Bryan Edward Leighton
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InTheMoneyStocks.Com is a research and consulting company focused on mathematical proprietary techniques along with a key understanding of price, pattern and time. Through understanding geometry and other technical analysis methods, InTheMoneyStocks.Com prides itself on avoiding Wall Street hype while calling major and minor moves in the DOW, NASDAQ and S&P, commodities, currencies and stocks.
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Articles by Bryan Edward Leighton
January 30, 2012
This morning, the U.S. Dollar Index futures (DX H2) are trading higher to start the day. As we should all know by now, when the dollar starts off strong the major stock indexes will usually be weak. That is certainly the case this morning as the major stock indexes come under early selling pressure. Very often, the U.S. Dollar Index will decline once the opening bell rings at the New York Stock Exchange. If the dollar begins to decline intra-day the major stock indexes will trade off of the morning lows. Even this morning, once the stock market officially opened at 9:30 am EST the U.S. Dollar Index dipped off the morning highs helping all of the major stock indexes to catch a small bid. Traders must remember when the stock markets trade higher it will most always mean that the U.S. Dollar is losing value and trading lower. This inverse relationship between the U.S. Dollar and the major stock market indexes has occurred for over 10 years now.
February 06, 2012
As the market trades near 52 week and multi year highs, the media continues to pump an economic recovery that has every retail investor turning into a bull. Strange and scary coincidences are emerging in comparison to previous market mega drops. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $134.21, -0.36 (-0.27%).
February 06, 2012
This morning, all of the leading Chinese ADR's are coming under sharp selling pressure. Sohu.com Inc (NASDAQ:SOHU); a leading the Chinese ADR, is trading down $9.43 to $53.62 a share. The company reported earning that were well below analyst expectations. Many investors are now thinking that other leading Chinese ADR's will report weaker than expected earnings going forward. SOHU stock will have intra-day support around the $52.75, and $48.90 levels.
February 07, 2012
Sometimes it is scary to see manipulation in full swing in the stock market. Actually, it is always scary to think such blatant manipulation can occur and by the leading powers in the "free" world. Let's set the stage. The markets opened slightly lower. No big deal here. They slowly inched lower on light volume, heading for the master support of $133.80 on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was the gap window from Friday and had also touched yesterday. Simply put, it is key support.
February 08, 2012
The markets are hovering slightly lower on the trading day. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $134.58, -0.21 (-0.16%). While the markets remain overbought, the free money policy of the Federal Reserve and light volume propping has created the best start in 25 years in the market. The scary aspect of this is that the rocket will eventually run out of fuel and fall to earth quickly. The question is simply when?
February 09, 2012
There is a key trend line on the SPDR S&P 500 ETF (NYSEARCA:SPY) stretching from January 31st, to the low of yesterday. This line has been hit multiple times between these two points and has bounced each and every time. Again, the market hammered this line twice in the morning session of trading today. Each time the 10 minute candle on the SPY closed below. As traders were set to pounce, the market spiked higher, negative the close. Each time the markets got below this major trend line, a buy program of epic proportions hit the market. Simply put, computer programs have been set up by institutions in league with the Federal Reserve to keep the markets from breaking this line. It is scary to think of the stock market as being so heavily manipulated. However, watching it trade over the last six weeks leaves little doubt.
January 19, 2012
The oil services sector has been very strong since December 19, 2011. The Market Vectors Oil Services ETF (NYSE:OIH) is trading higher again this morning. The OIH is climbing higher by $1.73 to $122.91 a share. Traders must watch for upside resistance on the daily chart around the $124.75 level. Short term traders can watch for intra-day resistance around the $123.50 and $124.00 levels.
January 19, 2012
The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $59.96, +0.47 (+0.79%). This happens to be a double top from July 2011 and multi year high. Generally, this would be considered resistance on the charts. In addition, one must find it very interesting to notice this level getting tagged prior to major earnings from tech companies. After the markets close today, earnings from Google Inc. (NASDAQ:GOOG), ...Continue reading here: http://bit.ly/zg3b7z
January 24, 2012
Apple Inc (NASDAQ:AAPL) is declining lower this morning with the major stock indexes. APPL stock is trading lower by $3.70 to $423.70 a share. The popular tech stock will usually hold up well and often rally into earnings. Short term traders can watch for intra-day support around the $422.00, and $419.00 levels should the stock trade down there. As for how the stock will react after the earnings announcement this afternoon is anyone's guess. Trading a stock into earnings is a very risky gamble as the reaction after the announcement could go either way.
January 24, 2012
The markets are hovering slightly lower on the day. Overnight, more worries crept out of Greece causing the futures to fall and the Dollar to pop. However, once the market opened, the light volume float was back on. This has been the common theme of late and is likely to continue as long as volume remains light. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.26, -0.32 (-0.24%).
January 24, 2012
Spanish Broadcasting System Inc (NASDAQ:SBSA) is up another 20% today. The stock has soared over 100% in the last four trading days after reporting better than expected earnings. This run is a combination of solid earnings and an epic short squeeze. While this stock is too extended to play, Radio One, Inc. (NASDAQ:ROIAK) is the obvious sympathy play. The chart is hovering near the 52 week lows and is in the same sector as SBSA. This makes sense on many levels but lacks the volume to get attention. Watch for a volume surge and then momentum traders to pile in. Upside potential is north of $1.50 if this gets started.
January 26, 2012
The markets pushed into the master $133.30 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was given to members weeks ago as the probable short term top on the market. Sure enough, this level was hit early in the trading day and the markets reversed immediately. Obviously, shorts were taken and are in the money already. A negative close today would solidify a short term market top.
