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October 2011

Recs

2

Financial Stocks Look Like Zombies Today

October 31, 2011 – Comments (0) | RELATED TICKERS: BAC , GS , MS

Last week, every talking head in the financial media was falling in love with the leading financial stocks again, however, today these institutions look more like a zombie institution.

Morgan Stanley (NYSE:MS) was last week's big winner. Today MS stock is declining lower by $1.34 to $17.98 a share. This is a 7.0 percent decline for the financial giant. Many traders and investors believe that MS has a decent amount of exposure to the European debt market. MS stock will have intra-day support around the $17.40, and $17.00 levels.

Other leading financial giants that are trading lower today include Goldman Sachs Group Inc (NYSE:GS), Bank of America Corp (NYSE:BAC), and Deutsche Bank AG (NYSE:DB). These financial stocks have lead the markets higher since the October 4, 2011 pivot low, however, these same stocks are leading the declines this afternoon.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Selling Unlikely To Escalate Until Wednesday

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

The markets are lower across the board. Japanese intervention in the currency market, coupled with worries over Italy have sparked some profit taking. The SPDR Dow Jones Industrial Average ETF (AMEX:DIA)  is trading at $120.54, -1.50 (-1.23%)  while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)  is trading at $58.37, -0.57 (-0.97%).

While the markets are nicely lower, it is unlikely the sell off will continue in the coming days. A neutral market is much more probable from here until Wednesday.  The reason for this is simple, all eyes are now on the Federal Reserve policy statement on Wednesday. In addition, Friday the market will hear about job creation. The Non Farm Payrolls report will be released at 8:30am ET.

Into Wednesday, the markets will most likely hold this range, hoping for some sort of QE3 Federal Reserve talk. After that report, the markets will most likely move sharply. Talk of QE3 would be bullish, while no talk of QE3 would be very bearish.

The markets continue to be overbought short term. A 20% rally from the S&P lows in the last month could see a solid retrace if the Federal Reserve disappoints.

Gareth Soloway
InTheMoneyStocks.com

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Recs

1

Sohu.com Drags Down The Chinese ADR's

October 31, 2011 – Comments (0) | RELATED TICKERS: SINA , SOHU , BIDU

This morning, Sohu.com Inc (NASDAQ:SOHU) is trading sharply lower by $7.09 to $61.92 a share after reporting earnings. Many investors believe that China is beginning to slowdown, therefore, traders are watching this earnings season very closely to see if there are any clues of a weaker Chinese economy.

Other leading Chinese ADR's that are trading lower in sympathy to SOHU stock are Baidu Inc (NASDAQ:BIDU), Sina Corp (NASDAQ:SINA), Youku.com Inc (NYSE:YOKU), and Tudou Holdings Limited (NASDAQ:TUDO). Often the leading Chinese ADR's will trade higher when the U.S. Dollar Index weakens throughout the trading day. Therefore, traders should be aware of this and watch for bounces in these stocks when the U.S. Dollar Index pulls back.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Investors Put On Their Bear Costume For The Day

October 31, 2011 – Comments (0) | RELATED TICKERS: AKS , FCX , SCCO

This morning, all of the major stock indexes are trading sharply lower. The problems in the European Union and the possible bankruptcy of MF Global Holdings Ltd (NYSE:MF) seems to be too much for investors. The real catalyst for today's decline is the strength in the U.S. Dollar Index futures (DX Z1), which are trading higher by 0.94 cents to $76.15 per contract. When the U.S. Dollar Index rallies the major stock indexes deflate and trade lower. Since October 4, 2011 the U.S. Dollar Index has declined sharply lower helping to inflate everything under the sun. If the U.S. Dollar Index declines intra-day it would be prudent to expect an intra-day bounce of the lows for the major stock indexes.

Everything that is metal related is trading lower this morning. Leading stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), iPath Dow Jones-UBS Copper Subindex Total Return ETN (AMEX:JJC), Southern Copper Corp (NYSE:SCCO), and U.S. Steel Corp (NYSE:X) are all under sharp selling pressure today. These stocks will usually be the first stocks to be effected by the stronger U.S. Dollar Index. If the U.S. Dollar Index fades throughout the trading session these stocks are likely to bounce off the morning lows.
 
Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Cloud Stocks Report: Profits In The Sky

October 31, 2011 – Comments (0) | RELATED TICKERS: FFIV , RVBD , RAX

Since October 4, 2011 the major stock market indexes have soared sharply higher. This October rally has been one for the record books. Obviously, short covering from the European bailout news has helped this stock market trade higher over the past four weeks. The leading technology stocks have benefited greatly from this stock market surge. This week we shall look at three leading stocks in the cloud computing sector that have soared to overbought levels. As we all know, overbought stocks can certainly remain overbought for extended time periods. However, in this report we will reveal the levels where pullbacks are likely to occur, and trading opportunities will be presented.

F5 Networks Inc (NASDAQ:FFIV) is a leading computer networking company that uses cloud technology. This stock has soared sharply higher since October 4, 2011 when the stock traded as low as $70.21 a share. Last week, the FFIV stock closed at $107.63 a share. It is safe to say that this tech leader is very extended and overbought at this time. The stock is coming into an important gap window resistance around the $110.00 area. The next major resistance areas will be around the $112.25, $117.00, and $122.50 levels. Should this stock pullback and consolidate before moving higher traders should watch for near term support around the $98.50, $93.40, and $89.00 levels. Take these levels, place them on your charts and look for the stock to react at each level.


Riverbed Technology Inc (NASDAQ:RVBD) is another leading networking and cloud computing stock. On October 4, 2011 the stock was trading as low as $18.33 a share. Last week, the stock closed at $29.04 a share. This stock is extremely overbought and extended at the moment. Therefore, a pullback or consolidation can occur at any time now. Should RVBD stock trade higher from its current price traders should watch for important resistance around the $29.25, $33.00, and $35.50 levels. If the stock does pullback from its current level traders should watch for near term support around the $26.40, $25.00, and $23.50 levels.

 
Rackspace Hosting Inc (NYSE:RAX) is a leading internet hosting company that utilizes the leading cloud technology. This stock traded as low as $30.34 a share on October 4, 2011. Since that time the stock has surged higher, closing at $42.47 a share on October 28, 2011. What a rally! The stock broke out of a sloppy one week base on October 26, 2011. Traders should watch for near term resistance around the $45.75, $48.00, 52.00, and $56.25 levels. Should the stock pullback from current levels there will be near term support around the $39.50, $37.90, and $36.40 areas.
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Recs

2

Discover: Master Stock Market Level

October 27, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

The markets are partying today. The SPDR S&P 500 ETF (AMEX:SPY) hit a high of $127.80, a gain of 3% at the open. Word hit late last night that the European leaders agreed on a major deal to relieve Greece of 50% of its debt burden. This buys it more time to get its house in order. This was largely expected but still a positive for the markets.

While most amateurs are bullish, the charts speak differently. There are three major signals that have me going short at the open.

1. The SPY shot up into the 200 moving average on the daily chart at the open.

2. The markets are up 18.8% off their lows of just three weeks ago. The SPY hit a low of $107.50 on October 4th, 2011. As of today, the SPY hit $27.80.

3. The SPY also hit the former neck line of the head and shoulders pattern on the daily chart. This adds an additional technical resistance point.

The combination of the euphoric world and the key resistance points has helped me decide start to accumulate shorts.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Profit Windfall For Ethanol Producers

October 26, 2011 – Comments (1) | RELATED TICKERS: MON , POT , MOS

Ethanol producers are in for sweet profits the next few quarters. Losses will swing to profits and profits will grow. The reasoning for this is simple. The price of the commodity corn has collapsed while the price of ethanol have remained relatively unchanged. Companies like Potash Corp./Saskatchewan (USA) (NYSE:POT), Monsanto Company (Public, NYSE:MON) and The Mosaic Company (NYSE:MOS)  have commented on this drop in corn prices recently.

Over the last year, due to the soaring price of corn, farmers over planted. With excess corn, prices have collapsed with many other commodities. This leaves ethanol producers loving their new super margin spike. The beauty of this difference is plainly the cost of the corn and the continued strength in the price of ethanol. Due to growing demand in the United States and abroad, ethanol has kept its price steady compared to corn. This should mean major profits for stocks like Pacific Ethanol Inc (NASDAQ:PEIX).

Pacific Ethanol reports earnings today after the market closes. While the full effect of the drop in corn will not be felt, we should hear positive comments from the company on the current quarter. Pacific Ethanol has been losing money. The stock price has reflected a very poor outlook as it trades at $0.328, +0.014 (+4.50%) . However, should they maximize the margin increase, profits may grow very quickly.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

The Trade: Stocks Eye European Summit

October 26, 2011 – Comments (0) | RELATED TICKERS: AMZN , MSFT , BBRY

The markets opened sharply higher on optimism that European leaders would reach an agreement on a rescue deal. The Euro was up and the Dollar was taking a beating. No sooner had the markets opened, the Dollar  caught a huge bid as fears crept back into the mix. This whipsaw is continuing throughout the day with all eyes on the European summit. Should a deal be reached, the initial reaction will be a sharp rally higher. However, very quickly that may fade as details emerge. The details will shape the future of this market. Right now, the recent rally has factored in a huge rescue package. Will the actual deal meet this view?

Technology is weaker today as Amazon.com, Inc. (NASDAQ:AMZN) missed Wall Street's expectations. Weakness is seen across a majority of technology plays like Microsoft Corporation (NASDAQ:MSFT) and Research In Motion Limited (USA) (NASDAQ:RIMM).

Strength is coming from the financial sector where Goldman Sachs Group, Inc. (NYSE:GS) and Bank of America Corp (NYSE:BAC) are nicely higher. A rescue package in Europe is positive for the U.S. banks based on their exposure to Greece and Italian debt.

With the summit starting around mid day east coast time, it may take 12 hours to hear any sort of result. The markets will move on this result in a major way.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

The Only Chart That Holds Water

October 26, 2011 – Comments (2) | RELATED TICKERS: JPM , XLF , MFGLQ.DL

Traders can easily see how quickly this rally ended as soon as the U.S. Dollar Index(DXY) took off to the upside. The news out of Europe is being released fast and furious, however, traders should simply keep their eye on the U.S. Dollar Index chart. The leading financial stocks are still positive on the trading session, while J.P. Morgan Chase & Co (NYSE:JPM) has declined sharply from the morning highs. If the financial stocks fail to hold up these markets could see a much sharper sell off today. Traders must remember, the only thing that can hold this market up is a weak U.S. Dollar Index.

