InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Markets Up, But Cannot Cut Through Key Level

The SPDR S&P 500 ETF (NYSE:SPY) is higher today after the late day sell that gave up the gains yesterday. While the markets are strongly higher, they cannot cut through the master resistance level of $110.85 - $111.10. This level is a major point for the markets that incorporates the pivot high from June 3rd, 2010 and the sixty minute 200 moving average. To get through this level, the financial stocks which have been lagging must participate. Up until now, the rally the last four trading days has been commodity based, as the dollar has fallen and the Euro jumped. Stocks like Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) must take the lead. If they can do that, this market has further upside in the short term. Continue to watch for a close over $111.10 on the day.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Micro Oil And Gas Starts To Wake

Small cap and micro cap oil and gas plays have been in hibernation for months now. Over the last few days, it appears some are waking up. Investors are seeking these cheap oil and gas plays out in hopes of seeing more business flowing to them as individuals boycott and shy away from large cap oil companies. The hatred towards BP is directly helping these small caps or at least that is what investors are thinking. In addition, the halt on drilling in the deep water may have a long term impact on oil prices, pushing them higher. Many of these small and micro cap oil stocks have been overly punished due to lack of volume in recent weeks. As the volume dries up, small cap stocks often times will get hit even harder.

Two oil and gas stocks that have rocketed higher in the last two days are Blue Dolphin Energy Company (NASDAQ:BDCO) and Pyramid Oil Company (AMEXDO). Blue Dolphin Energy was trading at $0.20 just three days ago. Today it hit a high of $0.61. Truly an amazing 200% run. Pyramid Oil is up over 30% today. Another one that has jumped in recent days is Royale Energy, Inc. (NASDAQ:ROYL). This stock was trading just above $2.00 a week ago. It now finds itself hitting a high of $2.58 today.

There are still small and micro cap oil stocks hovering at their lows that look interesting to me. In general, I try and find stocks at their dead lows when others in the sector that match their description start to jump. This is known as a sympathy play in my methodology. I am keeping my eye on Tri-Valley Corporation (AMEX:TIV), SMF Energy Corporations (NASDAQ:FUEL) and have picked up a little Trico Marine Services Inc (NASDAQ:TRMA) for my portfolio today. While these stocks carry a lot of risk, if the sector really starts to take off, these should follow. To get more guidance, education, trading ideas and plays, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Gold Soars, Small Cap Gold At Lows

Gold is soaring to new all time highs today as the SPDR Gold Trust (ETF) (NYSE:GLD) is higher by over 1% again. The previous 52 week high on the GLD was $122.45. Today, the high so far is $123.33. Spot gold is at $1,259.90, +$12.40. This run in gold is most likely not even close to over as the printing of money by every major power in the world continues. As paper money becomes worth less and less due to dilution, gold in response will go higher.

As stocks like Newmont Mining Corporation (NYSE:NEM) hit new 52 week highs on golds surge, there are some small cap gold stocks that are sitting at their lows. To me, these have a great value and just have not been picked up by the hedge funds and money managers. Fundamentally, the higher gold goes, these gold plays should advance as well in response. I picked up a little Vista Gold Corp. (AMEX:VGZ) today because while gold is hitting new 52 week and all time highs, this stock is actually near the recent lows, trading at $1.78. The 52 week high is $3.38. The chart shows it has not yet responded to the rise in gold in any way, shape or form.

Bottom line is this, any company that mines or has gold should be moving up with gold. Vista Gold Corp. seems cheap at these levels and looks to be very low risk for a possible huge upside reward.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Financial Stocks Still Clouded By Lawsuits and Regulation

Financial stocks still have a dark cloud over them due to the continued litigation threat and looming financial regulation. Stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are mixed on the day as the markets hover around the flat line. The key here is to get the financial regulation behind them. As long as it hangs over the sector, these are likely to have trouble rallying in a major way.

Chart wise, all these are just off their recent lows. Goldman Sachs has pushed up into the 20 moving average on the daily and is seeing a pull back from yesterday continue today. Support remains the recent low of $131.00. If that breaks, $125.00 would be sure to follow. If Goldman can break through the 20 moving average on the upside, this could soar quickly to $145.00. However, bottom line is getting this financial regulation over.