January 03, 2012
WTI oil has now traded above $90.00 a barrel since late October 2011. While high energy prices used to signal global economic demand and strength; it is still a direct tax on consumers. These days high oil is affected by geopolitical events, weather, and the obvious action in the U.S. Dollar Index. At this time, oil has a war premium built in due to the Iranian threats and sanctions in the Middle East. Since 2008, whenever oil has traded around the $100.00 level for any considerable amount of time it has caused problems for the economy and this time around should not be any different.
January 04, 2012
This morning, all of the leading coal stocks are coming under some mild selling pressure. This sector continues to trade below the important daily chart 50 moving average, this puts the sector in a weak technical position. Traders can look at how the Market Vectors Coal ETF (NYSEARCA:KOL) has under-performed the major stock indexes and the rest of the energy sectors. Traders can watch for intra-day support on the KOL around the $33.20, and $32.25 levels.
January 05, 2012
Many of the leading cloud computing stocks have come under some sharp selling pressure throughout the month of December. Cloud computing leaders such as Salesforce.com inc (NYSE:CRM) and VMWare Inc (NYSE:VMW) have been extremely weak. These stocks are holding up well today considering the major stock indexes are coming under some selling pressure this morning. CRM is still trading above its recent low that was made on December 21, 2011 at $94.09 a share. If this stock fails to hold this level on a closing basis it could signal that further declines are coming. CRM is trading below all of its important daily chart moving averages which puts the stock in a weak technical position on the charts. The chart of VMW is a little bit better at this time. VMW is trying to form a higher low pullback pattern on the daily chart, this is a short term bullish formation. The stock still has major overhead resistance around the $86.00 and $92.00 levels.
January 05, 2012
After the new year started with a substantial rally, the markets have been in sleep mode. Two consecutive days of flat action has the pros salivating over the likelihood of further upside. Today, the SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $127.56, -0.07 (-0.05%). Let's explore the bullish case on the market.
January 09, 2012
Since late 2007, it is the large financial stocks that have moved the major stocks market indexes higher and lower. Traders and investors must remember that the problems facing the economy have been in the banking and financial sectors. The one financial stock that everyone must follow extremely close is J.P. Morgan Chase & Co (NYSE:JPM).
January 13, 2012
This morning, the problems in the European Union are starting to surface once again. Recently, all of the major stock indexes have been floating higher steadily each and every day on extremely light volume. Often, stock rallies that lack volume and conviction can lead to sharp sell off days. At this time, there are reports that Greece may have to default and this could trigger a domino effect in many European credit default swaps (CDS). A credit default swap is basically an insurance policy on the debt. Should this occur it will be problematic for the entire Euro-zone.
December 15, 2011
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.
December 16, 2011
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.
December 08, 2011
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%) .
December 07, 2011
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.
December 07, 2011
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.
December 09, 2011
This morning, all of the major stock market indexes are trading sharply higher. For the most part, the rally is broad based as most important stock sectors are climbing. The one sector that is struggling and continuing to show weak relative strength is the agriculture sector. Many of the leading stocks in this sector are actually trading lower as the major stock indexes climb.
December 12, 2011
When the precious metals decline, there is a very good chance that deflation is taking hold. This morning, both gold and silver are declining sharply lower. The SPDR Gold Shares (NYSEARCA:GLD) are trading lower by $4.49 to $161.96 a share. This is a decline of 2.60 percent for the GLD and this signals deflation in the stock market. The iShares Silver Trust (NYSEARCA:SLV) is trading lower by $1.00 to $30.33 a share. The SLV is declining lower by 3.25 percent and this is also signaling deflation in the market today. Traders can watch for short term intra-day support on the GLD around the $160.40 area. The SLV will have some short term intra-day support around the $29.80 area.
December 12, 2011
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%).
December 13, 2011
Retail sales for November came in at 0.2%. This number was a disappointment to the market but ultimately had little impact on stocks outside the retail sector. The S&P 500 is trading up 5 points on the day, just shy of a half-percent gain. All eyes continue to be on Europe and at 2:15pm ET today, the Federal Reserve will release their policy statement on interest rates.
December 14, 2011
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.
November 30, 2011
For the average person who invests or trades, saying the news is garbage is a sin. However, it is proven over and over again to be the case. The news is nothing more than a way to take money from the bottom 99% and distribute it to the top 1%. Those at the top control the news and release it to cause certain reactions. Those reactions are carefully calculated to achieve certain goals. Those controlling these avenues and directing the markets are the Federal Reserve banks around the world and the top institutions. Today, the markets are surging once again, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.64, +4.08 (+3.53%).
December 01, 2011
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.
December 05, 2011
Stock markets continue to rejoice on hopes and dreams of a path through the European mess. Italian yields dropped sharply today after major austerity measures were pushed through. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $126.80, +1.94 (+1.55%). In addition to optimism about Europe, economic data in the United States continues to be strong. Most amateur traders are looking to buy the market into the end of the year, expecting a Santa Clause rally to continue, but extreme caution must be used.
December 05, 2011
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.
December 06, 2011
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.
December 06, 2011
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.
November 15, 2011
The chart below clearly shows how the U.S. Dollar Index impacts the overall stock market indexes. Traders can clearly see when the U.S. Dollar Index futures (DX Z1) decline the S&P 500 Index e-mini futures (ES Z1) will inflate and trade higher. Just look at how the U.S. Dollar Index topped out exactly at 6:40 am EST, this is the exact time that the S&P 500 Index futures made their low.
November 15, 2011
Whether the markets surge up or down, the solar stocks continue to suffer. One would think the sun vanished off the face of the earth forever by the stock performance in this sector. Today, new 52 week lows are being tagged by companies like Canadian Solar Inc. (NASDAQ:CSIQ) and Hanwha Solarone Co Ltd (NASDAQ:HSOL). Other solar stocks are near their 52 week lows, selling off again today. First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation (NASDAQ:SPWRA) are two large players that are seeing red. SunPower is trading at $7.18, -0.70 (-8.88%).
