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December 2011

Recs

4

This Is When You Should Trade

December 21, 2011 – Comments (0) | RELATED TICKERS: GOOGL , CHK , BRCM

The First Hour Is For The Day Traders

Active markets are always the best markets for trading. Anyone who has ever traded these markets for a considerable amount of time knows that the first hour to ninety minutes is the best part of the trading day. This is a time period when there is volume in the market and the key support and resistance levels are great for trading.

If you have ever looked at an intra-day chart of a stock or index you will notice that the trading volume declines dramatically after the first hour to ninety minutes of the session. The morning period is when day traders must seize the moment. This is when the markets are most active, once 11:00 am rolls around the markets become manipulated by the institutional traders. The institutions aim to simply stop out small retail futures traders. Take a look at the choppy sideways range experienced in the chart below after 11:00 am and you will see what I mean.

This type of game playing goes on everyday in all active stocks and indexes. Sure, once in a while the markets will be active throughout the entire session, however, that is not normally the case. All leading stocks such as Google Inc.(NASDAQ:GOOG), Chesapeake Energy Corp.(NYSE:CHK), and Broadcom Corp.(NYSE:BRCM) become difficult to trade after the morning session. These are just a few of the countless stocks that will trade in an erratic manner after the first ninety minutes of the day. Day traders should focus on the morning session and leave the three hour lunch time game playing to the institutions.



Nicholas Santiago
InTheMoneyStocks.com  [more]

Recs

0

Professional Boxer, Doctor... Now It's The Traders Turn!

December 20, 2011 – Comments (0)

What Does It Take To Master The Markets? Many times in my career I have encountered new traders who believe they have the ability to master the markets after reading a book on trading, or even because they have obtained some form of degree. Most often the first question I ask them is; are you a fundamental trader? Fundamental traders are those who generally read a companies balance sheet, (example-EPS, PE, EBITDA, book value, etc.) or perhaps they are a technical trader which is someone who uses charts of past prices, patterns, and stock market cycles. More often then not the trader is unsure of a specific methodology and is typically dependent on someones opinion to invest or trade a stock, usually from a book or talk show. Within minutes, I realize that the new investor or trader is grasping onto a dream encompassing an optimistic hope mode.

Trading is one of the most rewarding, yet highly demanding ventures that an individual can pursue. Often I compare the markets to the world's largest arena filled with gladiators from ancient Roman times. There is over a billion shares traded everyday globally and the participants range from huge institutions such as insurance companies, commercial companies, hedge funds, mutual funds, banks, broker dealers, down to the individual investor. These participants have different types of goals and strategies that are being applied. Many institutions and traders have a longer time frame horizon and are looking for larger gains from the market. Then on the flip side there are many institutions and individual traders that are trading in a shorter time frame and looking for smaller gains. This is all part of the vast ocean of trading and investing. Yes, the big fish does eat the small fish, and the food chain theory is alive and well in the global trading world.

As most people, I'm a sports fan and enjoy watching a good athletic event. In the past few years the very popular sport of mixed martial arts has emerged to the forefront of athletic competition. This is a dynamic and fascinating sport that is very diverse and requires countless hours of physical training, studying, dieting, mental strength, and a true dedication that few can achieve. Recently I had the privilege of meeting a mixed martial arts competitor and I asked him how he got started in this sport? The fighter informed me that he was originally a boxer, later studied the martial art of Judo, and now he concentrates on the martial art of jujitsu. I then asked him if he learned the basics in Judo and Jujitsu and combined the techniques? Again, to my surprise he is a black belt (expert) in both martial arts. This means he is a black belt in two different forms of martial arts, as well as a professional boxer. The next statement was a something that I will never forget. He said, "I still need to continue to learn everyday and master more if I'm to continue excelling in the sport. I'm forever a student of mixed martial arts." Then it really hit me. This is what it takes to be successful in anything that you do and the reason why only a few are able to reach the elite level.

So what does it take to become a successful trader? This is a recipe that I'm certain will be different for each individual. It is truly an endless journey. The more you seek, the more you will find and there is surely more than one way to achieve your goal. In my personal journey to learn and understand the markets over a decade I have read over 200 books on the markets. Many of those books I have read two, three, and some four times. I have watched countless recorded trading videos, attended over 100 live seminars, and worked personally with some of the best traders alive. I have studied every bull and bear market in history and continue to learn and discover new market patterns and cycles every day. I know and believe that I still need to learn and master more as this is an ever changing arena. I am forever a student of the market. True market mastery is not a nine to five job where you punch a time clock. The real work usually begins when the market closes at 4:00pm ET. Every evening, I usually spend three to four hours reviewing charts and looking for setups for the next trading day. Reviewing charts on multiple time frames and performing multiple mathematical formulas is the norm.

In order to be successful in anything you must have a true passion. Trading is no different then a doctor, lawyer, accountant, or any other profession. A comedian I saw said it best, "a person with a job can't wait until 5:00pm for the day to end so he can go home. A person with a career doesn't even know its 5:00 pm and when at work he thinks he is home."

Trading is a skill that takes a life time to master. However, it is the best and most rewarding profession in the world with many perks. Be your own boss, make unlimited amounts of money and learn how to read people. After all, when you trade you are not just trading stocks but people and their emotions.  Learn the proper tools, keep learning, and make a fortune.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Airlines Take Off, How High Can They Go?

December 16, 2011 – Comments (1) | RELATED TICKERS: FAA.DL , UAL , DAL

This morning, all of the leading airline stocks are trading higher. Since the sharp oil decline earlier this week the airline stocks have rallied. Most of these stocks are now getting a little short term overbought and extended, at this time these stocks may need to pullback or consolidate soon. Traders must be remember that the holiday season is usually a bullish period for the airline stocks and most other stocks in the transportation sector.

