InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Re: Entry Alert: To Buy Solar Stocks

This trade did not trigger. And to say ITMS does not provide stops ahead of time is clearly a comment of someone who does not know the service. This was free analysis, and while this trade did not trigger many others have, and have been very accurate and useful. If you want insight into the exact details of what the Pros are trading, that is reserved for paying subscribers.

These guys don't set stops and targets ahead of time, only with hindsight so they can call the perfect trade after its already over.

In any case the FSLR chart looks horrible- it has been going sideways for the last 2 years whilst the rest of the market has been rallying hard. So unless you are buying for a very quick short term bounce, this is a huge warning sign.

 

[Liquid validity]

Re: Entry Alert: To Buy Solar Stocks

I certainly wouldn't rule out solar and green energy stocks in general in the extreme longterm.

What impact are newer oil industry techiques going to have:
Hydraulic fracturing.
Tar sand development.
Shale techniques.
3D seismic accuracy improvements.

Peak oil may have been reached with current technology, the decline in oil production could be slowed quite a bit by the increasing prevalence of these techniques.
If the USD's days as reserve currency are in doubt it would certainly pay the U.S. to examine all the possibilities regarding an increase in domesic production.
Which is exactly what is happening - maybe not soon enough for the potential USD / crude decoupling though...

 

[InTheMoneyStocks]

Gold and Silver Love The U.S. Dollar Decline

Gold and silver are directly benefiting from the decline in the U.S. Dollar Index. In fact, the entire stock market is rising as the U.S. Dollar Index declines intra-day. Gold and silver are both making new highs this morning. The SPDR Gold Shares is trading higher by 0.68 cents a share to $150.49 a share. The next important intra-day resistance level for the GLD should be around the $151.00 area.

The iShares Silver Trust(NYSE:SLV) is off to the races this morning. The SLV is trading higher by 0.59 cents to $47.95 a share. Traders must watch for intra-day resistance around the $48.00 and $48.50 levels. If the U.S. Dollar Index somehow bounces higher throughout the day this will put selling pressure on gold, silver and most everything else in the stock market.

Nicholas Santiago
InTehMoneyStocks

 

[InTheMoneyStocks]

Major Level Tagged, Markets Sell Off Highs

The markets opened sharply higher on news that Bin Laden had been killed and a continued fall in the Dollar. The SPDR S&P 500 ETF (NYSE:SPY) is higher, trading at $136.76, +0.33 (+0.24%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower, trading at $20.88, -0.07 (-0.33%). A shocking stat shows just how closely tied the Dollar and the markets are to each other in the opposite direction. The U.S. Dollar is down around 8% on the year while the markets are up 8%. This shows that the markets are inverse to the Dollar and explains one of the reasons why the Federal Reserve favors a weak Dollar policy.

The SPY opened at a massive resistance level from a pivot on June 18th, 2008. This level happens to be at $137.10 - $137.15. No sooner did the market hit that level, then a sell off took place. After a short move lower, the markets retested trying to break through again but failing. Another sell off took place, this one bringing the markets sharply lower to only minor gains on the day. This is a possible top on the markets in the short term.

Commodities started the day with heavy losses, however gold is now soaring with the SPDR Gold Trust (NYSE:GLD) trading at $153.01 +0.64 (+0.42%). Silver has recovered off of major losses, but is still down. The iShares Silver Trust (NYSE:SLV) is trading at $45.73, -1.15 (-2.45%)
but had been as low as $43.58 and the United States Oil Fund LP (NYSE:USO) is nicely positive, trading at $45.53, +0.38 (+0.84%).

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Rare Earth Stocks Dominate The Action

The rare earth stocks exploded on the scene in December 2010 when they spike higher during the holiday season. The sector that produces lithium, beryllium, indium, gallium, neodymium, and terbium continues to hold up well on the charts at this time.

Molycorp Inc.(NYSE:MCP) seems to be the leading rare earth stock in the sector. This stock remains in a choppy sideways base on the daily chart. The stock is trading above all of the major moving averages which puts the stock in a strong uptrend and a good technical chart position. This morning Molycorp stock is trading higher by $4.40 to $76.00 a share, which is a new 52 week high.

