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September 2013

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End Of Quarter Trick That Tells Us To Short Tesla Motors Inc

September 30, 2013 – Comments (3) | RELATED TICKERS: TSLA

Tesla Motors Inc (NASDAQ:TSLA) is quickly approaching $200 per share. There is one key reason to short this stock and it has nothing to do with technical or fundamental reasons. Simply put, into the end of this quarter (ending today), millions of shares are being bought in Tesla for window dressing. Simply put, window dressing is one of the biggest tricks perpetrated by fund managers around the world. Essentially, fund managers want to show their clients (all the average investors who have invested with them) that they owned the top performing names for the quarter. One of the best performers has been Tesla Motors. Therefore, they buy the stock into the end of the quarter. This creates an artificial bid on the stock and it moves higher. Investors see it on their statement and rejoice, not knowing it was bought at the very end of the quarter at all time highs. Once the new quarter starts, these fund managers can dump it or cease to buy it. Is this legal? Yes. Is it ethical? No. As a swing trader, we can use this to our advantage. I will look to short Tesla Motors on a break of $200 a share. This will be a near term short trade that should give profits within a week or two. I expect approximately a 10% pull back, possibly more.

Gareth Soloway
InTheMoneyStocks.com

TSLA  [more]

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Here Is Why Dow 15,000 Is The Key To The Potential Government Shutdown

September 30, 2013 – Comments (0)

Everyone should know by now that once the stock market declines sharply for a few more days or weeks the politicians will usually strike a deal in Washington DC. All of this talk of a potential shutdown of the government is just temporary, the politicians really fear the stock markets much more than the voters.

Today, the Dow Jones Industrial Average (DJIA) is trading lower by more  than 100.0 points at 15,159.00, but it remains well above the psychological 15,000 level. You see, the majority of the people in the public just look at the DJIA. As long as that level on the DJIA continues to stay above the 15,000 level there will be very little public outlash. On the other hand, if the stock markets really started to tumble and the DJIA closed below the 15,000 level the public would start to really complain and cause an uproar. Then the public would threaten the politicians with their jobs during the next election. This is the reason why every debt ceiling debate gets settled so quickly. 

Nicholas Santiago
InTheMoneyStocks.com
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Tower Group International, Ltd. Has Bottomed, Bounce Likely

September 26, 2013 – Comments (1) | RELATED TICKERS: TWGP

Tower Group International, Ltd. (NASDAQ:TWGP) is seeing a major volume surge. The stock hit a low of $7.99 and just jumped to a high of the day at $8.92. This massive reversal has happened over the last few minutes. The stock is down from $22.30 in the last couple months. Ultimately, this stock appears to have put in a major technical bottom. While unwise to buy it up here, look for a pull back. That will be the opportunity to go long. Anything under $8.50 looks decent. A close below $7.99 would be the stop. Cheers!

Gareth Soloway
InTheMoneyStocks.com
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The Debt Ceiling Debate Is Just One Small Obstacle

September 26, 2013 – Comments (0)

Everywhere in the media you hear people talking about the current debt ceiling being reached in Washington DC. As we all know throughout history, almost every U.S. president has raised the debt ceiling during their term. Now, President Obama and the U.S. Congress have both stated that the United States will not default on their debts. All of the politicians have made that very clear, but how is that even important? You see, the Federal Reserve can print all of the money they want. They can simply lend that money to the U.S. Treasury and the U.S. debt gets paid. According to the Federal Reserve inflation is very low so more money printing does not seem to be a problem at this time. So what is the big deal about raising the debt ceiling again? 

The bigger problems that people should start to worry about are the slow economy, lack of high paying full-time jobs, welfare, war costs, and potential asset bubbles in the stock market. These are just some of the real threats to the United States. If a central bank can print all of this money to simply try and inflate the stock market to new highs with minimal economic growth something bigger can be brewing. After all, when GDP (gross domestic product) is around 2.0 percent in the U.S. that is not the sign of economic growth. 