Some of the leading airline stocks that are trading higher this morning include Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), United Continental Holdings Inc (NYSE:UAL), and U.S. Airways Group Inc (NYSE:LCC). The airline stocks have all traded higher after AMR Corp (NYSE:AMR) filed for bankruptcy in late November 2011. There is a lot of chatter that there will now be more mergers taking place in the industry group. This is also helping the airline stocks trade higher at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

2

Gold Miners Try To Dig Out The Ditch

December 16, 2011 – Comments (0) | RELATED TICKERS: GDX , AUY , GG

Throughout this week, the leading gold mining stocks have come under heavy selling pressure. The Market Vectors Gold Miners ETF (NYSEARCA:GDX) has declined from $56.00 a share on December 12, 2011 down as low as $51.57 a share yesterday. That is a major drop for the ETF in less than a week by anyone’s standards. This morning, the GDX is trading higher by $1.05 to $52.75 a share. The daily chart is short term oversold so a near term technical bounce should not be ruled out. The GDX also has a lot of short term daily chart support around the October lows. Traders can watch for intra-day support on the GDX around the $53.25, and $54.00 levels.

Some other leading gold mining stocks that are trading higher this morning include Goldcorp Inc (NYSE:GG), Newmont Mining Corp (NYSE:NEM), and Yamana Gold Inc (NYSE:AUY). When gold and the gold miners decline it is usually a good sign of deflation in the market place. The opposite is true when gold and the gold miners rally, it is a sign of inflation. Therefore, all moves in the gold mining stocks should be viewed as short term at this time.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

Key Stocks Positioned For Big Moves

December 15, 2011 – Comments (0) | RELATED TICKERS: SPY , QQQ , BBRY

The markets are hovering around the flat line as all eyes remain on Europe. Europe has been quiet this week and that is making investors uneasy. The SPDR S&P 500 ETF (NYSEARCA:SPY) $122.28, +0.57 (+0.47%). While the S&P 500 is slightly higher on the day, the technology tracking ETF, PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)  is trading at $54.81, -0.08 (-0.15%).

One of the main stocks on the radar today is Research In Motion Limited (USA) (NASDAQ:RIMM). They report earnings after the market closes today. The stock is currently trading at 52 week lows as Wall Street awaits the report. The bearish sentiment is high right now which may mean bad news is already factored in.

First Solar, Inc. (NASDAQ:FSLR) dropped over 20% yesterday. This stock is down again, trading at $32.01, -1.44 (-4.30%). The company warned on future earnings results and today hit a low not seen since 2006. At this point, the stock is near a longer term low and into major support. While the stock continues to be high risk, upside is likely from here.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Casino Stock Crap Out Again

December 15, 2011 – Comments (0) | RELATED TICKERS: LVS , MGM , WYNN

The big casino stocks are all coming under selling pressure again. The catalyst for the decline in the casino stocks is once again caused by the weak Shanghai Index (China). The Shanghai Index finished lower last night by over 2.00 percent. Most of the revenues for the casino stocks come from the Macao market. If China and the rest of Asia begin to slow down further this will hurt the large casino stocks that operate in that region. The leading casino stocks are not growing in the United States as the economy is still somewhat depressed.

Wynn Resorts Ltd (NASDAQ:WYNN) is trading lower by 0.33 cents to $101.98 a share. The stock is trading below all of the major moving averages on the daily chart. This puts this stock in a confirmed down trend at this time. The stock will have short term intra-day support around the $101.00, and $100.00 levels.

Some of the other casino stocks that are declining lower this morning are MGM International (NYSE:MGM), and Las Vegas Sands Corp (NYSE:LVS). Traders should not expect any major rallies in these stocks until the Shanghai Index can find a near term low.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

1

Financials Catch Morning Bid, Can It Last?

December 15, 2011 – Comments (0) | RELATED TICKERS: MS , DB , XLF

This morning, all of the leading financial stocks are trading higher. When the financial stocks rally it is usually a good sign that the major stock market indexes will hold up. Traders should follow Financial Select Sector SPDR (NYSE:XLF) closely. The XLF has started higher by 0.16 cents to $12.73 a share. Short term traders should watch for intra-day resistance around the $12.75, and $12.90 levels. If the XLF starts to retreat from the morning highs it is a good chance that the stock market indexes are going to give back the early morning gains.

Morgan Stanley (NYSE:MS) is a leading financial stock that is trading higher by 0.26 cents to $93.51 a share. Earlier today, Morgan Stanley announced plans to layoff 1,600 employees. This action is usually beneficial for the stock price in the short term. Traders should watch for intra-day resistance around the $15.65 area. Should the stock rollover later today there will be intra-day support around the $15.00, and $14.50 levels.

Deutsche Bank AG (NYSE:DB) is one of the most important European bank stocks that traders can follow. The stock has already begun to fade from the gap higher open. DB stock is trading higher by 0.75 cents to $36.24 a share. Traders should watch intra-day support around the $35.50 and $34.75 levels. This stock will remain very volatile as the European crisis remains front and center.

All traders should watch the financial stocks very closely. After all, this is a financial crisis that is taking place. We all know the old saying, follow the money. The financial stocks are the money at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Bank Stocks Strong, Signaling Market Up Move

December 14, 2011 – Comments (1) | RELATED TICKERS: JPM , WFC , GS

As the markets continue to trade lower on the day, bank stocks remain extremely strong. This is very unusual as usually downside is headed by the financial sector. Today, JPMorgan Chase & Co. (NYSE:JPM) is trading at $31.78, +0.49 (1.57%). Across the board, bank stocks are flat to higher. What does it mean?