MF Global Holdings Ltd (NYSE:MF) is plummeting lower again. The CEO of this company is none other than John Corzine the former governor of New Jersey and former boss at Goldman Sachs Group Inc (NYSE:GS). MF stock is not looking very healthy today and this stock is likely to weigh on the markets. 

Nicholas Santiago
InTheMoneyStocks.com


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Recs

2

Oil Services Stocks Nearing Extended Levels

October 26, 2011 – Comments (0) | RELATED TICKERS: BHI , OIH , SLB

This morning, the highly followed and traded Oil Services Holders Trust (NYSE:OIH) is trading higher by $1.46 to $124.32 a share. The OIH has rallied sharply higher by $29.00 since the October 4, 2011 pivot low. Traders must watch for important daily chart resistance for the OIH around the $129.00 area. Short term traders must watch for intra-day resistance around the $125.50 level. Should the OIH pullback intra-day there will be some short term support around the $122.75 level.

Other leading oil services stocks that are trading higher today include Halliburton Co (NYSE:HAL), Schlumberger Limited (NYSE:SLB), and Baker Hughes Inc (NYSE:BHI). Traders must remember that all of these leading stocks are part of the OIH, therefore, the OIH should be followed most closely.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Forget Europe, Watch This Chart

October 26, 2011 – Comments (0) | RELATED TICKERS: UUP , UDN , EUO

The U.S. Dollar Index futures (DX Z1) just fell off a cliff before the opening bell. When the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. You see, nobody really cares about the poor earnings reaction to Amazon.com Inc (NASDAQ:AMZN), and Broadcom Corp (NASDAQ:BRCM) earnings. The markets are simply reacting to the action in the U.S. Dollar Index. When the U.S. Dollar Index declines the major stock indexes inflate higher, however, if the U.S. Dollar Index begins to rally this early stock market rally will fade quickly.

Yesterday, the U.S. Dollar Index traded higher and the popular Dow Jones Industrial Average (DJIA) ended lower by more than 200.0 points. Every trade is a trade on the U.S. Dollar Index at this time. Maybe one day you will hear about it in the media, however, you should not bet on it.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

The Three E's Hit The Stock Market

October 25, 2011 – Comments (0) | RELATED TICKERS: CMI , MMM , NFLX

The three E's are hurting the market today. Earnings, Economic Data and Europe. A compilation of negative earnings, economic news and worries from Europe sent markets lower today. The S&P 500 is trading at 1,236.93, -17.26 (-1.38%). In the last three weeks, the markets have seen a meteoric rise of 15% across the board. It is due for a pull back.

Earnings reports from companies disappointed Wall Street. Cummins Inc. (NYSE:CMI) is trading at $93.02, -5.80 (-5.87%), 3M Company (NYSE:MMM) is trading at $77.94, -4.24 (-5.16%), Netflix, Inc. (NASDAQ:NFLX) is trading at $77.58, -41.26 (-34.72%). These reports all missed Wall Streets expectations.

In addition to earnings, Consumer Confidence was reported at 10am ET. Consumer Confidence for October reported in at 39.8. This  was the lowest number since March 2009. Consumer Confidence helped add negativity to the overall market sentiment.

Lastly and probably the most bearish was a report that surfaced saying that a preliminary meeting, prior to the major summit on Wednesday had been canceled in Europe. The market took this as a possible signal a bailout, recapitalization plan may not be a foregone conclusion.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Solar Stocks Rip Higher From Call Alert

October 24, 2011 – Comments (0) | RELATED TICKERS: STPFQ , FSLR , LDKSY

There is a broad based squeeze going on in the Solar sector today. First Solar, Inc. (NASDAQ:FSLR)  is jumping to $60.26, +6.49 (+12.07%). All other solar stocks are also seeing massive gains. Even Chinese players like Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP), LDK Solar Co., Ltd (ADR) (NYSE:LDK) and Trina Solar Limited (ADR) (NYSE:TSL) are all popping.

Last week I wrote an article discussing the likelihood of a solar bottom. This was on the basis of major levels hit and an overwhelming sense of negativity. Just last week, an analyst came out and said the solar stocks could go down another 40%. The day I wrote the article on the bottom on the solar stocks, FSLR hit a low of $52.32. This was a drop of 70% from the 2011 highs. Not only was the negativity overwhelming, but a smart trader also looks at the amount of shares already short. On FSLR, it was upwards of 20 million or 40% of the float. This was a squeeze in the making.


Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Mega Rally Continues Until This Point

October 24, 2011 – Comments (0) | RELATED TICKERS: CAT , QQQ , SPY

The markets are continuing to surge higher today. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $125.39, +1.42 (+1.15%). Optimism continues to grow stronger for a major bailout plan in Europe. In addition, extra positives today included a solid China PMI number, showing expansion and good earnings from stocks like Caterpillar Inc. (NYSE:CAT).

In the last three weeks, the S&P 500 has surged 16%. This massive move may continue just a little while longer. When analyzing the charts, the SPY is seen approaching the 200ma. This level sits at $127.50. It is likely the markets want to reach for that level. Once achieved, the probability of a pull back is very strong.

When analyzing the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). A major double top is approaching at $60.00. This major double top should coincide with the SPY hitting the 200ma.

Earnings will continue this week. In addition, the world awaits an actual deal from Europe. Currently, the market is pricing in an amazing deal. With such a meteoric rise, intelligent traders are slightly worried that the actual deal may not be as good as what the market is hoping. This may create a sell the news mentality.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Markets Rally Again, Here Is One Reason Why

October 24, 2011 – Comments (0) | RELATED TICKERS: JPM , MS , UDN

This morning, the major stock indexes are trading higher continuing the gains from last week. The catalyst for the move higher in the stock market is once again the declining U.S. Dollar Index futures (DX Z1). Since the opening bell the DXY has sold off sharply. Traders should know by now, once the U.S. Dollar Index (DXY) declines the major stock indexes will inflate and trade higher and vice versa.

It seems that everything will inflate and trade higher with a weaker U.S. Dollar Index, it is not just commodities anymore. These days the leading financial and technology stocks seem to be trading in an inverse lockstep relationship to the U.S. Dollar Index. Leading financial stocks such as J.P. Morgan Chase & Co (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS), and Morgan Stanley (NYSE:MS) are all trading higher on the session.

Traders should be on alert if the U.S. Dollar Index begins to trade higher, stocks may pullback or begin to consolidate on any strength in the DXY. Right now, almost every leading stock sector is trading inverse to the U.S. Dollar Index. There is still a fair amount of intra-day support on the U.S. Dollar Index futures (DX Z1) around the $76.40 area.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Leading Commodity And Casino Stocks Are Now Related

October 24, 2011 – Comments (0) | RELATED TICKERS: BHP , RIO , WYNN

The leading commodity stocks are surging higher at the start of the trading session. The catalyst for the rally in the commodity names is the strong move higher in the Asian stock markets. Last night, there was a report that stated manufacturing conditions in China climbed to a five-month high in October. This report is having some effect on the leading commodity stocks this morning. Stocks such as Rio Tinto Plc (NYSE:RIO), BHP Billiton Ltd (NYSE:BHP), Freeport McMoRan Copper & Gold Inc (NYSE:FCX), and Cliffs Natural Resources Inc (NYSE:CLF) are all trading sharply higher. China is considered the growth engine of the world, when China signals growth the leading commodity stocks will often react positive.

Other stocks that will also benefit from positive Chinese news will be the leading casino stocks. Wynn Resorts Ltd (NASDAQ:WYNN), Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM) are all trading higher at the start of the day. The leading casino stocks are making the bulk of their profits from Macau, China. Therefore, these stocks are now behaving much like commodity stocks and are trading higher when China issues strong economic data.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Large Gap Ups Make Scalping Less Plentiful

October 21, 2011 – Comments (0) | RELATED TICKERS: DIA , SPY , IWM

Scalp trading or day trading is when a trader looks to catch small moves in the stock market within a single trading day. Day traders will usually hold a stock for a few seconds to a few hours within a trading session. This type of trading style is not for everyone, however, it does have its benefits as most scalp traders will not have the risk of holding a stock overnight. Scalp trading or day trading is a very calculated method of trading requiring a good level of expertise in chart reading.

Often, when the major stock indexes gap sharply higher at the open it will make for less active scalping day. The problem with large gap ups in the major stock indexes is that the stock market has spent a lot of energy before the opening bell. Therefore, the major stock indexes will usually need to consolidate for a long period of time before resuming the trend. Think of it this way, if a runner races up a steep hill or mountain the runner will simply exhaust himself and need to take a breather before running further. Stocks are just like people, in fact, stocks are traded by people so that proves the similarity already.

This morning, the S&P 500 Index e-mini futures (ES Z1) have gapped higher by 17.0 points at the open. When this happens it tells us that most every stock will trade with the major stock indexes. Therefore, if you can find a favorite stock it will usually move higher when the major stock indexes make a move to the upside. Scalp traders must be very selective and remember not to chase a market that is already trading to the moon. It is always better to scalp trade in active markets. Traders should remember that there are always scalping opportunities each and everyday, however, they are likely to be less plentiful when there is a sharp gap higher open.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

The U.S. Dollar Index Crumbles

October 21, 2011 – Comments (0) | RELATED TICKERS: CLF , FCX , SCCO

There are probably many traders out there that are tired of seeing me write about the U.S. Dollar Index, however, I simply can't seem to help myself. It still amazes me that the U.S. Dollar Index can get flushed almost every day. After all, is this not a European bailout that is scheduled to take place? Logically, the Euro currency should decline against the U.S. Dollar, however, the opposite effect is taking place at this time. This is exactly why we do not pay attention to the news and simply follow the charts. The chart of the U.S. Dollar Index since October 4, 2011 has been crushed sharply lower. This high in the U.S. Dollar Index chart has coincided with the recent stock market low made on October 4, 2011. Traders must keep an eye on the U.S. Dollar Index chart at all times. Every trade in the market is a trade on the U.S. Dollar Index.

