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inthemoneystock (< 20)

November 2011

Recs

6

Stocks Are For Trading, Do Not Make It Personal

November 30, 2011 – Comments (2) | RELATED TICKERS: NFLX , GMCR , BBY

One of the fatal flaws that many traders make is to take stock trading personally. Often, most traders and investors will trade a particular stock several times and become comfortable with the equity, which is fine, however, the problem that many traders and investor make is that when they lose on a trade in the stock they feel that they must get even or find the need to seek revenge on the equity.

Over the years in this business I have seen countless amounts of traders tell me that they have to get even with that stock that they lost money on. I will often ask the trader if the CEO, or the CFO of the company knows them or did something personally to them? Obviously, they will answer no and say that they lost money in the stock and need to get it back. Well, I have news for you, the stock does not care if you make money or lose money in a trade. The stock market does not care about the color of your skin, your religion, or anything else about you. What the stock market will do is happily take your money if you do not know what you are doing.

These days I still see traders getting personal with former leading stocks such as Netflix Inc (NASDAQ:NFLX), Green Mountain Coffee Roasters Inc (NASDAQ:GMCR), and Best Buy Inc (NYSE:BBY) just to name a few. Stocks are for trading and really nothing more. Every stock has its cycle where it will be a fan favorite or market darling. Later on down the road there will be a new stock on the block that becomes a leader and a market darling. Sooner or later, if will run its course and fall out of favor. That is how the stock market works. So the next time you lose money on an Apple Inc (NASDAQ:AAPL) trade and want revenge on the stock remember it's not personal.

Nicholas Santaigo
InTheMoneyStocks.com
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Recs

2

Trade Lesson: Stock Market News Is Garbage

November 30, 2011 – Comments (9) | RELATED TICKERS: DIA , SMH , JPM

For the average person who invests or trades, saying the news is garbage is a sin. However, it is proven over and over again to be the case. The news is nothing more than a way to take money from the bottom 99% and distribute it to the top 1%. Those at the top control the news and release it to cause certain reactions. Those reactions are carefully calculated to achieve certain goals. Those controlling these avenues and directing the markets are the Federal Reserve banks around the world and the top institutions.  Today, the markets are surging once again, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.64, +4.08 (+3.53%).

Last week, the media was pushing doom and gloom. TV stations like CNBC were bullying the average investor to sell or short the market. This past Monday, the markets ripped higher on a "mention" of a possible Euro bond from Angela Merkel, the head of Germany. Tuesday, the markets paused and many traders started to wonder if the move up was a one hit wonder. After the bell, news hit the markets that many banks like Bank of America Corp (NYSE:BAC) had their credit rating downgraded. This sent more shorts into the market and investors running for cover. Today was destined to be a bloodbath, or so the average investor though. Yet, here the markets sit, the Dow Jones Industrial Average up over 400 points.

Investors and traders are lost because they listen to the news. One day the markets collapse, the next day they rally, one hour there are credit rating downgrades and a near collapse in Europe, the next the Federal Reserve and other Central Banks are saving the day. It is virtually impossible to trade off of news. The news is garbage and cannot be used to make money consistantly these days.

So what is the answer?

The answer is the charts. The charts never lie and always dictate the future. To give examples, lets talk about last week. Just last week, as the doom and gloom hit its highs, average traders were selling and shorting the market. The market was clearly going to bounce. This allowed for long alerts on the Semiconductor HOLDRs (ETF) (NYSEARCA:SMH) and JPMorgan Chase & Co. (NYSE:JPM). In addition, a long was given and triggered on the SPDR S&P 500 ETF (NYSEARCA:SPY) at a price of $117.65. Today, the SPY hit a high of $124.50. That is a monster gain of $6.85 in less than five trading days.

The S&P 500 had a pause day yesterday. After a huge move on Monday, a pause day is known as a bullish signal. If you looked closely at the 60 minute S&P 500 chart, an amazing bull flag had formed as well. All signals were pointing to another monster up day. After the bank credit rating downgrades, the average traders once again thought the downside was obvious. However, if you just followed the charts, you would have been on the right side of the markets and made money.

Never be a bull or bear, be an neutral investor and trader who trades based off the charts.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

NASDAQ Pause Day Or All Out Weakness?

November 29, 2011 – Comments (0) | RELATED TICKERS: QQQ , CTXS , SNDK

This afternoon, the highly followed NASDAQ Composite is trading slightly lower on the session. This decline in the tech heavy NASDAQ comes as the Dow Jones Industrial Average and the S&P 500 Index are trading higher. It is important for traders to remember that the NASDAQ Composite traded higher by 80.0 points yesterday, therefore, today's small pullback is very common after such a large price move. Often, the major stock indexes will consolidate or pause before moving higher again.

The problem with the NASDAQ Composite and the other major stock indexes is that price is trading below all of the major daily chart moving averages. When the price of a stock or index trades below the major moving averages it tells traders that the market is in a weak technical position and susceptible to lower prices. Many traders and investors believe that yesterday's rally was just a technical bounce from an oversold condition. While this might be true the markets were all very strong into the close and that type of action should be respected in the short term.

Some leading NASDAQ stocks that are struggling today include Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Sandisk Corp (NASDAQ:SNDK), and Citrix Systems Inc (NASDAQ:CTXS). All of these stocks had surged higher yesterday, therefore, today's pullback could be due to some quick profit taking from yesterday's large point advance. All traders must still be extremely careful in this market as the volatility is likely to remain higher for the foreseeable future.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Stock Markets Up But Watch This Big Factor

November 29, 2011 – Comments (0) | RELATED TICKERS: SPY , GS , JPM

The week prior to Thanksgiving was the worst since 1932. This gives perspective on what truly is going on in the market. While the average investor was in panic mode and even institutions were lost in the horror of the market, we were slowly accumulating long position. Those long positions are paying huge profits this week as the markets have bounced sharply higher. The bounce is continuing today as the SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $120.28, +0.58 (+0.48%).

While the upside may last a little longer, storm clouds continue to lurk on the horizon. The biggest worry for the markets must be the performance of the financial sector. This sector is directly related to the issues in Europe and a great leading indicator. Yesterday, as the markets surged 3%, financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS) and Citigroup Inc. (NYSE:C)  all started out sharply higher and collapsed. They ended the day with barely any gains. Today again, financial stocks like JPMorgan Chase are lower on the day. JPMorgan is trading at $28.76, -0.40 (-1.37%) .

As long as the financial stocks remain this weak, the recent two day rally may be short lived. Should the financial stocks gain traction and start leading the market, the rally will last through the end of the year. Be alert as so far the banks are weak.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Retail Pops, Can It Last?

November 29, 2011 – Comments (0) | RELATED TICKERS: COST , WMT , HD

This morning, the leading retail stocks are trading higher. The important and highly traded Retail Holder Trust (NYSEARCA:RTH) is trading higher by $1.22 to $109.84 a share. This is a very solid move for the RTH. Traders should watch for intra-day resistance around the $110.00, and $110.50 levels. When the retail sector is rallying it is usually a sign that the U.S. Consumer is spending money. Consumer spending accounts for approximately 70.0 percent of the gross domestic product (GDP) in the United States. This is the reason why the politicians constantly want the public to spend money.

Some leading retail stocks that are trading higher today include Home Depot Inc (NYSE:HD), Lowes Companies Inc (NYSE:LOW), WalMart Stores Inc (NYSE:WMT), and Costco Wholesale Corp (NASDAQ:COST). All of these stocks are facing some minor resistance on the daily charts, therefore, these stocks may need a little more consolidation before advancing much higher. In any case, all the leading retail stocks are holding up well at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Report: Inside The Stock Market Action

November 23, 2011 – Comments (0) | RELATED TICKERS: GRPN , JPM , AAPL

The markets are dropping sharply again. The Dow Jones Industrial Average is down over 150 points on the trading session. This is the sixth straight down day in the markets on continued panic from Europe. The contagion appears to be spreading to Germany as their most recent bond auction went poorly. This is extremely concerning for the European Union. Financially, Germany is in better shape than almost every country in the world, including the United States. As the markets inch towards the Thanksgiving holiday, no traders want to hold overnight positions and take the risk.