With the bank stocks leading and the markets still lower, smart traders realize news may be on the horizon from Europe. This has been the case in the past. When the financial stocks start to perk up, it is due something coming that will cause the market to pop higher. Be alerted and watch the next few days.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Commodities Crash: Buy Levels Revealed

December 14, 2011 – Comments (0) | RELATED TICKERS: SPY , USO , GLD

The markets are down again today. The selling is not massive but it is the third drop in a row. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $121.79, -1.32 (-1.07%). The big driver to the downside today is clearly commodities. Almost every single commodity is dumping sharply. Everything from oil to gold and silver. While these drops are massive, smart investors and traders are starting to look for the buy level.

Oil is coming off a massive run-up recently. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $36.93, -1.68 (-4.35%). This is a massive drop as spot crude is down well over $4.00 per barrel. Support levels on the USO are tricky because the commodity is still overbought. The first level that looks attractive on the USO is the 50 moving average at $36.35. This level will be a short term oil bounce level but is not a long term buy. The term used to trade this level would be swing trade. The following major support on the USO is $34.50. This would be the longer term hold level.

Gold is plummeting. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading at $153.32, -5.13 (-3.24%). As central banks dump gold and raise cash, pressure on the commodity is strong. In addition, the Dollar of late has surged dramatically higher. This also puts major pressure on the precious metal. The first support level on the GLD is $149.50. After a small bounce, expect the GLD to head to $144.00. This should be a longer term bottom.

Silver, like gold is under major pressure. iShares Silver Trust (ETF) (NYSEARCA:SLV) is trading at $28.09, -1.73 (-5.80%). SLV hit some minor support today at $27.40. This may give it a day or two bounce. However, more downside is likely before all the selling concludes in mid 2012. The next major support on the SLV is $26.10 with the longer term buy level at $24.25.

Gareth Soloway
InTheMoneyStocks.com
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Recs

0

Airline Stocks Trade Higher

December 14, 2011 – Comments (0) | RELATED TICKERS: DAL , LCC , LUV

This morning, the leading airline stocks are trading slightly higher on the session. The catalyst for the small move higher in the leading airline stocks is due to the falling price of crude. When oil declines the airline stocks have a tendency to catch a bid and bounce.

U.S. Airways Group Inc (NYSE:LCC) is trading higher by 0.20 cents to $5.39 a share. Short term traders can look for intra-day resistance around the $5.50 area. The daily chart on LCC stock is holding up fine, however, there is a lot of resistance around the $5.80 level.  Therefore, the upside is limited at this time.

Other leading airline stocks that are trading higher today include Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), and United Continental Holdings Inc (NYSE:UAL). The upside could be limited on the daily charts for all of these stocks at this time. Should oil bounce or rally higher it would be prudent to expect the airline stocks to pullback or consolidate.

Nicholas Santiago
InTheMoneyStocks.com
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Recs

0

2011 Is The Year Of The Broken Stocks

December 14, 2011 – Comments (0) | RELATED TICKERS: GMCR , FSLR , NFLX

All of the major stock indexes topped out in early May of 2011. At that time, the S&P 500 Index traded as high as 1370.58, meanwhile, the Dow Jones Industrial Average traded as high as 12,876.00. This morning the S&P 500 Index is trading around the 1220.00 area and the Dow Jones Industrial Average is trading around the 11,910.00 level. It is safe to say that the major stock indexes have come under some serious selling pressure during the second half of 2011. The main catalyst for the market declines in 2011 is the large number of broken stocks that we have seen.

What is a broken stock? A broken stock is a stock that was a market leader and has now completely broken down and is no longer in favor by investors. The trend in these stocks has dramatically shifted from up to down and continues to look weak on the charts. While many stocks will break down from time to time this year we saw many fall from grace simultaneously. Here is the 2011 list of broken stocks.

Green Mountain Coffee Roasters Inc (NASDAQ:GMCR) topped out on September 20, 2011 at $115.97 a share. Traders and investors at that point began to distribute the stock with both hands. This morning, GMCR is trading around the $$44.60 level. The stock is trading below all of the important daily chart moving averages which put the stock in a confirmed downtrend. This stock is definitely one of the broken stocks of 2011.

Netflix Inc (NASDAQ:NFLX) could be the biggest bust of 2011. This leading video rental and streaming company topped out on July 13, 2011 at $304.79 a share. NFLX stock began a steady decline since that all time high pivot and is trading at $70.25 a share this morning. Netflix stock also trades well below the daily chart 50, and 200 moving averages, this puts the stock in a confirmed downtrend and in a weak technical position. The stock will have very good weekly chart support around the $50.00 area. We shall see if that is where it is headed in 2012.

First Solar Inc (NASDAQ:FSLR) was the most loved solar stock in the market over the past few years. In 2011 FSLR stock topped out on February 2, 2011 at $175.44 a share. This morning, FSLR stock is making a new multi-year low at $34.06 a share. Solar stocks crumbled this year after the Solyndra bankruptcy. Government subsidies for the solar industry will be much tougher to get approved. FSLR stock looks as if it may test its November 13, 2006 low of $23.50 a share. It is important to note that this date was also the first day that the stock debuted for trading.

AMR Corp (NYSE:AMR) is the parent company of American Airlines. This stock filed for Chapter 11 bankruptcy protection on November 29, 2011. The airline business faces many headwinds with high oil prices, and high labor costs. AMR Corp will emerge from bankruptcy again, however, many investors wonder how long it will take the next company in the industry to file bankruptcy.