Avalon Rare Metals Inc.(AMEX:AVL) is another leading rare earth stock that is trading higher this morning by 0.57 cents to $9.40 a share. This stock is trading in a loose sideways base on the daily chart. This type of pattern could trade higher, however, loose consolidation patterns have a tendency to fail sometimes and break lower. Intra-day the stock will have resistance around the $9.55 area. Should the stock rally higher the next resistance area would be around the $10.00 level.

Rare Element Res Ltd.(AMEX:REE) is another leading rare earth stock based out of Vancouver, Canada. This stock has made a lower high pivot on the daily chart and this is a sign of likely weakness. However, a close back above the $15.53 area would put the stock in a strong technical chart position. This morning REE is trading higher by 0.76 cents to $14.61 a share. Short term traders must watch for resistance around the $14.85 and $15.10 levels. These are two short term levels where the stock could see some intra-day selling pressure.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Stronger Dollar, No Longer A Need For Gasoline

Today, the U.S. Dollar Index is surging higher by $1.09 to $74.12 per contract. This is the largest one day gain for the U.S. Dollar Index since January 5, 2011. As we have all learned by now when the U.S. Dollar Index declines the rest of the equity markets will decline lower. Today, gold, oil, silver, copper, steel, and most every other commodity that is trading in U.S. Dollars is plummeting lower as the dollar surges higher.

Last week, President Obama organized a gasoline task force in order to find the evil speculators that were driving up the price of gas. Well, I guess they found those evil speculators as gasoline is plummeting lower this afternoon, and its not Osama bin Laden. The United States Gasoline Fund(NYSE:UGA) is trading lower by $4.07 to $50.21 a share. This is a decline 7.50 percent in UGA during this trading session. Ah, it seems the evil speculators that were driving gasoline prices higher were the guys over at the Federal Reserve. These are people that are responsible for crushing the U.S. Dollar lower on a daily basis. When the dollar goes down, gasoline, oil, coal, copper, and every other commodity trades higher. So much for Ben Bernanke's, Abbot and Costello routine were he says that high gasoline is driven by demand.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Two Stocks Nearing The Master Level

The market is just slightly off of a mega top. Recently, the SPDR S&P 500 ETF (NYSE:SPY) hit $137.18 before reversing last week. The markets reversed primarily because the Dollar made a bottom and began to spike higher. While the markets seem toppy and may be seeing further downside, there are some stocks that are starting to look attractive.

Research In Motion Limited (NASDAQ:RIMM) has been crushed in recent months. Margin pressure, competitors like the iPhone and Droid are hammering profits across the board. The stock has been hit accordingly, dropping from a 52 week high of $70.54 to a current price of $44.86. The key to this trade is the pivot low from August 31st, 2010. This low level was $42.90 and represents a beautiful double bottom for a buy. The stock should find significant support here.

Marvell Technology Group Ltd. (NASDAQ:MRVL) is another tech stock that has been crushed in 2011. On January 19th, 2011, MRVL was trading as high as $22.00 before collapsing to its current level of $14.65. MRVL is in the semi sector and while many semiconductor players have been hot, MRVL has been cold as ice. While the chart looks ugly, it does show significant support at August 12, 2010 low of $13.90. This represents a buy level and should be utilized as such.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

It Is All About The Dollar

Does any takeover, or economic news in the market really even matter anymore? Today, Microsoft Corp.(NASDAQ:MSFT) bought Skype for $8.5 billion. The stock market does not care about that deal. The stock market only cares about the U.S. Dollar Index. If the U.S. Dollar Index dips or declines the major stock indexes will trade higher and vice versa. Nothing else even matters at this point. Wall Street simply wants to know if the inflation rally is still on or is it off.

Last Friday, the government reported a much better than expected job report. The major stock indexes soared higher after the announcement. However, once the U.S. Dollar Index traded higher that rally faded throughout the day and the major stock indexes barely closed higher on the day. The Wall Street computer algorithms are programed to trade inverse to the U.S. Dollar Index. Often the major stock indexes will trade inverse to the U.S. Dollar Index tick for tick. The same type of action can be seen this morning and it is not yet 10:00 am EST right now.

Everything inflates higher when the U.S. Dollar Index trades lower. The entire stock market rally from March 2009 has been on a weaker U.S. Dollar Index. In fact, the only corrections that the stock market has seen have been when the U.S. Dollar Index rallied higher. Oil, gold, silver, copper, coffee, cotton, gasoline, and almost every commodity except natural gas have benefited from a weaker U.S. Dollar Index.