JPMorgan Chase has a much more solid chart on the daily. The stock pushed through the 20 moving average a few days ago and is holding above it. It is now consolidating in a slightly bullish manner. As long as JPM holds the 20ma, this has upside potential in the short term, though limited with financial regulation looming. First target could be up to the 50ma and gap fill at $40.75. Should it break back below the 20ma, watch out as a sharp fall down to $37.00 may occur.

Wells Fargo and Morgan Stanley have similar charts to Goldman Sachs. Use the same thinking for these two as with Goldman Sachs. JPM chart wise is definitely the strongest but still has risks because of the financial overhaul coming down the pipe. For more guidance, education, swing trade alerts, videos and analysis, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Housing Stocks Bottom Off Ugly Data

The market moved lower early as more homes sales data shocked Wall Street. The Commerce Department reported new home sales crashed 33% in the month of May. Sales fell to a seasonally adjusted rate of 300,000, this is the lowest rate of all time. Analysts were expecting a drop of 20%. The markets which had opened flat on the day took a nose dive on this news. However, since then, they have recovered nicely.

Retail investors would have thought this news would have crushed stocks like Toll Brothers, Inc. (NYSE:TOL), KB Home (NYSE:KBH) and The Home Depot, Inc. (NYSE:HD) but it has not. Initially on the news, these stocks dropped sharply but quickly recovered. Toll and KB Home have gone positive and Home Depot is near the flat line. Why were these not crushed? Simply put, the news was already baked into the cake. Take a look at each and every one of their daily charts. They have all fallen drastically in the last couple months, sitting at 52 week lows. This tells us that today may have been the capitulation day for the home builders in the short term.

Keep a close eye on this sector, this massive drop in home sales is somewhat expected since the tax credit has now expired. These may be putting in a bottom today and may have a 10% upside potential from here into mid to late July. To get more information, analysis, guidance, education and swing trades, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Gap Fill Signals Buy For Key Stocks

The markets have been hammered today on the back of more worries about a major double dip recession globally and in the United Sates. The SPDR S&P 500 ETF (NYSE:SPY) have been slammed down to the InTheMoneyStocks master level of $107.50. As this master level was hit, key stocks filled key gaps and became a short term swing buying opportunity.

The first stock that looks to be ready to get a short term bounce is Chevron Corporation (NYSE:CVX). Just last Monday, four days ago, Chevron gapped higher to the 50 moving average on the daily chart. Early in the day it hit a high of $77.25. By the end of the day, it had fallen negative and today it hit a low of $70.80. Yes, four days later, Chevron is almost 10% cheaper. Not only is this a nice discount but if you look closely, there was a closing gap fill level on the daily at $70.79. This happened on June 10, 2010. Today, the low of the day officially filled the gap. In my humble opinion, this is a no brainer swing trade long from this level.

Exxon Mobil Corporation (NYSE:XOM) is another one much like Chevron and should be treated the same way. After the pull back the last four days from the 50 moving average and a high of $64.50. Exxon hit a low today of $60.05. This will should also have a great bounce in the short term. To get more swing trades, guidance on the markets and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Weekly Market Master Report

The S&P 500 Index is truly the pulse of the stock market . This index consists of 500 major stocks that are market cap weighted. It is important to remember that most people in the public watch the Dow Jones Industrial Average (INDEXDJX:.DJIA). The DJIA represents just 30 blue chip stocks that are price cap weighted. While the DJIA should still be followed it is important to realize that just one high priced stock will effect the index much more than a low priced stock. Therefore, a stock such as International Business Machines Corp. (NYSE:IBM) is more important than General Electric Company (NYSE:GE), despite the fact that the market capitalization of both companies is very similar. Therefore, the S&P 500 will give a more broad and accurate picture of the market.