MF Global Inc. was the biggest bust of the year. This financial stock was led by none other than Jon Corzine. He was the former U.S. Senator, Governor of New Jersey, and former CEO of Goldman Sachs Group Inc (NYSE:GS). This giant brokerage firm/hedge fund filed for bankruptcy recently. The company is coming under scrutiny by many government officials as client funds are still missing. MF Global is now gone and would certainly win the broken stock award for 2011.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

The Bernank Is On Deck

December 13, 2011 – Comments (0) | RELATED TICKERS: XLF , GS , MS

This afternoon, the Federal Open Market Committee (FOMC) will announce there interest rate policy statement. Most traders and investors are expecting the Federal Reserve to keep the Fed funds rate (overnight lending rate to the large banks) at zero percent. It is important to note that the Fed funds rate has been at zero percent since December 2008. Many investors are waiting to hear if the Federal Reserve Chairman Ben Bernanke mentions another plan to implement QE-3. While this action is not anticipated to happen at this time, the Bernank may hint that quantitative easing is possible in the future.

Traders should expect these markets to remain very volatile throughout the trading day. There are major problems in the European Union and the markets are reacting to every news report out of the region. The major financial stocks have begun to roll over this morning. This is certainly a sign that the news leaking out of the Euro-zone is not beneficial to the financial stocks. This will put even more pressure on the Federal Reserve to say something positive this afternoon.   

Nicholas Santiago
InTheMoneyStocks.com

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Recs

1

Today: Market Analysis And Keys To The Trade

December 12, 2011 – Comments (1) | RELATED TICKERS: SPY , BAC , UUP

The markets are seeing red today. New worries are popping up over Europe and the debt crisis. This is causing the Dollar to spike higher and in response, the markets are falling. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $123.77, -2.26 (-1.79%).

The markets are holding a choppy pattern of consolidation. Overall, this still has a bullish tone to it on a macro scale. The choppy action saw a big down move last Thursday, then an up move Friday and down the markets go again today. The net move over the last week or so has been flat. This flat choppy action is the bullish consolidation that makes the macro pattern bullish. Should this pattern hold, upside will come later this week.

Bank stocks are leading the decline. This is normal when European worries drive markets lower. Bank of America Corp (NYSE:BAC) is trading at $5.42, -0.30 (-5.24%). The macro pattern on the financial stocks continues to be bullish even with the decline today. This confirms the S&P 500 macro bullish setup as well.

Commodities are also taking a big hit today. This is a result of a very strong Dollar. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.36, +0.24 (+1.08%) . Commodities like oil, gold and silver are all plunging. The iShares Silver Trust (ETF) (NYSEARCA:SLV)  is trading at $30.25, -1.08 (-3.45%).

While the markets look weak today, keep the emotion out of your thought process. Focus on the charts and they will lead you to the promised land of profit.

Gareth Soloway
InTheMoneyStocks.com


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Recs

0

Integrated Energy Losing Steam

December 12, 2011 – Comments (0) | RELATED TICKERS: XOM , COP , CVX

This morning, all of the leading integrated energy stocks are coming under selling pressure along with the major stock indexes. The energy sector accounts for nearly 15.0 percent of the S&P 500 Index, therefore, this index is extremely important as it holds a lot of weight in the market.

Exxon Mobil Corp (NYSE:XOM) is the largest leading energy stock in the market. XOM stock is declining lower today by $1.09 to $80.26 a share. Traders and investors should always follow this energy giant as it has the largest market capitalization in the stock market at $384 billion. XOM stock will have short term intra-day support around the $79.85 area.

Other leading integrated energy stocks that are trading lower this morning include ConocoPhillips (NYSE:COP), and Chevron Corp (NYSE:CVX). Often these leading stocks will find support and bounce higher when the U.S. Dollar Index declines and pulls back intra-day. Therefore, all traders should follow the U.S. Dollar Index very closely when trading the integrated energy stocks.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Asian Stock Indexes, Here Is The Trade

December 12, 2011 – Comments (0) | RELATED TICKERS: EWH , FXI , EWJ

Throughout 2011 most traders and investors have focused on the banking and sovereign debt  crisis in the European Union. Nearly every trading day is filled with news of different bailout plans for the large countries in the Euro-zone. This week, we shall switch gears a little and focus on the three leading Asian stock indexes. After all, the Asian markets are supposed to be the growth engines of the world. Some of the Asian stock indexes have lead the markets in the world since the 2009 stock market bottom.

The iShares MSCI Hong Kong Index Fund (NYSEARCA:EWH) topped out on November 8, 2010 at $20.24 a share. Since that high pivot the EWH has steadily made a series of lower highs. The EWH made a low on October 4, 2011 at $13.30 a share. On October 28, 2011 the EWH traded as high as $17.03 a share. Last week, the EWH finished at $15.73 a share which was near the daily chart 50, and 200 moving averages. Should the EWH rally into the end of the year it has the potential to reach the $17.50 level, this area would be very strong resistance. If the EWH reversed and traded lower from its current level traders can watch for near term daily chart support around the $14.75, and $14.00 levels. Place these levels on your charts and trade them accordingly.




China's Shanghai Index has really been the most important stock index in the world over the past six years. This leading stock index has lead the U.S. markets since November 2008. Many traders and investors in the United States will play the Shanghai Index by trading the iShares FTSE China 25 Index Fund (NYSEARCA:FXI). The FXI looks very similar to the EWH, however, the FXI is clearly trading above the daily chart 50 moving average. Last week, the FXI closed at $36.30 a share. The FXI will have important daily chart resistance around the $39.50, and $42.00 levels. Should the FXI decline from its current level traders can watch for near term daily chart support around the $34.50, and $33.00 levels.




Japan has been an economy in turmoil since it peaked in 1988. Many traders and investors will trade the Japanese market by using the iShares MSCI Japan Index Fund (NYSEARCA:EWJ). The EWJ made a 52 week low on November 25, 2011 when it traded as low as $8.83 a share. Since that low pivot the EWJ has rallied closing at $9.40 on December 9, 2011. Traders can watch for near term daily chart resistance around the $9.60 level. Should the EWJ trade above that resistance point the next important resistance level will be around $9.75, and $10.50 levels. If the EWJ reverses lower from its current level traders can watch for support around the $8.50 area.    


