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October 2013

Recs

1

Consumer Vanished In October: Trade It With This Stock

October 31, 2013 – Comments (0) | RELATED TICKERS: V , MA

Today, Visa Inc (NYSE:V) reported earnings. The big news with Visa was that the consumer vanished in October they said. Literally, vanished. The stock is trading at $198.20, -5.62 (-2.76%). This news makes many wonder if the retail sector may be in for a very tough holiday season.

This very negative news shows the consumer has put away their wallet in the short term because of the government shut down and current economic situation. The consumer is resilient BUT can only be hammered so many times before they retreat for a longer stretch. With the government risking default and shut down again in January/February, the consumer man stay hidden.

The trade here can be had on Mastercard Inc (NYSE:MA) on the short side. This company reported earnings this morning but did not mention how sales were going in October. Considering Mastercard and Visa are almost identical, it can be assumed that things are not great for Mastercard. The stock is hovering around the flat line but will likely see weakness in the coming days and weeks because of this news. Most investors have not made the connection just yet.

Gareth Soloway
InTheMoneyStocks.com
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Integrated Energy Stocks Rally, How Much Fuel Is In The Tank?

October 31, 2013 – Comments (0) | RELATED TICKERS: COP , XOM

Today, leading integrated energy stocks Exxon Mobil Corporation (NYSE:XOM), and ConocoPhillips (NYSE:COP) are both trading higher after reporting earnings this morning. How much higher can these stocks trade in the near term? Well, XOM should have very strong chart resistance around the $92.00 area. This is a level where the stock staged a failed breakout attempt in late July 2013. So traders should continue to look for strong resistance around that level. Currently, XOM stock is already starting to look overbought on the daily chart, so there is a chance that the stock may not be able to trade into the $92.00 resistance level. 

ConocoPhillips stock has been a major winner in 2013. The stock has climbed higher by more than $20.00 since July 2013. The uptrend is firmly intact for this stock so there is probably more upside in the tank for this stock. Traders should note that COP stock is slightly overbought, so a pullback to the $70.00 level would be an ideal support level. Any high volume decline below the $70.00 level would likely mean that institutional money is now coming out of the stock, but at this time the stock remains strong. 

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Intra-day ConocoPhillips Level To Watch

October 30, 2013 – Comments (0) | RELATED TICKERS: COP

This morning, leading energy stock ConocoPhillips (NYSE:COP) is coming under some selling pressure. COP stock is trading lower by 0.71 cents to $73.64 a share. The stock is pulling back from a new 52-week that was made just yesterday. Traders should watch for intra-day support levels around the $73.27, and $72.95 levels. Both support areas could give COP stock an intra-day bounce. Traders must make sure that they watch the pattern that is formed over the next few hours, any consolidation just above a support level could negate the strength of the support area. Once again, these are day trading levels only. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

YRC Worldwide, Inc.: A Gem Of A Bounce Coming

October 29, 2013 – Comments (1) | RELATED TICKERS: YRCW

YRC Worldwide, Inc. (NASDAQ:YRCW) has been pounded recently. The stock has fallen from a 52 week high on July 11th, 2013 of $36.99 to a low today of $9.23. The fact that the stock has fallen that much in a few months really has nothing to do with it being a good long. The key to the high probability of a bounce comes into play when looking at the daily chart and combining it with the massive fall. There is a gap window at $9.80 and a gap fill at $7.80. This range offers a major upside potential bounce. Small accumulating between these two levels should enable a very good average price entry and put traders in position for a nice upside bounce. Please note the high volume drop today as well. This very likely is telling us a bottom is near or at hand.

Gareth Soloway
InTheMoneyStocks.com
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Recs

6

Is The Affordable Care Act Really Affordable?

October 29, 2013 – Comments (1) | RELATED TICKERS: UNH

One of the most controversial topics in the United States is the debate over the Affordable Care Act. Everyone knows about the technology problems with the Affordable Care website, but that is just a small issue in the bigger scheme of things. The real problem is coming from people who are actually losing their current health care coverage. Hundreds of thousands of health care policies have been canceled because these insured people do not carry the coverage that the government requires. When many of the people do try and get the required coverage they find out that the premiums have increased dramatically. Recently, a woman in Florida was dropped from her heath care provider for not carrying adequate coverage. When she went to shop for a new health care plan she found that her premiums jumped from $54 a month to $591 a month. There are similar scenarios happening all over the United States. 

Everyone knows that President Obama promised that if you like the plan that you already have you can keep it. This video clip from President Obama's statement has been blasted all over every television set in the U.S. over the past week. Today, there is a report that President Obama knew three years ago that most Americans would not be able to keep their own insurance policies. Now we know why most Americans do not trust politicians. 

Now that the government is in the health care business many people that never had any heath care coverage will have it, which should be a good thing. On the flip side, many of the people that have had health care coverage will no longer be able to afford it, this is not a good thing. These people will either have to pay a penalty and not have any coverage or they will have to struggle to pay for the required coverage mandated by the government. Again, one group of people are being hurt while another group benefits greatly. This is why the country remains so divided. 