November 15, 2011
The homebuilding stocks have been classified as bad as airlines stocks over the past five years. These stocks were the market darlings from the year 2000 into August 2005. Since the 2008 stock market crash the homebuilder stocks have been considered the ugly ducklings or rather dogs with fleas. Regardless of how you may feel about this stock sector the leading homebuilder stocks have surged higher since the October 4, 2011 stock market low.
November 16, 2011
As spot crude oil has pushed through the $100 level, the upside is somewhat limited. Oil is up over 30% in the last six weeks and with the global economy still weak, it is hard to imagine it will push much higher. Investors are searching frantically for the next big energy area. There are some obvious places that money should start to flow.
November 17, 2011
Every trader should watch gold extremely closely. Gold has signaled inflation better than any indicator in the world for the past ten years. When gold trades higher it tells traders that the stock markets are being inflated by a major institution or perhaps even a central bank. The opposite is true when gold declines as it will indicate that the stock market is deflating. Gold and the stock market are synonymous with each other. The only difference is that gold will usually lead the stock market and that is why traders need to pay attention to it. Even intra-day traders can see how gold bounced off the morning low and the major stock indexes followed. It is very difficult to see the stock market rally without gold at this time.
November 22, 2011
Stocks are seeing red again after GDP numbers were revised lower this morning. The GDP for the summer months came in at 2%. The futures had been slightly higher during the overnight session but headed south on the economic report. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $118.76, -0.86 (-0.71%).
November 22, 2011
The Semiconductors Holders Trust (NYSEARCA:SMH) are trading lower by 0.25 cents to $29.51 a share. This ETF is viewed by many as a leading indicator for the tech heavy NASDAQ Composite. When the semiconductor sector shows strength most of the leading technology stocks will generally remain strong. The SMH is trading around a short term support level on the daily chart around the $29.00 area. The SMH will have short term intra-day chart support around the $29.30 and $29.00 levels.
November 22, 2011
At exactly the same time yesterday that the markets reversed off their lows, today stocks did it again. The IMF announced they would supply liquidity to European banks in an effort to help them deal with the crisis. Stocks surged from the negative to the positive and are now hovering around the flat line. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $115.06, -0.10 (-0.09%).
November 07, 2011
The markets are slightly lower today as all eyes are on Europe. Greece and Italy continue to dominate the headlines as they try and avoid an epic collapse and default. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.06, -0.54 (-0.45%). While the markets are waiting for more news, many tech stocks are showing bearish daily chart patterns. This may tell us of future weakness in the days, weeks and months ahead.
November 09, 2011
This morning, all of the major stock indexes are coming under severe selling pressure. The volume on the decline is very heavy, signaling that institutional money wants out of this market right now. Leading stocks such as Apple Inc (NASDAQ:AAPL), J.P. Morgan Chase & Co (NYSE:JPM), and Exxon Mobil Corp (NYSE:XOM) are all trading sharply lower to start the day. In other words, the baby is being thrown out with the bath water. The problems in the European Union is once again the catalyst for the stock market declines. Traders that do not want to follow the European news, which can change by the minute these days, can simply follow the U.S. Dollar Index.
November 09, 2011
The wild stock market swings continue, all thanks to Europe. The markets opened sharply lower on the back of more Italian woes. Yields on the Italian 10 year broke 7%. This is what started the Greek debacle and will be the ultimate cause of every other PIIGS country downfall. Most retail investors do not understand the how the yields determine the collapse of a country. Simply put, when a country is so heavily in debt and must borrow, rising borrowing costs trigger the beginning of the end.
November 09, 2011
There is a solid divergence developing between reality and the price of oil. Oil continues to trade around the $97.00 per barrel level. This is a gain of 25% in the last couple months. The price of oil is reflecting major uncertainty in the Middle East. Reports of Iran's nuclear ambitions continue to worry the world. That is part of the increase in oil and cannot be argued. However, this global ...
November 10, 2011
The markets have been all over the map today. Indexes are tracking the inverse of Italian yields. Italian yields broke back below the 7% level pushing the markets higher in early trading. SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $124.35, +1.16 (+0.94%). Traders must remember that spiking yields in Italy, means a collapse is imminent. Borrowing at such high rates is unsustainable. Therefore it makes sense to be the driving force between the up and down moves in the United States. This type of trading will likely continue, all based on Europe.
November 10, 2011
While the market chops up and down, some key well known names continue to sink lower. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), First Solar, Inc. (NASDAQ:FSLR) and Research In Motion Limited (USA) (NASDAQ:RIMM) are all top tier names on Wall Street that are fighting to survive. Below are the master levels where these stocks will find support. These levels will finally represent a solid risk to reward long play.
November 11, 2011
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.
November 14, 2011
There is a very simply rule that traders should follow, when gold is trading higher it is signaling an inflating stock market. The opposite is true when gold is trading lower, it is signaling a deflating stock market. Gold and the major stock indexes are synonymous at this time and will trade in the same direction. Traders and investors should know that gold often leads the stock markets and will usually signal the direction for the major stock indexes.
November 14, 2011
Oil is seeing a pull back today after kissing $100 per barrel overnight. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $37.92, -0.29 (-0.76%). This is a minor drop after a huge run up. In the last six weeks the USO ran from $29.10 to its current level, a whopping 30% move. This run has occurred for a few different reasons. First, troubles with Iran over nuclear ambitions are fueling prices in a minor way. The other factors are based on the outlook of Europe and the global economy along with the fall in the Dollar. As Europe tries to get a handle on its debt issues, the future outlook begins to look brighter.