Retired citizens are earning basically nothing in a savings account at this time. So basically it is safe to say that savers are being punished for being responsible. Just think about the elderly in the United States, do they want to really invest in the stock market after experiencing the 2008 credit and housing crisis? The answer to that question is probably not. Banks are now trying to impose countless fees on individuals for having a checking and savings account. Why do people keep money in a bank anymore? The reason is so that they do not have to keep it under the mattress at their home, but that could change in the future.

Why does the government spend more money than it takes in? This is a question that could solve all of the problems for the United States. First, the country is involved in wars and conflict everywhere around the world.  These are also military bases all over the Earth that must be funded and  supported. Next, there are roughly 50 million people in the United States that are on some form of government assistance. The last point that we should mention is that politicians continue to spend money on projects, programs, and other pork items. This just proves that the current debt ceiling debate is just one small obstacle for the United States. 

Nicholas Santiago
InTheMoneyStocks.com
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JPMorgan Chase & Co: Head And Shoulders Should Scare You

September 25, 2013 – Comments (0) | RELATED TICKERS: JPM

JPMorgan Chase & Co (NYSE:JPM) has a wicked head and shoulder pattern on the daily. It has not triggered yet, but if it does, you should be very scared. JPMorgan is and has been a leading indicator for the market, regardless of the lawsuits they are dealing with currently. Throughout history, where JPMorgan has gone, so has the market. Should this head and shoulder pattern trigger on a daily close below $50.00 a share, downside could result in a move to $43.00. That is a mega move for the stock and you can expect a major move in the market. Keep watch of this trend line. If you are smart, you can make quite a bit of money off it...or at least save yourself some money.   [more]

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Facebook Inc Top: Stock Chart Tells Of Coming Down Move

September 24, 2013 – Comments (0) | RELATED TICKERS: AAPL , FB

Facebook Inc (NASDAQ:FB) is having a fantastic day. The stock hit a new all time high of $49.66. However, the charts tell the future and the future is not green for Facebook. Instead, it is cluttered with down days and a pull back to the $45.65 and $42.45 levels.

So why when the world is so bullish on Facebook is the top in? The answer is somewhat simple. First, with the world so bullish on Facebook or on any stock, one must be wary as a reversal is likely. A great example of this was Apple Inc. (NASDAQ:AAPL). When the stock was at $700 a share, analysts were upgrading like crazy and the whole world was talking about it. This has now happened with Facebook. Today, happens to coincide with an analyst upgrade as well. Go figure, an analyst upgrades the stock now when it is up 100% in the last few months. Definitely similar to Apple at $700 per share. When looking at the stock chart of Facebook, the first thing that jumps out to me is the symmetry. The price hovered around $25.00 a share for a long period. After earnings it shot up to a high of $49.66. This is a 100% move in the stock. In addition, notice the selling that has come in off the highs today. Major distribution from institutions. Last, notice the tail on the chart today. As the stock declines, it forms what could be a topping tail on the daily chart. Should a topping tail form, it will solidify a major top in the stock for a pull back to the mentioned levels of $45.65 and $42.45. Normally, I do not mention valuation but even that is way beyond stretched. 

The bottom line sits at an overbought Facebook chart that has too many amateur bulls long and reversal signals everywhere. Cheers to a great shorting opportunity. 

Gareth Soloway
InTheMoneyStocks.com
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The Great Disconnect: United States Debt Vs. Growth

September 24, 2013 – Comments (0)

Stock markets are now trading at new all time highs. Last week, the Federal Reserve announced that they would not cut their current $85 billion a month QE-3 program. In other words, the central bank to the United States wants to keep interest rates extremely low in order to boost the U.S. economy. They also continue to buy mortgage backed securities and U.S. treasuries to keep the recent housing boom intact. Some members of the Federal Reserve such as Richard Fisher have strongly opposed the action by the Federal Reserve, but that does not seem to change the fact that the central bank's balance sheet is now around $4 trillion. That is a lot of money printing over the past five years and it is still growing.