The commodity stocks will usually be the first stocks to trade higher on the back of a weaker U.S. Dollar Index, however, energy, technology, financial stocks, and other sectors seem to be rallying just as quickly as the leading commodity names. This morning, stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and Vale SA (NYSE:VALE) are all trading sharply higher ahead of the opening bell. Traders must simply follow the U.S. Dollar Index throughout the trading session. As long as the U.S. Dollar Index continues to decline the major stock indexes will trade higher. On flip slid, if the U.S. Dollar Index strengthens throughout the day the major stock indexes will come under some selling pressure.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Markets Decline As European Meeting In Question

October 20, 2011 – Comments (0) | RELATED TICKERS: EBAY , WYNN , SPY

The stock market is seeing red today. A mix of poor earnings from companies like Wynn Resorts, Limited (NASDAQ:WYNN)  and worry out of Europe are keeping stocks from staging any sort of rally. The SPDR S&P 500 ETF (AMEX:SPY)  is trading at $120.36, -0.77 (-0.64%).

Expectations of a deal this weekend in Europe have been high. A major meeting had been scheduled with the leaders of Europe.  However, in the last twenty-four hours, disagreements have surfaced and that meeting is now in question. The markets continue to be on pins and needles.

In addition, while volume remains light today, there is no Federal Reserve POMO scheduled. POMO stands for permanent open market operations. This is where the Federal Reserve buys long term treasuries, infusing capital into institutions. It is then assumed that the institutions use that money to buy the markets, artificially inflating them. In general, light volume mixed with POMO is a recipe for upside. Today there is no POMO.

Stocks that have been reporting earnings have generally fallen. Wynn Resorts dumped nicely on a miss while American Express Company (NYSE:AXP), eBay Inc. (NASDAQ:EBAY), AT&T Inc. (NYSE:T) all reported solid results but are nicely lower on the day. Even good results cannot keep a stock higher if it has rallied significantly in the last two weeks.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Semiconductor Equipment Maker Looks Broken

October 20, 2011 – Comments (0) | RELATED TICKERS: AMAT , LRCX , TXN

This morning, the leading semiconductor equipment makers are all declining sharply. Lam Research Corp (NASDAQ:LRCX) is leading the declines trading lower by $4.48 to $38.15 a share. The company reported a 63% decline in profit and guided lower for the next quarter.

This stocks is causing selling pressure on the other leading semiconductor equipment makers such as KLA-Tencor Corporation (NASDAQ:KLAC), Novellus Systems Inc (NASDAQ:NVLS), and Applied Materials Inc (NASDAQ:AMAT). Since LRCX stock is leading the semi equipment makers lower it will be important to follow this stock closely. The stock has some short term intra-day support around the $38.00 area, however, the daily chart support for LRCX will be around the $36.60 level.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Options Expiration Volatility Should Continue

October 20, 2011 – Comments (2) | RELATED TICKERS: CRM , FFIV , SNDK

This trading week has been like a see-saw, one day the markets are up and the next day they are down. During the week of trading leading up to options expiration Friday the markets will usually be very volatile. Traders and investors must remember that there will usually be a lot of game playing by the large financial institutions that can move markets. Remember, the guy at home with a small online trading account is not moving the markets, it is the large institutions that have billions of dollars that will move the markets. When an institution has that kind of capital it is always possible to push the markets in their favor for five trading days. Often, the large institutions will move stocks away from the popular strike price that the small retail options trader is hoping for. These types of activities will occur each and every month during the week of options expiration.

Traders should always watch for extreme volatility in many of the leading and popular technology stocks. Stocks such as SanDisk Corp (NASDAQ:SNDK), F5 Networks Inc (NASDAD:FFIV), Netflix Inc (NASDAQ:NFLX), and Salesforce.com Inc (NYSE:CRM) will usually be very volatile, especially intra-day. This is a good trading week for scalp trading where traders look to take a small bite out of the market during the trading day. It is much more difficult to hold stocks for longer periods when the markets are so volatile and trend-less.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Stock Market Keys To The Day

October 19, 2011 – Comments (0) | RELATED TICKERS: AAPL , CREE , SPY

The markets are hovering on the flat line today. They have been up slightly and down slightly. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $122.33, -0.23 (-0.19%).  Earnings from mega player Apple Inc. (NASDAQ:AAPL) disappointed Wall Street. That is taking the technology sector lower while a continued push in the bank stocks are keeping the S&P 500 and Dow Jones Industrial Average around the flat line.

Yesterday, news broke that a 2 trillion Euro bailout fund had been agreed upon by France and Germany. The markets spiked dramatically higher. This news turned out to be false but the markets gave back very little of those gains. After a two week run of 15%, the markets seem to be tired, however, lack of volume and Federal Reserve POMO (permanent open market operations) is keeping the markets from collapsing.

Cree, Inc. (NASDAQ:CREE) is dropping nicely today on the back of poor earnings results. The stock is trading at $25.14, -2.64 (-9.50%). The stock may be headed back to its 52 week lows at $23.03.

Today, earnings will be reported from American Express Company (NYSE:AXP), eBay Inc. (NASDAQ:EBAY) and Wynn Resorts, Limited (NASDAQ:WYNN). None of these will have a major impact on the market overall, but they will each have a direct impact on their sectors.

Gareth Soloway
InTheMoneyStocks.com

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Recs

0

Whipsaw Wednesday Underway

October 19, 2011 – Comments (0) | RELATED TICKERS: GS , NFLX , VMW

The Wednesday before options expiration is usually one of the most volatile trading sessions of the month. As you may know, options expiration occurs on the third Friday of every month. During the trading week leading into options expiration there will usually be a lot of rumors and erratic price movements in many of the leading stocks. Just look at the false report by The Guardian newspaper yesterday as they said that there would be a €2 trillion European bank bailout. Later, reports were released by more reliable sources such as the German government that there would not be a bailout of that size. In other words, expect the unexpected during this trading week.

Often, during the week of options expiration the large institutions will take stocks the opposite way from the popular strike prices. For example, almost every small retail investor was betting that Apple Inc (NASDAQ:AAPL) would soar after earnings, however, the stock is declining sharply this morning. We can only guess how many retail options traders owned calls at the 450 strike price on Apple, now those options will expire worthless. It is important to note that most retail options traders will usually look to close out their options positions for a gain or loss before expiration. These traders are simply looking to capture a gain in the premium paid as most retail options traders really don't have the cash to buy the stock. Rarely will the small retail options trader ever exercise the option. The institutions know this and that is why they can play these games each and every month.

As you probably know, corporate earnings season is underway. When you combine earnings with options expiration it will usually make for an exceptionally volatile trading week. Traders and investors must be on their toes and really expect sudden moves in many of the leading stocks this week. Some of the stocks that will see the most volatility before options expiration are Apple Inc (NASDA:APPL), Goldman Sachs Group Inc (NYSE:GS), Netflix Inc (NASDAQ:NFLX), Google Inc (NASDA:GOOG), and Amazon.com Inc (NASDA:AMZN).

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

12

Stock Market Manipulation At Its Finest

October 18, 2011 – Comments (2) | RELATED TICKERS: AAPL , BAC , IBM

Stocks have reversed off early losses to surge higher. The S&P 500 is trading at 1212. The move up has come in the face of poor earnings from International Business Machines Corp. (NYSE:IBM)  which sent the stock to $177.44, -9.15 (-4.90%). Poor earnings from IBM only kept the markets down for a fraction of the day. This morning, reports from bank stocks like Goldman Sachs Group, Inc. (NYSE:GS) and Bank of America Corp (NYSE:BAC) gave a brighter outlook. Earnings have been mixed but a major key remains the same and will likely keep this market from collapsing in the near future.

There are two parts to the upside we have seen lately. As long as part one holds, part two will push the markets higher. The first part is light volume. Over the last week, the volume has dried up significantly in the markets. This means a large buyer in the markets can have a much bigger impact. That buyer is clearly the Federal Reserve. Operation Twist is in full swing and is essentially QE3. This plan by the Federal Reserve is to buy $400 billion in long term treasuries while selling $400 billion in short term treasuries. Short term is something there is demand for and investors will gobble up (due to fear), while long term has more hesitation. Throughout October, the Federal Reserve will be buying $40 billion in long term treasuries. This happens on an almost daily basis and was seen during QE2. During QE2 the term used was POMO (permanent open market operations). In other words, the Federal Reserve would use POMO to prop up the stock market.  Considering the light volume, this works like a charm. Should volume get heavy, it will have little effect.

POMO is back in full force. While Europe tries to sort out its issues and get a plan together, the Federal Reserve is keeping the markets from collapsing. Note the POMO schedule below. This clearly shows there was no POMO yesterday, the markets fell sharply. Today, the markets opened lower but mysteriously surged to go positive between 10-10:30am ET. There is POMO today as seen below. Follow this schedule and discover why in light volume, the markets can continue to go higher.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Financial Stocks Hold Up Early

October 18, 2011 – Comments (0) | RELATED TICKERS: GS , JPM , MS

This morning, the leading financial stocks are holding up after the earnings reports from Goldman Sachs Group Inc (NYSE:GS), and Bank of America Corp (NYSE:BAC). These stocks have been beaten down for quite a while and are trading higher this morning. The poor earnings from these companies were likely already figured into the stocks. Traders and investors must continue to follow the financial stocks very closely as these market leaders have lead the major stock indexes throughout 2011. All of the leading financial stocks still remain below the daily chart 50 moving average which puts these stocks in a weak technical position.

Despite today's earnings, traders must follow J.P. Morgan Chase & Co (NYSE:JPM). This financial giant is the most important leading financial stock at this time. This stock has single handedly fore-casted the movement in the major stock indexes for the past three years. At this time, JPM stock has stayed off the recent low made on October 4, 2011 at $27.85 a share. The stock has intra-day resistance around the $31.50, and $32.00 levels. Should the stock decline traders must watch for intra-day support around the $30.60, and $30.25 levels.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

3

Metal Stocks Weigh On Markets

October 17, 2011 – Comments (0) | RELATED TICKERS: BHP , RIO , VALE

The industrial metals are leading the markets lower this afternoon. Leading commodity stocks such as Southern Copper Corp (NYSE:SCCO), Rio Tinto plc (NYSE:RIO), BHP Billiton Ltd (NYSE:BHP), and Vale SA (NYSE:VALE) are declining sharply lower. This industry group has shown weak relative strength when compared to the major stock market indexes. Since the October 4, 2011 stock market low these leading stocks have been unable to trade above their daily chart 50 moving averages, meanwhile, all of the major stock indexes have climbed above their 50 moving averages.