November 01, 2011
The plot thickens again in the soap opera of the European Union. One day there is a $1.4 trillion bailout fund in place and the next day that deal is falling apart at the seams. One day Greece is on board with austerity measures and the next day they might be back to using the Greek Drachma. This Greek drama continues to get better by the minute.
November 02, 2011
What can the Federal Reserve Bank Chairman Ben Bernanke say this afternoon to help lift the stock markets? The major stock indexes are already trading higher in anticipation of some positive remarks by the central bank boss. The falling U.S. Dollar Index is helping the stock market today, however, the weaker dollar is not good for the people that are using dollars to purchase goods.
October 24, 2011
The markets are continuing to surge higher today. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $125.39, +1.42 (+1.15%). Optimism continues to grow stronger for a major bailout plan in Europe. In addition, extra positives today included a solid China PMI number, showing expansion and good earnings from stocks like Caterpillar Inc. (NYSE:CAT).
October 25, 2011
This stock market seems to have an illness called schizophrenia. In late September, the major stock indexes declined lower, the Dow Jones Industrial Average dropped by over 1000.0 points only to recapture all of those declines in 15 trading days in the month of October. Ten percent rallies and declines are becoming normal trading ranges these days. In the past, the stock markets would rally higher or lower by ten percent in a year. These are certainly not normal times.
October 26, 2011
Ethanol producers are in for sweet profits the next few quarters. Losses will swing to profits and profits will grow. The reasoning for this is simple. The price of the commodity corn has collapsed while the price of ethanol have remained relatively unchanged. Companies like Potash Corp./Saskatchewan (USA) (NYSE:POT), Monsanto Company (Public, NYSE:MON) and The Mosaic Company (NYSE:MOS) have commented on this drop in corn prices recently.
October 11, 2011
After the markets had a one week run of 12%, today is a quiet pause day. All eyes continue to be on Europe but will soon be watching earnings from big players like Alcoa Inc. (NYSE:AA), JPMorgan Chase & Co. (NYSE:JPM) and Google Inc. (NASDAQ:GOOG). While investors are speculating constantly on whether the next move will be up or down, true traders are just watching the charts.
October 12, 2011
As we all know, the major stock indexes have surged higher since October 4, 2011. On that date the S&P 500 Index e-mini futures (ES Z1) undercut the August 9, 2011 low before staging a massive rally in the final 45 minutes of the trading day. That chart pattern will usually create a low for several days to several weeks before showing signs of weakness again. In any case, the snapback rally has been nothing short of incredible as the Dow Jones Industrial Average has surged higher by nearly 1100.0 points in six trading sessions.
October 14, 2011
The semiconductor sector has been very strong along with the major stock indexes since October 4, 2011. At that time, the major stock indexes staged a massive reversal day into the closing bell, kicking off this massive nine day rally. The Semiconductor Holders Trust (NYSE:SMH) has surged higher by more than $4.50 from its October low pivot of $25.92 a share. This morning, the SMH is trading higher by 0.22 cents to $30.54 a share. Traders should watch for intra-day resistance around the $30.80 area. The daily chart resistance will be around the $31.00 level.
October 14, 2011
There is no denying the massive stock market rally since October 4, 2011. The Dow Jones Industrial Average (DJIA) has surged higher by nearly 1200.0 points from its October 4, 2011 low. This is certainly a massive rally in such a short period of time. The DJIA, and the rest of the major stock market indexes have all been able to recapture the daily chart 50 moving averages. This tells us that the major stock indexes have some short term strength. The only problem with the recent rally is the weak action in the leading financial stocks.
October 17, 2011
Options expiration week has arrived. This is notoriously a wild week for stocks as institutions whip the markets up and down, shaking out the weak handed option holders. The markets usually run the opposite way of the recent trend. In the last two weeks, stocks have staged one of their best rallies in recent years. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) jumped from a low of $103.84 to a high last Friday of $116.35. This was a gain of over 12%. The SPDR S&P 500 ETF (NYSE:SPY) jumped 14% and the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) shot up a total of 16%. After such monstrous gains, institutions will want to whip the small investor out of their call options. This tells us it is likely the markets will pull back this week.
October 17, 2011
This week countless companies will report their corporate earnings. When the major market moving stocks report earnings it will usually cause a lot of volatility and movement in the important leading stock indexes. Last week, J.P. Morgan Chase & Co (NYSE:JPM), and Google Inc NASDAQ:GOOG) really kicked off the earnings season. Traders and investors must always realize that earnings season will usually make for a very volatile stock market.
October 18, 2011
The solar industry may be near a major pivot low and nearing a turnaround. After months of sharp downward pressure on stock prices, solar players like First Solar, Inc. (NASDAQ:FSLR), SunPower Corporation (NASDAQ:SPWRA) and Trina Solar Limited (ADR) (NYSE:TSL) are seeing buyers return. This reversal is being linked to positive comments from a Goldman Sachs Group, Inc. (NYSE:GS) analysts. While the price target was cut from $150 per share, a six month price target was given at $90. The comments from this analyst go to the ideal that the strongest solar players will survive. First Solar is one of them.
October 18, 2011
Stocks have reversed off early losses to surge higher. The S&P 500 is trading at 1212. The move up has come in the face of poor earnings from International Business Machines Corp. (NYSE:IBM) which sent the stock to $177.44, -9.15 (-4.90%). Poor earnings from IBM only kept the markets down for a fraction of the day. This morning, reports from bank stocks like Goldman Sachs Group, Inc. (NYSE:GS) and Bank of America Corp (NYSE:BAC) gave a brighter outlook. Earnings have been mixed but a major key remains the same and will likely keep this market from collapsing in the near future.