Next, there is the United States debt ceiling debate between President Obama and the U.S. Congress that is heating up. The U.S. debt has climbed to $16.95 trillion. Many individuals will blame President Obama for the large increase in debt, but in all fairness every U.S. president has raised the debt ceiling. The only thing that could bring down the current U.S. debt would be economic growth, but unfortunately when a country grows at 2.0 percent a year it is very difficult to bring down the U.S. debt in a meaningful way. 

The number of people in the United States receiving benefits from the Supplemental Nutrition Assistance Program (formerly known as food stamps) is now just over 47 million. Then there is the money spent on wars and other conflicts, some experts say that the Iraq war cost over $3  trillion alone. Is all of this spending by the United States government ever going to stop? How can a country in so much debt continue to spend money it does not have? 

At this time, that does not seem to matter. The stock markets remains at or near all time highs. The markets do not seem to be worried about the weak U.S. economy, the debt, the people on public assistance, or the wars. When the stock market starts to panic that will be the time to worry that the problems are becoming to big too handle. Remember, the warning signs that told us that the housing and credit bubble was about to burst started to show up late 2005 when the housing stocks topped out, but the Dow Jones Industrial Average did not top out until October 2007. At that time, the central bankers were telling us that there were no problems on the horizon, but we all know now that the great recession was already underway despite the calming words from Ben Bernanke and the central bankers. Right now we are looking at the great disconnect, but everyone should just trade until the market tells us otherwise.  [more]

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The Bernanke Bust: Shoot Blanks At The Stock Market

September 23, 2013 – Comments (1)

Last Wednesday, Ben Bernanke kept the juice flowing. He did not withdraw any of the $85 billion the Federal Reserve has been printing each month. This shocked the markets, sending stocks sharply higher initially. However, within days of the pop, the stock market finds itself lower than prior to the announcement. Why?

Simply put, the market realizes this is a fight where the Federal Reserve is shooting blanks. Not only does the market need to worry about when the Federal Reserve will remove some of the QE from the market...again, but now the question must be asked whether or not this is just getting silly. After printing almost $4 trillion, what has been accomplished? Is there any real benefit to printing another $85 billion next month, the month after? If no money had ever been printed, would we naturally be seeing a stronger recovery? I for one believe the economic recession would have been harsher, but truly believe we would be in a much more sustainable recovery by now. When you let the economy flush out, the weak hands are removed and the strong survive, thriving. It is just like nature. Yes, it would have been rough, but the recovery now would be much more robust. Instead we have an economy drugged and on life support from the Federal Reserve and their antics. Is it healthy? Hell no!

Major questions should be asked, investigations will eventually be done. Is the Federal Reserve holding onto a strategy that has shown little to no result? One thing is for sure, those of us around in the next 10 years will feel the pain of trillions of Dollars having been printed. The poor and middle  class will feel it sooner.

Gareth Soloway  [more]

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Oil Refinery Stocks Run Out of Gas

September 23, 2013 – Comments (0) | RELATED TICKERS: VLO

Most of the leading oil refinery stocks are declining again today. This important industry group has been very weak since topping out in May 2013. One of the leading stocks in the sector is Valero Energy Corporation (NYSE:VLO). Today, VLO stock is trading lower by 0.39 cents to $34.05 a share. The stock continues to hold near term daily chart support around this current level, but the better support area would be around the $31.00 level. The $31.00 area would be an attractive level for the stock to stage a more significant bounce for the oversold condition on the charts. 

Nicholas Santiago
InTheMoneyStocks.com
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Mastercard Inc Puts In Technical Top

September 19, 2013 – Comments (0) | RELATED TICKERS: MA

Mastercard Inc (NYSE:MA) is reversing earlier gains today as it puts in a technical top. This stock has had an epic performance since 2009 when it was priced at $117.00. The stock hit a new all time high today at $695.01. That is a massive gain of almost 500%. There have been only minor pull backs along the way.

Today, the stock pushed up to $695.01 hitting that new all time high and have since reversed almost $10. In the short run the stock should pull back to $655.00. In the longer term a much bigger pull back is likely.