The health care insurance providers seem to be the one group that should ultimately benefit. After the dust settles there should ultimately be more customers for them to insure. At least that was how the market figured it. Recently, leading health care insurers have been coming under some distribution. Leading health care stock UnitedHealth Group Inc (NYSE:UNH) has declined by lower by nearly $10.00 over the past month. Is it possible that so many insured people are going to just opt out of the government's health care plan? UNH stock will have important daily chart support around the $60.00 level so it will be important to see how the health care stocks react over the next couple of weeks, it could be signaling further problems with the Affordable Health Care Act. Maybe the Affordable Health Care Act isn’t really affordable after all. 

Nicholas Santiago
InTheMoneyStocks.com



Post by: Nick Santiago 
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Recs

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J.C. Penney Company, Inc. Surges: Here Is The Trade

October 28, 2013 – Comments (0) | RELATED TICKERS: JCP

J.C. Penney Company, Inc. (NYSE:JCP) is surging higher today after the company affirmed positive growth in sales in the coming quarter. The stock is trading at $7.43, +0.64 (9.43%). The obvious way to trade this stock is to be long. I alerted to buy long last week when key indicators flipped to the positive side.  The entry was $6.70. I said that any good news would see an epic short squeeze back to $9.50, just below where Goldman Sachs did the secondary for the J.C. Penney. The stock is already on its way.

Bottom line comes down to the huge short position in the stock as a little positive news trickles out. This will drive the stock price far higher than its current level. This was one of the most obvious stocks to buy last week. We hope you were smart enough to buy it.

Gareth Soloway
InTheMoneyStocks.com
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Gold Moves Higher Ahead of the FOMC

October 28, 2013 – Comments (0) | RELATED TICKERS: GDX , GLD

This morning, everything gold is trading higher on the trading session. The popular SPDR Gold Shares (NYSEARCA:GLD) are trading higher by 0.64 cents to $131.13 a share. Meanwhile, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading higher by 0.39 cents to $26.71 a share. These moves in gold and the gold mining stocks are taking place ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting which starts tomorrow. The central bank is holding a two day meeting which will conclude on Wednesday afternoon. The move in gold is telling us that the Federal Reserve will likely leave its current $85 billion a month quantitative easing program unchanged. Since April 2013 the Federal Reserve has hinted about a cut in the easy money program, but has never once cut the program. 

Day traders should watch for intra-day resistance on the GLD around the $131.75 level. The GDX should have some intra-day resistance around the $27.00 area. Traders should also watch the USD/JPY chart very closely as gold will usually trade inverse to that currency pair. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

4

Is Bernanke Killing Old People?

October 25, 2013 – Comments (1)

Everyone knows that there is currently an $85 billion a month QE-3 (Quantitative Easing) program in place by the Federal Reserve. This policy was created to keep interest rates artificially low so that the stock market and the economy can inflate higher. The Federal Reserve also says that they have a dual mandate. The first mandate is to provide liquidity to the markets as a last resort lender. This was the case in 2008 when the credit markets were freezing up. The second part of the dual mandate is to promote maximum employment. Listed below are three reasons why Ben Bernanke and the Federal Reserve are killing old people. 

1) Since December 2008, the Federal Reserve has lowered the fed funds rate to between zero and a quarter percent. The fed funds rate is the overnight lending rate to the large banks such as J.P. Morgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), and Wells Fargo & Co (NYSE:WFC). You see, this free money to the four largest banks is the reason why you get basically no interest in a savings account. The elderly depend on getting interest from their savings accounts held at a bank. Meanwhile, a bank can lend out that savings account money and make much more interest from it than the individual can earn.  [more]

Recs

2

A Prediction Of Epic Proportions: Stock Market Crash Coming

October 24, 2013 – Comments (1)

Until recently, I have not used the term "stock market crash". I do not take using this term lightly. It brings with it major repercussions. I am now breaking out this phrase because of the current state of the stock market. This stock market crash will occur within the next 6 months from today, October 24th, 2013. The markets will fall within a combined day/few days a total of at least 20%. Bookmark this article.

Poor earnings continue to hammer individual names in almost all regions of the stock market. The U.S government continues to bicker over the debt ceiling and spending. The global picture is showing another real estate bubble in China and Europe is still an absolute mess, contrary to what the big players are saying to the public. All these negatives have meant nothing as the Federal Reserve continues to and will continue to print tens of billions of Dollars a month, inflating the stock market. Recently, word has now come out that the Federal Reserve feels like they have the power to print unlimited amounts of money. In other words, 'whatever it takes' to bring the dual mandate in line. A reckoning day will happen and for the first time in years I am seeing the epic signals clearly. I call this technical signal the Devil Tail Formation. It is something I have not seen in the charts since 2007.

The likely scenario would be for it to happen in 2014 but there is a small chance it happens prior. The house of cards will unfortunately fall as the biggest bubble ever created crumbles. Let's be clear about bubbles. They are all Federal Reserve induced. Every one in the history of the stock market has been a manipulation technique headed by the biggest bankers in the world. My other prediction for the future will be that at some point years out, there will be talk of bringing federal charges against the top Federal Reserve officials as the people demand it. I have said my piece. Have a wonderful and happy evening! 