October 19, 2011
The markets are hovering on the flat line today. They have been up slightly and down slightly. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $122.33, -0.23 (-0.19%). Earnings from mega player Apple Inc. (NASDAQ:AAPL) disappointed Wall Street. That is taking the technology sector lower while a continued push in the bank stocks are keeping the S&P 500 and Dow Jones Industrial Average around the flat line.
October 19, 2011
The markets are hovering on the flat line today. They have been up slightly and down slightly. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $122.33, -0.23 (-0.19%). Earnings from mega player Apple Inc. (NASDAQ:AAPL) disappointed Wall Street. That is taking the technology sector lower while a continued push in the bank stocks are keeping the S&P 500 and Dow Jones Industrial Average around the flat line.
October 21, 2011
Scalp trading or day trading is when a trader looks to catch small moves in the stock market within a single trading day. Day traders will usually hold a stock for a few seconds to a few hours within a trading session. This type of trading style is not for everyone, however, it does have its benefits as most scalp traders will not have the risk of holding a stock overnight. Scalp trading or day trading is a very calculated method of trading requiring a good level of expertise in chart reading.
October 06, 2011
The stock market is moving higher once again. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $115.52, +1.10 (+0.96%). This is the third up day in a row, following the mega reversal on Tuesday. The SPY has jumped from $107.43 to a high today of $115.57. This is a whopping 7.5% move in just three days.
October 06, 2011
The major stock indexes staged a major reversal by the close on October 4, 2011. On that day, the Dow Jones Industrial Average (DJIA) rallied higher by nearly 400.0 points in the final 45 minutes of the trading day. Yesterday, the major stock indexes rallied higher creating a follow through day for the major stock indexes. That type of action is a short term positive for the major stock indexes. The problem for the stock markets is the longer term outlook. The problems in the European Union are an absolute disaster. Greece is really the tip of the iceberg when it comes to the European debt problems. What about the rest of the Euro-zone countries such as Italy, Spain, and France? These countries are much bigger than Greece, Portugal, Belgium, and Ireland. Who is going to bail these countries out?
September 29, 2011
As you all know, the banking crisis in the European Union is an absolute disaster. Most of the countries in the European Union are insolvent and they will have to likely default at some point. Whether or not there is a structured default remains to be seen. At this time, the European Union is likely pass this European Financial Stability Facility (EFSF) to help bailout all of the Euro-zone banks in the near term. This plan is simply paying off debt with more debt. While it may keep the European Union together for a little while longer there are still going to be major problems in the region for a long time to come.
September 28, 2011
Today is a major day. Simply put, the S&P 500 is trading right on a major break down, break out trend line. Should the markets close lower, sharp downside is expected in the coming days. If the markets close higher, neutral to upside continues into next week. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) $111.97, +0.26 (+0.23%).
September 29, 2011
The stock market opened sharply higher today. This move took the Dow Jones Industrial Average up by more than 200 points. In the last two days, similar up moves have taken place but sharp selling has come in late in the day and driven the markets back down. Today, the markets are seeing sharp selling again from the gap higher. While this looks almost identical to the last few days, there are some major differences.
September 30, 2011
On days like this, where the stock markets are down sharply at the start of the day there is only one place to look for guidance, it is the financial stocks. As long as the financial stocks remain weak traders must expect lower prices on the major stock indexes. If and when the financial stocks bounce that is when the major stock indexes will catch a small bid and trade higher.
J.P. Morgan Chase & Co (NYSE:JPM) is the most important stock in the United States and possibly the world. This stock has lead the stock markets higher and lower throughout 2011. Traders should always watch and monitor JPM stock at all times. This morning, JPM stock is trading lower by 0.58 cents to $30.81 a share. This financial giant will have some minor intra-day support around the $30.43 area. Should that near term support level breakdown the next intra-day support areas will be around the $30.00 and $29.50 levels.
Other leading financial stocks that traders should follow are Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America Corp (NYSE:BAC). All of these leading financial stocks look horrible on the daily chart at this time. This is how the financial stocks talk to us.
Nicholas Santiago
InTheMoneyStocks.com
September 27, 2011
The markets are surging today on major optimism over the European debt scenario. Late yesterday, news broke that the powers in Europe are preparing to handle the crisis with major initiatives. These initiatives will mirror those done by the United States in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.89, +2.65 (+2.28%).
September 27, 2011
In order for the stock market to rally or trade higher the U.S. Dollar Index has to decline. This has been proven repeatedly over the past ten years. Traders can simply look at an intra-day chart of the U.S. Dollar Index and see how quickly the SPDR Dow Jones Industrial Average (NYSE:DIA) will deflate and trade lower as soon as the U.S. Dollar Index catches a bid higher. This afternoon, the Dow Jones Industrial Average (DJIA) was trading higher by more than 300.0 points, as soon as the U.S. Dollar Index found a low intra-day the DJIA dropped by more than 100.00 points in thirty minutes to curb the intra-day gains.
September 20, 2011
The markets are driving higher today on expectations of some major quantitative easing by the Federal Reserve. Tomorrow is the big day. Ben Bernanke and his fellow Federal Reserve cronies will release their policy statement. In his last few speeches, Ben Bernanke has eluded to more easing. Because of this, the markets have high expectations. Today, short covering and buying are taking hold on anticipation of major new measures. The Federal Reserve must now deliver or face a massive drop in the markets. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $121.69, +1.38 (+1.15%).
August 25, 2011
Once again, it goes to show you how the market always knows the truth. Bank Of America Corp.(NYSE:BAC) gets Warren Buffet as an investor this morning. This investment that was made public around 9:10 am EST, it is causing a massive short squeeze in the Bank of America stock. BAC stock is trading higher by more than $1.50 to $8.55 a share. Traders can watch for other financial stocks to trade higher in sympathy to the BAC stock. Other leading stocks that could trade higher this morning include J.P. Morgan Chase & Co.(NYSE:JPM), Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C).