Stocks in motion today include Groupon Inc (NASDAQ:GRPN). This was a recent IPO and considered to be one of the elite online companies. The stock has fallen from a high of $31.14 to its current price of $17.25, -2.82 (-14.05%). This mega fall has the stock below the IPO price.

The bank stocks continue to sink on possible exposure to European debt. Yesterday, the Federal Reserve announced new stress tests for the banks. The criteria to be tested was their exposure to the European debacle. JPMorgan Chase & Co. (NYSE:JPM) is trading at $28.62, -0.79 (-2.69%).

Technology is also taking a hit today. Apple Inc. (NASDAQ:AAPL) jumped $7.50 yesterday but is giving up that entire gain and then some today.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

The European Tug Of War Has Begun

November 23, 2011 – Comments (0) | RELATED TICKERS: UBS , JEF , CS

Germany is considered the most important country in the European Union. This country now has to decide if it is willing to go all in and allow the European central bank to have complete control over the banking crisis that is taking place. France has already been pleading for the European Central Bank (ECB) to start to print money to bailout the European banks. This puts Germany in a very compromising position since it has been so cozy with France over the past two years. If the German government agrees to allow the European Central bank to have more power the major stock indexes in Europe could see a short term relief rally. This action would be very similar to what the Federal Reserve in the United States has done over the past three years. All traders should remember the stock market loves a bailout. In fact, the stock market might actually be demanding a bailout.

Today, the stock markets in the United States are trading sharply lower, however, the major European stock markets are all trading lower by less than 1.0 percent. This is really not a major decline considering what is happening in Europe today. European bond yields are surging in every country this morning. This could certainly change later this afternoon, but right now all of the European markets are holding up very well considering the circumstances.

The European financial stocks will usually lead the stock markets lower. This morning, all of the European bank stocks in the United States are trading slightly lower. Most traders would think stocks such as Credit Suisse Group (NYSE:CS), Deutsche Bank AG (NYSE:DB), and UBS AG (NYSE:UBS) would be plummeting lower, however, they are all basically trading flat to slightly lower this morning. We shall see if there is another European Union announcement that causes the markets to bounce. If there is nothing of substance that comes out of the European Union soon this could be the start of a European Union breakup. Germany seems to hold all of the cards at this time. If they agree to allow the European Central Bank (ECB) to print money, the bailout begins as the ECB will likely start to monetize the debt. If Germany resists and does not allow the European Central Bank to have more power the European Union will end within the next year or sooner.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Stocks Spike As IMF Supplies Help

November 22, 2011 – Comments (0) | RELATED TICKERS: DIA , XOM , AAPL

At exactly the same time yesterday that the markets reversed off their lows, today stocks did it again. The IMF announced they would supply liquidity to European banks in an effort to help them deal with the crisis. Stocks surged from the negative to the positive and are now hovering around the flat line. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $115.06, -0.10 (-0.09%).

The fact that the time frame of the pop was exactly the same as yesterday continues to point to a conscious effort to prop the markets up. The manipulation is an attempt to not only help European banks but create a short squeeze and rally into the Thanksgiving holiday.

Stocks like Exxon Mobil Corporation (NYSE:XOM) and Apple Inc. (NASDAQ:AAPL) all saw solid jumps but the biggest winners are the bank stocks. While still negative, they have recovered nicely off major losses.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Report: Inside The Stock Market

November 22, 2011 – Comments (0) | RELATED TICKERS: SPY , JPM , FSLR

Stocks are seeing red again after GDP numbers were revised  lower this morning. The GDP for the summer months came in at 2%. The futures had been slightly higher during the overnight session but headed south on the economic report. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $118.76, -0.86 (-0.71%).

In addition to the poor GDP number in the United States, worries continue in Europe. While usually a holiday week moves the markets higher, this week traders face worry. Fear of the next issue in Europe is keeping Wall Street players from buying into the holiday. In addition, many traders are selling to avoid the risk during the holiday.

The bank stocks JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS) are leading the decline. Goldman Sachs Group is trading at $88.66, -2.64 (-2.89%).

In addition, there was a key break down today on First Solar, Inc. (NASDAQ:FSLR) below the master $42.50. The next stop for this stock is $39.75 and $34.50.

The only positive to this market is Federal Reserve POMO and light volume. Should this market inch higher later, that would be the culprit.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Semiconductors Are Down But Not Out

November 22, 2011 – Comments (0) | RELATED TICKERS: SMH , SNDK , QCOM

The Semiconductors Holders Trust (NYSEARCA:SMH) are trading lower by 0.25 cents to $29.51 a share. This ETF is viewed by many as a leading indicator for the tech heavy NASDAQ Composite. When the semiconductor sector shows strength most of the leading technology stocks will generally remain strong. The SMH is trading around a short term support level on the daily chart around the $29.00 area. The SMH will have short term intra-day chart support around the $29.30 and $29.00 levels.

Some leading semiconductor stocks that are holding up well this morning include Sandisk Corp (NASDAQ:SNDK), Qualcomm Inc (NASDAQ:QCOM), and Nvidia Corp (NASDAQ:NVDA). Should the major stock indexes somehow rally higher today these stocks will usually lead the markets. All of these stocks are showing good intra-day relative strength.    

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Retail In Focus, Santa Or Scrooge?

November 22, 2011 – Comments (0) | RELATED TICKERS: RTH , COST , BBBY

Many investors and traders are wondering if the stock markets will see a Santa Claus rally. Often the stock markets will have an end of year rally at the start of the holiday season. This year there are some major problems that could prevent that traditional rally. The main issue that could prevent the Santa Claus rally is the European banking crisis. The European Union has not really been able to figure out how to bail out all of the banks holding European sovereign debt. This crisis in the Euro-zone is not likely going to be solved anytime soon and will keep these stock markets on edge throughout the foreseeable future.

The retail stocks have a tendency to rally after black Friday. Black Friday is the trading day after the Thanksgiving Day holiday in the United States. This is often the day that many retailers will go into the black and actually become profitable, as opposed to being in the red for most of the year, hence the term, black Friday. The Retail Holders Trust (NYSEARCA:RTH) has pulled back from its recent high of $113.85 a share. Traders can watch for some short term support around the $106.00 level on the daily chart. The RTH will have intra-day resistance around the $108.00, and $108.75 levels should it rally. Should the RTH pullback and decline today there will be intra-day support around the $106.75 level.

Some retail stocks that will usually rally after black Friday include Costco Wholesale Corp (NASDAQ:COST), Ann Inc (NYSE:ANN), Ralph Lauren Corp (NYSE:RL), and Bed Bath & Beyond Inc (NASDAQ:BBBY). Trader should remember that the retail sector will often trade together, therefore, it is always good to see the RTH showing strength on the charts when getting involved with the retail stocks. There is a major banking crisis going on at this time and Santa may have to take a back seat this year to Scrooge this year.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

3

Markets Tank As Technical Levels Loom

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

The markets are taking a beating today on the back of continued European default worries. In addition, the Super Committee in the United States has failed to agree on any budget cuts. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $114.62, -3.14 (-2.67%). While Europe continues to crumble, the United States government continues to squabble and be a total embarrassment to its citizens.

As the Thanksgiving holiday looms, the markets look for cheer. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $119.00, -2.99 (-2.45%). Without any sort of major news out of Europe or the United States, it is not likely they will find any reason to bounce. The only chance the markets have of bouncing would come if the SPY hits the $117.25 level. Should that level hit, technical support would be achieved. Other than that, it is unlikely any investors want to step up and buy the markets with so many market holidays. Market holidays make for more risk as traders must hold positions and cannot exit if they choose.

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

Natural Gas The Next Double

November 21, 2011 – Comments (0) | RELATED TICKERS: UNG , SPY , USO

Natural gas has made a bottom. This bottom is likely a much longer term bottom. Price may double and even eventually triple. This move up coming in natural gas is partly fundamental and partly technical. It will be discussed below.

