEM), and Yamana Gold Inc.(NYSE:AUY). All of the gold miners were very extended and overbought on the daily charts. These stocks needed to pullback from the overbought condition, meanwhile, they still remain in good technical shape on the daily charts at this time. 

Nicholas Santiago
InTheMoneyStocks.com


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Recs

1

Gold Retreats Intra-day, Is There More To Come?

September 06, 2011 – Comments (0) | RELATED TICKERS: GLD , DGP , GLL

Spot gold for December ended the session lower by $3.60 to $1873.30 an ounce. Earlier in the day, gold reached a new all time high of $1923.70 before reversing lower. Many traders and investors believe that it is the strong surge in the U.S. Dollar Index that helped to pullback gold back from the intra-day highs. While a stronger U.S. Dollar Index will usually cause most industrial commodities to retreat it usually has very little effect on gold these days. Many traders are anticipating another margin rate increase very soon from the CME Group. This is what most likely caused traders to flee from the precious metal after briefly making an all time high this morning.

The popular and highly traded SPDR Gold Shares(NYSE:GLD) are trading lower by 0.52 cents to $182.75 a share. The GLD traded as high as $185.85 shortly after the opening bell. Traders can watch for intra-day resistance on the GLD around the $184.00 level. Should The GLD sell off from its intra-day level there is a lot of chart support around the $181.20 area. Traders should expect GLD to be very volatile throughout the remainder of the trading session. 

Nicholas Santiago
Inthemoneystocks.com

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Recs

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JPM Is Still The Only Indicator That Matters

September 06, 2011 – Comments (1) | RELATED TICKERS: JPM , CS , BCS

When J.P. Morgan Chase & Co.(NYSE:JPM) bounces or trades higher the major stock indexes move higher. When this leading bank stock declines the major stock indexes moves lower. At this time, when there is a banking and financial crisis taking place traders can simply follow the leading financial stock in the market and that is JPM stock. This leading financial stock will have intra-day resistance around the $34.05 area intra-day.

Sure, other leading financial stocks such as Credit Suisse Goup(NYSE:CS), UBS AG(NYSE:UBS), and Barclays PLC(NYSE:BCS) will be important. These stocks are the leading European financial institutions and will usually have less effect once the European markets close for the day. Therefore, traders should concentrate and focus on JPM stock for the remainder of the trading day. 

Nicholas Santiago
InTheMoneyStocks.com

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Recs

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Markets Rally Off Lows, Watch This Level

September 06, 2011 – Comments (0) | RELATED TICKERS: SPY , NFLX , AMZN

The major stock indexes started the trading session down by 300.00 points just after the opening bell. Slowly throughout the trading day the major stock indexes have rebounded off the morning lows to trim the day's losses. Traders should now watch for some key resistance levels on the SPDR S&P 500 Index (NYSE:SPDR) around the $117.40 level. The SPY could see some intra-day pullbacks around these levels.

Some leading stocks that are trading higher today include Netflix Inc.(NASDAQ:NFLX), Amazon.com Inc.(NASDAQ:AMZN), Research In Motion LTD(NASDAQ:RIMM), and Apple Inc.(NASDAQ:AAPL). When the leading stocks can catch a bid in a bad market that is sometimes the way the market talks to us. Traders should watch these stocks for further upside should the major stock indexes continue to trade higher throughout the day. 

Nicholas Santiago
Inthemoneystocks.com

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Recs

0

Transports Plummet

September 06, 2011 – Comments (0) | RELATED TICKERS: IYT , FDX , CSX

The highly followed Dow Jones Transportation Index is declining sharply lower again this morning. Traders can look at the iShares Dow Jones Transportation ETF(NYSE:IYT) and see that the IYT is trading lower by 3.50 percent. Whenever the transportation index declines it is often a sign of economic contraction and slowdown in global business. The IYT is still trading above its recent daily chart low made on August 23, 2011 at $75.81 a share. Should the IYT close below that important level on the daily chart that could signal another dose of institutional selling. The IYT will have intra-day support around the $76.00 area.

Some notable transport stocks that are trading lower today include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and United Continental Holdings Inc.(NYSE:UAL). On a day like today when the major market indexes are all trading sharply lower everything will generally follow the S&P 500 Index. Therefore, traders must try and time all intra-day positions with a bounce in the major stock indexes.