The problems in Europe do not seem to be going away anytime soon. Greece is looking to possibly leave the European Union if they do not get more favorable borrowing terms. The problem is that if Greece does get new borrowing terms countries such as Ireland, and Portugal will also look to get more favorable lending terms. This is just another domino effect that will take place in the European Union. Should all of this transpire in Europe over the next few months then the U.S. Dollar Index could actually trade higher. Hence, when the dollar is higher the inflation rally over.

It will be very interesting to see how the central banks are going to handle this situation. Obviously, they will need to keep the U.S. Dollar Index down at all costs in order to keep asset prices inflating higher. Right now the CME continues to increase margin rates on many of the leading commodities in order to keep these prices from climbing. We shall see how they try and accomplish this task in the coming months.

Nicholas Santiago
InTheMoneyStocks

 

[justy]

Re: Pre-Market News And Views March 16th 2011

What is pre market trading? When you hear people talking about pre market stock trading, they are discussing futures trading on the stock market. This is usually speculating on how the market will react upon opening and continue to react throughout the day. This type of trading is also known as day trading in which the investor is looking for a short term payoff rather than a long term investment when buying and selling stocks. It can be one of the most lucrative and easy ways to make money, if you take the time to learn the secrets.

 

[InTheMoneyStocks]

It Is Friday the 13th, Can The Dollar Decline Enough To Save The Markets?

It is the dreaded Friday the 13th, can the U.S. Dollar Index decline enough to save the major stock market indexes again? Yesterday, as soon as the U.S. Dollar Index declined from its intra-day high the stock market indexes all posted gains into the close. I'm not complaining, however, this is getting ridiculous already when the only chart of any importance is the chart of the U.S. Dollar Index.

This morning the U.S. Dollar Index looks like a raging animal that is trying to break free from its cage. The debt problems in Europe seem to be increasing by the minute as the problems in Greece, Portugal, Ireland, and others remain. The saving grace for the markets today is that it is a Friday and rarely do we have a sharp decline on a Friday. You see, Friday's are the end of the work week for most people. This is when people will usually spend money as the weekend begins. If people do not start to spend more money then the economy does not function and all of this quantitative easing by the Federal Reserve will have been a wasted experiment.

Consumer spending accounts for roughly 70.0 percent of the gross domestic product(GDP) in the United States. Therefore, it is very important that people start to spend more money. If you have not noticed, there have been very few Friday trading sessions when the Dow Jones Industrial Average closes down more than 100.00 points. Often the markets will trade flat to slightly positive. If someone goes back and looks at a chart there have been less than a dozen sharp sell offs on Friday's in the past two and a half years. Therefore, we expect a flat to slightly positive trading session today.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Gold And Silver On The Move, Watch These Resistance Levels

Gold is trading higher seven points this morning to $1500.00 an ounce. The SPDR Gold Shares (NYSE:GLD) are trading higher by 0.80 cents to $146.43 a share. Short term traders must watch for short term intra-day resistance around the $146.66 area. Should the GLD trade through that level the next intra-day resistance area will be around the $147.25 level.

Silver has also bounced higher this morning as the U.S. Dollar Index has declined lower. The iShares Silver Trust started the day trading around the $33.70 level. Since the U.S. Dollar Index has plunged lower the SLV has traded sharply higher and is now positive on the session trading at $34.40 a share. Short term traders should watch for resistance around the $34.70 area. Should the SLV trade higher later in the session traders must watch the $35.25 area as the next important intra-day resistance level.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Where To Buy These Stocks

Out of favor stocks still need some love and if played correctly, these plays can return huge amounts of money in a short amount of time. The key is to catch an out of favor stock at the dead low support area, prior to a gigantic bounce. These type of returns can be over 10% in days and over the longer term, much, much more. With the market in a rare down cycle, it is important to find the appropriate levels and wait patiently. Below are key stocks and their buy levels.

After warning of a "tough" quarter just a couple days ago, Hewlett-Packard Company (NYSE:HPQ) has dropped dramatically. The stock broke through support at $37.35 and is currently trading at $36.08, -0.83 (-2.25%). Many Wall Street traders and investors are wondering where Hewlett-Packard will be a buy? Based on the chart, the buy level will be at $33.85. A sharp bounce should occur off this level, maybe even a long term low will be in place.