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Intra-day Monsanto Co Level To Keep On Radar

October 24, 2013 – Comments (0) | RELATED TICKERS: MON , POT

Leading agricultural product maker Monsanto Co (NYSE:MON) is trading lower on the session by $1.24 a share to $106.38. The stocks seems to be trading lower in sympathy to most other stocks in the sector. Earlier today, leading agriculture company Potash Corp. of Saskatchewan Ltd (NYSE:POT) reported that their third quarter profit declined by 45 percent. This news is definitely weighing on most stocks in the sector. Day traders can watch for important intra-day support around the $105.55 level. This is an area where day traders can look for a potential intra-day bounce. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Best Buy Co., Inc. Equals The Worst Buy

October 23, 2013 – Comments (2) | RELATED TICKERS: BBY

Best Buy Co., Inc. (NYSE:BBY) is hovering near its 52 week highs. In the last year, the stock has soared almost 300%. Let me ask you a question, if your favorite TV had its price increased by 300%, would you rush out and buy it? The answer is no. We buy things on sale, not jacked up. 

In that same regard, the price of Best Buy's stock is way too pricey to even consider. Especially in light of the recent negative reports on consumer spending and retail sales. On a technical level, this stock is even uglier. Not only is it beyond extended, the stock has filled a major gap from 2010. The key break point on BBY is a close below $41.75. Should that happen, this stock should dive lower to the $36.00 level.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Relative Strength A Big Change For J.C. Penney Company, Inc.

October 23, 2013 – Comments (0) | RELATED TICKERS: JCP

Momentum has started to shift in beaten down stock J.C. Penney Company, Inc. (NYSE:JCP). As the stock market falls today, J.C. Penney has moved higher. This signals relative strength and a possible bottom in the stock with huge upside potential. The biggest upside potential for the stock is a classic short squeeze. Remember, Goldman Sachs helped do the secondary offering for JCP at $9.65. The stock is down near 30% from that point. At these levels, it is possible Goldman will pump the stock in an attempt to satisfy their clients. In addition, any positive news from the company could start an epic short squeeze where the stock soars back to $10.00+.

I am long the stock as a swing trade in this area. To me, the risk is more than equaled in the reward potential. 

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Oil Refinery Stocks On Fire, But Sector Is Now Overbought

October 23, 2013 – Comments (0) | RELATED TICKERS: VLO , TSO , WNR

Today, the major stock indexes are coming under broad based selling pressure with most industry groups trading lower. There is one sector that is in rally mode and that is the oil refinery stocks. Leading oil refinery stocks such as Phillips 66 (NYSE:PSX), Tesoro Corporation (NYSE:TSO), Valero Energy Corporation (NYSE:VLO), and Western Refining, Inc. (NYSE:WNR) are all trading higher during the trading session. All of these stocks have benefited from the recent decline in crude prices, however these stocks are now very overbought on a technical basis. The upside for this industry group should be limited from here. Traders and investors should now watch for a pullback or consolidation in the leading oil refinery stocks before seeing higher prices. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Beautiful Short Opportunity On Visa Inc

October 22, 2013 – Comments (0) | RELATED TICKERS: V

Visa Inc (NYSE:V) has had an epic run like many other stocks in this Federal Reserve inflated market. Today, the stock looks like it has topped. Note the trend line the stock slammed into today and the reversal taking place. Also, a potential topping tail makes this play sweet. This is a great setup for a near term pull back.

Gareth Soloway
InTheMoneyStocks.com
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0

Alert: Mini Stock Crashes Speak To Bigger Market Problem

October 22, 2013 – Comments (3)

Today, the stock market is higher once again but certain stocks have tumbled dramatically during market hours. In many cases, these drops were on epic intra-day volume and so fast they resembled the flash crash. Names like Netflix, Inc. (NASDAQ:NFLX), Facebook Inc (NASDAQ:FB) and LinkedIn Corp(NYSE:LNKD) are just some of these companies that experienced a massive mid morning collapse. While they have all bounced slightly, there is a bigger concern that is growing.

These flash crash type moves in stocks show us that a crash like 1987 is possible. The markets are up on hot air (aka the Federal Reserve money printing). Today for instance, Wall Street got the Non Farm Payrolls number. The number of created jobs was mediocre at best, if not weak. In addition, this number was calculated based on the numbers prior to the government shutdown. So the next Jobs number should be even weaker. The markets rallied higher because this again dictates that the Federal Reserve will continue printing money for far longer than originally expected.

The big concern to the intelligent investor must be how the market is continually moving higher on pure Federal Reserve intervention. Imagine if this market is shocked by something dramatically negative. A huge 1987 type crash could easily follow. A 20% drop in the stock market would basically just wipe out the gains from 2013. That is not out of this realm of possibility.

Lastly, I wanted to mention a few interesting dates in history that surround this mid-October period. Just three days ago, on October 19th, 1987 the market crashed. Tomorrow, on October 23rd, 1929, the stock market crashed. This period in history has been bumpy to say the least and with the mini flash crashes in stocks lately, with the market at all time highs, I would be very careful.

Gareth Soloway
InTheMoneyStocks.com

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0

Gold & Gold Miners Surge, Watch This Resistance

October 22, 2013 – Comments (0) | RELATED TICKERS: GLD , GDX

This morning, the SPDR Gold Shares (NYSEARCA:GLD), and the Market Vectors Gold Miners ETF (NYSEARCA:GDX) are both rallying higher after a disappointing job report. The U.S. Dollar Index futures (DX Z3) are also weaker today trading lower by 0.40 cents to $79.34 per contract. Usually, a weaker U.S. Dollar will help to lift gold and the gold related markets. 