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Recs

3

Reason: Stocks Freak As Draghi Is No Bernanke

December 08, 2011 – Comments (1) | RELATED TICKERS: DIA , QQQ , SPY

The market collapsed lower today as the new ECB chief Mario Draghi told markets he would not save the day. Expectations had been high for the ECB to come in and buy bonds from Italy and other stressed nations. It was clear in the short term, the ECB will not do this. The markets fell on this news with the Dow Jones Industrial Average dropping over 100 points on the day. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $120.84, -1.18 (-0.97%) .

In reality, the fact that Draghi said he would not buy EU debt should be no surprise. Think about it this way. If these nations in the EU are going to be responsible going forward, he cannot go and bail everyone out. That would be a U.S. Federal Reserve move. Instead, they must sweat a little and get their own house in order. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $56.71, -0.37 (-0.65%).

The shock to the market is more so a fear that the new ECB head is hawkish and hardcore like the old ECB chief Jean-Claude Trichet. When Mario Draghi took over the post, many thought he was going to be a Ben Bernanke clone. This would mean he would bail out everyone just like the Federal Reserve did in 2008. This is obviously not the case, at least in the short run. As of now the stock market is adjusting to this new realization.  The Dollar is jumping on this new found fear. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.19, +0.12 (+0.54%).

Gold and silver are both dropping sharply as the Dollar surges as well. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading at $166.45, -2.89 (-1.71%). The iShares Silver Trust (ETF) (NYSEARCA:SLV) is trading at $30.78, -0.82 (-2.59%).

Gareth Soloway
InTheMoneyStocks.com
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Recs

1

Financial Stocks Are Steering The Ship

December 08, 2011 – Comments (0) | RELATED TICKERS: FAZ , DB , MS

All of the leading financial stocks are coming under some selling pressure this morning. The important Financial Select Sector SPDR (NYSE:XLF) is finally declining after an eight day rally. On November 25, 2011 the XLF was trading as low as $11.73 a share. Today the XLF is trading lower by 0.21 cents to $13.12 a share. Even with today's decline in the XLF this ETF is still $1.39 higher than it was on November 25, 2011. All in all, the XLF is still holding up well on the daily chart at this time. Traders can watch for some short term intra-day support around the $13.05, and $12.84 levels.

Some of the leading financial stocks that are coming under some selling pressure today include Goldman Sachs Group Inc (NYSE:GS), Deutsche Bank AG (NYSE:DB), Credit Suisse Group (NYSE:CS), and Morgan Stanley (NYSE:MS). The financial stocks could be very volatile today as the markets are moving on every comment coming out of the European Union. There will be a lot of news reports beginning today as the European Union summit begins today and lasts throughout the weekend.

Nicholas Santiago
InTheMoneyStocks.com

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Recs

0

Financial Stocks Are Steering The Ship

December 08, 2011 – Comments (0) | RELATED TICKERS: FAZ , DB , MS

All of the leading financial stocks are coming under some selling pressure this morning. The important Financial Select Sector SPDR (NYSE:XLF) is finally declining after an eight day rally. On November 25, 2011 the XLF was trading as low as $11.73 a share. Today the XLF is trading lower by 0.21 cents to $13.12 a share. Even with today's decline in the XLF this ETF is still $1.39 higher than it was on November 25, 2011. All in all, the XLF is still holding up well on the daily chart at this time. Traders can watch for some short term intra-day support around the $13.05, and $12.84 levels.

Some of the leading financial stocks that are coming under some selling pressure today include Goldman Sachs Group Inc (NYSE:GS), Deutsche Bank AG (NYSE:DB), Credit Suisse Group (NYSE:CS), and Morgan Stanley (NYSE:MS). The financial stocks could be very volatile today as the markets are moving on every comment coming out of the European Union. There will be a lot of news reports beginning today as the European Union summit begins today and lasts throughout the weekend.

Nicholas Santiago
InTheMoneyStocks.com

  [more]

Recs

2

The Key To Trading Is Timing

December 07, 2011 – Comments (0) | RELATED TICKERS: GMCR , NFLX , QQQ

How many times in your life have you heard someone tell you that they are bullish or bearish? Personally, I hear it everyday by countless people and even say it myself on a daily basis. These days we are all bombarded by the financial news throughout the day. The Europe Union is blowing up before our eyes on a daily basis, China is starting to slowdown, India is battling massive inflation, and Brazil cannot take the money printing by the central banks any more. The news is all around us causing us to form an opinion about the stocks market. In reality, it is very difficult to escape all of the opinion forming news.

Just think about how many traders made money in stocks such as Netflix Inc (NASDAQ:NFLX), and Green Mountain Coffee Roasters Inc (NASDAQ:GMCR) earlier this year. On the flip slip, just think about how many people lost money buying these stocks near or at their all-time highs. You see, it was the timing that caused these traders to make and lose money in these popular stocks. You could have listened to the story that was being sold in the media, or you could have looked at a chart and read the money flow that was moving that stock.

The charts are what traders need to concern themselves with. There are so many times when people are talking about doom and gloom in the markets and we see a massive rally follow. Then there were times such as 2007 when some famous talking head on the popular cable financial channel was calling for the Dow Jones Industrial Average to reach 15,500. We all know what happened as the markets crashed just a few months later. The bottom line, it is all about timing.

