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Stock Market Update: Trades Of The Day

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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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