The catalyst for the decline in these leading industrial metal stocks is obviously the stronger U.S. Dollar Index. Every trader and investor should know that when the U.S. Dollar Index rallies higher the major stock indexes will usually deflate and trade lower. Most leading commodity stocks will often trade inverse to the U.S. Dollar Index tick for tick. Traders should expect lower stock prices in all of the leading commodity stocks as long as the U.S. Dollar Index remains strong.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

2

Options Expiration Week: Whipping The Little Players

October 17, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

Options expiration week has arrived. This is notoriously a wild week for stocks as institutions whip the markets up and down, shaking out the weak handed option holders. The markets usually run the opposite way of the recent trend. In the last two weeks, stocks have staged one of their best rallies in recent years. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) jumped from a low of $103.84 to a high last Friday of $116.35. This was a gain of over 12%. The SPDR S&P 500 ETF (NYSE:SPY) jumped 14% and the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ)  shot up a total of 16%. After such monstrous gains, institutions will want to whip the small investor out of their call options. This tells us it is likely the markets will pull back this week.

In addition to the options expiration factor, the Dollar hit a major support on the daily chart. The PowerShares DB US Dollar Index Bullish (NYSE:UUP)  kissed the 50 moving average on Friday. Today it is inching back up. A stronger Dollar yields a weaker market.

Most stocks are seeing red today. However, Apple Inc. (NASDAQ:AAPL) continues to push higher. Today it hit a new 52 week and all time high at $426.70. This run is based off of earnings expectations. Tomorrow after the close, AAPL will report their quarterly results. Expectations are high, thus the stock price continues to inch up.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Oil Services Stocks Run Out Of Fuel

October 17, 2011 – Comments (0) | RELATED TICKERS: DO , HAL , OIH

The oil service stocks are under some early selling pressure this morning. The popular Oil Services Holders Trust (NYSE:OIH) is trading lower by $3.93 to $118.25 a share. It is important to note that the OIH has had a huge rally since October 4, 2011 when it traded as low as $95.00 a share. Traders should watch for intra-day support around the $117.65 and $116.70 levels.

Other leading oil services stocks that are selling off this morning include Halliburton Co (NYSE:HAL), Schlumberger Limited (NYSE:SLB), Transocean Ltd. (NYSE:RIG), and Diamond Offshore Drilling Inc (NYSE:DO). All of these leading oil services stocks are part of the OIH and will usually trade very closely together.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Earnings And Options Expiration Equal Extreme Volatility

October 17, 2011 – Comments (0) | RELATED TICKERS: IBM , WYNN , MS

This week countless companies will report their corporate earnings. When the major market moving stocks report earnings it will usually cause a lot of volatility and movement in the important leading stock indexes. Last week, J.P. Morgan Chase & Co (NYSE:JPM), and Google Inc NASDAQ:GOOG) really kicked off the earnings season. Traders and investors must always realize that earnings season will usually make for a very volatile stock market.

Later this week on October 21, 2011 it will be options expiration. Options expiration always makes for a very volatile trading week. During this trading week we will usually see a lot of game playing by the large financial institutions. Traders should watch for a lot of rumors coming out about many leading stocks into the end of the trading week. This is a week when the institutional traders will take the active stocks away from the popular strike prices that were purchased by the small retail options trader. Expect the unexpected during the week of options expiration.

When corporate earnings and options expiration occurs during the same week it creates the perfect elixir for extreme volatility. This week stocks such as Apple Inc (NASDAQ:AAPL), International Business Machines (NYSE:IBM), WYNN Resorts Ltd (NASDAQ:WYNN), and others are scheduled to report earnings, therefore, this week will be very volatile into the Friday expiration.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

3

Big Banks Are Painting A Different Picture

October 14, 2011 – Comments (0) | RELATED TICKERS: JPM , MS , XLF

There is no denying the massive stock market rally since October 4, 2011. The Dow Jones Industrial Average (DJIA) has surged higher by nearly 1200.0 points from its October 4, 2011 low. This is certainly a massive rally in such a short period of time. The DJIA, and the rest of the major stock market indexes have all been able to recapture the daily chart 50 moving averages. This tells us that the major stock indexes have some short term strength. The only problem with the recent rally is the weak action in the leading financial stocks.

Yesterday, J.P. Morgan chase & Co (NYSE:JPM) reported earnings and the stock sold off for most of the day. While the company beat analysts, the underlying numbers were actually very poor and the stock market told us that with yesterday's sell off in the stock. JPM stock is considered the best in its class. How can investors believe that these other bank stocks will be better then JPM when the rest of the large financial stocks begin to report earnings next week?

Most large banks stocks remain weak on the charts. Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup Inc (NYSE:C), and Bank of America Corp (NYSE:BAC) are all still trading below their daily chart 50 moving averages. This tells us that these stocks remain in a weak technical position. Until these stocks shape up and trade higher they will continue to point to an uncertain market. After all, the European debt crisis is really just another banking crisis. Keep an eye on these banks stocks before you go ahead and anoint the next bull market. While the stock rally over the past nine days has been incredible the financial stocks are painting a different picture.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

How Much Juice Is Left In The Semiconductors?

October 14, 2011 – Comments (0) | RELATED TICKERS: BRCM , QCOM , SMH

The semiconductor sector has been very strong along with the major stock indexes since October 4, 2011. At that time, the major stock indexes staged a massive reversal day into the closing bell, kicking off this massive nine day rally. The Semiconductor Holders Trust (NYSE:SMH) has surged higher by more than $4.50 from its October low pivot of $25.92 a share. This morning, the SMH is trading higher by 0.22 cents to $30.54 a share. Traders should watch for intra-day resistance around the $30.80 area. The daily chart resistance will be around the $31.00 level.

Some leading semiconductor stocks that are trading higher this morning include Sandisk Corp (NASDAQ:SNDK), Broadcom Corp (NASDAQ:BRCM), Skyworks Solutions Inc (NASDAQ:SWKS), and Qualcomm Inc (NASDAQ:QCOM). All of these leading stocks are now getting very extended on the daily charts. These stocks are likely to see pullbacks soon.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

Stock Market Sees Minor Drop On Earnings, China

October 13, 2011 – Comments (0) | RELATED TICKERS: DIA , GOOGL , JPM

Markets are trading lower across the board. This is due to JPMorgan Chase & Co. (NYSE:JPM) reporting earnings that did not meet the expectations of Wall Street. Worries about exposure to bad loans and Europe continue to be a seen as a problem for the bank. In addition, Chinese economic data came in weaker than expected. These factors, in combination with a short term overbought market are pushing the indexes lower by 1%. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $113.90, -1.09 (-0.95%).

JPMorgan Chase is taking a large hit today on the back of their earnings announcement. The stock is trading at $31.28, -1.92 (-5.78%). Other banks will be reporting earnings in the next week. All eyes will be on their bad loan exposure and European exposure.

Technology is the one bright spot today. The three tech mega-players are performing best. Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc. (NASDAQ:GOOG)  are all higher. This is keeping the markets from having an overall ugly day. In addition, Google Inc. reports earnings today after the market closes. The earnings whisper number is $9.19. That is about $0.25 above the consensus estimate from analysts.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

Financial Stocks & Industrial Metal Stocks Trade Lower, Which Is Worse?

October 13, 2011 – Comments (0) | RELATED TICKERS: BHP , C , X

This morning, the leading financial stocks and the leading industrial metal stocks are declining. These two sectors have been weak since April 2011. This morning, the financial stocks are trading lower after the financial giant J.P. Morgan Chase & Co (NYSE:JPM) reported earnings. Traders and investors obviously did not really believe the results posted by the company. JPM stock is trading lower by $1.53 to $31.67 a share. Other leading financial stocks such as Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS), and Citigroup Inc (NYSE:C) are all trading lower on the session. It is fair to say that the financial stocks are extremely weak.

The industrial metal stocks are also trading lower this morning. Leading industrial metal stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), U.S. Steel Corp (NYSE:X), Southern Copper Corp (NYSE:SCCO), and BHP Billiton Ltd (NYSE:BHP) are all declining. This sector is also extremely weak at this time. If traders and investors look at the charts of both sectors you will easily see that the financial stocks and the leading industrial metal stocks have very similar chart patterns. This tells us that both of these sectors simply trade higher when the stock markets have inflation. When the stock markets deflate these two sectors seem to decline simultaneously. Therefore, both sectors are in poor shape right now, however, they will both benefit from inflation which is usually created by the central banks.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

2

Gold Miners Dip, What Does This Mean?

October 13, 2011 – Comments (0) | RELATED TICKERS: NEM , AUY , GDX

This morning, the leading gold mining stocks are declining lower. It seems that gold and the leading gold mining stocks have begun to trade right along with the major stock market indexes once again. If you look at the popular Market Vectors Gold Miners ETF (NYSE:GDX) you will see that the GDX made a low on October 4, 2011 at $50.42 a share. This is the same day that the major stock indexes made a low as well. Since that day the GDX has rallied higher with the major stock indexes. This tells us that the gold miners are signaling inflation and deflation. Today the GDX is trading lower by $1.32 to $56.09 a share. This move is coinciding with a dip in the S&P 500 Index and the Dow Jones Industrial Average. The GDX will have some short term intra-day support around the $55.00 area.

Other leading gold miners that are declining today include Randgold Resources Ltd (NASDAQ:GOLD), Yamana Gold Inc (NYSE:AUY), Newmont Mining Corp (NYSE:NEM), and Agnico Eagle Mines Ltd (NYSE:AEM). Traders should follow the major stock indexes closely as the gold miners seem to be inflating and deflating with the major markets. A stronger U.S. Dollar Index will usually cause the gold miners to be weak. This action is telling us that there is deflation in this market place, however, the central banks will try and combat that by trying to keep the currencies such as the U.S. Dollar weak.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

Heavy Metal Over Base Metals These Days

October 12, 2011 – Comments (0) | RELATED TICKERS: AKS , X , SCCO

As you all know, the major stock indexes have soared over the past week. The Dow Jones Industrial Average (DJIA), the NASDAQ Composite, and the S&P 500 Index have all surged sharply higher recapturing their daily chart 50 moving averages. Whenever an index can recapture an important moving average that is usually a sign of short term strength. Here is the problem with this recent rally if we can find one. The base metals still remain very weak.