Gareth Soloway
InTheMoneyStocks.com
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Forget The News and the Noise, Trust the Charts

September 19, 2013 – Comments (0) | RELATED TICKERS: GDX

As technical traders, it our job to follow the money flow. Over millions of years there have been cycles, and patterns that have repeated over and over. Take the seasons for example, there is summer, spring, winter, and fall. These seasons tell us when to prepare for cold weather, warm weather, when to plant, when to harvest, and more. The ancient hunters used to watch the footprints of animal tracks to find their lairs, this is how they were able to feed their families. This is basically the same thing that technical traders do with charts.  

As a technical trader we look for patterns that repeat over and over again in order to find solid trading opportunities. Often, when that chart pattern appears it gives the technical trader a chance to make a solid investment decision. While technical trading is not perfect it will allow the discipline trader to exit the investment with a small loss when wrong.

Yesterday, the Federal Reserve Bank announced that they would not start to taper their current $85 billion a month QE-3 program. Now, many traders were nervous about taking action ahead of the Fed announcement. A few days earlier I alerted to buy the gold mining stocks. This decision had nothing to do with the Federal Reserve or anyone else, it had to do with the charts. We were able to pick up the Market Vectors Gold Miners ETF (NYSEARCA:GDX) at $25.60 a share on September 12, 2013. Many members where asking me if a taper of QE-3 would hurt the gold mining stocks. I said to them that the chart is telling us that the GDX is going to rise and if I'm wrong we will just stop out of the position with a small loss. I said, trust the charts and do not worry about the news and the chatter in the media. Fortunately for us the GDX rallied higher by 10 percent yesterday closing above $28.00 a share. 

Learn to use the charts. Over the years the charts have usually forecasted most market moves before anyone in the media. Technical traders should also have a stop loss in place just in case the pattern on the chart fails, but the loss should be small. The key to trading is to let the winning trades run to target and cut the losing quickly when the chart  pattern tells us to do so. Now there is a lot to learn about the charts, you will not master them in a day. In fact, we are always learning when following charts, but it sure beats trying to trade off of the news or the talking heads in the media. 

Nicholas Santiago
InTheMoneyStocks.com
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No Sunshine In RIO Today

September 19, 2013 – Comments (0) | RELATED TICKERS: RIO

Rio Tinto plc (NYSE:RIO) is one of the world's leading mining companies. The company is involved in the mining and production of aluminum products, copper, gold, silver, diamonds, salt, titanium iron, metal powders, zircon, coking coal, uranium, iron ore and more. Today, the stock is trading lower by $1.27 to $50.62 a share. Short term day traders can watch for intra-day support around the $49.52 level. This is an area where day traders can look for a bounce in the equity. Should that support level fail to hold as support the next intra-day support area would be around the $48.52 level which is the hourly 200 period moving average.

Nicholas Santiago
InTheMoneyStocks.com
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Michael Kors Holdings Ltd Signals Technical Breakdown

September 18, 2013 – Comments (0) | RELATED TICKERS: KORS

Michael Kors Holdings Ltd (NYSE:KORS) is breaking down on the daily chart today. The stock has been on a one-way track for since it went public back in late 2011. It has soared from under $25.00 per share to a 52 week high of $76.74. Today, KORS has broken down in a major way. Further downside is likely. The stock has a classic bear flag that was hovering above the 20 moving average. Today it started its breakdown, taking out that 20ma. KORS should head to the 50ma on the daily chart which is currently at $69.75.  [more]

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Rock-Tenn Company Bounce Level Revealed

September 18, 2013 – Comments (0) | RELATED TICKERS: RKT

Rock-Tenn Company (NYSE:RKT) is falling into major support at $110.60. This is the area to expect a solid technical bounce. The stock market and Wall Street has punished this stock over the last two days. The 52 week high was just hit on Monday at $126.05. The stock is now down almost 10% from that high. Look for a bounce off the $110.60 level of support.