This past week the S&P 500 Index lost 42.00 points for the week as the options expiration prop job came to an end. It is very important to note that the S&P 500 Index is still above the May 25th pivot low and that should be respected. As long as the index holds above that critical level it could still bounce around. This market downturn is now nine weeks in length and has been the sharpest of the corrections since the March 2009 low. The weekly support level is 1040.00 at this time. Next week will be interesting to see if the market can bounce back ahead of a major holiday in the U.S. on July 4th. This weekend was also the G20 meeting in Toronto, Canada where the different nations will speak about their economic concerns. Prior meetings of this type have coincided with short term bounces afterward.

Traders and investors can utilize the SPDR S&P 500 ETF (NYSE:SPY) as an alternative means of tracking the S&P Index.

The SPDR Gold Trust (ETF) (NYSE:GLD) finished the week basically unchanged near the all time highs. Gold remains in a very strong weekly and monthly uptrend at this time. The nine year bull market in the precious metal is alive and well. Many people are asking if gold is in a bubble since there are so many people in the public talking about it and so many commercials telling people to buy it. While these are normal concerns and typical signs of a bubble, if you ask 100 people that you know if they own any gold bullion or gold coins the chances are that they will say no. In fact most people who own any gold at all simply own gold jewelry which is not 100 percent pure gold. Therefore, while gold could be due for a pullback or correction at anytime it is still unlikely that there is a bubble in the precious metal. Please remember that gold is not a fad, it has been the currency of choice throughout history. The GLD still remains strong on the weekly charts and will have resistance at the $125.00 level. The weekly support for the GLD is around the $115.00 area.

The United States Oil Fund LP (ETF) (NYSE:USO) captured another gain last week trading higher by 0.25 to $35.66. The weekly chart pattern on the USO is a slightly bearish one especially as price remains below the weekly 20 and 50 moving averages. In any case the USO has held the $31.60 support area and may just bounce around above that level. Please remember that crude is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar. The weekly resistance level for the USO is around the $37.50 area. The weekly support is still around the $31.60 level.

The U.S. Dollar Index dropped again this past week losing 0.38 cents for the week. Normally when the dollar declines the stock markets will inflate and trade higher. That was not the case this past week as the U.S. Dollar declined slightly and the stock markets dropped sharply. The U.S. Dollar chart still remains one of the most important charts to be followed by traders. The dollar will have minor support around the $85.10 area. The next major support after that level will be around the weekly 20 moving average which is $83.00.

Traders and investors that want to trade the U.S. Dollar index to the long side can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP). For the traders and investors that would like to trade the dollar to the downside or short the currency can use the PowerShares DB US Dollar Index Bearish (NYSE:UDN).

Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!

 

[InTheMoneyStocks]

Bullish Pattern Alert: Inverse Head And Shoulder

The markets and the SPDR S&P 500 ETF (NYSE:SPY) have an inverse head and shoulder possible breakout coming. Should the markets break to the upside above the inverse head and shoulder neckline, this market should head to $109.50 on the SPY. Note the chart below. The markets are hovering slightly higher on this extremely light volume Monday. This week the markets are awaiting the Non Farm Payrolls and Unemployment Rate on Friday. In addition, this coming week is the July 4th holiday. That will make for a very light volume week. Light volume usually is a positive for the markets and it appears we are seeing that today. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a new all time high of $123.56 before pulling back and turning negative. Oil is hovering just slightly negative on the day. The United States Oil Fund LP (ETF) (NYSE:USO) down 1%.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Here Is the Deal

This morning the U.S. Dollar Index is trading lower by 0.04 to $85.98. As we all know by now the dollar is the driving force in the market. When the dollar rises stocks simply deflate, and when the dollar declines stocks will simply inflate. This inverse relationship between the dollar and stocks has been very strong for quite a while. Until something changes and these two charts disconnect or decouple the dollar must be followed. As of late the stock market has still been weak regardless of the dollar. Therefore, the inverse dollar relationship with the stock market is reactionary and not proportional.

The ADP Employer Services report was looking for a gain of 60,000 private sector jobs and the report only showed a gain of 13,000. This was just more bearish economic news for the market, however, the market is holding up so far at the open. We shall see if the stock indexes can hold up throughout the session as every bounce higher is being sold recently.