Nicholas Santiago  [more]

Recs

1

Gold Miners Jump Out Of the Gate

September 06, 2011 – Comments (0) | RELATED TICKERS: GDX , AUY , ABX

This morning, gold and gold mining stocks are taking off to the upside. The popular Market Vectors Gold Miners ETF(NYSE:GDX) is trading higher by $1.64 to $66.55 a share. Traders must watch the $66.50 and $67.00 levels as short term intra-day resistance. The daily chart on the GDX continues to remain very strong, however, the GDX is starting to get a bit extended and overbought. Whenever, stocks or ETF's get extended on the daily chart they will usually need to pullback or consolidate before moving higher.

Other leading gold mining stocks that are surging higher this morning include Randgold Resources LTD.(NASDAQ:GOLD), Yamana Gold Inc.(NYSE:AUY), and Barrick Gold Corp.(NYSE:ABX). All of these leading mining stocks look very similar to the GDX on the daily chart. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

The U.S. Dollar Index Holds The Cards For The Markets Today

September 06, 2011 – Comments (0) | RELATED TICKERS: UUP , SCCO , CLF

This morning, the U.S. Dollar Index futures (DX U1) have surged higher by 0.57 cents to $75.78 per contract. Usually, when the U.S. Dollar Index pops higher it is on the back of fear in the European Union. Traders can look at the CurrencyShares Euro Trust (NYSE:FXE) and see that it is trading lower by $1.41 to $140.01 a share. 

Whenever the U.S. Dollar Index is strong the leading commodity and energy stocks will generally trade lower. This morning, leading stocks such as Southern Copper Corp.(NYSE:SCCO), Cliffs Natural Resources Inc.(NYSE:CLF), and ConocoPhillips(NYSE:COP) are all trading sharply lower. Should the U.S. Dollar Index pullback throughout the session these stocks could see some upside off of the morning lows. If the U.S. Dollar Index remains strong and continues to trade higher then the leading commodity and energy stocks could decline further throughout the day. Traders that do not have a chart of the U.S. Dollar Index can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP).   


Nicholas Santiago
InTheMoneyStocks.com   [more]

Recs

1

The Fed Against Goldman Is Like Watching The Dog Chasing His Tail

September 01, 2011 – Comments (1) | RELATED TICKERS: XLF , GS , AIG

Just when you think you have seen it all you realize that you haven't. This afternoon, Goldman Sach Group Inc.(NYSE:GS) agreed to pay future penalties and review foreclosures in order to help compensate homeowners of wrongful seizures. This all occurred under a Goldman Sachs subsidiary Litton Loan Servicing LP. Goldman Sachs actually sold the lending firm today for $264 million.

Now, the Federal Reserve ordered Goldman Sachs to retain an independent consultant to review foreclosures initiated by Litton that were pending in 2009 or 2010. The penalties for the financial giant have not been announced yet, however, Goldman Sachs was just bailed out by the Federal Reserve in 2008. Now the same institutions that bailed out the investment bank is imposing penalties on them.

Many traders and investors believe that this is simply a public relations stunt and makes for good headlines. The Federal Reserve Bank has been under a lot of pressure recently by many political candidates. Obviously, Congressman Ron Paul(R-Texas) has been very critical of the central bank throughout his entire career. Most recently, other presidential candidates such as Congresswoman Michele Bachman(R-Minnesota), and Governor Rick Perry(R-Texas) have been very outspoken and critical of the Federal Reserve Bank as well. The central bank looks to be trying to clean up its image by today's announcement. This is almost the same problem that Goldman Sachs has had to face since 2009 regarding the bailout American International Group Inc.(NYSE:AIG), at that time Goldman Sachs was paid 100 cents on the dollar by the bailed out insurance company. In 2010, the SEC fined Goldman Sachs Group with a $500 million fine for involvement in an elaborate mortgage backed securities deal with billionaire hedge fund manager John Paulson. The Federal Reserve going after Goldman Sachs is just like watching a dog chase his tail.

This afternoon, Goldman Sachs stock is trading lower by $3.80 to $112.35 a share. The stock will have intra-day support around the $110.75 area.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Stock Market Readies For Jobs Data

September 01, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , UUP

The markets are seeing some profit taking ahead of the Non Farm Payrolls and Unemployment Report. These reports will be released to the market tomorrow morning at 8:30am ET. As these loom, investors are taking some profits off the table from the recent rally. In the last week, the markets surged 8%.