Gareth Soloway
InTheMoneyStocks.com
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Intra-day Bounce Levels For Procter & Gamble

September 18, 2013 – Comments (0) | RELATED TICKERS: CLX , KMB , PG

This morning, leading consumer goods manufacturer Procter & Gamble Company (NYSE:PG) is falling ahead of the possible tapering announcement by the Federal Reserve. The stock is trading lower by $1.22 to $78.61 a share. Short term day traders can watch for intra-day support around the $78.33, and $77.87 levels. Minor intra-day bounces are very likely around these levels. Some other leading consumer goods manufacturers that are declining today include Clorox Company (NYSE:CLX), and Kimberly-Clark Corporation (NYSE:KMB). 

Nicholas Santiago
InTheMoneyStocks.com
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Polypore International Plunges, Watch This Support Level

September 18, 2013 – Comments (0) | RELATED TICKERS: PPO

Polypore International, Inc. (NYSE:PPO) is a leading high-technology filtration company that develops, manufactures and markets specialized microporous membranes. The Company's products and technologies are used in two primary businesses: energy storage and separations media. Today, a note issued by William Blair says that vehicle electrification is behind forecasts. 

This morning, this news is sending PPO stock lower by $3.47 to $41.31 a share. Traders and investors should watch for very good daily chart support around the $38.25 level. This is a level where the stock broke out in June 2013. Often, stocks will retest prior pivots and be supported around these old levels by the institutional traders. 

Nicholas Santiago
InTheMoneyStocks.com
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Herbalife Ltd. Hits Double Top: Inside The Trade

September 17, 2013 – Comments (0) | RELATED TICKERS: HLF

Herbalife Ltd. (NYSE:HLF) is slamming into the highs from 2012. The stock is trading at $73.63, +2.99 (4.23%). The shorts, including Ackman continue to take a beating yet finally there are technical signals of a pull back. While most of these short investors are heavily under water, those entering now have a solid risk reward trade. Not only is the stock at double top but it is extremely extended and still faces major questions about their business. Just last month a major distributor named John Peterson committed suicide. He was their top earning distributor. Other strange things keep popping up about this company that warrants caution. Even if the company is sound, the technical setup on the chart now favors a pull back. No worries Bill Ackman, the stock will start coming in shortly, though your entry may be a long shot. Cheers!

Gareth Soloway
InTheMoneyStocks.com

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History Suggests That Bernanke Is Afraid To Taper QE-3

September 17, 2013 – Comments (0)

At this time, Ben Bernanke is going to go down as the Fed chairman that saved the world from the next great depression. He has expanded the Federal Reserve's balance sheet to over $4 trillion. He is the architect of QE-1, QE-2, operation twist, and the current $85 billion a month QE-3 programs. His easy money policies have helped to inflate the major stock market indexes to new all time highs. He has even vowed that the central bank will help improve the U.S. labor market. Whether you agree with Chairman Bernanke's economic policies or not he has inflated all of the global stock markets since 2009 without many negative repercussions. 

Now it is important to remember that Chairman Bernanke has kept the fed funds rate (overnight lending rate to the large banks) at zero to a quarter percent since December 2008. This is one of the reasons why a bank will pay you very little interest in a savings account. The economic policies by the Federal Reserve have also forced many savers into equities and higher risk investments over the past few years.

So will Chairman Bernanke start to taper his current $85 billion a month QE-3 program tomorrow? That is the question that almost every investor in the world is asking at this time. Since 2009, every time the stock market has started to fall or go into correction mode the Federal Reserve has announced another easy money program to boost asset prices. In late 2010, the major stock indexes looked vulnerable to falling and Chairman Bernanke implemented QE-2. This was a program where the central bank purchased $600 billion in U.S. Treasuries. The theory behind this program was to lower interest rates and help stabilize the housing and credit markets. In late 2011, the Federal Reserve boss announced operation twist. This program was also designed to lower interest rates even further by selling medium term bonds and using the proceeds to buy longer term bonds such as 10-year Treasuries. You see, mortgage rates are mostly tied to the yield on the 10-year U.S. Treasury Note. 