Tesla Motors Inc (NASDAQ:TSLA) had a very successful IPO yesterday closing sharply higher than it's offering price. Today TSLA is trading higher by 1.27 to $25.18. This stock may need to consolidate yesterday's gain.

Spot crude is trading slightly lower to start the day at $75.82. The popular United States Oil Fund (NYSE:USO) is trading higher by 0.08 to $34.26. Should the dollar pullback oil may catch a bid higher. Other commodity names trading higher are United States Steel Corp (NYSE:X), and Cliffs Natural Resources (NYSE:CLF). Both of these names are extremely oversold on the daily charts and can be due for a bounce.

The bottom line is the movement of the U.S. Dollar. Should the dollar dip the stock market indexes will inflate and should the dollar rise the stock markets will inflate. Watch the dollar as it is still the most important chart out there.

Nicholas Santiago
Chief Market Strategist

 

[cm-phil]

Re: Here Is the Deal

Great post - really helpful. Where do you things going?

 

[chump]

Re: Here Is the Deal

This morning the U.S. Dollar Index is trading lower by 0.04 to $85.98. As we all know by now the dollar is the driving force in the market. When the dollar rises stocks simply deflate, and when the dollar declines stocks will simply inflate. This inverse relationship between the dollar and stocks has been very strong for quite a while. Until something changes and these two charts disconnect or decouple the dollar must be followed. As of late the stock market has still been weak regardless of the dollar. Therefore, the inverse dollar relationship with the stock market is reactionary and not proportional.

The ADP Employer Services report was looking for a gain of 60,000 private sector jobs and the report only showed a gain of 13,000. This was just more bearish economic news for the market, however, the market is holding up so far at the open. We shall see if the stock indexes can hold up throughout the session as every bounce higher is being sold recently.

Tesla Motors Inc (NASDAQ:TSLA) had a very successful IPO yesterday closing sharply higher than it's offering price. Today TSLA is trading higher by 1.27 to $25.18. This stock may need to consolidate yesterday's gain.

Spot crude is trading slightly lower to start the day at $75.82. The popular United States Oil Fund (NYSE:USO) is trading higher by 0.08 to $34.26. Should the dollar pullback oil may catch a bid higher. Other commodity names trading higher are United States Steel Corp (NYSE:X), and Cliffs Natural Resources (NYSE:CLF). Both of these names are extremely oversold on the daily charts and can be due for a bounce.

The bottom line is the movement of the U.S. Dollar. Should the dollar dip the stock market indexes will inflate and should the dollar rise the stock markets will inflate. Watch the dollar as it is still the most important chart out there.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

USD (DXY)Isn't that simple ,but if you're the same chap looking for a thin upward pre holiday market this week then ..have you considered taking up joinery or something ?

 

[chump]

Re: Here Is the Deal

USD (DXY)Isn't that simple ,but if you're the same chap looking for a thin upward pre holiday market this week then ..have you considered taking up joinery or something ?

I apologise the other idiots name was gareth ..try plumbing !

 

[InTheMoneyStocks]

Weekly Market Master Report - Lock 'N Load!

The SPDR Dow Jones Industrial Average ETF (NYSEIA) lost 4.85 for the week ending July 2nd, 2010. This is a decline of nearly 400 points on the actual Dow Jones Industrial Average index. It is safe to say the trend is down as it has been a violent decline since the April high. Many traders and investors are now looking at the head and shoulders top pattern that has now triggered. The measurement of that pattern should it play out to fruition will be a decline into the $84.00 - $85.00 area. That means that there is another 1000 points to go in order to satisfy this downside target on the Dow Jones Industrial Average index. Often when indexes or stock have such large targets they generally do not play out so quickly and will find support levels for bounces. Currently the DIA will have support around the $96.00 area. The next important support level for the DIA would be the $92.00 area. While the major market indexes look to be falling apart rarely will it occur when everyone is expecting it. Next week is going to be a critical time for the markets. This should be a summer to remember as major patterns and price levels are now in play.