Natural gas is trading at a major discount to oil. Oil continues to hover around the $100 a barrel level. As oil has surged over the last few months, natural gas has fallen. This divergence in price movement should reverse and oil continues to pull back and natural gas bounces.

In addition, the government is near passing a major natural gas incentive bill. This is being championed by T. Boone Pickens. It would give major incentives to trucking companies that switch over to natural gas vehicles as well as car buyers. As long as oil stays higher in the $100 range, natural gas at this price is an obvious choice. Many companies are already switching over to natural gas.

On a technical level, the United States Natural Gas Fund, LP (NYSEARCA:UNG) has put in a bottom. This was seen last week when there was a proprietary time count followed by a reversal candle. This reversal candle was nearly engulfing. The ETF that tracks natural has retested the lows but never broke. Today, the UNG is trading at $7.82, +0.13 (+1.69%). This upswing is coming in a weak market where the SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $119.07, -2.92 (-2.39%). This relative strength also confirms a bottom.

The natural gas is a true hidden gem right now as it trades at lows. Watch for upside to continue regardless of market direction.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Industrial Metals Break Like Glass

November 21, 2011 – Comments (0) | RELATED TICKERS: FCX , BHP , RIO

All of the leading industrial metal stocks are trading sharply lower this morning. When there are signs of an economic slowdown this sector will usually come under selling pressure. Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is a leading copper producer that is trading lower by $1.07 to $35.87 a share. This stock should have intra-day chart support around the $35.00 and $34.00 levels. Many traders and investors follow copper very closely as a leading economic indicator.

Some of the other leading industrial metal stocks that are coming under selling pressure today include BHP Billiton Ltd (NYSE:BHP), Rio Tinto plc (NYSE:RIO), and Cliffs Natural Resources Inc (NYSE:CLF). It is important to remember that these stocks will usually bounce or rally higher whenever the U.S. Dollar Index declines. Most commodity related stocks will trade inverse to the U.S. Dollar.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Transport Stocks Fail To Deliver

November 21, 2011 – Comments (0) | RELATED TICKERS: IYT , FDX , CSX

This morning, the leading transportation stocks are coming under some heavy selling pressure along with the major stock indexes. The iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is trading lower by $1.44 to $84.88 a share. Short term traders can watch for intra-day support around the $84.75 and $83.90 levels. Many traders and investors will follow the transportation index very closely as a sign of expansion and contraction in the global economy. Obviously, the transportation index is signaling contraction today.

Some of the leading transportation stocks that are declining today include FedEx Corp (NYSE:FDX), CSX Corp (NYSE:CSX), United Parcel Service Inc (NYSE:UPS). Traders can expect these leading stocks to see intra-day bounces when the IYT reaches important support. This sector is trading very close together at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Solar, Natural Gas Alert Dead On

November 17, 2011 – Comments (0) | RELATED TICKERS: USO , UNG , FSLR

Yesterday, an article was published from yours truly discussing the recent massive move up in oil. The United States Oil Fund LP (ETF) (NYSEARCA:USO)  had jumped over 30% in the last six weeks. The article discussed how money flow would start to cycle away from oil as the easy money had already been made and focus on natural gas and alternate energy like beaten down solar stocks. View article here. I mentioned the United States Natural Gas Fund, LP (NYSEARCA:UNG) and First Solar, Inc. (NASDAQ:FSLR)  as two candidates to profit from. Sure enough, the Natural Gas Fund is trading at $7.87, +0.20 (+2.61%)  today while First Solar is trading at $45.09,+1.03 (+2.34%. Note that both of these up moves come on a down day in the market. In addition, oil is selling off sharply today.

Gareth Soloway
InTheMoneyStocks.com

  [more]

Recs

0

Semiconductors Set The Tone For Tech

November 17, 2011 – Comments (0) | RELATED TICKERS: SMH , SNDK , SWKS

This morning, the Semiconductor Holders Trust (NYSE:SMH) is coming under some selling pressure as the SMH is trading lower by 0.54 cents to $31.39 a share. When the semiconductor stocks decline it is usually a sign that most technology stocks will be weak. Often the semiconductor sector will lead the NASDAQ Composite on the daily and intra-day charts. Many traders and investors believe that the NASDAQ cannot trade higher without a strong semiconductor sector. Short term traders can watch for intra-day support around the $31.25 and $30.60 levels.

Some leading semiconductor stocks that are trading lower this morning include Sandisk Corp (NASDAQ:SNDK), Skyworks Solutions Inc (NASDAQ:SWKS), and Broadcom Corp (NASDAQ:BRCM). Traders can watch for intra-day bounces in these stocks when the SMH reaches important support levels. This semiconductor sector often trades together like birds of the same feather.

Nicholas Santiago
InTheMoneyStocks.com
  [more]

Recs

2

Oil Soars: These Energy Areas Are Next

November 16, 2011 – Comments (1) | RELATED TICKERS: UNG , CHK , DVN

As spot crude oil has pushed through the $100 level, the upside is somewhat limited. Oil is up over 30% in the last six weeks and with the global economy still weak, it is hard to imagine it will push much higher. Investors are searching frantically for the next big energy area. There are some obvious places that money should start to flow.

Natural gas continues to be the obvious answer to some easy money upside. The United States Natural Gas Fund, LP (NYSEARCA:UNG)  is trading at new 52 week lows at $7.75, -0.09 (-1.15%). With oil back above $100, a natural switch towards the cheap natural gas should begin. Natural gas is a cleaner and cheaper energy source. With the commodity trading at or near 52 week lows, it makes sense in this range. Some natural gas stocks to watch are Chesapeake Energy Corporation (NYSE:CHK) and Devon Energy Corporation (NYSE:DVN).

Another possible area for investment is in solar stocks. This sector has been crushed but as it trades at multi year lows and oil moves over $100, it begins to make sense as a speculative investment. Best of breed stocks like First Solar, Inc. (NASDAQ:FSLR) and cheap China solar producers like Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) are likely to appreciate over the next year from current levels.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Small Cap Oil Stocks Rip Higher

November 16, 2011 – Comments (0) | RELATED TICKERS: COP , USO , BDCO

Small cap oil stocks are rocketing higher today on the back of a move over $100 per barrel on oil. While stocks like ConocoPhillips (NYSE:COP) have moved dramatically higher in recent months as oil has soared, small cap oil stocks have stayed at their lows. Today, the United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $39.31, +0.87 (+2.26%). This is over a 30% move in the last six weeks.

Small cap oil stocks are waking up today. Huge gains are being seen on Blue Dolphin Energy Company (NASDAQ:BDCO), Mexco Energy Corporation (NYSEAMEX:MXC) and others. Mexco Energy Corporation is trading at $8.35, +2.08 (+33.19%).

Traders are clamoring to find the next small cap oil stock that has not moved yet. While most have already run today, there are a few still near their lows. Magellan Petroleum Corporation (NASDAQ:MPET) is one to keep on watch.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

European Financial Stocks Must Always Be On the Radar

November 16, 2011 – Comments (0) | RELATED TICKERS: DB , UBS , CS

This morning, the leading financial stocks in the United States markets are trading lower. This is usually a good indication that the major stock indexes will be lower as well. While that is the case this morning, it is also more important to follow the European financial stocks since this a European debt crisis. Leading European financial stocks such as Deutsche Bank AG (NYSE:DB), UBS AG (NYSE:UBS), and Credit Suisse Group AG (NYSE:CS) are all holding up exceptionally well considering the declines in the U.S. stock markets. This tells us that the markets in the U.S. could hold up today.

Leading financial stocks in the United States such as Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS), and J.P. Morgan Chase & Co (NYSE:JPM) might be painting a different picture, however, as long as this problem is being classified as a European banking crisis we must follow those European banks as the leaders of the market at this time. Remember, when trading it is usually best to keep it simple and follow the leaders.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

1

Could High Oil Prices Could Cause A Repeat Of 2008?