Traders should expect the GLD to trade into the $133.00 level on the daily chart. There is a lot of resistance around this area for the GLD as it  was a failed breakout in August. The former buyers at that level will most likely be sellers again. 

The GDX will have near term daily chart resistance around the $27.75 level. This level was also a failed breakout point from September 18, 2013. So traders should expect the GDX to stall out around this area. After these levels are reached it will be all about the patterns on the charts to see gold's next move. 

Nicholas Santiago  [more]

Recs

0

Major Bear Flag Signals Herbalife Ltd. Possible Trouble

October 21, 2013 – Comments (1) | RELATED TICKERS: HLF

First Solar, Inc. (NASDAQ:FSLR) is shooting higher today. Solar stocks have been one of the hottest sectors of late and First Solar is on fire. While most average investors are buying into this epic move, wise traders and investors are noting the nearing double top and gap fill. Please note the chart below. This stock will be a classic short at $56.50. It can be taken as both a day trade and swing trade.

Gareth Soloway
InTheMoneyStocks.com
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First Solar, Inc. Nearing Double Top & Key Gap Fill

October 21, 2013 – Comments (0) | RELATED TICKERS: FSLR

First Solar, Inc. (NASDAQ:FSLR) is shooting higher today. Solar stocks have been one of the hottest sectors of late and First Solar is on fire. While most average investors are buying into this epic move, wise traders and investors are noting the nearing double top and gap fill. This stock will be a classic short at $56.50. It can be taken as both a day trade and swing trade.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

First Solar, Inc. Nearing Double Top & Key Gap Fill

October 21, 2013 – Comments (0) | RELATED TICKERS: FSLR

First Solar, Inc. (NASDAQ:FSLR) is shooting higher today. Solar stocks have been one of the hottest sectors of late and First Solar is on fire. While most average investors are buying into this epic move, wise traders and investors are noting the nearing double top and gap fill. Please note the chart below. This stock will be a classic short at $56.50. It can be taken as both a day trade and swing trade.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Reversal Day On OXY, Watch This Day Trade Support Level

October 18, 2013 – Comments (0) | RELATED TICKERS: OXY

Occidental Petroleum Corporation (NYSE:OXY) is a leading oil and gas exploration and production company. Today, OXY stock staged a gap higher open, but has since rolled over a bit. The stock is trading lower by $1.58 to $96.50 a share. When stocks decline this sharply from the opening bell it is prudent to find a major intra-day support level when trying to day trade a stock like this. Traders should watch the $95.15 level for a near term intra-day bounce. This is a level on the chart where the stock based for a few days before moving higher. This level is only good for today as it is a day trading level.  [more]

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0

Here Is An Intra-day Play On MSFT

October 18, 2013 – Comments (0) | RELATED TICKERS: MSFT


Microsoft Corporation (MSFT) is declining lower at the start of the trading session. Traders should watch for strong intra-day support around the $33.96 level. This is an area where the stock was tested on October 14, 2013; the level held and will likely hold again. Traders can watch for a bounce around this level should the stock decline into that support area.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Best Buy Co., Inc. Puts In A Major Top On Upgrade

October 17, 2013 – Comments (0) | RELATED TICKERS: BBY

Best Buy Co., Inc. (NYSE:BBY) was upgraded today by Oppenheimer today. The firm gave it an outperform rating with a $50 price target. The top is now in the retailer in my opinion. First, who in the world would upgrade a stock that is already up 250% in the last year? Where was the upgrade when it was trading under $12.00 per share? This is just insanity and classic chasing by an analyst who was late to the party. If you look at stocks like Apple Inc, you can clearly see when the upgrades come at epic highs it marks a top in the stock.

Next, the technical chart is not only extremely overbought, but has just filled a major gap. This represents a major level for a pull back that should begin as early as tomorrow. 

Best Buy Co. has had a great run. I am not looking to take anything away from it. I am just recognizing that the stock is ready to pull back over the next few months.   [more]

Recs

1

Discover What Type Of Trader You Are

October 16, 2013 – Comments (0)



How many times have you heard someone say the trend is up or down? I'm sure you have heard that a lot if you have been involved in the markets for any considerable amount of time. There are many trends out there in the stock market. One way to identify a trend is by viewing the particular time-frame which you might be trading. For example, there could be a down trend on the hourly (60 minute) chart, yet the weekly chart might be in an uptrend. That is why it is important to understand the time period that you are trading specifically. This will also help you determine what best suits your trading style. 

There are many different stock market participants each and every day. There are day traders and scalpers, these are the people who trade a particular equity for minutes to hours. These traders will usually close out their positions quickly and before the closing bell. They take their risk during the trading session and have no exposure to equities overnight. This is a very aggressive form of trading, but it can be very profitable and rewarding if done correctly. 

Next, are the swing traders. These are people that hold trades for a couple of days to a couple of weeks. This form of trading has become increasingly popular over the years as many traders look to capture the near term bounces on a daily chart. Swing traders are usually looking for larger moves and not the small bites out of the stock market, like a scalp or day trader would. Profitable swing traders will take a position and know their exact targets before entering the trade, therefore, they do not have to monitor every move in the stock. 

Then there is the investor, these individuals will look at larger time-frames and try to capture bigger moves in the market. Most investors will view the weekly and monthly charts. These investors are not too concerned with the everyday price action on the daily charts as they are viewing the larger time frames. Over the past decade, it is clear that those who bought the market and held that position for that duration took multiple rides up and down while not capturing the potential gains most swing traders and day traders experienced. 