In September 2012, the Ben Bernanke and his Federal Reserve bank announced QE-3. In this program, the central bank buys $85 billion a month worth of U.S. Treasuries and mortgage backed securities. Since May 2013 the Federal Reserve has been hinting that they are going to begin tapering its QE-3 program. When Ben Bernanke told this to Congress the stock market plunged lower. Immediately, numerous central bank members came out and recanted what Chairman Bernanke had told the U.S. Congress. This is a sign that someone is very afraid to see stocks decline. It was just a few weeks later that Chairman Bernanke said that rates will remain very low for a long period of time. You would think these guys would just speak plain English and not some sort of Greenspan code, but instead they carefully pick each word and leave their statement open for debate. The bottom line, Chairman Bernanke has been afraid since 2009 to see if the U.S. economy can stand on its own two feet. While most economists believe a small tapering is going to start tomorrow, I'll believe when I see it. Chairman Bernanke will make his announcement tomorrow afternoon.

Nicholas Santiago
InTheMoneyStocks.com
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Watch Volume for Institutional Sponsorship

September 16, 2013 – Comments (0) | RELATED TICKERS: VZ

Many traders and investors follow volume for all of the wrong reasons. Often, you will see high volume moves in stocks occur after an earnings report or a major news events. How many times have you heard someone say, that stock just broke out on heavy volume? The chances are you have heard some trader or investor say that, probably multiple times. But how will that help you in the future?

One of the key secrets to using volume is to see how a stock pulls back into a high volume bar or candle on a chart. For example, recently I bought Verizon Communications Inc. (NYSE:VZ) on a pullback at $45.80 a share. Many traders were asking me why I bought that particular equity since price was trading below the important 50, and 200-day moving averages. The stock also broke down and closed below its last support pivot on the charts at $47.77, which was made on June 3, 2013. VZ was also in a confirmed downtrend.

According to most traders and investors the stock had very little upside, if it could even bounce at all.

As many traders know, Verizon Communications Inc.(VZ) sold $49 billion of bonds on September 11, 2013. This was a new record for the biggest corporate-debt sale ever. Many traders and investors were scared to step in to VZ stock based on all of that type of news. After all, look at all the new debt the company is now taking on. This is where the volume and the chart pattern will help you overcome fear. You see, on September 10th, the price decline in VZ stock was coming into the wide range candle bar from September 4, 2013. On that day the volume on VZ stock was 26.5 million shares. The prior day which was September 3, 2013 the stock traded 47.0 million shares, this was also the pivot low in VZ stock. The trading volume on September 10th, when I bought VZ was just 19.0 million shares, so this told me that there would be a better than average chance of the institutional money defending VZ stock down at these levels, at least for a short term bounce. Today, VZ stock is trading at $48.35 a share. This is not a bad bounce from the $45.80 entry level in just four trading days.

Traders can often watch the volume on charts to see where the big money is positioning themselves. Remember, high volume moves do not indicate that the average investor at home is accumulating stock. High volume moves indicate heavy institutional money supporting an equity, when the average person or investor is fearful. In other words, high volume moves represent real institutional sponsorship in a stock. Traders and investors must learn this and watch volume a little bit differently now on.

Nicholas Santiago
InTheMoneyStocks

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Social Media Puts In Top: Short These Plays

September 12, 2013 – Comments (0) | RELATED TICKERS: LNKD , YELP , FB

Social media stocks like Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD) and Yelp Inc (NYSE:YELP) have all been on a monster run. It all started when Facebook released earnings that blew away expectations. From this point on, Facebook has risen 75% while the others have had similar moves.

Today, these stocks topped out. How do you know a top is at hand? They opened higher and reversed, turning to the negative side. In addition, the first 30 minutes of trading had huge volume which tells us the institutions were dumping. A reversal with distribution... enough said!

Gareth Soloway
InTheMoneyStocks.com  [more]

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The 10-Year U.S Treasury Yield Pulls Back, But How Far Will It Fall?