November 16, 2011 – Comments (0) | RELATED TICKERS: UGA , UHN , UNG

In July 2008, WTI crude traded as high as $147.00 a barrel. This high price of crude at that time was straw that broke the camels back. Many traders and investors believe that the bankruptcy of Lehman Brothers was the catalyst for the 2008 stock market crash, however, the high energy prices really started that sharp decline in the economy. This morning, spot crude is trading at $101.69 a barrel while the major stock indexes are all declining lower.

Is crude trading higher because of high demand? The answer is no, crude is trading higher because many traders and investors believe that the European Union will begin to print Euros very soon. There is also a lot of chatter by some members of the Federal Reserve (U.S. central bank) that another round of quantitative easing or QE-3 will take place in the near term future. Anytime central banks inflate the money supply it will cause inflation in most commodities. We must then ask ourselves, why gold is lower this morning? The answer is likely because the stock markets are deflating and the Federal Reserve is not going to implement another round of quantitative easing until sometime in 2012 at the earliest. Gold is the ultimate indicator of inflation and deflation.

Plain and simple, the U.S. consumer cannot handle high energy prices. Since 2008, every time oil trades over $100.00 a barrel the economy seems to slow down within the next couple of months. It is important for us to remember that the U.S. consumer accounts for roughly 70.0 percent of the gross domestic product (GDP) in the United States. If the U.S. consumer begins to curb spending it will be a serious blow to the U.S. economy. If all of this stimulus that has been injected into this economy is going to work for a while it will require the consumer to spend money.

This morning, the United States Gasoline Fund (NYSE:UGA) is trading higher by 0.38 cents to $47.69 a share. The UGA is certainly lagging the price of crude oil at this time, however, it will likely start to catch up to spot crude if oil prices remain high. The United States Heating Oil Fund (NYSE:UHN) is trading lower by 0.49 cents to $35.50 a share. Traders should know that the UHN was trading as low as $30.73 a share on October 4, 2011. Now that the winter season is upon us and high heating oil prices will simply be another tax on the U.S. consumer.

At this time the stock markets are holding up well considering the high energy prices, however, that simply cannot last too long. While we do not expect another repeat of 2008 just yet, any super spike in oil can send this economy into tail spin again. Remember, it was the high oil prices that caused the stock market decline first and then the collapse of Lehman Brothers followed.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Homebuilders Are Holding Up, How Much Is Left In The Tank?

November 15, 2011 – Comments (0) | RELATED TICKERS: TOL , KBH , LEN

The homebuilding stocks have been classified as bad as airlines stocks over the past five years. These stocks were the market darlings from the year 2000 into August 2005. Since the 2008 stock market crash the homebuilder stocks have been considered the ugly ducklings or rather dogs with fleas. Regardless of how you may feel about this stock sector the leading homebuilder stocks have surged higher since the October 4, 2011 stock market low.

Toll Brothers Inc (NYSE:TOL) is considered the best homebuilder because it caters to affluent clients. This stock traded as low as $13.16 a share on October 4, 2011. This afternoon, TOL stock is trading higher by 0.40 cents to $19.30 a share. The stock is now trading above the important daily chart 200 moving average which puts the stock in a strong technical position. Swing traders should watch for near term resistance around the $20.25, and $21.30 levels. TOL stock will have intra-day resistance around the $19.50 area.

Other leading homebuilder stocks that are doing well recently include PulteGroup Inc (NYSE:PHM), KB Home (NYSE:KBH), Lennar Corp. (NYSE:LEN), and DR Horton Inc (NYSE:DHI). These stocks all look as if they could have short term strength. Traders must understand that these stocks are just short term trading vehicles and really nothing more. The best way to play the homebuilders is to simply follow the leader which is Toll Brothers. When Toll Brothers stock sells off it is prudent to expect the rest of the stocks in the sector to decline.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

On Watch: Solar Stocks Show No Shine

November 15, 2011 – Comments (0) | RELATED TICKERS: CSIQ , HSOL , FSLR

Whether the markets surge up or down, the solar stocks continue to suffer. One would think the sun vanished off the face of the earth forever by the stock performance in this sector. Today, new 52 week lows are being tagged by companies like Canadian Solar Inc. (NASDAQ:CSIQ) and Hanwha Solarone Co Ltd (NASDAQ:HSOL). Other solar stocks are near their 52 week lows, selling off again today.  First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation (NASDAQ:SPWRA) are two large players that are seeing red. SunPower is trading at $7.18, -0.70 (-8.88%).

Investors are constantly asking when the bottom will be in on the solar industry. To make a  bottom a few things must happen first. Oil must surge through $100.00 a barrel. Second, the weak hands must be flushed out of existence. This already happened to some players like Solyndra. This bankruptcy was famous due to the massive amount of government money it received.

Overall, the solar sector is nearing its bottom. The bearish sentiment is at all time highs. When looking for long plays, watch for oil to surge higher. In addition, stick with best of breed companies. The largest of the group should survive and when margins start coming back, profits will be big.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Inflation Or Deflation, Who Cares, Just Trade It

November 15, 2011 – Comments (0) | RELATED TICKERS: AAPL , QCOM , AMZN

This stock market will continue to dip and flip on a regular basis. The days of buy and hold seem to be long gone. Sometimes during the intra-day action the stock markets can have swings of 2 – 3 percent. This is a stock market for chart readers and not for the person that buys on economic data or price to earnings ratios. The stock market does not care what method anyone uses, it will take your last dollar if you do not know what you are doing.

Just think about it, earlier in the year most people where talking about how the third year of the president's term is always bullish and everyone should be long. Well, the stock market topped out on May 2, 2011 and has yet to get back to those levels. So much for that third year of the president term being a big bullish year. There are so many intricate factors that move stock markets. For that purpose it is always best to find a method that works for you and follow it closely.

Many traders such as myself like to follow leading stocks such as Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), and Qualcomm Inc (NASDAQ:QCOM). These stocks are certainly market leaders and should be followed closely. In other words, there is more than one way to skin a cat when trading. These days there is really no confirmed trend, therefore, it is best to use the charts and trade the best chart pattern setups. Doing anything else seems like gambling. Trading is all about putting the odds in your favor regardless if you are buying or selling. Trading is about taking risk at the best time for a move in your favor. When yout  correct you should capitalize by using good money management. If by some chance you are wrong, then you should cut the losses quickly. Whether there is inflation, or deflation you just want to trade the best chart setups.

Nicholas Santiago
InTheMoneyStocks.com


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Recs

0

Every Trader Should Look At This Chart

November 15, 2011 – Comments (0) | RELATED TICKERS: CLF , COP , SCCO

The chart below clearly shows how the U.S. Dollar Index impacts the overall stock market indexes. Traders can clearly see when the U.S. Dollar Index futures (DX Z1) decline the S&P 500 Index e-mini futures (ES Z1) will inflate and trade higher. Just look at how the U.S. Dollar Index topped out exactly at 6:40 am EST, this is the exact time that the S&P 500 Index futures made their low.

The news coming out of the European Union is important, however, it is lagging and behind the curve. Often, by the time most traders hear about the news coming out of Europe the move in the U.S. Dollar Index and the stock market has already taken place. At this time, all traders need to know is when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. The opposite is true when the U.S. Dollar Index rallies the major stock indexes will deflate and trade lower.

Some leading stocks that will trade inverse to U.S. Dollar Index are Cliffs Natural Resources Inc (NYSE:CLF), United States Gasoline Fund (NYSEARCA:UGA), Southern Copper Corp (NYSE:SCCO), and ConocoPhillips (NYSE:COP). These leading stocks will trade like yo-yos depending on the action in the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

2

Oil Inches Lower, More Downside Remains

November 14, 2011 – Comments (0) | RELATED TICKERS: USO , XOM , CVX

Oil is seeing a pull back today after kissing $100 per barrel overnight. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $37.92, -0.29 (-0.76%). This is a minor drop after a huge run up. In the last six weeks the USO ran from $29.10 to its current level, a whopping 30% move. This run has occurred for a few different reasons. First, troubles with Iran over nuclear ambitions are fueling prices in a minor way. The other factors are based on the outlook of Europe and the global economy along with the fall in the Dollar. As Europe tries to get a handle on its debt issues, the future outlook begins to look brighter.