It is very important for an individual trader to know what time-frame best suits him or her. There are many traders that just cannot handle the fast action of a day trader, and that is fine. There are people who prefer to trade the slower action off the daily, weekly, and monthly charts. Also, you might have a day job and cannot be at the computer to day trade, therefore, swing trading is best suited for you. 

The type of trader you are reflects the type of personality and lifestyle that you have. There is really nothing wrong with any of the trader categories, it is individual preference. I have met many good swing traders and investors of whom became excellent day traders as they evolved and as their lives allowed it. Many of these people simply wanted to trade the first couple of hours of the day and not have any exposure to the overnight risk. Or they wanted to make enough money in the first hour of day trading and enjoy the rest of their day; that is what day trading can afford you.

Regardless of the type of trader that you are it is important to have a sound method under your belt. Here at InTheMoneyStocks we look to buy major support and sell major resistance. Now there is quite a bit that goes into finding major support and resistance levels, so there is definitely work involved. Fortunately, once you learn the techniques you can trade any time-frame and capitalize in the markets. The great thing about have a sound methodology is that if you are wrong you will generally be wrong in a small way. This is why it is so important to understand chart patterns, price action, and time. Stock charts are the footprints of human emotion and money flow. Now you can start to evaluate yourself and find out what type of trader you want to be. 

Nicholas Santiago
InTheMoneyStocks.com  [more]

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0

LinkedIn Corp Chart Says Please Short Me

October 16, 2013 – Comments (1) | RELATED TICKERS: LNKD

LinkedIn Corp (NYSE:LNKD) is higher today as the market continues its rally. However, inside the rally there are bear clouds forming. The recent strong bounce on LinkedIn has created a bear flag. Not only is it a classic flag pattern that favors the downside but the stock price just slammed into the 50 and 20 moving averages. This has 'short' written all over it. The stock should fall back for a few days off this level. This is a fantastic chart setup.

Gareth Soloway
InTheMoneyStocks.com
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0

SolarCity Corp Headed Here Before A Pull Back

October 16, 2013 – Comments (1) | RELATED TICKERS: SCTY

SolarCity Corp (NASDAQ:SCTY) is surging again today, trading at $51.19, +4.65 (9.99%). The stock is jumping after raising guidance substantially last week. SolarCity is headed directly into a double top from earlier this year at $52.77. Once it hits that level, expect a small, multi-day pullback under $50.00. Once that pull back happens, the stock has a shot of making new all time highs. Quick swing traders can try and short the double top for a pull back under $50.00 before the next possible leg up.

Gareth Soloway
InTheMoneyStocks.com
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Las Vegas Sands Corp.: Classic Topping Tail

October 15, 2013 – Comments (0) | RELATED TICKERS: LVS

Las Vegas Sands Corp. (NYSE:LVS) surged in early trading, only to give it all up into the close. The stock hit a new 52 week high early and then was blasted lower as the markets fell on worries about the debt ceiling. The stock is extended and finally today has put in a topping tail. A topping tail is a technical signal of a top. Look for downside in the coming days. It is interesting to see this sell signal appear just days before Las Vegas Sands releases earnings on Thursday, October 17th, 2013.

Gareth Soloway
InThemoneyStocks.com  [more]

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0

Sentiment Is Extremely Bullish: Reasons For Caution

October 15, 2013 – Comments (0) | RELATED TICKERS: SPY

The markets are hovering around the flat line today as our politicians haggle and measure the size of their third legs. With an approval rating south of 10%, congress still appears to be unable to reach an agreement on the debt ceiling. While this may be the case, all I have heard all day is how strong the markets appear to be and how this is insanely bullish going forward. David Tepper was on CNBC today pumping the buy the market mentality. I think it is important to note that the last time David Tepper appeared on CNBC the markets popped, then collapsed. It was almost a perfect "Tepper Top".

With all this bullish sentiment and the markets apparent inability to go lower, I am more cautious than ever (at least until a deal is in place). If there is one thing I have learned in my years of trading and investing, it is the contrary view. When the masses and media are pumping the markets, a pull back is soon to be had. The same thing goes for the downside. When fear and panic grip the markets and the media is spreading it like butter, look for a market rally.

Even with this bickering in the House and Senate, the markets are near their all time highs. The markets are not pricing in any chance of a default. While I agree we will not default, I would not be surprised to see a sharp sell prior as things get darkest before dawn. In many ways the markets are what will ultimately force the hand of these annoying and ignorant politicians.

One this is for certain, I look forward to seeing how this script turns out. 

Gareth Soloway
InTheMoneyStocks.com

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0

Netflix, Inc.: Buy, Short Or Stay Away

October 14, 2013 – Comments (0) | RELATED TICKERS: NFLX

Netflix, Inc. (NASDAQ:NFLX) is jumping today. There are rumors about cable companies wanting to join forces. In theory, if these rumors turn out to be correct, it would help attract more viewers to Netflix. While the stock is surging by 6.5% today, the big question looms. Do you buy, short or stay away from Netflix at these current prices.