Cisco Systems, Inc. (NASDAQ:CSCO) is another company that has had many problems producing and meeting expectations. Wall Street has continually been disappointed with their earnings reports and guidance. In the latest quarter, restructuring has begun, fostering hopes of some sort of return to glory. Cisco is inching below major support today. Should the price not rebound and continue lower, it is destined for $14.00. In this range, a tremendous buy would be initiated on the stock based on pure technical analysis. While this level is far away, never underestimate a stock or a market in punishing a habitual loser. The masters in the market will lay in wait for this one at that level.

Bank of America Corporation (NYSE:BAC) is another beaten down stock. This financial firm was trading over $15.00 per share in January. It is now currently trading at $11.74, -0.16 (-1.34%). Based on its recent price action, Bank of America is heading lower. Where is it going to bottom? The answer to that is $10.95. There is a beautiful double bottom base at that point which will act as a near term and possibly a long term bottom. The risk to reward will be highly in the bulls favor at this price.

Gareth Soloway
InTheMoneyStocks

 

[Liquid validity]

Re: Where To Buy These Stocks

Some sample calls.
Be interesting to watch HPQ - genuinely

Likely retest of 36.89 area first, momentum and daily range contracted, but target looks ok if break holds
Looks a good call TBH.

 

[Michael8667]

Re: Where To Buy These Stocks

Out of favor stocks still need some love and if played correctly, these plays can return huge amounts of money in a short amount of time. The key is to catch an out of favor stock at the dead low support area, prior to a gigantic bounce. These type of returns can be over 10% in days and over the longer term, much, much more. With the market in a rare down cycle, it is important to find the appropriate levels and wait patiently. Below are key stocks and their buy levels.

After warning of a "tough" quarter just a couple days ago, Hewlett-Packard Company (NYSE:HPQ) has dropped dramatically. The stock broke through support at $37.35 and is currently trading at $36.08, -0.83 (-2.25%). Many Wall Street traders and investors are wondering where Hewlett-Packard will be a buy? Based on the chart, the buy level will be at $33.85. A sharp bounce should occur off this level, maybe even a long term low will be in place.

Cisco Systems, Inc. (NASDAQ:CSCO) is another company that has had many problems producing and meeting expectations. Wall Street has continually been disappointed with their earnings reports and guidance. In the latest quarter, restructuring has begun, fostering hopes of some sort of return to glory. Cisco is inching below major support today. Should the price not rebound and continue lower, it is destined for $14.00. In this range, a tremendous buy would be initiated on the stock based on pure technical analysis. While this level is far away, never underestimate a stock or a market in punishing a habitual loser. The masters in the market will lay in wait for this one at that level.

Bank of America Corporation (NYSE:BAC) is another beaten down stock. This financial firm was trading over $15.00 per share in January. It is now currently trading at $11.74, -0.16 (-1.34%). Based on its recent price action, Bank of America is heading lower. Where is it going to bottom? The answer to that is $10.95. There is a beautiful double bottom base at that point which will act as a near term and possibly a long term bottom. The risk to reward will be highly in the bulls favor at this price.

Gareth Soloway
InTheMoneyStocks

Great structured post.

+1

 

[InTheMoneyStocks]

Stock Market Longs In Play

The charts are once again revealing some interesting swing trades as the markets are getting smoked on continued European debt crisis worries. The key with any chart is to find a level that has significant support. There, wait patiently until price hits and pull the trigger, buying long. With the markets sharply lower, a few stocks are reaching respectable pull back levels, hitting their 200 moving averages on the daily chart.

The first chart that looks promising is Applied Materials, Inc. (NASDAQ:AMAT). The stock is sharply off its recent highs. In addition, the lows of the day kissed the 200 moving average on the daily chart at $13.72. This sets up for a solid bounce in the coming days.

Another beautiful bounce chart is Deere & Company (NYSEE). Deere, like Applied Materials has run into the 200 moving average at a level of $82.50. This represents a solid long opportunity for the rest of the week.

The markets continue to be sharply lower today as the Dollar surges. The SPDR S&P 500 ETF (NYSE:SPY) is at $131.79, -1.82 (-1.36%), the SPDR Dow Jones Industrial Average ETF (NYSEIA) is at $123.31, -1.54 (-1.23%) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is at $56.82, -0.94 (-1.64%).