Overall, oil should not be up at these current levels. The higher oil rises, especially above $100, the bigger the drag on the U.S. economy as consumers must spend more to travel. Today, Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX) and ConocoPhillips (NYSE:COP)  are all lower on the small drop in oil. Oil should continue lower in the coming weeks as reality over Europe is seen. A short term target on oil of $85 per barrel is likely.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Three Stocks Hammered Into Buy Levels

November 14, 2011 – Comments (2) | RELATED TICKERS: FSLR , DMND , GMCR

In this wild market there are stocks that have outperformed and stocks that have underperformed. In addition, there is a class of stocks that have been crushed. Every trader wants to know when the right buying opportunity is for these stocks. First Solar, Inc. (NASDAQ:FSLR), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) and Diamond Foods, Inc. (NASDAQ:DMND)  have all been hammered recently for earnings misses or possible accounting issues. The drops have been epic and the bearish sentiment overwhelming. When do these stocks become a buy?

First Solar is a buy between $42.50 - $43.50. However, should the stock close below $40.00, it will fall to $32.00. This solar stock is cheap but that master support must hold. An upside move could take First Solar back above the $50.00 level in the short term.

According to the charts, Green Mountain Coffee is a buy at $40.00- $41.00 range. However, should it fall below $40.00 on a closing basis, a break down would occur to the $34.00 level. An upside move could take Green Mountain into the high $50.00 range.

Diamond Foods is has major support at the $34.00 level. This is another support level at $30.00. This stock traded over $96.00 just a few months ago. It has been absolutely crushed. Any sort of technical bounce on resolution of their issues could take Diamond Foods back to the $50.00 level.

All three stocks carry a high amount of risk. However, the reward is equal or greater at their support levels mentioned above. Pay close attention to the levels and trust the charts.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

A Stock Market Traders Lunchtime View

November 14, 2011 – Comments (0) | RELATED TICKERS: SPY , JPM , AIG

The markets are seeing some selling today on very light volume. Yields in Italy and Spain are inching higher once again. The markets are on a string of uncertainty. One day things look better and yields decline, the next they look worse as yields surge. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $125.59, -1.03 (-0.81%) . This is on top of the 200 moving average on the intra-day 10 minute chart, a support level. Should the SPY break through that level, the pivot high from last Thursday would be next at $124.90.

The biggest losers today are clearly the banks. Anytime worries erupt out of Europe, the banks have the most to lose in terms of exposure to defaulting debt. JPMorgan Chase & Co. (NYSE:JPM) is trading at $32.44, -0.84 (-2.52%). Note how JPMorgan is down almost three times as much as the SPY. This shows obvious relative weakness.

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Stock Market Update: Trades Of The Day

November 11, 2011 – Comments (0) | RELATED TICKERS: JPM , AAPL , USO

The markets are surging higher again today, following more optimism in Europe over a drop in Italian yields and the slightly less ugly debt situation. In addition, light volume due to the Veterans Day holiday in the United States allows the upside to hold and gain. As the markets advance, key stocks are making moves. Below are the keys to the trade.

On the positive signs out of Europe, bank stocks are leading the charge today. Stocks like JPMorgan Chase & Co. (NYSE:JPM) are surging. The stock is trading at $33.69, +0.95 (+2.90%). The financial stocks must be traded with extreme caution. They go sharply higher one day, only to drop sharply the next on the woes in Europe. The exposure to debt in Europe is still not fully known and this means these stocks are purely a wild card from day to day.

Apple Inc. (NASDAQ:AAPL) continues to show weakness. A bearish pattern was alerted early in the week,.it played out perfectly. Yesterday, Apple dropped over $10.00 yesterday and even with the massive rally today, is still flat to lower. The 200 moving average on the daily chart is still the short term target on the bearish pattern. This is at $363.00.

Oil continues to be higher and extended. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $38.11, +0.39 (+1.03%). With oil near $100 per barrel, Wall Street is either pricing in a major pickup in the global economy which is unlikely, or a major event in the Middle East with Iran. The USO is into resistance and will continue to hit resistance up to $39.00.

As the global picture in Europe has improved, shipping stocks have started to pop off their lows. These should continue to look solid assuming things continue to improve. Key shippers that have moved in the last few days are Frontline Ltd. (USA) (NYSE:FRO) and Genco Shipping & Trading Limited (NYSE:GNK). In addition to the shipping stocks picking up, if Europe is truly improving, solar stocks are the place to be at their current lows. Solar stocks like Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) and SunPower Corporation (NASDAQ:SPWRA) could have significant upside in the coming weeks.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Master Levels To Buy On Three Beaten Down Stocks

November 10, 2011 – Comments (0) | RELATED TICKERS: FSLR , GMCR , BBRY

While the market chops up and down, some key well known names continue to sink lower. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), First Solar, Inc. (NASDAQ:FSLR) and Research In Motion Limited (USA) (NASDAQ:RIMM)  are all top tier names on Wall Street that are fighting to survive. Below are the master levels where these stocks will find support. These levels will finally represent a solid risk to reward long play.

Green Mountain Coffee Roasters Inc. is down from a 52 week high of $115.98. It hit a low of $40.55 today. The chart filled a master gap fill that does tell technical traders of a possible impending bounce. The bounce could take the stock back to $56.00. While the chart does look attractive, make sure to be wary of the current issues with their accounting. Should these issues be cleared up, the upside becomes much more viable.

First Solar, Inc. continues to be in pain. Margins on solar panels continue to decline as the industry must clear the over production from China. This seems to be exactly what the housing market has been dealing with over the last four years. First Solar will most likely head slightly lower. There is a master level at $42.50. Once hit, this stock looks to have solid upside potential. The 52 week high is $175.45 while the current price is $44.69. Intelligent investors will start to eye First Solar at the $42.50 level as risk to reward starts to look favorable.

Lastly, Research In Motion Limited  must be discussed. One of the darlings of the market years ago, this stock has lost its way. All charts point to the master level of $14.50. This is where the stock will find major support and a possible bottom. In addition, at this price a buyout becomes very likely. The 52 week high on Research In Motion is $70.54 as it currently trades at $17.65.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

The True Keys To The Stock Market Today

November 10, 2011 – Comments (0) | RELATED TICKERS: SPY , CSCO , AAPL

The markets have been all over the map today. Indexes are tracking the inverse of Italian yields. Italian yields broke back below the 7% level pushing the markets higher in early trading. SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $124.35, +1.16 (+0.94%). Traders must remember that spiking yields in Italy, means a collapse is imminent. Borrowing at such high rates is unsustainable. Therefore it makes sense to be the driving force between the up and down moves in the United States. This type of trading will likely continue, all based on Europe.

Cisco Systems, Inc. (NASDAQ:CSCO) reported earnings that beat Wall Street estimates. The stock is solidly higher, trading at $18.77, +1.16 (+6.59%). This is helping offset weakness in Apple Inc. (NASDAQ:AAPL) . Worries about growth are hurting the stock today. Apple is trading at $383.33, -11.95 (-3.02%).

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) also reported earnings that missed Wall Street's expectations. The stock is taking a huge hit as traders continue to worry about future growth and accounting issues. The stock is down from a 52 week high of $115.98 to $42.76, -24.26 (-36.20%) . While scary, the stock is starting to look attractive after filling a key gap on the chart.

Gareth Soloway
InTheMoneyStocks.com  [more]

Recs

0

Industrial Metals Head South For The Winter

November 10, 2011 – Comments (0) | RELATED TICKERS: FCX , SCCO , BHP

Many traders and investors follow the industrial metals very closely as a leading indicator. The legendary trader Jesse Livermore used to say that copper was one of the most important industrial metals that a trader could track. He said copper would tell the investor where the economy was headed. Today, the leading copper stocks have sold off from the morning gap higher open and this is worth noting.

Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is considered the leading copper stock in the entire stock market. This morning, FCX stock is trading lower by 0.11 cents to $38.70 a share. Traders can look for intra-day support around the $38.00 and $36.50 levels.

Other leading industrial metal stocks that have sold off from the morning highs include Southern Copper Corp (NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and BHP Billiton Ltd (NYSE:BHP). When the leading industrial metals stocks rollover it is usually a negative sign for the major stock indexes. Traders should also follow the U.S. Dollar Index(DXY) closely as these stocks will generally trade inverse to the DXY.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Follow The Leader

November 10, 2011 – Comments (0) | RELATED TICKERS: AAPL , AKAM , N

This morning, the major stock indexes are all inflating and trading higher. Most of the market leading stocks are trading higher on the session, however, there are a few that are showing some weakness and this should be noted by serious traders.

Apple Inc (NASDAQ:AAPL) is the world's largest stock by market capitalization valued at $368.5 billion. This stock is the most important technology stock in the world for investors. AAPL stock is trading lower by $3.24 to $392.04 a share. Whenever a market leader is not participating with the overall markets it is telling us that the stock has weak relative strength. Traders should always remember that market leading stocks must lead and this stock is now clearly lagging. AAPL stock will have intra-day support around the $382.00 level.

Other market leading stocks that are weak in this morning's rally include Google Inc (NASDAQ:GOOG), Akamai Technologies Inc (NASDAQ:AKAM), Netsuite Inc (NYSE:N), and Salesforce.com Inc (NYSE:CRM). Traders must remember that when the leaders are weak that is the stock markets way of talking to you.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

European Panic Does Not Equal Higher Oil

November 09, 2011 – Comments (1) | RELATED TICKERS: CVX , XOM , COP

There is a solid divergence developing between reality and the price of oil. Oil continues to trade around the $97.00 per barrel level. This is a gain of  25% in the last couple months. The price of oil is reflecting major uncertainty in the Middle East. Reports of Iran's nuclear ambitions continue to worry the world. That is part of the increase in oil and cannot be argued. However, this global optimism about a major resurgence of growth is a fantasy. Today, bond yields in Italy hit a high of 7.5%. This is the next domino to fall after Greece. Following Italy will be Spain, Portugal, Ireland and eventually France and the United States. Global growth will continue to be very weak for years to come. Once the Iranian situation cools down and reality on Europe fully is seen, oil will head back to $75.00 per barrel.

Gareth Soloway
InTheMoneyStocks.com



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Recs

2

Understanding And Profiting From The Stock Market Swings

November 09, 2011 – Comments (0) | RELATED TICKERS: USO , WFC , GS

The wild stock market swings continue, all thanks to Europe. The markets opened sharply lower on the back of more Italian woes. Yields on the Italian 10 year broke 7%. This is what started the Greek debacle and will be the ultimate cause of every other PIIGS country downfall. Most retail investors do not understand the how the yields determine the collapse of a country. Simply put, when a country is so heavily in debt and must borrow, rising borrowing costs trigger the beginning of the end.

Oil is ripping higher today. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $37.63, +0.20 (+0.53%) . While this may not seem like a major move, the USO traded as low as $36.49 this morning before a major reversal. This reversal is coming on the back of continued concerns over Iran's nuclear ambitions as well as an oil inventory report which was bullish. Looking at the chart from a technical standpoint, the USO hit the 200 moving average today. This should be resistance, short term.

The biggest losers today are the financial stocks. This makes sense due to the possibility that Italy will default or bond holders will at least take a 50% haircut like they did in Greece. The exposure banks have to Europe is somewhat unknown, shown by MF Global's panic bankruptcy. Continued worry will persist from Europe. Stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC) are all sharply lower.

Gareth Soloway
InTheMoneyStocks.com
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Recs

3

Berlusconi Bounce Or Just Another U.S. Dollar Decline?

November 08, 2011 – Comments (0) | RELATED TICKERS: UUP , UDN , EWI

The major stock indexes have played out just the same way they did yesterday. The markets sold off into the noon hour only to reverse and trade sharply higher throughout the afternoon. The intra-day pivot points and the chart patterns in the session are almost exactly the same as yesterday. The catalyst for the stock market rally was once again the declining U.S. Dollar Index. The U.S. Dollar Index plummeted lower when the Prime Minister of Italy, Silvio Berlusconi, said that he may resign after the country passes their 2012 budget.

This market seems to go into a euphoric state on any word out of Europe. So far, Greek debt crisis still remains unresolved. The only thing that happened there is that the Greek PM George Papandreou said that he will resign. Now Italy's Berlusconi has said the same thing. We can only imagine how far the U.S. Dollar would decline if Germany's Angela Merkel and France's Nicolas Sarkozy would resign. We might hit 50,000 on the Dow Jones Industrial Average. These market moves are really ridiculous when you think about it. The European Union needs to still come up with $1.4 trillion just to keep that failed science project of a union functioning.

Traders must continue to follow the U.S. Dollar Index extremely close. At this time the U.S. Dollar Index continues to trade inverse to the major stock indexes around the world. As long as the dollar continues to decline the markets will continue to inflate and trade higher.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Trading: Stock Setups To Profit By

November 08, 2011 – Comments (0) | RELATED TICKERS: SPY , AAPL , FSLR

European news leaks continue to whip the markets up and down. Early in the day, word of a major vote in Italy on a budget drove the markets higher. Hopes of a significant resolution to the Italian debt problems circled in the air. While Berlusconi won the vote, the parliamentary majority was lost. This means any sort of political effort towards a major bailout deal could be a tough fight. The markets initially spiked higher ahead of the vote but sold off as deadlock looks to be the end game in Italy.

The markets are hovering around the flat line. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $126.21, -0.07 (-0.06%). With all the European news constantly shaking the market, it becomes slightly tougher to trade. An investor must always resort to the charts to see the truth, ignoring the hype from the media.

There are three key stocks that look to be the trades of the day. First, Apple Inc. (NASDAQ:AAPL) is showing strength. In the last few trading days, Apple has been one of the weaker plays. Today, that is reversing. Whether or not it is going to continue higher can be seen on the charts. Should Apple close above the daily 20 moving average at $404.25, it will most likely head to $409.00. As long as it stays below $409.00 the overall bias is neutral. A break of $409.00, it will head back to the 52 week highs at $426.70. Should the stock stay below $404.25 on a closing basis today, consider it a short over the next few days.

First Solar, Inc. (NASDAQ:FSLR) continues to be under pressure, trading at $47.15, -0.59 (-1.24%) . The bearish sentiment on the solar industry continues to be huge. The weakness today continues to elude to the fact that FSLR has more downside. The first major support level worth buying is at $40.00. There will be significant upside eventually on all solar names as bearish sentiment is nearing its highs. The key is to nail the bottom perfectly.

Lastly, a small cap to throw in the mix is Delta Petroleum Corp. (NASDAQ:DPTR) . This is a small oil and gas company trading at 52 week lows. The company is eyeing a sale and based on its current valuation, the upside potential is big. Crude oil is closing back on the $100.00 per barrel level which also sweetens the pot. In addition, other small cap oil plays have already started to move sharply higher. This is a high risk play but may be good for significant upside.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Transports Turn Negative

November 08, 2011 – Comments (0) | RELATED TICKERS: IYT , FDX , UPS

This morning, the iShares Dow Jones Transportation ETF (NYSE:IYT) has faded after a strong gap higher open. The IYT is now trading lower by 0.43 cents to $87.26 a share. Traders should watch for short term intra-day support around the $86.40 level. The transports are highly followed by many traders and investors as a leading indicator for the stock market. When the transports decline it is a sign of economic contraction. The opposite is true when the transports trade higher, it will indicate and economy that is expanding and growing.

Other leading transportation stocks that have faded from the morning highs include FedEx Corp (NYSE:FDX), United Parcel Service Inc (NYSE:UPS), and CSX Corp (NYSE:CSX). These leading stocks will usually bounce and decline intra-day in tandem with the IYT.

Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

1

Everyone Is Watching Italy

November 08, 2011 – Comments (0) | RELATED TICKERS: EWI , EWQ , NBG

This morning, the Italian parliament voted on a budget that passed with 308 votes. While this budget vote passed it lacked the majority. This tells the world that Prime Minister Silvio Berlusconi might resign after losing his majority position. This Italian debt saga is simply taking over where Greece left off, however, this crisis is enormous compared to the Greek debt crisis.

The iShares MSCI Italy Index Fund (NYSE:EWI) has declined sharply since the results of the vote were announced. Traders should watch for intra-day support around the $13.00 area. Should this level fail to hold as support the EWI could trade down to the $11.80 area. Traders and investors must continue to follow this story very closely as it is moving the markets.

Nicholas Santiago
InTheMoneyStocks.com



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Recs

0

There Is Only One Way To Get It Up

November 08, 2011 – Comments (0) | RELATED TICKERS: VALE , SCCO , FCX

This morning, the U.S. Dollar Index futures (DX Z1) are declining ahead of the opening bell. Whenever the U.S. Dollar Index declines the major stock indexes around the world will inflate and trade higher. If and when the U.S. Dollar Index rallies or trades higher the major stock indexes will deflate and trade lower. The bottom line, if this stock market is to trade higher the U.S. Dollar Index must weaken and trade lower. Essentially, every trade is a trade on the U.S. Dollar at this time. Until this inverse relationship between the dollar and the stock market begins to decouple this is really the only thing that traders need to focus on.

Should the U.S. Dollar Index decline further traders can watch for many of the leading commodity stocks to trade higher. Leading commodity stocks such as Southern Copper Corp (NYSE:SCCO), Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Cliffs Natural Resources Inc (NYSE:CLF), and Vale SA (NYSE:VALE) are likely to trade higher on the back of a weaker dollar. These same stocks could come under selling pressure if the U.S. Dollar Index catches a bid and trades off of the morning lows.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

2

Bearish Patterns Spell Market Problems

November 07, 2011 – Comments (0) | RELATED TICKERS: AMZN , AAPL , QQQ

The markets are slightly lower today as all eyes are on Europe. Greece and Italy continue to dominate the headlines as they try and avoid an epic collapse and default. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  is trading at $119.06, -0.54 (-0.45%). While the markets are waiting for more news, many tech stocks are showing bearish daily chart patterns. This may tell us of future weakness in the days, weeks and months ahead.

The biggest name with a bearish chart is Apple Inc. (NASDAQ:AAPL) . Note the chart below. It shows multiple bearish setups and is taking the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) lower. The bear flags are valid on the chart unless the stock closes above $404.00. This coincides with the 20 moving average. Should the stock take out the 50 moving average on the downside, the fall should become steeper, accelerating to the 200 moving average. This offers a classic risk/reward setup for the short side.

Amazon.com, Inc. (NASDAQ:AMZN) is another classic big name with a bearish setup. After earnings caused the stock to collapse sharply lower, a retrace has occurred. This took the stock up under the 20 and 50 moving averages. The stock is beginning to turn lower and a negative golden cross will trigger in the next few days. This may help the stock sell back down to the earnings low at the 200 moving average.

Gareth Soloway
InTheMoneyStocks.com
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Recs

3

Keep This Chart On The Screen At All Times

November 07, 2011 – Comments (2) | RELATED TICKERS: BHP , CVX , CLF

The only chart that traders need to pay attention to is the chart of the U.S. Dollar Index (DXY). When the U.S. Dollar Index declines throughout the trading session the major stock market indexes will inflate and trade higher. Obviously, leading commodity and energy stocks such as Cliffs Natural Resources Inc (NYSE:CLF) BHP Billiton Ltd (NYSE:BHP), and Chevron Corp (NYSE:CVX) will be some of the first stocks to react and trade inverse to the U.S. Dollar Index. It is important to note that these days everything will trade higher when the U.S. Dollar Index declines. Leading financial stocks, technology stocks, and even retail stocks will inflate and trade higher when the U.S. Dollar declines.

Traders should be careful when the U.S. Dollar Index rallies higher, the major stock indexes will deflate and trade lower very quickly. The action is the U.S. Dollar Index is the driving force behind every stock market move. At this time, traders and investors are very focused on the news coming out of Europe, however, they should simply focus on the chart of the U.S. Dollar Index to determine the direction of this stock market. This inverse relationship between the U.S. Dollar Index and the major stock indexes are as tightly correlated as they have ever been.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Stocks Get High, Smoking Trades

November 07, 2011 – Comments (0) | RELATED TICKERS: MCP , HOS , TSO

While the central banks and most G-20 nations scramble to keep Greece in the European Union, some stocks are making new 52 week highs. The list of these stocks is not very large, however, it is important to know who these leading stocks are as they present trading opportunity. This week, we will examine three leading stocks making new 52 week highs and point out the major levels that all traders need to know.

McDonalds Corp (NYSE:MCP) is one of the leading restaurant franchises in the world. This stock has been one of the few stocks to remain in a solid uptrend throughout 2011. Last week, the stock closed near a new 52 week high and remains very strong on the charts. Traders should watch for near term resistance around the $96.80, $102.00, and $106.70 levels. Should the stock pullback from current levels traders should watch for support around the $90.00, and $87.00 levels. Place these levels on your charts, watch the stock react and trade them accordingly.

 

Tesoro Corp (NYSE:TSO) is a leading oil and gas refining company headquartered in San Antonio, Texas. This stock has surged sharply higher since October 4, 2011 when it traded as low as $17.43 a share. Last week, TSO stock closed at a new 52 week high at $28.80 a share. Traders must realize that the stock is trading into a double top resistance area from April 6, 2011. The next near term resistance levels for TSO are $31.50, and $34.25. Should the stock decline from current levels traders should watch for near term support around the $24.00, and $21.50 levels.

 

Hornbeck Offshore Services Inc (NYSE:HOS) is a leading provider of marine services for exploration and production of offshore oilfields. The stock broke out of a two week base on October 27. 2011. Last week, HOS stock closed at $35.61 a share. Traders should watch for near term resistance around the $38.50, $41.00, and $44.50 levels. Should the stock pullback from its current level traders should watch for support around the $31.50, $28.00, and $26.00 levels.
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Recs

1

The Large Bank Stocks Speak Volume

November 04, 2011 – Comments (0) | RELATED TICKERS: JPM , GS , BAC

Throughout the year the bank stocks have forecasted every important market move. This morning, the leading financial stocks are trading slightly lower. J.P. Morgan Chase & Co (NYSE:JPM) is the leading financial stock in the market place and it is the most important financial institution in the United States. JPM stock is trading lower by 0.58 cents to $33.80 a share. This stock will often single handedly predict the stock market moves on a daily basis. JPM stock will have intra-day support around the $33.55 and $33.00 levels.

Other leading financial stocks that are declining this morning include Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC), and Citigroup Inc (NYSE:C). All of these financial stocks are extremely important, however, JPM stock is certainly the most important for traders to follow.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Profiting From The Major Shift Inside The ECB

November 03, 2011 – Comments (0) | RELATED TICKERS: SPY , MFGLQ.DL , JEF

No sooner had the new president of the ECB Mario Draghi said goodbye to the old president Jean-Claude Trichet, he put his stamp on Europe. In a major shift in policy that sent ripples throughout the world, Draghi lowered interest rates by .25%. This may not sound like a big move, but it shows a fundamental shift on how the ECB will be handling Europe going forward. Trichet was a hard line player, always focused on inflation rather than growth. Today, clearly, global governments and the U.S. Federal Reserve hand picked Trichet's replacement and will be a clone of Federal Reserve Chairman Ben Bernanke in terms of policy.

This news sent the markets spiking. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $125.17, +1.18 (+0.95%). Just last night the futures were taking a brutal hit on continued worries out of Greece. This move by Draghi was a golden goblet, sent out to investors saying, "the ECB is now going to handle this problem like the Federal Reserve."  In other words, print money, bailout and place more band-aids on the problems for the short run.