Leading base metal stock such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), and Cliffs Natural Resources Inc (NYSE:CLF) have not even come close to their daily chart 50 moving averages on this recent bounce. This tells us that the leading base metal stocks are still signaling weak relative strength in the near term. Often, when the U.S. Dollar Index plummets or declines these stocks will surge sharply higher. That has not been the case as the U.S. Dollar Index futures (DX Z1) have fallen sharply over the past week. Until the base and industrial metal stocks show improved relative strength these stocks remain vulnerable to further declines. Right now it is better to remain cautious on these base metal stocks.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

S&P 500 Hits Double Top From September

October 12, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

The SPDR S&P 500 ETF (NYSE:SPY) is hitting a double top from September 20th, 2011. This high was $121.90 and has now been officially tagged. This hit is coming after close to a 13% bounce in the market from just one week ago. It is also pushing up on anticipation of the Federal Reserve minutes being released at 2pm ET. There is significant hope that there will be talk of QE3 and other measures to ensure new growth in the U.S. This double top should be resistance and the markets may pull back off this level.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

1

The Keys To A Sustainable Stock Market Rally

October 12, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

The markets are higher again. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $115.28, +1.27 (+1.11%). Last Tuesday, the DIA traded at a low of $103.84. It has been an impressive move higher but is it sustainable?

The vertical nature of this move is not sustainable. Obviously, 12% in a week cannot happen forever. That is obvious. However, could the markets be heading back to the 52 week highs over the next few months?  This can only be achieved if major steps are taken to avoid a global recession. Based on current models, recession is almost unavoidable.

This rally so far is on hopes and dreams. There has been no legitimate action taken in Europe. While the blast higher in the last week has come on hopes of a bank recapitalization plan, there is nothing in place as of now. In addition, once that is done, what happens to Greece? What happens to Italy, Portugal, Spain, Ireland? When the markets were trading at 52 week highs back in early May, the world thought there would be an end to the global recession, growth was resuming in full and pigs flew. This was obviously not the case.

This market has two personalities, greed and fear. A true trader profits by finding the opposite emotion and going with it. When greed hits its high, go the opposite way and short the market. When fear peaks, buy the markets.

There is little doubt that the markets are factoring in the best bank recapitalization plan in the world. While there will be some plan, it is unlikely it will exceed market expectations. That may cause some minor selling. In addition, once that hurdle is taken out, all eyes go right back to Greece and Italy. This will cause a larger amount of selling. Greed is beginning to hit its highs again.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Retail Stocks Are Reaching Near Term Resistance

October 12, 2011 – Comments (0) | RELATED TICKERS: BBY , WMT , RTH

The leading retail stocks have surged higher over the past week. The Retail Holders Trust (NYSE:RTH) has gained over $10.00 since the October 4, 2011 pivot low. The RTH will be coming into important daily chart resistance around the $110.00 area. Therefore, traders should expect a pullback or consolidation in the RTH very soon. This is simply a case of a stock that has run very far very fast.

Other leading retail stocks that should face important daily chart resistance soon include Wal Mart Stores Inc (NYSE:WMT), Best Buy Inc (NYSE:BBY), Target Corp (NYSE:TGT), and J.C. Penney Company Inc (NYSE:JCP). These stocks could have a bit more upside in the near term, however, they will need to pullback or consolidate very soon.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Key Stocks To Watch

October 11, 2011 – Comments (1) | RELATED TICKERS: IBM , FSLR

As the markets are holding the flat line, certain stocks demand direct attention. This can be key to seeing moves and profiting.

First, the double top on International Business Machines Corp. (NYSE:IBM) is holding firm. Even with the markets inching up, IBM has fallen back below the double top level of $185.63. As long as the stock does not close above the high from yesterday, it could be viewed as a short. The high from yesterday was $186.63.

Next on the list of stocks standing out is First Solar, Inc. (NASDAQ:FSLR) . As the markets have surged 12% in the last week, First Solar has barely moved. Yesterday it was flat and today it is down. This weakness must be respected. Any sort of market pull back would send this below $50.00 per share. Once below, it becomes attractive as a long swing trade.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Biggest Stock Market Level Of The Week Tagged

October 11, 2011 – Comments (0) | RELATED TICKERS: GOOGL , JPM , QQQ

After the markets had a one week run of 12%, today is a quiet pause day. All eyes continue to be on Europe but will soon be watching earnings from big players like Alcoa Inc. (NYSE:AA), JPMorgan Chase & Co. (NYSE:JPM) and Google Inc. (NASDAQ:GOOG). While investors are speculating constantly on whether the next move will be up or down, true traders are just watching the charts.

Today, the markets ran into a major level. This level can clearly be seen on the daily chart of the SPDR S&P 500 ETF (NYSE:SPY) and the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ). The small investor is starting to get giddy with hopes of major upside but unless these massive resistance levels are broken, the markets will fall once again. Look at the charts below.

Gareth Soloway
InTheMoneyStocks.com



  [more]

Recs

1

Defense Companies May Have More Fuel Left In The Tank

October 11, 2011 – Comments (0) | RELATED TICKERS: LMT , NOC , RTN

The defense companies have rallied along with the major stock market indexes over the past week. These stocks will often rely on military contracts as a major part of their revenue stream. While these stocks have staged a sharp snapback rally over past week they will all come into important daily chart resistance very soon.

Raytheon Co (NYSE:RTN) is a leading defense company that has rallied higher by $3.00 over the past five trading sessions. This morning, RTN stock is trading lower by 0.18 cents to $41.90 a share. The stock has potential upside to the $43.00 area on the daily chart. The stock will have intra-day support around the $41.50 area. The intra-day resistance level will be around the $42.25 area if the stock can catch a bid and rally from here.

Lockheed Martin Corporation (NYSE:LMT) is another leading defense company based out of Bethesda, Maryland. Traders should take note that this stock has struggled to trade above the daily chart 200 moving average which is around the $77.00 area. Until the stock closes solidly above that level traders will have to remember that it will remain a very good resistance area. The stock will have intra-day resistance around the $76.25 , and $76.75 levels. Should the stock decline intra-day traders should watch for intra-day support around the $75.35, and $75.00 levels.

Other leading defense stocks that could have a little more upside on the daily charts include General Dynamics Corp (NYSE:GD), Northrop Grumman Corp (NYSE:NOC), and Boeing Co (NYSE:BA). Traders should remember that all of the defense companies seem to trade in tandem with each other.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Oil Services Stocks Continue To Climb

October 11, 2011 – Comments (1) | RELATED TICKERS: HAL , OIH , SLB

The oil services stocks have moved up sharply since the October 4, 2011 pivot low. At that time, the Oil Services Holders Trust (NYSE:OIH) traded as low as $95.00 a share. This morning, the OIH is trading higher $2.00 to $116.80 a share. Believe it or not, the OIH has gained over 21.0 points in less than six complete trading sessions, now that is a bounce. Traders should watch for intra-day support on the OIH around the $118.00, and $120.00 levels.

Some leading oil services stocks that are rallying higher this morning include Halliburton Co (NYSE:HAL), Schlumberger Ltd (NYSE:SLB), and Transocean Ltd (NYSE:RIG). These stocks will often trade together as they are all part of the OIH holdings. Traders should watch for pullbacks when the OIH hits resistance. These stocks all look to have further upside in the short term.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Pause Day Or Something More?

October 11, 2011 – Comments (0) | RELATED TICKERS: AMZN , JPM , XOM

Normally, after a large rally or decline the next trading session is much more subdued or quiet. Yesterday, the stock markets surged sharply higher with the Dow Jones Industrial Average gaining over 300.00 points by the end of the day. The rally was broad based as most every leading stock sector participated. The only negatives for yesterday's stock market advance were the light volume and the closed bond market. Every trader should know that light volume favors the upside and the when the bond market is closed that will also favor a stronger stock market. Other than these two negatives the rally was solid.

This morning, the markets seem to be much quieter at this time. The leading stocks such as Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Exxon Mobil Corp (NYSE:XOM) are all trading higher to start the day. The weak stocks this morning are the financial giants such as J.P. Morgan Chase & Co (NYSE:JPM), and Goldman Sachs Group Inc (NYSE:GS).

Traders should simply expect a somewhat flat trading day. If the financial stocks can catch a bid there is a chance of a move to the positive side. Right now, this market is setting up for a typical pause day which is very common after a large rally. .

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

2

Some Stocks Are Just To Weak To Participate

October 10, 2011 – Comments (0) | RELATED TICKERS: NFLX , VRTX , OPEN.DL

This afternoon, the major stock indexes are soaring sharply higher. The light volume and the falling U.S. Dollar Index are creating the perfect elixir for a strong stock market. Traders and investors should also take note that today is the Columbus Day holiday and the bond market is closed, therefore, the stock market indexes will usually trade higher than normal and rarely decline when the bond market is closed. Remember the old saying, when the cat is away the mice will play. The iShares Dow Jones Transportation Index (NYSE:IYT) is trading higher by 2.71 percent. The market leading stocks such as Apple Inc (NASDAQ:AAPL), Exxon Mobil Corp (NYSE:XOM), and Amazon.com Inc (NASDAQ:AMZN) are trading higher this afternoon. To make a long story short, the stock markets are holding up well during this light holiday volume trading session.

There are a few stocks that are simply not participating in this stock market rally. This tells us that these stocks have very poor relative strength and are likely to decline lower if the stock market pulls back in the near term. Leading stocks such as Netflix Inc (NASDAQ:NFLX), Vertex Pharmaceuticals Inc (NASDAQ:VRTX), Open Table Inc (NASDAQ:OPEN) are a few leading stocks that cannot seem to catch a bid today. Traders must be careful when trying to buy these stocks as these stocks have very poor relative strength at this time. These weak stocks will likely lead the markets lower when the major stock indexes pullback.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

4

As Stock Markets Surge, These Keys Become Important

October 10, 2011 – Comments (1) | RELATED TICKERS: GOOGL , JPM , SPY

The stock market is surging again. Gains sit at over 10% in the last week. This euphoric move in the markets has been on continued talk about a European bank recapitalization plan. This plan is said to mirror TARP in the U.S in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.97, +3.26 (+2.82%. Just last Tuesday, the SPY hit a low of $107.43.