Traders must not care about the news or what the talking heads in the media are saying, they must care about the charts. The charts will ultimately tell you when the Powershares QQQ Trust (NASDAQ:QQQ), or the Proshares Ultra S&P 500 ETF (NYSEARCA:SSO) is going to make a move to the upside or the downside. If by some chance the trader is wrong after reading the charts then the trader must stop out and take the loss. The good thing about using charts is that you should know where to place the stop loss and it should not hurt you. Nobody can predict every stock market move, however, when you become good at reading charts you will put the odds in your favor to make money. If you use good stops and take good chart setups you give yourself a chance to make money in the market. If you listen to the talking heads with an opinion then you are simply gambling. Learn the charts if you want to have an advantage in the trading business.  

Nicholas Santiago
InTheMoneyStocks.com
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Key Stock Setups, Movers And Shakers

December 07, 2011 – Comments (0) | RELATED TICKERS: IBM , GOOGL , GS

As the markets hover on the flat line, some key names are heading towards master levels. International Business Machines Corp. (NYSE:IBM) continues to be one of the strongest stocks in the market. It made a new all time high today at $194.50. At this point, the stock is extended but has its eyes set on $200.00 per share. That will be the next resistance level that matters.

While Google Inc. (NASDAQ:GOOG) pauses today, the daily chart is setting up for another solid move higher. This move should take this technology giant to a double top from early 2011 at $642.96. Once there, a solid pull back is likely.

Goldman Sachs Group, Inc. (NYSE:GS) has one of the prettiest bull flag patterns on the daily chart this trader has seen in years. As long as it does not close below the 20 and 50 moving averages, it is in play. Should the flag pattern play out, the upside target is $110.00.

Another beautiful chart pattern can be seen on James River Coal Company (NASDAQ:JRCC) . This energy play continues to consolidate in a bullish manner above key support. Further upside is likely within days. A move to the upside could take JRCC to $11.30.

These are all key stocks to watch in a market that is in pause mode.

Gareth Soloway
InTheMoneyStocks.com
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Learn: Market Action Signals Coming Stock Pop

December 07, 2011 – Comments (0) | RELATED TICKERS: SPY , JPM , GS

The markets are trading slightly lower today. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $125.90, -0.36 (-0.29%). Over the last few days, the market has paused following a massive up move. This is a change of pace from big swings down and up in recent months. This pause and small pull back is known as bullish consolidation. The market actions dictate another stock market jump in the near future. It may start as early as Friday.

All eyes are on the summit in Europe which will take place on Friday. It is interesting how the markets are giving a leading indicator on the possible direction of the move. This up move coming soon could also coordinate with a Santa Clause rally.

Another strong leading indicator seems to be the banks. This is a sector that leads the market and it has been strong of late for the first time in months. Today, JPMorgan Chase & Co. (NYSE:JPM) is trading at $33.44, +0.21 (+0.63%) while the S&P 500 is flat to lower. In addition, Goldman Sachs Group, Inc. (NYSE:GS) has one of the hottest in spirit of bull flags on the daily chart, just waiting to rip higher within the next few days.

Lastly, the Dollar has a classic bear flag formation. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) shows a possible fall in the near future. Since the Dollar trades inverse to the market, a fall would signal a pop in the stock market.

These indicators are all pointing to a move up in the markets.

Gareth Soloway
InTheMoneyStock.com
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Retail Is A Mixed Bag Of Tricks

December 07, 2011 – Comments (0) | RELATED TICKERS: RTH , LULU , COST

Many traders and investors follow the retail sector very closely as a gauge of economic activity. This morning, the retail stocks are very mixed, some leading retail stocks are trading higher and some others are trading lower. The popular Retail Holders Trust (NYSE:RTH) is trading lower by 0.06 cents to $113.16 a share. Traders can watch for intra-day support around the $112.20, and $111.75 areas.

Some leading retail stocks that are declining this morning include Costco Wholesale Corp (NASDAQ:COST), TJX Cos Inc (NYSE:TJX), and Lululemon Athletica Inc (NASDAQ:LULU). Trader must follow each individual chart as these stocks seem to be trading in their own universe today and not with each other.

Nicholas Santiago
InTheMoneyStocks.com

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Two Stocks That May Shoot Higher

December 06, 2011 – Comments (0) | RELATED TICKERS: FSLR , DMND

As the market continues to hold the flat line today, many traders and investors are searching the market for the next big winner. Most stocks have rocketed higher in the last week as the Dow Jones Industrial Average jumped by almost one-thousand points. Here are two possibilities for big gains in the coming days.

The first stock is First Solar, Inc. (NASDAQ:FSLR) . After a run from $40.00 to a recent high of almost $50.00, the stock has pulled back. It is currently trading at $46.20, -1.55 (-3.25%). The key here is to watch the daily chart closely. A 50% retrace is $45.00 per share. In addition, this is the 20 moving average. As long as First Solar stays over the 20 moving average, it is a buy. This is a classic consolidation for a move back to a target of $51.00.

The second stock is slightly more risky, but offers a much higher reward. Diamond Foods, Inc. (NASDAQ:DMND)  is currently trading at $28.22, -0.92 (-3.16%). This stock has some accounting issues it is working through. The key attractive feature of this stock is multi faceted. First, it jumped higher last Thursday. Since then, it has consolidated, staying above the recent lows. This could be signaling a bottom. The second factor is the size of the drop. Just months ago the stock was over $96.00 per share. It is definitely oversold. While this does look attractive for a pop in the near future, be aware it carries a lot of risk as well.

Gareth Soloway
InTheMoneyStocks.com
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Chinese ADR's Signal Weak Relative Strength

December 06, 2011 – Comments (0) | RELATED TICKERS: BIDU , SOHU , SINA

Since April 2011, the important and highly followed Shanghai Index (China) has been under selling pressure. This leading Asian stock index has lead the U.S. and global stock markets for the past five years. At this time, the Shanghai Index remains very weak despite investors near term focus being placed on the European markets.