To get the answer, we must look at the chart. There is tons of hype on the stock right now as it hovers near all time highs. This is a negative for the stock. Next, we have to observe the chart hovering around the 2011 former all time highs. This shows us a struggle for the stock to move much higher in the near term. This is another negative. Combining these factors with the massive extension rally in the markets a fall in the stock is likely. Note that earnings are on October 21st, 2013, after the stock market closes. I expect downside to $270.00.

Gareth Soloway
InTheMoneyStocks
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Don't Expect Much From The Home-builder Stocks

October 14, 2013 – Comments (0) | RELATED TICKERS: ITB , LEN , TOL

Last year, one of the hottest sectors in the stock market was the home-builder stocks. Leading home-builder stocks such as Lennar Corp (NYSE:LEN), and Toll Brothers Inc (NYSE:TOL) have rallied higher by more than 100 percent since the October 4th, 2011 low. This important industry group topped out around May 2013; the home-builder stocks have been very range bound since that time. Traders and investors should simply expect the home-builder stocks to be good for short term trades not long term holds. 

Interest rates on the 10-year U.S. Treasury yield have dramatically risen over the past year. Currently, yields seem to be in a range between the 2.60 and 3.00 percent. The higher yields are certainly having a negative effect on the housing stocks despite interest rates still being historically low. When yields on the 10-year U.S. Treasury Note decline that is when the home-builder stocks will catch a bid higher. The opposite effect is likely to occur when yields rise, the leading home-builder stocks will likely trade lower. 

Traders that want to track the entire home-builder sector should follow the iShares U.S. Home Construction ETF (NYSEITB). The ITB should have near term daily chart support around the $20.60 level. This is a spot where the home-builder stocks could stage a short term bounce. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Facebook Inc: This Trade Setup Works

October 10, 2013 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) is bouncing significantly today. The stock is soaring, trading at $49.39, +2.62 (5.60%). This is coming after a massive drop that saw the stock fall from all time highs of $51.60 to $45.26. This snap back rally is coming after investors who missed the Facebook run-up, are now buying in a frenzy. This is what is known as a snap-back rally. It happens on the biggest runners on the first major pull back.

While average investors are flooding into the stock, smart money is eyeing it as a classic shorting opportunity. The key is to look for the retrace and pull the trigger on the short. Anytime a stock  dumps out on major volume from an all time high you will get this type of snap-back. The key is to know the level to short. On Facebook, the price a break of $50.00. If this level gets breached tomorrow, a high reward short is available.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Markets On The Move, Know This Level

October 10, 2013 – Comments (1) | RELATED TICKERS: SPY

Today, the major stock indexes are trading sharply higher on the back of a deal in Washington DC by the politicians. Either way, the charts told us yesterday that a stock market bounce was in the cards today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) will have some near term intra-day resistance around the $168.38 level. 

NIcholas Santiago
InTheMoneyStocks.com
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Recs

0

Markets On The Move, Know This Level

October 10, 2013 – Comments (0) | RELATED TICKERS: SPY

Today, the major stock indexes are trading sharply higher on the back of a deal in Washington DC by the politicians. Either way, the charts told us yesterday that a stock market bounce was in the cards today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) will have some near term intra-day resistance around the $168.38 level. 

NIcholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Understand The Social Media Drop And Recovery

October 09, 2013 – Comments (0) | RELATED TICKERS: FB , LNKD , YELP

Social media stocks like Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD) and Yelp Inc (NYSE:YELP) were all crushed yesterday.  Early today, the fall continued to the point where they had all dropped at least 10%, some approaching 20% from their recent all time highs. All of a sudden, these stocks staged a mid day reversal and are now hovering around the flat line.

The big question must be asked, is this a major turn around or will they collapse lower. To understand the answer, you must understand human psychology and charting. First, many investors missed the massive run-ups in Facebook, LinkedIn and Yelp. Emotion and annoyance at missing the trade will have them ready to buy on any correction of 10% or more. This happened as investors helped turn the stocks around today. There will be more upside to come in the next few days. However, be warned, the insanely heavy volume and massive drop these stocks have endured means bounces are now selling opportunities. Wide range chart candles with heavy volume are overall bearish.

To summarize: The stocks will likely bounce up a little in the coming days. However, over the next few weeks and months, expect further downside. Cheers!

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Chevron Corporation: When It Gets Here, Buy It

October 09, 2013 – Comments (0) | RELATED TICKERS: CVX

Just the facts...Just the facts.

Chevron Corporation (NYSE:CVX) continues to fall, even as the markets float higher. The stock has collapsed from a recent high of $126.50 to a low today of $115.32.  As it falls, look for the master support level of $114.85. Should that level hit today or tomorrow, it is a long swing trade with an upside bounce target of $120.00.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Warren Buffet Head And Shoulders: An Ugly Signal For The Oracle

October 08, 2013 – Comments (0)

Berkshire Hathaway Inc. (NYSE:BRK.B), Warren Buffet's company has an ugly head and shoulder pattern forming on the daily chart. Considering this company owns a little of everything, it is a very ominous sign for the global economy. Head and shoulder patterns are bearish patterns, predicting steep drops. The key break down level on Berkshire Hathaway is $111.00. If it takes out that level to the downside, $102.00 would be the next stop.  