Amazon.com, Inc. (NASDAQ:AMZN) is leading technology stock and a leading online retailer. Therefore, this stock carries a lot of weight when looking at the overall health of the market. Last week AMZN lost 11.86 to close at $109.14. This is a major decline for the tech and retail giant. The stock will and does have some important support levels around the $106.00, $101.00 and $96.00 areas. Last week the $106.00 area was tested and held up with a slight bounce. Should this level break down and fail to hold the $101.00 area could come into play as a short term bounce area. It is important to remember that overall market weakness can cause any support level to fail.

The leading financial stock in the market is Goldman Sachs Group, Inc. (NYSE:GS). When this stock was accused of fraud by the SEC in mid- April the stock market declines were not too far behind. GS and most other important financial stocks could catch a bid once the financial regulation bill is completed in Washington. At this time the stock is trading below the important $142.00 level. The next important support levels for the stock are $130.00, $125.00, and $118.50. Goldman Sachs can and will often lead the market. Therefore, should the stock bounce or catch a bid other financial stocks and sometimes the market indexes will also rally higher. The same can be said for the downside when it comes to this major financial giant.

SanDisk Corporation (NASDAQ:SNDK) hit a wall a couple of weeks ago around the $50.00 level. The stock has sold off by nearly 10.00 points from the recent 52 week high reached on June 21, 2010. This company is still one of the leading technology stocks and still remains in a technical uptrend. Sandisk Corp is one of the rare few stocks that is still trading above its weekly 20, 50, and 200 moving averages. Therefore, this stock is a likely candidate to rally higher should the overall market indexes catch a short term bid. Sandisk Corp will have important support levels around the $41.00, $38.50, $35.00, and $31.90 levels.


Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!

 

[InTheMoneyStocks]

Master Pivot Signals Rally In Markets

The turn date Chief Market Strategists alerted to on July 6th and 7th, 2010 to their premium members has been a perfect profit hit. The markets are surging higher today after the small up day yesterday. Worries continue to decline across the board as commodity, financial and technology stocks are getting scooped up quickly in a buying frenzy. Earnings season starts next week and Wall Street is beginning to believe earnings will not be as bad as the market has priced in. In addition, next week is options expiration and due to the heavy put buying in the market in the last month, it seems likely the markets will get a bounce in the opposite direction.

The SPDR S&P 500 ETF (NYSE:SPY) continue to hover near the highs of the up 1.4%. Commodity stocks are finally rallying with Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) leading the charge. In addition to the gains in the commodity sector, the financial stocks are rallying. Stocks like Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are having stellar days.

The turn date was isolated and revealed early to mid last week. Based on the charting proprietary methodology of Chief Market Strategists, they were able to decipher that July 6th and 7th the market would turn higher. This was released to the Research Center members and Intra Day Stock Chat members. Everyone positioned themselves accordingly and are now reaping the rewards in the form of profits. The SPY has a major level of resistance at $104.50 and then $105.00. Ultimately, we could see this market chop around and eventually rally to $107.00.

The key with any rally that is going to hold is to see the financial and commodity stocks rally together. Today that is happening and is a major positive for the market. To get more information, guidance, swing trade calls and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Markets Cheer Jobless Claims But Stall

The markets gapped higher again today, trying for a third straight up day and a five percent gain in total. Jobless claims finally showed a solid drop coming in at 454,000. The 450,000 level is a major milestone. Wall Street is hoping next week we will see a move below that key level. Continuing claims also dropped dramatically. However, it is highly likely that many people are no longer able to collect unemployment. That would result in the dramatic drop in continuing claims.

The markets gapped higher today to the $107.00 level on the SPDR S&P 500 ETF (NYSE:SPY). Initially the markets inched higher but quickly fell back down. On a technical analysis basis, the market is extremely extended from yesterday, it needed to pause and have a small pull back. Since that gap higher, the markets have fallen to gap fill and are hovering slightly higher on the day.

Financial stocks which helped the market rally the last couple days are stalling and pulling back. The two key stocks to watch are Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM). Both are down over one percent on the day. The other key stocks responsible for helping the markets rally are also pausing today. These stocks are the oil and commodity plays. Follow Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM). These two stocks are fractionally lower on the day. As we always discuss, anytime a rally is sustainable, the financial and commodity stocks must participate. If they do not, be suspect of the rally. The last few days, these two groups did join forces.