With this talk of recapitalizing the banks, Greece's woes are a distant memory as are Italy, Spain, Portugal and Ireland. These issues should come to the forefront within the next few days again. The way to tell of this reemergence of fear is to simply look at the charts. As the S&P 500 runs into resistance at current levels, a pull back in the markets looms. The cause of that pull back will be European based. Watch this between Tuesday and Wednesday of this week. Keep in mind, the bond market is closed today. The bond market controls the stock market. In other words, when the cat is away, the mice will play. Thus a big light volume rally today on hopes and dreams.

Aside from Europe, this week also has some key Chinese data and U.S. earnings. Alcoa Inc. (NYSE:AA) reports earnings tomorrow after the close.  In addition, later this week JPMorgan Chase & Co. (NYSE:JPM) and Google Inc. (NASDAQ:GOOG) report.

Do not get fooled with this big surge up. As much as I would like to believe the bottom is in, it is clearly not. The charts tell the true tale. The SPY resistance level is major from here on out until $120.00. Problems in Europe are not going to be solved as easily as recapitalizing the banks. In addition, a global slowdown is nailing China hard. This will have ripple effects throughout the entire world.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

1

Industrial Metals Continue To Inflate

October 10, 2011 – Comments (0) | RELATED TICKERS: FCX , JJC , SCCO

The industrial metals stocks are continuing there winning ways this morning. Since the October 4, 2011 stock market pivot low the industrial metals have soared sharply higher. Leading stocks such as Freeport McMoRan Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), U.S. Steel Corp (NYSE:X), and Cliff Natural Resources Inc (NYSE:CLF) have rallied throughout the trading session. Traders should watch for some intra-day resistance on FCX stock around the $36.00 and $36.75 levels.

At this time, everything in the stock market is inflating higher. The catalyst for the rally in the industrial metals is obviously the falling U.S. Dollar Index. As long as the U.S. Dollar Index continues to decline the leading commodities and metal stocks should inflate and trade higher. Ironically, the U.S. Dollar Index topped out on October 4, 2011 which is the exact time that the leading industrial metal stocks and the major stock indexes bottomed out. Traders should continue to follow the inverse relationship between the U.S. Dollar Index and the stock markets.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Energy Stocks Blast Off

October 10, 2011 – Comments (0) | RELATED TICKERS: COP , CVX , XOM

This morning, all of the leading energy stocks are surging sharply higher. Exxon Mobil Corp (NYSE:XOM) is the world's leading integrated energy stock in the market and this energy giant is trading higher by $1.50 to $75.06 a share. When XOM's stock rallies higher most of the other leading energy stocks will follow. This stock will have intra-day resistance around the $75.25, and $76.00 levels.

Other leading energy stocks that are trading higher include Chevron Corp (NYSE:CVX), and ConocoPhillips (NYSE:COP), and BP plc (NYSE:BP). Traders should keep a close eye on the U.S. Dollar Index. As long as the U.S. Dollar Index continues to decline throughout the trading session the energy stocks are likely to remain very strong today and possibly inflate higher. Today is also the Columbus Day holiday in the United States and the trading volume is likely to be on the light side. Light volume will generally favor the upside.

Nicholas Santiago
Inthemoneystocks.com
  [more]

Recs

3

Euro-Zone Bank Trade, This Is It

October 10, 2011 – Comments (1) | RELATED TICKERS: DB , UBS , CS

In lasts week's report we focused on the debtor nations of the European union, which is all of them. This week we shall focus on the large banks that hold much of the debt issued by those nations in the Euro-zone. This past Friday, all of the major bank stocks ended the trading session with a sharp sell off. Even the leading bank stocks in the United States closed lower and showed very ugly reversal days on the charts. Let us take a look at the leading European banks and find the important support and resistance levels for these stocks. The next few weeks should be another volatile period for all of the Euro-zone financial institutions.

UBS AG (NYSE:UBS) is one of the world's leading banks based out of Zürich, Switzerland. This company was recently under the microscope after reporting a huge $2.3 billion loss from a rogue trader. In any case, this leading financial stock topped out on February 28, 2011 at $20.08 a share. That high was retested in late April 2011, however, the stock was unable to break and close above the $20.08 high. On September 22, 2011 the stock found a short low at $10.41 a share. UBS bounced up to the $12.00 area last week, however, on Friday the stock closed lower by 0.75 cents to end the week at $11.28 a share. The stock remains below the Daily chart 20, 50, and 200 moving averages, this technically puts the stock in a confirmed down trend a weak technical position. Should the stock break below the recent daily chart lows traders can watch for near term support around the $10.35, $8.75, and $7.50, and $7.00 levels. Should the stock rally higher from current level traders can watch for resistance around the $12.00, and $14.00 levels.



Credit Suisse Group (NYSE:CS) is another leading financial giant that is based out Zürich, Switzerland. This stock topped out on February 18, 2011 when it traded as high as $47.63 a share. On September 12, 2011 the stock made a near term pivot low at $22.23 a share. Should this near term level fail to hold as support traders must watch for support around the $20.00, $18.50, and $16.00 levels. If the stock rallies from current level traders must watch for resistance around the $27.00, $29.50, and $33.00 levels.


 
Deutsche Bank AG (NYSE:DB) is one of the leading financial institutions based out of Frankfurt am Main, Germany. This stock has also been extremely volatile throughout 2011. DB stock topped out with the major stock indexes on May 2, 2011 at $66.00 a share. On September 21, 2011 the stock made a near term low at $28.57 a share. Since that low print the stock has rallied slightly higher closing at $35.15 a share on Friday. Should the stock break and close below the September lows there should be support around the $25.80, 23.50, and 21.75 levels. If the stock rallies higher from here the next resistance levels will be around the $38.00, $40.70, and $44.00 levels.


Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Retail Stocks See Buyers

October 07, 2011 – Comments (0) | RELATED TICKERS: TJX , WMT , RTH

This morning, the retail sector is rallying sharply higher. The highly followed and traded Retail Holders Trust (NYSE:RTH) is trading higher by $1.28 to $105.87 a share. Since the October 4, 2011 low the RTH has bounced higher by $7.30 a share. This is a very strong bounce in just four days of trading. Traders should watch for near term resistance around the $106.50, and $108.50 levels. This is where traders should watch for pullbacks in the RTH.

Some leading retail stocks that are rallying higher this morning are Wal Mart Stores Inc (NYSE:WMT), TJX Cos Inc (NYSE:TJX), Home Depot Inc (NYSE:HD), and Nordstrom Inc (NYSE:JWN). All of these leading stocks look to have a bit more upside on the daily charts. Traders should continue to follow the RTH closely. When the RTH pullbacks these leading retail stocks should follow.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

When Unsure Follow The Leading Stocks

October 07, 2011 – Comments (0) | RELATED TICKERS: AAPL , AMZN , NFLX

Everyone must admit that the major stock indexes have staged a tremendous three day rally. Most major stock indexes have surged higher by more than 6.0 percent in that time. The NASDAQ Composite is leading the rally and has actually surged higher by 8.0 percent. On the surface everything looks fine and a potential bottom could be in place. There is one problem with this theory and that is the poor activity in the leading stocks.

Apple Inc (NASDAQ:AAPL) has been considered the leading technology stock in the world. A couple of days ago the company lost their co-founder Steve Jobs to a long illness and the stock has been struggling around the $370.00 level. While this support area is holding up at this time, the more the stock trades sideways the more vulnerable it will become to another decline. APPL stock is not leading the markets at this time and it must be watched closely. This stock is a major component of the NASDAQ 100 Index.

Amazon.com Inc (NASDAQ:AMZN) is another leading technology stock that is also a major retail company. This stock soared to new highs on September 19, 2011 when it traded as high as $244.00 a share. The stock has not been able to rally back up to that level and could be somewhat vulnerable in the near term. If this makes a series of lower highs it will become a bearish indicator for the near term. The stock has short term daily chart support around the $198.00 level.

Netflix Inc (NASDAQ:NFLX) was a stock market leader until mid-July 2011 when the stock traded as high as $300.00 a share. This morning, NFLX stock is trading lower by $1.62 to $121.52 a share. This stock has completely broken down and continues to look horrible on the daily chart. It is safe to say that NFLX is no longer leading the markets.

Copper and many of the base metals have completely broken down. Over the past three days many of the industrial metal stocks have bounced a bit, however, it is important to remember that nothing in the stock market goes straight down or up. Everything will usually get a short term bounce from and oversold technical condition. Energy stocks also look very poor at this time. The financial stocks are bouncing a little this week and that could be a positive sign. The financial stocks have been absolutely decimated over the past three months so this could just be a dead cat bounce.

So what is the bottom line with this market? This stock market rally is lacking real leadership at this time. Until there is some real leadership role by one sector or another, traders must be somewhat cautious. This fast bouncing rally can sometimes end as quickly as they begin.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

3

Stocks Slam Into Key Resistance

October 06, 2011 – Comments (2) | RELATED TICKERS: AAPL , CVX , XOM

Stocks ran into a master resistance today. The S&P 500 hit 1159. This is a three bar surge on the daily chart and a major resistance point. The markets are now eying the Non Farm Payrolls report tomorrow at 8:30am ET. After a 7.5% move up in the last few days, smart traders and investors are taking profits to protect themselves.  The S&P 500 is trading at 1151.

The rally is broad based with only the oil stocks like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM)  not participating. Apple Inc. (NASDAQ:AAPL) is also under pressure after Steve Jobs died yesterday at age 56.