September 19, 2011
This morning, all of the leading European financial institutions are selling off sharply to start the day. The European banking crisis seems to be getting worse by the minute. Traders can easily see stocks such as National Bank of Greece (NYSE:NBG), Deutsche Bank AG (NYSE:DB), Credit Suisse Group (NYSE:CS), UBS AG (NYSE:UBS), and countless other financial institutions are trading lower by more than 3.00 percent or more. This is not a sign of a healthy financial system, it is a sign of a coming default in the European Union.
September 13, 2011
Yesterday's late afternoon rally was being accredited to the Chinese buying Italian debt. Whether or not this is true remains to be seen. What is true and did happen was the late afternoon decline in the U.S. Dollar Index. As we all know by now, when the U.S. Dollar Index dips the major stock market indexes flip. Everything inflated higher yesterday afternoon as the U.S. Dollar Index declined into the closing bell. Traders and investors must continue to follow the U.S. Dollar Index very closely once the opening bell rings at the New York Stock Exchange each and everyday.
September 13, 2011
What would you give to know the future? Well it appears more and more that gold may be telling Wall Street just that. It has happened many times over the last few months and yesterday it happened again. The markets were looking ugly heading into Monday morning. Fears from Europe continued to pound Wall Street traders and the Dow Jones Industrial Average futures were setting up for a 200 point decline. However, while the markets were scary, gold was not confirming the move. The SPDR Gold Trust (ETF) (NYSE:GLD) was sharply lower. Many people scratched their heads at this. The amateur thought process could not understand why gold was not sharply higher on massive fear. Remember, gold generally spikes higher on fear.
September 14, 2011
The markets are floating higher after a rocky start. After initially opening higher, the SPDR S&P 500 ETF (NYSE:SPY) inched into the $118.50 level. This level was resistance and coincided with a sell-off that took the SPY down almost a full two dollars. After holding a key support line, the combination of light volume and a European rally helped the markets move back towards theirs highs.
September 14, 2011
All traders should now be watching the U.S. Dollar Index very closely. This morning, as soon as the U.S. Dollar Index futures (DX U1) caught a bid and started to trade higher the major stock indexes began to sell off. Right now, the markets are trading inverse to the U.S. Dollar Index, especially after the opening bell rings at the New York Stock Exchange. Traders should remember that this is also Wednesday before options expiration which is generally very volatile and turbulent. Traders should expect the unexpected in the major stock indexes and in the U.S. Dollar Index.
September 15, 2011
The markets are trading on shaky ground today. The Lehman Brothers collapse anniversary is not without some fireworks. The big news of the day came from ECB. They decided to launch a three-month loans program in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. This initially caused a solid market rally but may be short lived.
September 12, 2011
This morning, spot gold is declining lower by $21.00 to $1838 per ounce. Gold has been extremely volatile over the past month. Many traders and investors have been fleeing the precious metal due to rumors of another margin hike by the CME Group. So far, the CME Group has increased margins for gold on two separate occasions since August 10, 2011. Traders may remember, it took four separate margin hikes in silver to cause the price to decline sharply. It is important to note that gold has been in a ten year bull market, therefore, a correction in the precious metal will actually be beneficial as the chart is somewhat overbought and extended on the larger time frames. This morning, the highly popular SPDR Gold Shares are trading lower by $2.38 to $178.26 a share. The GLD will have intra-day support around the $176.00 and $174.50 levels intra-day.
September 12, 2011
The stock market continues to hover on the downside but with minimal losses. Europe took a major blow today again as continued fears of default rattle the chains of stability. The September 6th low is holding today thus far at $114.50, on the SPDR S&P 500 ETF (NYSE:SPY). This is the major pivot point for the day. One of the key reasons why this level is so important to technical traders, is because a break of $114.50 would cease the high low moves in the market. Once a lower low is made, the markets will most likely collapse down to the SPY double bottom at $110.27 and then eventually see $104.50.
September 07, 2011
Over and over again the markets reward those investors and traders that use technical analysis. I am not talking about nonsense like stochastics, MACD or RSI. I am simply talking about looking at the chart and using common sense to determine price, pattern and time. To 99% of the public, this is a foreign language. However, it is the way to become filthy rich.
September 08, 2011
Traders must simply watch the U.S. Dollar Index very closely today. Once the opening bell rang at the New York Stock Exchange the U.S. Dollar Index began to decline from its intra-day high. We should all know by now, when the U.S. Dollar Index declines the major stock market indexes will usually inflate and trade higher. The U.S. Dollar Index futures (DX U1) traded as high as $76.06 before the opening bell, they are now trading at $75.77 per contract at 9:43 am EST. Traders can easily see how the major stock indexes have reversed the losses from the premarket as soon as the U.S. Dollar Index declined.
August 31, 2011
The markets are floating higher on the day. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $122.86, +1.18 (+0.97%). The ADP Private Sector Employment numbers were released this morning at 8:15am ET. They came in with a gain of 91,000. This number was solid and the markets liked it. However, all eyes are on the Federal Reserve for their next meeting on September 21st and 22nd. Ben Bernanke made it clear last week at Jackson Hole that there was likely new easing coming to the United States, in some form. The markets, much like a drug addict, cheered these comments. While economic data will continue to flow towards that meeting, the markets will continue to look forward to QE3. The Federal Reserve is going to have to live up to some major policy announcements. Should they not deliver, the markets may see some major downside in September.