The key turn date we alerted to worked out perfectly. This was given to our premium members of the Research Center and Intra Day Stock Chat last week. Positions long were taken in accordance and profits have been big. The master turn dates are based off unique technical analysis methods we have developed over years of market study. We encourage you to join the Research Center to get market guidance, swing trades, alerts, education and more.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Market Master Report - Breaking Boundaries!

What a week it was for the Dow Jones Industrial Average (INDEXDJX: DJI)! The highly followed index gained 512.00 points from the close of last week. In the previous Weekly Market Report I pointed out the 96.00 area as a support and mentioned that the market will rarely rollover when everyone is expecting it to do so. This week the head and shoulders top formation that was in place and being viewed by everyone is now a failed pattern which can often lead to a large move in the opposite direction. This is exactly what occurred last week. This coming trading week is also an options expiration week which is usually very choppy and volatile. Something interesting to take note of is that the only two corrections prior to the April 2010 top were for about 7-8 percent each and this recent correction was for around 15 percent from peak to trough before this week's bounce. Symmetry anyone?

The SPDR Gold Trust (ETF) (NYSE:GLD) started last week lower before climbing back at the end of the week to close basically flat. The very popular GLD still remains in a strong weekly uptrend. As long as price remains above the weekly 20 and 50 moving averages the trend is intact and can be bought on pullbacks. Spot gold remains in a bull market that started in 2001. Therefore, corrections along the way will occur for the precious metal. It is very important to realize that gold is the world's true reserve currency since recorded history, and should do well as long as central banks around the world continue to print money in order to inflate stock market indexes. Learn our key levels, understand what moves Gold and commodities, the profits will follow.

Research In Motion Limited (USA) (NASDAQ:RIMM) has been a beaten down stock since late March 2010. This past week the stock reversed sharply higher from a severely oversold condition on the weekly chart. As long as the overall stock market holds up RIMM could test the $55.00 level in the near term. The stock will also have major weekly chart resistance around the $61.00 level should it trade back up there. Research In Motion LTD is facing major competition from the likes of Apple Corp (NYSE:AAPL), Motorola Inc (NYSE:MOT), and countless other technology companies in the wireless communication space. There is plenty of money to be made trading the opportunities presented in this stock and sector.

Monsanto Company (NYSE:MON) is a leading agriculture stock that has been crushed in 2010. This stock topped out in January 2010 at $87.06 and traded as low as $44.61 last week before surging higher and closing the week at $51.21. At this time this appears to be a severely oversold technical bounce. Please remember when the U.S. Dollar declines it will usually lift most inflationary stocks such as Mosanto Co, Potash Corp./Saskatchewan (USA) (NYSEOT), and The Mosaic Company (NYSE:MOS). Monsanto Co will have very good weekly resistance around the $55.00 level in the near term.


Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!

 

[InTheMoneyStocks]

Markets Surge Into The 50 Day Moving Average

The markets surged higher today after Alcoa Inc. (NYSE:AA) gave the markets something to cheer about in their earnings report. Alcoa reported a profit of $0.13 per share when analysts had expected $0.12 per share in earnings. Revenue also came in ahead of estimates. For a market that has been worried about a major slow down and possible double dip recession, this was a positive.

While a definite positive for the markets, there are significant negatives that must be recognized. First, the SPDR S&P 500 ETF (NYSE:SPY) just ran into the daily 50 moving average at $109.85. This level is a major resistance level. A pull back is expected off this level. In addition, a majority of this rally is on extremely light volume on the week prior and the week of options expiration. Lack of volume means lack of participation by institutional players. Without big money behind the rally, it is unlikely to last very long.

Today, Intel Corporation (NASDAQ:INTC) reports earnings after the market closes. This will be a major report for the markets, especially the tech sector. Intel is expected to report a profit of $0.43 per share. The whisper number among Wall Street traders is for a profit of $0.45 per share. Watch the margin number as well as revenue and outlook. Those will be most important as traders want to know what the future holds in regards to a possibly slowing economy again.