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Facebook Inc Scalp Long Level

October 08, 2013 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) is coming into a major gap fill level. This level is $47.30. On an intra day basis, traders should expect a strong bounce off this level. This is just a day trade. Facebook has been ripping higher of late, gaining 100% from the last earnings announcement.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Facebook Inc Scalp Long Level

October 08, 2013 – Comments (0) | RELATED TICKERS: FB

Facebook Inc (NASDAQ:FB) is coming into a major gap fill level. This level is $47.30. On an intra day basis, traders should expect a strong bounce off this level. This is just a day trade. Facebook has been ripping higher of late, gaining 100% from the last earnings announcement.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Watch This Support Level On SanDisk Corp

October 08, 2013 – Comments (0) | RELATED TICKERS: SNDK

SanDisk Corp (NASDAQ:SNDK) is a leading flash storage technology company that is coming under some selling pressure during today's trading session. SNDK stock is trading lower by 0.95 cents to $61.34 a share. Day traders should watch for important intra-day support around the $60.45 level. This is a level where the stock could stage a near term bounce. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Family Dollar Stores Inc Slides Before Earnings

October 08, 2013 – Comments (0) | RELATED TICKERS: FDO

This morning, leading discount retailer Family Dollar Stores Inc (NYSE:FDO) is falling lower by 0.91 cents to $69.74 a share. The company is scheduled to report earnings before the opening bell on October 9, 2013. Day traders can watch for intra-day support around the $67.23 level should the stock decline further during the session. This is an area where FDO stock could stage a small bounce. 

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Family Dollar Stores Inc Slides Before Earnings

October 08, 2013 – Comments (0) | RELATED TICKERS: FDO

This morning, leading discount retailer Family Dollar Stores Inc (NYSE:FDO) is falling lower by 0.91 cents to $69.74 a share. The company is scheduled to report earnings before the opening bell on October 9, 2013. Day traders can watch for intra-day support around the $67.23 level should the stock decline further during the session. This is an area where FDO stock could stage a small bounce. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Wal-Mart Stores, Inc. Will Bounce For A Few Days

October 07, 2013 – Comments (0) | RELATED TICKERS: WMT

Wal-Mart Stores, Inc. (NYSE:WMT) is trading like a bounce is coming. Please note the chart below. The stock has been down for two straight weeks and just hit a key support level. In addition, off that support it is now forming a possible bottoming tail. This setup should yield a multi down bounce back to $74.05. Please note if no agreement is reached with the debt ceiling and government shut down, the markets could collapse. This would make it tough for Wal-Mart to bounce.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Investors Stuff Bath & Beyond Inc. Under The Bed

October 07, 2013 – Comments (0) | RELATED TICKERS: BBBY

This morning, many of the leading retail stocks are being sold off to start the day. Bed Bath & Beyond Inc. (NASDAQ:BBBY) is one of the leading retail stocks that is declining lower. The stock is falling by 0.97 cents to $77.00 a share. Short term day traders should watch the $76.46 level for strong intra-day support. This could be an area where the stock could stage an intra-day bounce. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

2

J.C. Penney Company, Inc. Can Double, Triple: See This!

October 04, 2013 – Comments (0) | RELATED TICKERS: JCP , HPQ , BBY

J.C. Penney Company, Inc. (NYSE:JCP) is taking another beating today. The stock is trading at $7.86, -0.55 (-6.54%). Many people are thinking bankruptcy is the only option and where this stock is headed. However, I think emotion is taking hold. In the next year or two there is little chance of that happening. Fear often pushes stocks too far in one direction before a snap back move.

The best examples of fear can be seen in stocks like Hewlett-Packard Company (NYSE:HPQ) and Best Buy Co., Inc. (NYSE:BBY). Hewlett-Packard hit a low of $11.35 in late 2012 before soaring to $27.77. This is well over a 200% gain. Everyone hated it and said it was done. Best Buy hit a low of $11.20 in December 2012 before hitting $39.28. This is an epic move of almost 300%. The stock was also said to be done and going out of business.

When comparing J.C. Penny to these other stocks, the fear and emotion is almost identical. Yes, there is always risk in buying something like this, but then again there is risk in everything. I believe there is a small chance JCP may go out of business in 3 years from now, but even if it does, it will double before that happens. This is what the stock market does. Emotion drives stock prices too far in one direction before a snap back. I like it long under $8.00 per share.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

The Roof Leaks Lennar Corp And The Homebuilders

October 04, 2013 – Comments (0) | RELATED TICKERS: LEN

This morning, most of the leading home-builder stocks are coming under some selling pressure despite the higher stock indexes. The decline in the home-builder stocks is likely due to the increase in the 10-year U.S. Treasury yield. Today, bond yields are ticking higher by 4 basis points to 2.64 percent. Higher yields have hurt the home-builder stocks recently. 

Lennar Corp (NYSE:LEN) is a leading home-builder stock that is trading lower at the start of today's session. Day traders can watch for intra-day support around the $24.47, and $33.66 levels. These are two levels where the stock is likely to stage a small bounce. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

1

Cree, Inc. Quick Short Level

October 03, 2013 – Comments (0) | RELATED TICKERS: CREE

Cree, Inc. (NASDAQ:CREE) has had a monster move higher. As it continues to surge in a weak market, the quick swing trade short level has emerged. Please note the chart below. This is a classic gap fill and double top level. Look for a one to two day pull back in the stock, good for about 5%. The level to short is $76.05.