September 01, 2011
Recently, the precious metals have received massive media coverage. Some traders say that gold is a bubble and is now bursting. Other traders say that gold is the only safe haven for people to put their money. It is important to note, gold is now in a 10 year bull market. Bull markets such as the one we have seen in gold will simply need to have a correction from time to time. If you ask the average person on the street if they own any gold bullion or gold coins they will tell you no. In fact, most people do not own any gold or silver outside of their personal jewelry. This tells us that gold may be do for a pullback or correction in the near term, however, a bubble is a little bit of a stretch at this time.
September 01, 2011
The major stock indexes were all trading lower on the day before the ISM data was released. Once the ISM number was released the major stock indexes surged sharply higher. The Institute for Supply Management said that the index declined to 50.6% in August from 50.9% in July. While this ISM number is the worst number in quite a long time it is better than expected. More importantly, the U.S. Dollar Index has soared higher after the announcement, this is the reason why stocks have deflated from that initial move higher in the market.
September 06, 2011
This morning, the U.S. Dollar Index futures (DX U1) have surged higher by 0.57 cents to $75.78 per contract. Usually, when the U.S. Dollar Index pops higher it is on the back of fear in the European Union. Traders can look at the CurrencyShares Euro Trust (NYSE:FXE) and see that it is trading lower by $1.41 to $140.01 a share.
August 22, 2011
The markets opened sharply higher as fears subsided across the globe. European markets saw some calm and the U.S. indexes surged higher into the stock markets open. Since the 9:30am ET open, the markets have faded continually all morning long. As the lunch hour arrives, the S&P 500 is flirting with the flat line.
August 15, 2011
This morning, all of the major stock indexes are trading sharply higher. Traders and investors are in jubilee mode as there were a few take over announcements before the opening bell. Obviously, the major news was the Google Inc.(NASDAQ:GOOG) buyout of Motorola Mobility Holdings Inc.(NYSE:MMI) for $12.5 billion. While the take over news is dominating the headlines traders should continue to follow the U.S. Dollar Index.
August 15, 2011
The markets are higher on the day a panic has subsided. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.26, +1.14 (+0.97%) on 89,607,142 in volume. All eyes have turned towards Merkel and Sarkozy, the two leaders from Germany and France. They will be meeting tomorrow to discuss key initiatives to help the Eurozone.
August 16, 2011
The stock market is trading slightly lower. This is a classic pull back after a 100 point S&P 500 move in the last week. Essentially, the markets are digesting the recent bounce and looking at the big picture. The heads of Germany and France met today and will hold a conference call at noon. Wall Street will be watching closely for any signs of a big plan.
August 17, 2011
All day traders should know this, the week leading into options expiration is an extremely tough period to trade. This is a time when the large institutional trading desks will play a lot games with the small retail options traders. Just look at the major stock indexes this week on any intra-day time frame, they have carved out a pattern that looks like the Wasatch Mountains. The intra-day swings can make any trader sea sick if they did not take a dose of Dramamine before the opening bell.
August 11, 2011
The stock market is holding a majority of the gains. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $115.32, +3.03 (+2.70%). The key to this market is whether or not the gains can be held into the close. Just yesterday, the markets sold sharply in the final ninety minutes of trading. This is on the mind of every trader and will be a major test.
August 09, 2011
The SPDR Gold Shares(NYSE:GLD) have soared higher after the Federal Reserve said they will keep the Fed funds rates at zero percent until 2013. In other words, the central bank will keep rates as low as they can. The GLD is trading higher by $4.93 to $172.12 a share. Traders and investors should note that spot gold and the GLD are very extended and overbought on the daily charts. Therefore, traders should not rule out a near term pullback soon despite all of the money creation by the central banks.
August 10, 2011
The markets are having another dramatic down day after a huge reversal rally yesterday. Europe is experiencing the same bank collapse the United States did in 2008. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $108.24, -4.13 (-3.68%), the SPDR S&P 500 ETF (NYSE:SPY) is at $113.54, -3.94 (-3.35%), and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) $51.38, -1.65 (-3.11%).
August 08, 2011
There is nothing but selling taking place at this time. Stocks are being sold with a vengeance. This tells us that there are a few large financial institutions that have been caught on the wrong side of this market. In the past, when a major hedge fund or prop desk was under water on a position the other big fish will press there short side bet and drive the nail in the coffin for the struggling firm. We can only wonder who is caught on the wrong side of Bank of America Corp.(NYSE:BAC) at this time. This stock has plummeted lower today by more than 15.0 percent. The rumors are circulating throughout Wall Street that some whale is caught on the wrong side of the tape. This is likely to be what is taking place at this time.
August 07, 2011
This past week has been one of the more volatile and turbulent trading periods for the stock market since early 2009. Money has flown right out of the stock market as the problems in the European Union and the United States hit main street. The problems are debt, debt, and more debt. There has been...
August 02, 2011
The markets are looking past the Senate vote today at 12pm ET and they do not like what they see. It looks like the debt ceiling and spending cuts bill will pass and be signed into law by President Obama. However, the economic news continues to be ugly, Italy and Spain are a mess and the U.S. still faces a possible debt rating downgrade. This is sending the markets sharply lower today into the lunch hour. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.39, -1.39 (-1.08%).
August 03, 2011
Today the markets were crushed again, the SPDR S&P 500 ETF (NYSE:SPY) falling from a close yesterday of $125.49 to $123.53. This epic fall came on the back of continued worry about Italy, Spain and fear of a new possible deep recession in the United States. Volume was huge on the flush that took the markets into the 10:30am ET time frame. Then, all of a sudden things turned. As if the Plunge Protection Team came out to join the party and prop things up, the markets erased a majority of the steep losses. With volume continuing to be this high, it may be a sign of short term capitulation and depending where the markets close, maybe a bottoming tail. A bottoming tail is a reversal signal as well.