While the markets continue to be strong, the 1159 on the S&P 500 is the level now. Should that get taken out, upside to 1182 may be seen. Trade cautiously into the Jobs Report tomorrow and the weekend. Europe is a ticking time bomb and could explode at any minute.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Industrial Metals Shine Like Gold

October 06, 2011 – Comments (0) | RELATED TICKERS: BHP , FCX , SCCO

The industrial metals are continuing to rebound higher today. This is a three day bounce for the metals. Leading industrial metal stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), BHP Billiton Ltd (NYSE:BHP), and Rio Tinto Plc (NYSE:RIO) are all climbing higher this morning. These stocks were severely oversold and due for a solid bounce. It is important to remember that it has been the industrial metals that have lead the stock and commodities markets higher since March 2009. This year the industrial metal stocks began to lag the major stock indexes around April 2011, therefore, that tells us the industrial metals lead the major stock indexes.

The catalyst for the rally in the leading commodity stocks come as U.S. Dollar Index sells off from its recent highs. Since October 4, 2011 the U.S. Dollar Index futures (DX Z1) has declined lower by $1.26 to $79.10 per contract. Most leading commodity stocks will inflate and trade higher on any U.S. Dollar weakness. Traders and investors should continue to monitor the U.S. Dollar Index closely, as long as the dollar drops the industrial metals should continue to rally higher.

Nicholas Santiago
InTheMoneyStocks.com


  [more]

Recs

4

Short Term Momentum Is Up, However, The Big Picture Is Down

October 06, 2011 – Comments (0) | RELATED TICKERS: GM , SINA , YUM

The major stock indexes staged a major reversal by the close on October 4, 2011. On that day, the Dow Jones Industrial Average (DJIA) rallied higher by nearly 400.0 points in the final 45 minutes of the trading day. Yesterday, the major stock indexes rallied higher creating a follow through day for the major stock indexes. That type of action is a short term positive for the major stock indexes. The problem for the stock markets is the longer term outlook. The problems in the European Union are an absolute disaster. Greece is really the tip of the iceberg when it comes to the European debt problems. What about the rest of the Euro-zone countries such as Italy, Spain, and France? These countries are much bigger than Greece, Portugal, Belgium, and Ireland. Who is going to bail these countries out?

Next, there are the problems in the emerging markets. China is clearly slowing down and facing its own set of problems. High inflation is now starting to hurt the Chines economy. If the Chinese people begin to consume less many companies that do business there will suffer. Companies such as Yum Brands Inc.(NYSE:YUM), and General Motors Co (NYSE:GM) are just two of the many corporations that will suffer. The Chinese have also been considered the growth engine of the world. If the Chinese stop investing abroad there will be a new set of problems that many investors are not taking into account. The Chinese are dealing with a real estate bubble and many labor problems as workers feel they are severely under paid. Investors should remember that the problems in China could turn out to be more important than the problems in Europe.

Traders and investors that are trying to ride the short term momentum in the stock market should realize that it could end abruptly. The central banks continue to simply create money in order to solve the debt problems in the world. Creating money is simply creating more debt and that is what caused the problem that we are in right now. Albert Einstein said that insanity is doing the same thing over and over again and expecting different results. We must be insane. While the short term momentum is up the bigger picture for the stock markets is down.

Nicholas Santaigo
InTheMoneyStocks
  [more]

Recs

2

Secret Intervention Saves Stock Market

October 05, 2011 – Comments (1) | RELATED TICKERS: DIA , MS , SPY

The stock market is gently floating higher today after a mega reversal yesterday. Most amateur and retail investors are scratching their heads, trying to understand why they keep getting whipped up and down in this market, losing money endlessly. To understand these moves, one must look at the charts. The charts are like a book, written in a foreign language. If you learn their language, you have the key to profits forever.

In late trading yesterday, the S&P 500 staged a 40 point rally. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA)  was trading at $104.10 and surged to a high of $108.10. The  This all happened in just one hour. The basis for this move was a rumor of another major bank bailout deal in the works in Europe. However, the news is just a front for the big institutions and Federal Reserve to hold master support levels. By holding these levels, the markets avoid a crash. Ben Bernanke is not stupid. He has intelligent technicians that give him the master levels that must hold. Below, I give them to you.

On Monday, the markets opened sharply lower. The major level of support was the pivot low from August 9th, 2011. On the SPDR S&P 500 ETF (NYSE:SPY) this level was $110.30. In a late day flush, the SPY closed below that level. Once the markets closed below, the "Bat" phone started ringing at the Federal Reserve. Everyone of some intelligence was aware Tuesday was going to be critical. Could the Bernanke save the day?  On a technical basis, Tuesday was the day to confirm the technical break down and collapse or hold above and save the day.

After some early losses in the stock market, the markets staged a "phony" late day massive surge. This was headed by another rumor of a major bank bailout as mentioned above. Ultimately, the SPY closed well above the $110.30 master level and the collapse was pushed off. Technically speaking, there was never confirmation of a break down below the $110.30 level. The powers that be made sure of that.

As of now, focus on that level. As long as the markets hold the $110.30 level on the SPY, neutral to upside is likely. The upside will be muted at best. Should the markets break that master level to the downside, a flush will occur, taking the SPY to the $104.50 level and possibly $99.50. This technical level means everything to the markets and Federal Reserve Chairman Ben Bernanke knows it.

As of now, the markets are trading higher. The SPY is at $113.32 +0.98 (+0.87%). Bank stocks helped lead the reversal yesterday on the bank bailout talk. Stocks like Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS) all jumped dramatically higher. Today, these stocks are pausing and pulling back slightly. There may be a short term bottom in the market but it will not last long. Institutions and Federal Reserve intervention only lasts so long.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

0

Cloud Stocks And Their Near Term Ceilings

October 05, 2011 – Comments (0) | RELATED TICKERS: RVBD , VMW , RAX

Many of the cloud computing stocks are trading higher this morning. Yesterday's market rally helped to lift these popular technology stocks off of their recent lows. Prior to the May 2011 top in the stock market it was the cloud computing stocks that were leading the stocks markets higher. These stocks could be staging near term bounces, however, there will be good resistance levels coming into play very soon.

F5 Networks Inc (NASDAQ:FFIV) is a leading computer networking stock that showed very good relative strength yesterday before the explosive late afternoon stock market rally. Today FFIV stock is trading higher by $3.13 to $80.75 a share. This stock will come into very strong daily chart resistance around the $85.00 and $89.00 levels. Traders should watch for intra-day resistance around the $83.00 area.

Rackspace Hosting Inc (NYSE:RAX) is a leading hosting company operating with the cloud computing technology. This stock rebounded yesterday and is trading higher this morning by 0.51 cents to $33.63 a share. This stock will have very good intra-day resistance around the $34.00 area. Traders should watch for important daily chart resistance around the $36.00 and $38.00 areas should the markets rally over the next couple of weeks.

Other leading cloud computing stocks that are trading higher include Riverbed Technology Inc (NASDAQ:RVBD), Aruba Networks Inc (NASDAQ:ARUN), and VMWare Inc (NYSE:VMW). All of these leading stocks should have some further upside potential, however, FFIV is the leading cloud stock at this time. When that stock begins to pullback the other cloud stocks are likely to follow.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Don't Be So Quick To Anoint The Next Bull

October 05, 2011 – Comments (1) | RELATED TICKERS: AAPL , GOOGL , BIDU

We all witnessed the massive late day rally yesterday into the close. The Dow Jones Industrial Average surged higher by nearly 400.00 points in the final 45 minutes before the close at the New York Stock Exchange. The late day surge caused many traders to cover their short positions. When a trader covers a short position they must buy back the stock or equity that they sold short, therefore, it actually causes more upside momentum than would normally take place. Often after a rally of yesterday's magnitude the stock markets will trade higher for a few days or even more sometimes.

Many investors in the financial media have now taken off their bear costumes and have now switched into their bull costumes. Last night, I heard from countless people on popular cable TV networks that the lows are in for the stock market and there is nothing but upside from here. While anything can happen in the market it is important to note that one day does not make a trend. It is important to see a follow through day and even a follow through week. At this time, we do not have either, so these talking heads should wait before anointing the next bull market.

There is something else that traders should watch closely and that is leading stocks. This morning, Apple Inc (NASDAQ:AAPL), Biadu Inc (NASDAQ:BIDU), and Google Inc (NASDAQ:GOOG) are trading sharply lower. If this is another leg of a bull market these stocks will normally be trading higher. Leading stocks must lead not lag, these stocks are lagging this morning. The financial stocks are also not showing any upside momentum yet either. These stocks will need to signal strength if this market is to show further upside action. So there you have it, don't be so quick to anoint the next bull after a one day oversold rally.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Semi's Bouncing, However, They Are Signaling Further Declines

October 04, 2011 – Comments (0) | RELATED TICKERS: LRCX , SMH , TXN

This afternoon, many of the semiconductor stocks are trading in positive territory. This is usually considered a positive for the NASDAQ Composite and the major stock indexes. Today, the Semiconductor Holders Trust (NYSE:SMH) is trading higher by 0.07 cents to $26.25 a share. The bounce in the SMH is somewhat feeble when you think about it. There looks to be a much better support level around the $25.00 for the SMH.

Some leading semiconductor stocks that are trading higher today include Lam Research Corp (NASDAQ:LRCX), Skyworks Solutions Inc (NASDAQ:SWKS), and Texas Instruments Inc (NYSE:TXN). All of these leading stocks are showing some strength, however, it really looks to be just a technical bounce from an oversold condition. In other words, the small bounce today does not seem to have much institutional sponsorship behind it.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

Uncovered: Wild Stock Market Action And Profits

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

The stock market continues to trade in a wild manner. A massive gap lower took the indexes to mega losses for the third consecutive day. The SPDR S&P 500 ETF (NYSE:SPY) hit an intra day low of $107.43. However, seasoned veteran traders understand a three bar surge to the downside on a gap down means a bounce. Anytime this happens, always look for a reversal. Sure enough, the SPY jumped higher and hit the flat line. Since that gap fill, the SPY has pulled back slightly with bullish consolidation into the lunch hour.

The reversal in the markets was not hard to see. Not only did a gap down occur on a three bar surge but the Dollar ran into major resistance. In last nights Technical Analysis Video, it was mentioned that the PowerShares DB US Dollar Index Bullish (NYSE:UUP)  had resistance at $22.62. This was the pivot high from February 2011. Just as the U.S. markets hit their lows, the Dollar ran into this level. Always remember, the markets move inverse to the U.S. Dollar. Therefore, using the powers of deductions, if the the Dollar is hitting resistance and will pull back, the markets should bounce.

