Use access key #2 to skip to page content.

inthemoneystock (< 20)

Pre-Market News and Views

Recs

0

April 08, 2011 – Comments (0)

Oil is on the rise again this morning making a new 52 week high. WTI oil is trading higher by $1.15 to $111.45 a barrel. The stock market seems to love it as the S&P 500 e-mini futures(ES M1) are trading higher again this morning by 6.25 points to $1335.00 per contract. Who could have ever guessed that high oil would boost the stock market indexes on a daily basis? As a trader this is why we use charts and do not think too much about the geopolitical events in the world.

The problems in the Middle East and Northern Africa continue to escalate on daily basis. Today, Egypt is scheduled to have another massive protest. Traders and investors are keeping one eye on Saudi Arabia which is the largest oil producer in the region. Should any problems erupt in Saudi Arabia oil could see a super spike in price. Traders should remember it was $147.00 a barrel oil that broke the camels back in July 2008 and really sent the U.S. consumer over the edge.

The Asian stock indexes all rallied higher last night. The lone exception was the Sensex Index(India) closing lower by 0.71 percent. The Sensex had been overbought and due for some profit taking. The Nikkei 225 Index(Japan) rallied higher by 1.84 percent making this the leading Asian stock index last night. Japan continues to face major problems regarding their damaged nuclear reactors. The country also had another 7.1 magnitude earthquake yesterday.

Gold and silver are once again climbing to new highs. Silver reached the $40.00 level and this tells us that inflation is running high and central banks continue to inflate the markets. The world is being sold a global growth story at the moment, however, it is inflation that is causing that growth. The U.S. Dollar Index is trading sharply lower again this morning and this is the reason for the gap higher opens that occur almost every other day. Remember, when the dollar declines the stock market shines. In reality it is a trade off, devalue the reserve currency of the world and inflate asset prices. At least this is what gold and silver prices are telling the world at this time.



Nicholas Santiago
InTheMoneyStocks.com

0 Comments – Post Your Own

Featured Broker Partners


Advertisement