Is is very possible the markets bounce later this week again as volume dries up into the Memorial Day weekend holiday. In addition, any pull back in the Dollar will pop the markets back up.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Markets To Move Higher Into Holiday

The markets put in a solid low on a gap down this morning. This selling took place in response to fears of a new emergency election in Greece. On this worry, the Dollar moved higher which in turn pushes the stock markets in the U.S. lower. The SPDR S&P 500 ETF (NYSE:SPY) hit a low of $131.38 before rebounding all the way back to its current level at $132.38, +0.43 (+0.33%). PowerShares DB US Dollar Index Bullish (NYSE:UUP) opened at $21.78 but has since fallen to $21.68, -0.05 (-0.21%). This gap higher in the Dollar and then fall, is the reason why the markets have reversed and are now trading higher.

It is highly likely that the markets have put in their low for the week. The $131.38 level on the SPY happens to be a master gap fill from the closing price on April 19th, 2011. In addition, the markets are headed towards the Memorial Day holiday weekend. The Federal Reserve always likes to push the markets up into a holiday weekend to get consumers spending and traveling. In addition, as the volume dries up, the markets always have a tendency to float up. It is very likely that the SPY will head to $133.60 by the close on Friday. Remember this call here.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Financial Stocks Lead The Decline

The major financial institutions have been holding steady over the past week, however, this morning, the large financial stocks are leading the major stock indexes lower. When the major financial stocks decline it will certainly put a lot of pressure on the S&P 500 Index. The financial sector accounts for 14.0 percent of the S&P 500 Index.

J.P. Morgan Chase & Co.(NYSE:JPM) is considered the leading financial stock in the entire stock market. This morning JPM is trading lower by 0.72 cents to $42.52 a share. Short term traders can look for intra-day support on this stock around the $42.10 level. The stock could see small bounces around this level, however, this sector is weak and could trade lower if the major stock indexes decline further.

American Express Co.(NYSE:AXP) has been in a solid uptrend on the daily charts trading above the daily 20, 50, and 200 moving averages. This stock is trading lower by 0.89 cents to $50.74 a share this morning. Short term traders can watch for intra-day support around the $50.50 and $50.00 levels. Both area could see small intra-day bounces.

Other leading financial stocks that are declining lower this morning include Goldman Sachs Group Inc.(NYSE:GS), Well Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). This sector is signaling weak intra-day relative strength, therefore, traders must be very cautious when looking for intra-day bounces in these leading stocks.

Nicholas Santiago
InTheMoneyStocks

 

[Dentalfloss]

Re: Financial Stocks Lead The Decline

great article
Many thanks

 

[InTheMoneyStocks]

Re: Financial Stocks Lead The Decline

thanks, glad you appreciate it

 

[InTheMoneyStocks]

Market Alert: Bank Stocks May Have Bottomed

The bank stocks have been hammered throughout 2011. They may have finally bottomed. Banks are one of the poorest performing sectors of 2011. Goldman Sachs Group, Inc. (NYSE:GS) hit a high $175.34 in early 2011 before hitting its low today at $131.50. Wells Fargo & Company (NYSE:WFC) hit a high of $34.25 before tumbling to its low today of $26.37 and Bank of America Corporation (NYSE:BAC) hit a high of $15.31 before collapsing to its low of the day today at $11.08.

Overall, based on the charts and news, it appears the financial firms may have hit bottom. With new regulations, tighter oversight, lower profits and possible lawsuits in the billions, Goldman Sachs, Bank of America and Wells Fargo have all struggled. Just over the last two weeks, Goldman Sachs was trading sharply lower on the rumor that the bank would receive a subpoena over its part in the financial crisis. This subpoena finally arrived today with Goldman Sachs immediately spiking lower, hitting a major support at $131.50. At that point it reversed.

With so much bad news for the financial companies in 2011, they have been beaten with the ugly stick. However, with so much bad news, comes the light at the end of the tunnel. It appears based on the major support levels hit today on all bank stocks and the final subpoena to Goldman Sachs, a majority of the bad news is out or priced in. This spells a short term bottom in the stocks and a long opportunity. Look for these stocks to see upside over the next two weeks and maybe further.

Gareth Soloway
InTheMoneyStocks.com