This rally we have seen over the last week and a half has come directly off the Master Turn Date. This was released to our members in the Research Center and Intra Day Stock Chat. It has been wide spread with commodities getting a major move higher. Stocks like Chevron Corporation (NYSE:CVX) have truly been a leader jumping from a low last week of $67.00 to a high today of $73.45. This stock is now short term extended and only a short distance from its daily 50 moving average.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Chip Stocks And Tech Outperform After Intel

Chip stocks are jumping today after Intel Corporation (NASDAQ:INTC) reported better than expected earnings and raised revenue guidance for the third quarter. Strong demand and solid margins propelled them over the last quarter. This positive earnings report is helping the whole chip sector run. While the markets are flat on the day, stocks like Broadcom Corporation (NASDAQ:BRCM) and Dell Inc. (NASDAQELL). As Intel shows the world solid earnings, analysts are left wondering if it is Intel specific or market wide. This will be seen in the coming days as JPMorgan Chase & Co. (NYSE:JPM) and Google Inc. (NASDAQ:GOOG) report on Thursday.

Technology as a whole is seeing a strong day today with commodity and financial stocks lagging. Strong momentum from Cisco Systems, Inc. (NASDAQ:CSCO) and stocks like QUALCOMM, Inc. (NASDAQ:QCOM) are keeping the tech sector higher along with Intel.

The leading stocks in the Dow and S&P 500 are having trouble today. JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) are all lower.

The markets are very extended short term. The action today shows just that. After great earnings from Intel, the futures were up 10 points on the S&P 500 last night. That has faded to a flat day today. This Chief Market Strategist is looking for a pause or pull back in the coming days.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Markets Pause, Gold Continues To Drop

The SPDR S&P 500 ETF (NYSE:SPY) is trading flat on the day at $106.66. After the massive drop on Friday, the markets seem to be taking a breather. This is often the case after an big move up or down and is called consolidation. In addition, the day after the weekend during the summer months is known for having some of the lightest trading volume of the year. Today is no different.

Gold, SPDR Gold Trust (ETF) (NYSE:GLD) is dropping sharply again. An in spirit of bear flag on the daily chart is playing out perfectly to the downside. After institutions got everyone so bullish on gold, it has now collapsed lower in dramatic fashion taking the small retail investors money with it. Essentially, after all the hype of massive short term inflation and running into safety as the Euro crashed, deflation is the real issue. I have been alerting to this deflationary issue for the last month. While the printing of money will cause long term inflation, assets are still being wiped out across the globe faster than the printing of money. Deflation in the short term is the higher risk, but not for the long term.

Short term gold may go a little lower although it does look semi attractive at the $114.50 level and then at the daily 200 moving average at $111.50 - $112.00.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

China Stocks Are The Best Buys Out There!

Speculation is running rampant today that China will end policies put in place to cool the housing market. Should these policies change and the government allow for a resurgence in growth, Chinese stocks may be at record cheap levels and be the best buys of 2010. Many Chinese stocks are trading at price to earnings ratios of as low as three, four and five. These depressed levels have been caused by massive fear of some gigantic depression in China coming soon. Bottom line is this, China is not going to allow that to happen in the near term. Maybe 10 years down the line it is possible or even 20 years, but not in the next year or two. The Chinese government has way too many tools to combat this and we are already seeing that with this major speculation on them allowing the housing market to surge again.

When looking at stocks in China, it is important to compare the possible growth there to other places in the world. The United States and Europe are likely to continue with little to no growth in the next few years. Does anyone actually think China will cease to grow? Not a chance in my opinion. If there is one area to be in it is China for growth and prosperity. That is what makes it so shocking to see Chinese stocks like Xinyuan Real Estate Co., Ltd. (NYSE:XIN), ShengdaTech, Inc. (NASDAQ:SDTH) and China Armco Metals, Inc. (AMEX: CNAM) trading at such small price to earnings ratios.

When all is said and done, if there is going to be any growth, it is going to come from China and the emerging markets. With so many stocks trading at such tiny P/E ratios, this is the place to be in my opinion. To get swing trades on China stocks, guidance and analysis on the markets, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com