September 12, 2013 – Comments (0)

Last week, yields on the 10-year U.S. Treasury Note reached the 2.98 percent level. As we all know, yields have soared higher by 137 basis points since April 2013, when the yield on the 10-year U.S. Treasury Note was as low as 1.61 percent. The recent surge in bond yields have certainly caused stock corrections in the home-builders, mortgage/real estate REITs, and the highly leveraged utility sectors. The Federal Reserve is buying $85 billion dollars a month worth of U.S. Treasuries and mortgage backed securities (MBS) at this time. So far, the case can be made that yields are artificially being held down. 

Now that everyone knows a Federal Reserve tapering of its current QE-3 program (central bank bond buying) is coming, how much can bond yields on the 10-year U.S. Treasury Note actually fall? Currently, the daily chart of the 10-year U.S. bond yield ($TNX) is showing very good support around the 2.63 percent level. There is also more chart support around the 2.45 percent level. So either way, bond yields are not going to decline all that much unless there a major economic disaster takes place. The odds of an economic disaster occurring in 2013 is very unlikely, however 2014 is another story. 

Higher bond yields are telling us two things: 

First, higher bond yields are telling us that the Federal Reserve must begin to cut back on their current $85 billion a month QE-3 program. If they do not, there could be major problems or repercussions in the future. The bond market is smarter than the stock market since the world is built on debt. So when the bond market talks, traders and investors better listen. 

Second, easy money has almost always led to an economic boom; but higher rates or a tapering could certainly cause the economy to slow down. Many economists will argue that currently this economic recovery has been one of the weakest on record considering the central bank has pumped about $4 trillion into the system. The one obvious positive effect from all of the easy central bank money has been the new all time highs in the stock market. Either way, the chart of the bond yields is starting to certainly paint a different picture for the future. The next FOMC meeting will take place next week, this is when QE-3 tapering could be announced.

Nicholas Santiago
InTheMoneyStocks.com
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Baidu Inc Breaks Out, Heads For This Target

September 11, 2013 – Comments (0) | RELATED TICKERS: BIDU

Baidu Inc (NASDAQ:BIDU) has broken out today. The stock had resistance at a gap fill price of $145.00. That has now been taken out. The next major level of resistance on BIDU is $152.00. Should it be hit in the next two days, a good shorting opportunity would arise.

BIDU is a Chinese ADR. It has run from below $90 to its current level in less than three months. A truly amazing move as it appears the Chinese economy is recovering. When euphoria is at its max, the top will be in. Matched up with this great double top at $152.00, a great risk/reward short can be had. The pull first target would be at $145.00.   [more]

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Oil Prices Are Important, But Gasoline Prices Dominate Market Action

September 10, 2013 – Comments (0) | RELATED TICKERS: USO , OIL , UGA

Anytime there is a geopolitical event taking place in the Middle East the price of oil seems to surge higher. That was the case recently as light crude oil futures (CL) jumped as high as $112.24 a barrel. Higher oil prices certainly hurt the U.S. consumer, but as long as gasoline prices do not climb rapidly the major stock indexes do not seem to react negatively. 

Traders and investors can easily see that gasoline prices spiked higher in mid-July and then again on August 29, 2013. The S&P 500 Index topped out on August 2nd, 2013 and then bottomed out on August 27, 2013 when gasoline prices peaked for the second time. Once gasoline prices began to pullback the major stock indexes took their cue to move higher again. 

Now it is important to see where gasoline prices are going to find support  on the chart. If we look at a chart of the United States Gasoline (NYSEARCA:UGA) we will see that the UGA should have some near term daily chart support around the $57.90 level. The next important daily chart support levels for the UGA are the $53.05, and $50.00 levels. It seems that the public tracks oil by looking at the gas pump. If gasoline prices bounce higher that is when stock indexes will usually come into selling pressure. 