In the last two days, the economic news has started to look less dire. Yesterday, ADP Private Sector Employment came in at 91,000. This was better than Wall Street had expected. In addition, this morning the ISM Index for August reported in at 50.6. This was far better than expectations. In addition, any number over 50 shows expansion in the economy. While it was barely over 50, the markets had anticipated a major slowdown. After this report hit the markets at 10am ET, a dramatic spike was seen in the S&P 500. However, within minutes, profit takers returned and the markets have gone back to the flat line with eyes on the jobs number tomorrow.

The outlook from this Chief Market Strategist has been dead on since the bottom pivot was put in on August 9th, 2011. Tomorrow is going to be a wild card day. The markets need a strong Non Farm Payrolls number to continue their rally. However, even if the markets pull back on Friday, more upside is seen next week. This is mainly due to expectations of the Federal Reserve implementing further easing policies and light volume surrounding the Labor Day Holiday weekend. Once the SPDR S&P 500 ETF (NYSE:SPY) hits $126.25, then the party should come to an end. Late September and October may be very rough months for the market. Stay ready and keep it short term.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Stronger U.S. Dollar Index Stalls ISM Euphoria

September 01, 2011 – Comments (0) | RELATED TICKERS: UUP , SCCO , FCX

The major stock indexes were all trading lower on the day before the ISM data was released. Once the ISM number was released the major stock indexes surged sharply higher. The Institute for Supply Management said that the index declined to 50.6% in August from 50.9% in July. While this ISM number is the worst number in quite a long time it is better than expected. More importantly, the U.S. Dollar Index has soared higher after the announcement, this is the reason why stocks have deflated from that initial move higher in the market.

When the U.S. Dollar Index trades higher on the session it is prudent to expect commodity and energy stocks to pullback. Leading stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF) have all pulled back from the intra-day highs. Should the U.S. Dollar Index decline or pullback throughout the trading session then these leading commodity stocks are likely to bounce higher. All traders should be watching the U.S. Dollar Index very closely.


Nicholas Santaigo
InTheMoneyStocks.com  [more]

Recs

1

Gold And Silver Can Still Be Traded

September 01, 2011 – Comments (0) | RELATED TICKERS: DGP , GLD , DZZ

Recently, the precious metals have received massive media coverage. Some traders say that gold is a bubble and is now bursting. Other traders say that gold is the only safe haven for people to put their money. It is important to note, gold is now in a 10 year bull market. Bull markets such as the one we have seen in gold will simply need to have a correction from time to time. If you ask the average person on the street if they own any gold bullion or gold coins they will tell you no. In fact, most people do not own any gold or silver outside of their personal jewelry. This tells us that gold may be do for a pullback or correction in the near term, however, a bubble is a little bit of a stretch at this time.

Gold is the ultimate indicator of central bank activity. When central banks increase the money supply or add cash reserves at the major banks gold will usually trade higher. Many banks are now taking gold as payment and collateral. This tells us that gold is still in demand and more importantly becoming a currency.

Back in late April 2011, silver was surging higher, nearing the $50.00 an ounce level. At that time, the CME Group increased margin requirements on four separate occasions. This margin hike caused silver to sell off sharply as many speculators simply did not have enough capital on hand to hold the position. On two separate dates over the past month the margin rates were increased for gold. The price for gold declined sharply from the August 22, 2011 high. Many traders and investors are now worried that margin hikes will be implemented again for gold. This fear of margin increases is now keeping the price of gold contained. This tells us that gold should simply be traded at this time. Remarkably, gold is still holding up very well considering the sharp decline that occurred on August 24, 2011. Believe it or not, gold can still make new highs from here if it can build a base and consolidate around the current levels.

The gold bull market is still very much alive. Gold may need to correct or pullback in the near term, however, that would actually be healthy for gold. Traders can watch for intra-day support on the SPDR Gold Shares(NYSE:GLD) at the $176.25 and $175.00 levels. The intra-day resistance levels for gold are around the $178.50 area.

Nicholas Santiago
InTheMoneyStocks.com  [more]

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