Baidu Inc (NASDAQ:BIDU) is the leading Chinese ADR in the stock market at this time. This stock looks to be trading in the middle of a wide trading range. The high end of the range is around the $150.00 level, the low end of the range is around the $115.00 area. Traders should follow BIDU stock to see which way this stock moves. This stock is likely to signal the near term strength or weakness in the Chinese ADR's.

Some leading Chinese ADR's that have been weak recently include Sina Corp (NASDAQ:SINA), Renren Inc (NYSE:RENN), and Sohu.com Inc (NASDAQ:SOHU). These stocks are trading below the daily chart 50, and 200 moving averages which puts these stocks in a weak technical chart position. , Therefore, until these stocks can regain the daily chart 50 moving average these stocks are susceptible to further declines in the near future.      

Some Chinese ADR's that are holding up well include China Unicom Ltd (NYSE:CHU), and Netease.com Inc (NASDAQ:NTES). Both of these stocks are trading above the daily chart 50, and 200 moving averages, this put these stocks in a strong technical chart position.

Nicholas Santiago
InTheMoneyStocks.com

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Financial Stocks Slide Early

December 06, 2011 – Comments (0) | RELATED TICKERS: XLF , JPM , MS

This morning, most of the leading financial stocks are coming under some early selling pressure. The Financial Select SPDR ETF (NYSE:XLF) is trading lower by 0.08 cents to $13.08 a share. Traders can watch for some intra-day support around the $12.90, and $12.70 levels. The daily chart of the XLF is also due for a pullback or some consolidation after surging higher by more than 10.0 percent over the past week.  

Some of the leading financial stocks that are trading lower today include J.P. Morgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C), Blackrock Inc (NYSE:BLK), and Morgan Stanley (NYSE:MS). The stocks in this sector look to be trading very close together at this time. Most often, these stocks will trade along with the XLF intra-day.

Nicholas Santiago
InTheMoneyStocks.com

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Agriculture Stocks Fail To Sprout

December 05, 2011 – Comments (0) | RELATED TICKERS: POT , AGU , CF

The leading agriculture stocks have not really rallied higher with the major stock market indexes. Traders can simply look at a chart of Potash Corp Sask Inc (NYSE:POT) which is the leading agriculture stock in the market at this time. The stock appears to be very weak. POT stock is trading below the daily chart 50, and 200 moving averages which put the stock in a confirmed downtrend and in a poor technical position on the charts. The stock will have some short term intra-day support around the $41.65, and $41.45 levels. Should the stock break and close below the $39.50 area on the daily chart there will not be any meaningful support until the $35.00 level.

Some of the other leading agriculture stocks that remain weak on the daily charts include Mosaic Co (NYSE:MOS), Agrium Inc (NYSE:AGU), and CF Industries Holdings Inc (NYSE:CF). All of these stocks are trading very closely together at this time. Traders should use caution when trying to buy this sector until they can stage some type of reversal on the daily charts.

Nicholas Santiago
InTheMoneyStocks.com
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High Oil Will Eventually Hurt The Markets

December 05, 2011 – Comments (0) | RELATED TICKERS: UHN , USO , UGA

This morning, the price of WTI crude is trading above $102.00 a barrel. Normally, during the holiday season the price of oil will usually increase and trade higher. This is a time when people will begin to travel more by air and car. It is also the start of the winter heating season as temperatures begin to drop in North America and Europe. The big question that many investors are asking themselves is how high will oil trade before the price becomes a negative on the consumer?

On May 2nd, 2011 WTI crude traded as high as $114.83 a barrel. That high print in crude marked the high for the year in the Dow Jones Industrial Average and the S&P 500 Index. High energy prices are considered a direct tax on the consumer. Anytime that oil has traded over $90.00 a barrel for any considerable period of time it has caused another major stock market correction. At this time, WTI oil is trading above the important 50, and 200 moving averages. This tells the world that oil is in an uptrend and in a very strong technical position. The next important resistance level will be around the $105.00 level for WTI crude.

Gasoline has definitely lagged the price of oil over the past month. The United States Gasoline Fund (NYSEARCA:UGA) is trading around the $48.33 level this morning. The UGA is also trading below the important daily chart 200 moving average which is around the $49.50 area. As long as gasoline remains steady at the pump this could help keep the stock markets intact for a bit longer and less effected by high oil prices. The same case can be made when looking at the United States Heating Oil Fund (NYSEARCA:UHN). The UHN is also lagging the price of WTI crude as it trades below all of the major daily chart moving averages. If and when the UHN trades above the $36.00 level, the price of heating oil is going to start to hurt the consumer.

Traders and investors should also remember that oil is very sensitive to weather, geopolitical events, and the value of the U.S. Dollar. Anytime there is talk of a war in the Middle East, oil is likely to trade higher. Either way, high energy prices will eventually hurt the stock markets.

Nicholas Santiago
InTheMoneyStocks.com

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Weekly Report: Gold Mining Stocks, Here Is The Trade

December 05, 2011 – Comments (0) | RELATED TICKERS: NEM , AUY , GDX

Last week, the major stock market indexes inflated sharply higher. The highly followed and popular Dow Jones Industrial Average (DJIA) gained 787.0 points by the close on Friday afternoon. The catalyst for the stock market rally last week was once again, the central banks around the world stating they would provide liquidity for the frozen banks. This announcement is simply more of the same news that many traders and investors recall hearing in September 2008. Perhaps this time around thing are different and the markets are really going to heal, however, it appears that it is simply a traders market for the foreseeable future. When central banks intervene in the markets on a daily basis the precious metals will be active. One particular sector that was extremely volatile last week was the leading gold mining stocks. This week, we shall examine three different stocks in the gold mining sector and find where the best near term support and resistance levels are. Make careful note of these levels, place them on your charts as they will present trading opportunities.  [more]

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Airlines Take Off, Know These Levels

December 02, 2011 – Comments (1) | RELATED TICKERS: AAMRQ , DAL , LUV

Ever since AMR Corp (NYSE:AMR) filed for bankruptcy the other leading airline stocks have taken off to the upside. Many of the airline stocks have surged higher by 10.0 percent or more in just five trading days. While these airline stocks have gotten hot recently they are starting to near important resistance levels. Traders should not expect these stocks to keep the ascending path without a little turbulence soon.