If you ask the average person on the street what the price of a barrel of oil is they will most likely say they do not know, but they do know what they are paying for a gallon of gasoline. Remember, the U.S. consumer accounts for roughly 70.0 percent of the U.S. gross domestic product(GDP). In order for the economy to improve the U.S. consumer must spend money, if the U.S. consumer cuts back on spending then the  economy slows down again. Traders should follow the action in gasoline as it will tell us a lot about the stock market movements of the future. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

3

Double Top Alert: Netflix, Inc. (NASDAQ:NFLX)

September 09, 2013 – Comments (2) | RELATED TICKERS: NFLX

Netflix, Inc. (NASDAQ:NFLX) is quickly approaching the $300 level. The all time high for Netflix hit in 2011 was $304.79.  This represents a perfect double top and a major shorting area. I will be locked and loaded if the stock trades into and just above that level. Cheers!

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Lower Bond Yields Lift Home-builders

September 09, 2013 – Comments (0) | RELATED TICKERS: TOL

This morning, most of the leading home-builder stocks are trading higher at the start of the trading session. Today, bond yields on the 10-year U.S. Treasury Note are lower by 0.4 to 2.89 percent. Traders must be aware that home-builder stocks are trading inversely to bond yields at this time. 

One of the leading home-builder stocks that are rallying on the back of lower bond yields is Toll Brothers Inc (NYSE:TOL). This afternoon, TOL stock is trading higher by $1.18 to $31.62 a share. Swing traders should watch for near term daily chart resistance around the $33.00 area. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

No Bidders For EBAY

September 09, 2013 – Comments (0) | RELATED TICKERS: EBAY

Today, the leading online auction website company EBAY Inc (NASDAQ:EBAY) is coming under some selling pressure. The stock cannot catch a solid bid despite the early morning strength in the major stock indexes. Whenever a stock shows weak relative strength intra-day it is important to have a solid support level in order to scalp or day trade the stock. Day traders should watch for intra-day support on EBAY stock around the $51.88, 51.45, and $51.02 levels. All of these areas could see minor intra-day bounces on the trading session. 

Nicholas Santiago
InTheMoneyStocks,com  [more]

Recs

0

Gold Miners Retreat

September 05, 2013 – Comments (0) | RELATED TICKERS: GDX

This morning, the leading gold mining stocks have sold off to start the day. Today, the popular and highly traded Market Vector Gold Miners ETF (NYSEARCA:GDX) is trading lower by 0.76 cents to $27.81 a share. Day traders can watch for decent intra-day support around the $26.74 level. This is an area where the GDX can stage an intra-day bounce. 

Nicholas Santiago
www.InTheMoneyStocks.com
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Recs

0

S&P 500 Index E-Mini Floats Higher, Watch This Resistance Area

September 04, 2013 – Comments (0)

This morning, the S&P 500 Index e-mini futures (ES-U3) are in float mode rallying higher by more than $8.00 since the start of the trading session. Short term ES traders should watch for intra-day resistance around the $1650.92 level. The markets are now entering the light volume part of the trading day (lunch hour) so the pullbacks in this equity could be limited. Traders will need to focus on the chart pattern over the next several hours to find the next major intra-day move. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Bear Flag Of The Month: Bed Bath & Beyond Inc.

September 03, 2013 – Comments (0) | RELATED TICKERS: BBBY

Bed Bath & Beyond Inc. (NASDAQ:BBBY) has an amazing bear flag on the daily chart. The consolidation below the 20 moving average and 50 moving average increase the odds of this playing out. Today, the stock was up sharply above those two resistance levels but has since sold off to go negative. This adds fuel to the fire with further downside likely on a swing basis. The downside target would be the $72.00 level.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Oil Service Stocks Are Full Of Energy

September 03, 2013 – Comments (0) | RELATED TICKERS: BHI , HAL , OIH

This morning, the oil service stocks are showing good intra-day strength to start the day. The popular and highly traded Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading higher on the session by 0.67 cents to $45.63 a share. Short term day traders should watch for intra-day resistance around the $45.85, and $46.17 levels. Today, the trading volume is extremely light in the major stock indexes so there is a good chance that the OIH could reach these levels in today's trading session.

Some of the leading oil service stocks that are trading higher today include Halliburton Company (NYSE:HAL), Baker Hughes Incorporated (NYSE:BHI), and Transocean Ltd. (NYSE:RIG). All of these stocks are trading higher today due to the conflict in the MIddle East.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

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