Gareth Soloway
InTheMoneyStocks.com
   [more]

Recs

0

Tesla Gets Scorched

October 03, 2013 – Comments (0) | RELATED TICKERS: TSLA

This morning, the leading electric car maker Tesla Motors Inc (NASDAQ:TSLA) is declining sharply after a video emerged with a Tesla car on fire. Today, the stock is trading lower by over 5.0 percent to around the $170.00 level. The stock has been one of the Wall Street darlings this year, but today there is certainly distribution in the stock. Day traders can watch for some important intra-day support around the $167.00 level. Any consolidation above the level would weaken the support area so it will be important to follow the chart pattern closely. Just from reading our free Rant & Rave blog, you should have been on the right side of this move...

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

3

Expect A Higher Debt Ceiling Because It Is A System Built On Debt

October 02, 2013 – Comments (0) | RELATED TICKERS: JCP , BBRY

Everyday we hear about the current government shutdown and the upcoming debt ceiling being reached by the U.S. government. The debt ceiling is the legal limit on the amount of money that the government is allowed to borrow in order to keep the government functioning. Why does the government have to borrow money to keep itself running? This just tells us that the government is spending money it does not have. A company or a household could not operate in this manner, they would have to file bankruptcy. Just look at companies such as J. C. Penney Company, Inc. (NYSE:JCP), and BlackBerry Limited (NASDAQ:BBRY), these two companies are cash strapped and possibly facing bankruptcy very soon. They cannot print money to stay in business, and if they do receive cash from a lender they are expected to pay it back in a specified amount of time. The government does not work this way.

The current global economic system is a system of credit and debt. Marriner Stoddard Eccles was the former chairman of the Federal Reserve from 1934 – 1948. He stated, the United States economy is like a poker game where the chips have become concentrated in fewer and fewer hands, and where the other fellows can stay in the game only by borrowing. When their credit runs out the game will stop. So this tells us that the United Stated will always have to raise the debt ceiling regardless who the president is. Since 1980, the U.S. Debt ceiling has been raised over 40 times, so what is the point of having a debt ceiling?

The bottom line, all Presidents raise the debt ceiling. Ronald Reagan tripled the national debt while he was in office. Bill Clinton raised the debt ceiling eight times while he was the President. George W. Bush raised it seven times. Meanwhile, President Obama has raised it three times. In fact, every President since Herbert Hoover has added to the national debt. It has really been a long time since the United States had an Andrew Jackson in office. In fact, Andrew Jackson was the only U.S. President that ever paid off the entire U.S. Debt, this was in 1835. Unfortunately for President Jackson, a severe depression occurred in 1837 that cause the debt to spike to $3.3 million in 1838. Today, the national debt is around $17 trillion, that is sure a lot higher than $3.3 million.

This government debt is just a by-product of the fiat money system that we live in. It will always need to be raised especially during difficult and troubled times. The United States Treasury has to borrow more and more money to pay for its obligations. Eventually, there will be a day when the market realizes that the debt can never be paid back, but that could still be a long time from now. Either way, we should all expect a higher debt ceiling because our entire economic system is built on debt. 

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

0

Baidu Inc Resistance Level Quickly Approaching

October 01, 2013 – Comments (1) | RELATED TICKERS: BIDU

Baidu Inc (NASDAQ:BIDU) continues to surge higher today. The stock is trading at $157.56, +2.38 (1.53%). Baidu Inc is up from the $88.00 level since July 2013. This is a massive gain of 80% in just three months. While the bulls are cheering, smart investors may have an amazing opportunity to short it. The 2011 high on Baidu is $165-$166. This is also a max move extension level. Smart traders can short the stock here for at least a 10% pull back.

Gareth Soloway
InTheMoneyStocks.com
  [more]

Recs

0

Understand It: Markets Celebrate A Government Shutdown With A Rally

October 01, 2013 – Comments (0) | RELATED TICKERS: SPY

The stock markets apparently welcome a government shutdown. The stock market is in rally mode on the first day the U.S. government has been shut down. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $169.26, +1.16 (0.69%).

So could the market actually welcome a shutdown? I think it is more complex than that. The market is analyzing the Debt Ceiling fight which is on the horizon. The feelings are that the government shutdown and Debt Ceiling fights are being rolled into one. For President Obama to get his way on the Affordable Care Act (ObamaCare), he will have to allow the Republicans to cut some more spending to allow the Debt Ceiling to be raised. I know it seems warped, but the market is looking at the bigger picture and is liking what it sees.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Market Vectors Gold Miners ETF Are Down, But Not Out For The Count

October 01, 2013 – Comments (0) | RELATED TICKERS: GDX , GOLD , AUY

This morning, spot gold and most of the leading gold mining stocks are trading sharply lower at the start of the trading session. The Market Vectors Gold Mining ETF (NYSE:GDX) is trading lower by 0.62 cents to $24.40 a share. It should be noted that the GDX has sold off sharply since September 19, 2013, this was the day after the Federal Reserve announced that they would not taper their current QE-3 program. The GDX should have some intra-day support around the $24.18 level intra-day. There is also an important gap fill support level from August 8th, 2013 around the $23.94 level. So while the GDX is down it is not yet out for the count.

Some other leading gold mining stocks that are trading lower include Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:ABX), and Yamana Gold, Inc. (NYSE:AUY). Please understand that the leading gold mining stocks will often trade inverse to the USD/JPY, so this currency pair should be on the radar. 

Nicholas Santiago
InTheMoneyStocks.com

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