This morning, Delta Air Lines Inc (NYSE:DAL) is trading higher by 0.08 cents to $8.62 a share. On November 25, 2011 the stock was trading as low as $7.08 a share. This is a massive move for this stock in such a short amount of time. Traders must watch for short term daily chart resistance around the $8.90 - $9.00 area. The stock will have some intra-day resistance around the $8.77 level.

Many of the other leading airline stocks such as United Continental Holdings Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), and JetBlue Airways Corp (NYSE:JBLU) are all nearing important daily chart resistance. Traders should start to look for these stocks to pullback a little off these recent highs very soon.

Nicholas Santiago
InTheMoneyStocks.com

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Financial Stocks Jump Out Of the Gate

December 02, 2011 – Comments (0) | RELATED TICKERS: XLF , JEF , GS

This morning, all of the leading financial stocks are trading sharply higher. This sector is extremely important for all traders to follow on a daily basis. When the financial stocks rally it is usually a good sign that the major stock indexes will hold up. Since the November 28, 2011 pivot low the stock markets have rallied higher by 8.0 percent. This is a huge move in such a short period of time and the rally has been led by the large financial stocks.

The Financial Select Sector SPDR ETF (NYSEARCA:XLF) is a very good way of tracking the financial sector. Today the XLF is trading higher by 0.22 cents to $12.95 a share. Short term traders can watch for some intra-day resistance around the $13.03, and $13.25 levels. The daily chart is now trading above the 20 and 50 moving averages which indicates a short term sign of strength.

Other leading financial stocks that are trading higher this morning include Jefferies Group Inc (NYSE:JEF), Goldman Sachs Group Inc (NYSE:GS), Deutsche Bank AG (NYSE:DB), and even Bank of America Corp (NYSE:BAC). Most of the leading stocks will follow the XLF very closely at this time.

Nicholas Santiago
InTheMoneyStocks.com

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Stock Market Analysis From The Pros

December 01, 2011 – Comments (0) | RELATED TICKERS: DIA , GOOGL , AMZN

The markets are hovering on the flat line today. This is what is called a pause or consolidation day. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $120.13, -0.07 (-0.06%).  A pause or consolidation day tells pro traders that the market may be looking for more upside early next week. This type of pause day occurred on Tuesday, after the massive rally on Monday. It was a precursor to the even bigger rally yesterday of 500 points on the Dow Jones Industrial Average.

Technology is the stronger sector today with stocks like Google Inc. (NASDAQ:GOOG)  pushing higher. Amazon.com, Inc. (NASDAQ:AMZN) is also having a strong day, trading at $197.55, +5.26 (+2.73%).

The markets have been on a yo-yo of news, stemming from Europe. While all eyes have been focused on Europe, slowly economic news in the United States has improved. Tomorrow, the closely watched Non Farm Payrolls and Unemployment Report will be released. These will have an impact on the markets but still overshadowed if something happens in Europe.

Stocks to watch today included Diamond Foods, Inc. (NASDAQ:DMND). After dealing with accounting issues, the stock is finally bouncing. It is trading at $30.00, +2.25 (+8.11%). In addition, MasterCard Incorporated (NYSE:MA) hit major resistance on the daily chart at $379.50. It has started its pull back already and will most likely continue.

Gareth Soloway
InTheMoneyStocks.com
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All Of The Players Are In Place For An Inflation Extravaganza

December 01, 2011 – Comments (0) | RELATED TICKERS: UBS , JEF , CS

Yesterday, all of the major stock indexes around the world surged higher after the central banks announced the coordinated intervention for the banks holding European debt. This action by the central banks is a repeat of the action taken back in September 2008. We all know what happened shortly after that intervention in 2008 as the stock markets cratered into March 2009. This time around the central bankers will probably be a bit smarter and the current scenario will not be as dire so soon. In other words, the liquidity pump will be kept on turbo mode. The problems will seem a little better than they really are.

Recently, the European Central Bank (ECB) had a changing of the guard. The former President of the ECB Jean-Claude Trichet has been replaced by Mario Draghi. Now it is important to note that Draghi was the vice chairman and managing director of  Goldman Sachs International. This guy lowered the key interest rates in the European Union on his second day in power by 50 basis points. In other words, Draghi is ready to inflate the markets at all costs. Italy, France, and the United States have all had talks of making the ECB more like the Federal Reserve. You see, the Federal Reserve can print all the money they want. Just look at the recent reports and you will see that they have bailed out the banks to the tune of over $7 trillion. At this time, the ECB cannot print money to bail out the banks and this is exactly what is going to change very soon. The ECB will soon be just like the Federal Reserve and they will begin to print money and simply monetize the debt.

Everyone knows that when you monetize the debt it causes inflation. This is what is coming down the road. This plan will take some time to implement, however, it won't take that long. The institutions know this and will simply play the inflation game the same way they have in the past. Inflation is coming, and it will come in a big way. Traders and investors should continue to be cautious as these stock markets are likely to be extremely volatile over the next year while these central banks get there plans in order.  

Nicholas Santiago
InTheMoneyStocks.com

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