Lastly, intelligent traders could have easily noted the strength in leading stocks like JPMorgan Chase & Co. (NYSE:JPM)  and Apple Inc. (NASDAQ:AAPL) . Even when the markets were down sharply, they held relatively well. Always watch the leading stocks for a hint as to the direction of the market.

Gareth Soloway
InTheMoneyStocks.com


  [more]

Recs

0

Keep These Stocks On The Radar

October 04, 2011 – Comments (0) | RELATED TICKERS: AKAM , FFIV , VRTX

This morning, the major stock indexes are getting pummeled. The Dow Jones Industrial Average is trading lower by more than 200.0 points on the day. Most leading sectors are trading sharply lower. On the surface the market is very weak. As you all know the Federal Reserve Chairman Ben Bernanke is testifying on Capitol Hill this morning. If the market likes something he says and there is a short term bounce or rally, traders should watch the stocks that are already strong today.

There are many stock that are showing good relative strength this morning. If by some chance the major stock indexes bounce and rally higher these stocks would likely be the leaders today and trade higher. Traders should follow stocks such as F5 Networks Inc (NASDAQ:FFIV), Akamai Technologies Inc (NASDAQ:AKAM), Target Corp (NYSE:TGT), and Vertex Pharmaceuticals Inc (NASDAQ:VRTX). These stocks are likely candidates to run if the markets stage a rally off the morning lows.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

The Bernank Walks Into Selling Pressure

October 04, 2011 – Comments (1) | RELATED TICKERS: BAC , GS , MS

This morning, the major stock indexes are trading sharply lower to begin the day. Many traders and investors are eagerly awaiting the comments from the Federal Reserve Bank Chairman Ben Bernanke as he testifies on Capitol Hill. Since the last FOMC meeting when the central bank announced its Operation Twist program the Dow Jones Industrial Average has declined by more than 900.0 points. Recently, the Federal Reserve has hinted at another quantitative easing program. While this talk will usually cause the markets to have short term rallies or bounces it is highly unlikely that the central bank would implement another quantitative easing program so soon. The last $600 billion quantitative easing program that the Federal Reserve issued just ended on June 30, 2011. That QE-2 program caused massive inflation around the world. Countries such as Brazil, China, India, and Russia have been very outspoken against it. Many investors believe that QE-2 caused food riots in the Middle East and Northern Africa.

What will Chairman Bernanke say or do to help lift the stock markets? Is there anything that the Federal Reserve can do at this time besides implementing another quantitative easing program? These are the questions that investors and traders are asking themselves.

The problems in the European Union are an absolute mess. There really does not seem to be any clear cut fix to the problems in the Euro-zone except default. By know we should all know that defaults rarely occur as bailouts will usually take place first. What is the Federal Reserve going to do about Morgan Stanley (NYSE:MS)? The credit default swaps on MS stock are surging. This means that investors are buying insurance on Morgan Stanley in case they go bankrupt. Now we are sure that Morgan Stanley is going to be able to borrow from the Federal Reserve, however, this is not a good sign for the markets to have this happening. Bank of America Corp (NYSE:BAC) is another leading financial stock that is approaching the $5.00 level. This is another very unhealthy sign for the markets.

As a trader it is important to note that the markets are becoming oversold and somewhat extended to the downside. This tells us that an oversold bounce can occur at any time now, however, it is likely to simply be just a quick oversold bounce and nothing more if one should occur. We can only wonder what the Bernak will say today to try and prop up these markets.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

August Lows Get Tested, What Does It Mean?

October 03, 2011 – Comments (0) | RELATED TICKERS: BAC , C , IYR

This afternoon, the SPDR S&P 500 Index ETF (NYSE:SPY) traded as low as $110.16 a share. The August 9, 2011 low was at $110.27 a share. Often stocks will go back and test a level where the stock once traded, therefore, it is not surprising to see that August low get tested today. The declines in the market come as the financial stocks decline sharply lower.

Bank of American Corp (NYSE:BAC), and Citigroup Inc (NYSE:C) are leading the sell offs in the financial stocks by declining lower by 8.0 percent. Traders must remember when the financial stock decline the major stock indexes will likely follow.

The transportation stocks are also plunging lower this afternoon. The iShares Dow Jones Transportation ETF is also declining by 3.19 percent. The airline stocks had to signal mayday several times as AMR Corp (NYSE:AMR) dropped lower by 35.0 percent. Other leading airline stocks that are declining this afternoon are United Continental Holdings Inc (NYSE:UAL), US Airways Group Inc (NYSE:LCC), and Delta Air Lines Inc (NYSE:DAL). Airlines are an important indicator for the stock markets because they represent business and leisure travel around the world. These stocks are plummeting despite the sell off in crude which is a very bearish indication for the airline sector as well as the overall economy.

Traders and investors must remember that there will be some daily chart support around the August 9, 2011 lows, however, this level is not going to be a major support area. It will be a short term support level at best. It is safe to say that this is a traders market at this time. The buy and hold strategy is gone for the time being and is not expected to be back for a while.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

Stock Market Key Levels

October 03, 2011 – Comments (0) | RELATED TICKERS: DIA , QQQ , SPY

The markets have been all over the map today. A gap down gave rise to a huge spike on ISM economic numbers. This popped the markets to the positive side, only to see them come all the way back down and hit the lows of the day. Since that double bottom, the markets have bounced back up, just slightly negative on the day.

Stocks continue to look at Europe and wonder what the ultimate outcome will be. Will Greece default? Greece announced over the weekend that they would not make the deficit reduction mandates that they are being held to. Overall, this is not a surprise to the markets and being brushed off. Sentiment dictates a bailout will eventually be given.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

The Sector To Follow

October 03, 2011 – Comments (0) | RELATED TICKERS: GS , JPM , CS

All traders and investors should be watching the financial stocks very closely. When these stocks catch a bid or rally higher the major stock indexes will usually rally or hold up. This morning, many of the leading financial stocks are trading in positive territory while the major stock indexes begin the day lower. If these leading financial stocks can hold up today the major stock indexes are likely to stave off another sharp decline.

J.P. Morgan Chase & Co (NYSE:JPM) is the leading financial stock in the United States and possibly the world. This morning, JPM stock is trading higher by 0.26 cents to $30.38 a share. This leading financial stock made a new 52 week low on September 22, 2011 at $28.53 a share. The stock is now trying to make a higher low on the daily chart, however, the stock remains very weak at this time. JPM stock is trading below its 20, 50, and 200 moving averages on the daily chart which put the stock in a weak technical chart position. Often, as long as the stock remains weak on the charts the institutional traders will usually sell into any bounce. Should this stock decline intra-day traders should expect the major stock market indexes to follow.

Other leading financial stocks that should be followed closely are Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), Deutsche Bank AG (NYSE:DB), and Credit Suisse Group NYSE:CS). When these financial stocks decline it is prudent to expect the major stock indexes to follow. On the flip side, if these financial giants rally or catch a bid higher it would be prudent to expect the markets to rally off the lows and possibly trade higher on the session. The financial sector is the one sector to follow at this time.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

0

It's A Debt Party, Profit From It!

October 03, 2011 – Comments (0)

The economic problems in the world seem to be growing by the minute. Last week, the European Union did not reach a resolution for Greece. Many investors are wondering what will happen when Greece eventually defaults on its debt obligations. At this time, the European Union is trying to finalize the European Financial Stability Facility (EFSF), which is really another TARP like bailout program. It is still amazing that the central banks and the governments around the world continue trying to resolve the issues of debtor nations by increasing the debt. After all, debt is the cause of the problems in the first place. China is also facing an apparent slowdown in their economy, however, we shall tackle that issue another week. This week, we will look at the European countries and pinpoint some good near term support levels. These levels will provide excellent trading opportunities for intra day trades, and multi day holds. 

The iShares MSCI Germany Index (NYSE:EWG) actually made a 52 week low on September 23, 2011 at $17.15 a share. The EWG topped out on May 2, 2011 when it traded as high as $29.04 a share. Germany is still considered the most solvent and productive country in the European Union. Germany is also expected to be the largest contributor of the European bailout. Many German citizens and politicians are not in favor of bailing out the other Euro-zone countries such as Greece.  However, last week the German parliament voted in favor of European Financial Stability Facility (EFSF). This action could ultimately effect the German economy if the bailout fails. Should the near term lows fail to hold as support traders and investors can expect the next short term support areas around the $16.75, $16.00, and $14.00 levels. If by some chance the EWG rallies higher traders should watch for near term resistance around $19.00, $21.20, and $23.00 levels. Note these levels, place them on your charts and trade them wisely.  



Next, we shall examine the iShares MSCI Spain Index (NYSE:EWP). The EWP bottomed out on September 12, 2011 at $29.40 a share. Since that time the EWP has made a higher low on September 22, 2011 at $30.09 a share. Last week, the EWP closed at $32.33 a share which was a gain of $1.38 for the week. Should the indexes begin to sell off again traders should watch for near term support around the $30.00 level. The next important support areas are $28.00, $25.00, and $23.00 levels. Should the EWP rally higher traders should watch for daily chart resistance around the $35.50, and $39.00 levels. Spain is one of the leading Euro-zone countries that are expected to default soon if there is no bailout fund passed.



Italy is considered to be more toxic than Spain. The iShares MSCI Italy Index (NYSE:EWI) made a 52 week low on September 23, 2011 at $10.88 a share. Last week, the EWI closed at $11.88 a share remaining off the recent lows. Traders should watch for near term resistance around the $12.75, and $14.00 levels. Should the EWI break below the recent lows traders must watch for support around the $10.60, $9.80, and 7.85 levels. 

These are your levels for trading the global crisis. Take careful note of the levels mentioned, they will all present trading opportunity. However, you must understand the factors which can determine, increase or decrease the probability of any trade. Join the Pros live as they trade these stocks, options, commodities and more in our Intra Day Stock Chat.Within this service you will view the Pros charts live as they trade, you will hear them over your speaker and even be able to ask them questions live! Get started for FREE with our Free Trial.  If you are not able to trade with our Pros during market hours, you can still profit with them. Our Research Center is the place where you will receive our expert multi day swing trades which earn massive wealth. Get started for FREE here and enter the Elite group of profitable, knowledgeable, expert traders and investors. 
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