Most stocks are higher today. The one area of weakness is coming from the banks. After MF Global Holdings Ltd (NYSE:MF) collapse, Wall Street has been wondering if there are more players that will go bust. Today, Jefferies Group, Inc. (NYSE:JEF) saw massive declines in their stock. The stock closed at $12.27 yesterday, and fell to $9.79 today, before recovering. The company had to come and and defend themselves. There is a lingering worry surrounding all financial stocks. While the rest of the market inches higher, stocks like JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS)  are flat to lower.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

The Falling U.S. Dollar Index Comes To The Rescue Again

November 03, 2011 – Comments (0) | RELATED TICKERS: COP , CVX , XOM

Once again, the decline in the U.S. Dollar Index futures (DX Z1) has saved the major stock indexes from another sharp decline. Traders can easily see that the U.S. Dollar Index futures topped out at 10:00 am EST. At the same time, the major stock market indexes found a low and have rebounded higher. The SPDR Dow Jones Industrial Average (NYSE:DIA) traded as low as $118.17 at 10:00 am EST, however, it is now trading at $119.32 since the U.S. Dollar Index declined. These are big intra-day moves for the markets. Traders can watch for some short term intra-day resistance for the DIA around the $119.65 area.

Many of the leading energy stocks have bounced sharply higher since the U.S. Dollar Index declined. Leading energy stocks such as ConocoPhillips (NYSE:COP), Chevron Corp (NYSE:CVX), and Exxon Mobil Corp (NYSE:XOM) are just a few leading stocks that will usually surge higher when the U.S. Dollar Index declines.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

3

Markets A Mess, Await Bernanke

November 02, 2011 – Comments (0) | RELATED TICKERS: SPY , AAPL , INTC

The markets continue to see uncertainty and it is getting worse. The Federal Reserve just released their FOMC Policy Statement and there was no direct mention of QE3. In addition, there is now talk Greece will not get their next bailout payment until after the referendum vote.  If they do not get the next payment shortly, a hard default is likely. The referendum vote is likely to derail the Greek bailout that gave the markets a 20% run in the last month. This has caused a major uptick in volatility and fear.

The markets are well off their highs of the day, yet still positive. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $123.11, +1.03 (+0.84%). The sell off from the highs accelerated after the Federal Reserve Policy Statement at 12:30pm ET. All eyes are now watching Ben Bernanke's press conference at 2:30pm ET. In addition, at 3:30pm ET, there is a major European meeting. The uncertainty remains as Wall Street holds its breath.

Technology is the weakest sector today. Key leading stocks like Apple Inc. (NASDAQ:AAPL), Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) are negative. Commodity and bank stocks are higher, keeping the S&P 500 up. Stocks like Chevron Corporation (NYSE:CVX) and JPMorgan Chase & Co. (NYSE:JPM) are doing well.

Gareth Soloway
InTheMoneyStocks.com
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Recs

2

Expect The Wild Swings To Continue

November 02, 2011 – Comments (0) | RELATED TICKERS: AMZN , RIO , XLF

This morning, the major stock indexes are trading sharply higher. The 150.0 point rebound in the Dow Jones Industrial Average comes after yesterday's bloodbath decline in all of the major stock market indexes. The daily moves in the stock market have been very dramatic with wide range swings. One day risk is on and the next day risk is off. The trend since August 2011 has been very choppy and sideways. Is there so much uncertainty that traders and investors are not willing to commit capital to this market for more than just a few days, or is there something else moving this market in such erratic fashion?

If traders have not noticed yet the major stock indexes seem to trade inverse to the U.S. Dollar Index. When the U.S. Dollar Index declines everything from Amazon.com Inc (NASDAQ:AMZN) to Rio Tinto plc (NASDAQ:RIO) will inflate and trade higher. Most traders expect the commodity and energy sectors to inflate higher when the dollar declines, however, these days we see the financial, tech, agriculture, transports and consumer staple stocks all rally on the back of any dollar decline. Essentially, every trade is a trade on the U.S. Dollar Index.

Over the past two trading session the U.S. Dollar Index futures (DX Z1) have bounced sharply higher by $2.50 to over $77.50 per contract. During that bounce in the U.S. Dollar Index the highly followed Dow Jones Industrial Average declined lower by 600.00 points in just two trading days. These moves are dramatic by anyone's standards. This is not your parent's buy and hold market anymore. Traders should expect these wild swings to continue as long as central banks and countless governments are constantly dabbling in the market place.

Nicholas Santiago
inTheMoneyStocks.com
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Recs

5

A Joke Of A Market, Learn How To Profit

November 01, 2011 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

Investors, traders and even institutions are feeling pain today after the markets collapsed for the second day in a row. Just days after the media proclaimed all was perfect in the world once more, poor economic news ripped the markets from China and the massive bailout of Greece may fall apart. The S&P 500 has fallen over 5% in the last two trading days. Just today, the SPDR S&P 500 ETF (AMEX:SPY) is trading at $122.00, -6.60 (-5.13%).

This is a classic joke of a market. This market is run by greed and fear, pushed to extremes by instutions, the Federal Reserve and governments.  It catches the smallest investors off guard and takes their money every time. If you do not know how to swing trade it, you will lose money. This type of market is a simple transfer of wealth from the have-no-clues to the in-the-knows. If you have no clue, then you better step up and start getting a clue.

It is all a rigged game. It is as simple as that. With the media following like a lost puppy, the market is pumped to extremes, high enough to coax the little investor in, then flushed to take their money.

There are simple keys to remember in order to avoid losing money. First, use your head. Logic is the best tool when trading. The market had soared 20% in less than one month. Logic should dictate a pull back no matter how hard the media is pumping. The second key is to avoid listening to the media. Stations like CNBC are there to make money. They make money by selling advertising. Therefore, they must  cheerlead the market at highs and scare you at the lows. The little investor usually follows the media because they cannot control their emotions. This is a recipe for disaster.  Lastly, start learning the technical chart patterns. If you had looked at the chart last Thursday, you could have easily seen that the market had filled a key gap, and never confirmed above the 200ma.

There were many other keys that alerted intelligent investors and traders to the drop. InTheMoneyStocks members nailed it by being short the Euro, copper and long SDS, which is a 2x short S&P 500 ETF.

Gareth Soloway
InTheMoneyStocks.com
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Recs

3

The Housewives of the European Union

November 01, 2011 – Comments (1) | RELATED TICKERS: UBS , IRE , MS

The plot thickens again in the soap opera of the European Union. One day there is a $1.4 trillion bailout fund in place and the next day that deal is falling apart at the seams. One day Greece is on board with austerity measures and the next day they might be back to using the Greek Drachma. This Greek drama continues to get better by the minute.

Next there is Italy and Spain. Italian 10 year bond yields are now surging higher by more than 6.0 percent and this is even with the ECB buying bonds to keep the yields down. Italy is in complete disarray, last week they had their own version of the Ultimate Fighting Championship taking place in the Italian parliament. Spain on the other hand is sporting a hefty 21.5 percent unemployment rate and has more financial issues than can be addressed in this short article.

France behaves like the housewife that has a lot of money, however, the French bank stocks are telling us a different story. In fact, the French President Nicolas Sarkozy was actually pleading with the Chinese to help bailout the European Union last week. This housewife has some serious financial troubles that will likely surface in the next few episodes.

Portugal, Ireland, and Belgium all have their fair share of problems. Both Portugal, and Ireland, have been bailed out already, however, a second bailout should not be ruled out in the future. After all, Greece continues to get bailed out and seems to get more money whenever they want it. Belgium is still working on getting an official government, however, they are broken too.

Finally, we have Germany, the Germans are considered the most solvent of all the European Union nations at this time. While the Germans are the strongest nation in the EU it is important to note that their debt to gross domestic product ratio is about 80.0 percent. This housewife could easily be in financial trouble over the next few years. Oh well, Germany probably holds the cards at the moment in the friendly high stakes poker game.

Stay tuned as each and every day there will be more and more news and gossip coming out of Europe. This crisis will not be resolved anytime soon and should linger well into 2012.

Nicholas Santiago
InTheMoneyStocks.com
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