August 03, 2011
This morning, the sky was falling as the major stock indexes plummeted, however, after a heavy volume surge after the open the major stock indexes started to recover a bit off the lows. At one point, the Dow Jones Industrial Average(DJIA) was down by more than 150.00 points before bouncing higher. This afternoon, the DJIA is trading lower by just 20.00 points. The big question is whether this market can hold up into the closing bell. Traders should always remember the old market adage, it is not how the market starts, it only matters how the markets finish.
July 27, 2011
With the markets panicking over the possible default of the United States, stocks are scary but cheap. When the debt ceiling is raised, a big rally will take place. The key is to be in positions that will reward you with big profits. Ultimately, the debt ceiling will be increased by the time August 2nd hits. The politicians will not risk their future careers by letting it go past. This means it is currently one of the greatest short term buying opportunities in the stock market.
July 29, 2011
If the United States government raises the debt ceiling it will face problems down the road. If it does not raise the debt ceiling it will have to face some problems right now. Is there really a point in having a debt ceiling at all? Almost every administration in the past has raised the debt ceiling before. The question should be asked, is the United States at its breaking point where the country cannot absorb any more debt? The truth is that none of us really know for sure what the breaking point will be for the United States when it comes to debt. At some point the country will break because it has too much debt, however, we do not know if that number is $14.5 trillion, $16.5 trillion, or $50 trillion. These numbers are so large that it is impossible for the ordinary working man to understand the complexity of this situation.
August 01, 2011
This morning, the major stock market indexes are trading higher after a debt ceiling resolution was announced yesterday. The debt ceiling deal still needs to pass a critical vote in the U.S. Congress. Many traders and investors have already taken profits at the open this morning on any long positions that where bought last week. As a trader we simply want to be on the right side of the market, having an opinion simply just gets in the way.
July 30, 2011
If you read the past two weekly market reports you will have noticed that we featured extended stocks and their near term resistance areas. These reports included very good stock resistance levels for pullbacks. You can view the last free Weekly Market Report on our website. Take note of how well these levels worked, and if utilized in trading would have presented incredible profit opportunities - which for the Pros and our subscribers they supplied just that. In this week's ...
July 26, 2011
The major stock indexes have pulled back over the past three trading days as the U.S. politicians have not raised the debt ceiling yet. President Obama and Treasury Secretary Tim Geithner have called for Armageddon in the stock markets if the debt ceiling is not increased. The stock markets are telling us a different story. The major stock indexes all traded into resistance over the past few days and needed to pullback or consolidate anyway. The trading community does not seem to be too worried about the debt ceiling issue at this time.
July 29, 2011
The U.S. Dollar Index futures (DX U1) plummeted lower after the second quarter gross domestic product(GDP) number was released. Normally, when the U.S. Dollar Index declines it will help to inflate the major stocks and commodity markets, however, today could be a different scenario. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and Southern Copper Corp.(NYSE:SCCO) are coming under early selling pressure despite the decline in the U.S. Dollar Index.
July 19, 2011
The average investor is almost as bearish as when the markets were at their 2009 financial crisis lows. With a possible default looming in the U.S. if the government does not raise the debt ceiling and a cliff dive of disaster nearing in Europe, the sentiment is highly bearish. This makes the smart investor realize a possible upswing is nearing. In fact, it may have started today with this move. While somewhat shallow, this upmove should take us back to the 52 week highs on the S&P 500. The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $131.62, +1.01 (+0.77%). The 52 week high on the SPY would be $137.18.
July 12, 2011
The markets are holding their breath today as all eyes continue to be on Europe. Will Italy continue in free fall? Will they need a mega bailout? Italy is one of the largest economies in Europe and a much bigger mess to clean up. The only positive with Italy is that the Italian banks hold most of the countries debt. This means it is slightly more contained than Greece, however, many times the size.
July 13, 2011
The major stock indexes have caught an early bid higher this morning. Many Investors and traders are likely thinking that Ben Bernanke will say something positive when he begins his Humphrey Hawkins testimony this morning. Yesterday afternoon, the major stock market indexes jumped higher when rumors spread that some members of the Federal Reserve Bank were thinking about another quantitative easing program(QE-3). Obviously, there really isn't anyone that believes the Bernank will say anything to to hurt the markets. Most of the questions that will be asked by the politicians are usually pretty easy for Chairman Bernanke.
July 13, 2011
Just when you thought it was safe to trade the markets, it reverses lower. This morning, many traders and investors in the financial media were right back into the risk on mode. The popular peoples index, called the Dow Jones Industrial Average, traded higher by 150.00 points at 11:20 am EST. The so called market mavens were celebrating the return of the Federal Reserve Chairman Ben Bernanke in front of the Financial Services Committee. Everything looked so rosy for the markets to have a huge reversal day to the upside.
July 14, 2011
This morning, the major financial stocks are trading higher leading the major stock indexes higher. Before the opening bell, J.P. Morgan Chase & Co.(NYSE:JPM) reported earnings that were better than expected. The earnings news seems to be well received by traders and investors as the stock is trading higher by $1.34 to $40.95 a share. When the financial stocks rally it is prudent to expect the major stock indexes to hold up. After all, it was the financial stocks that have been leading the major stock indexes lower over the past three months. JPM stock is considered the best stock in the financial sector and a market leader. Therefore, where JPM goes so goes the sector.
July 07, 2011
The markets continued their recent advance today as the ADP Private Sector Employment Report blew away expectations. According to this report, private sector jobs increased 157,000 last month. On this news, the markets jumped higher. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $135.05, +1.08 (+0.81%). This up day is following two pause days as the market was digesting last weeks 600+ rally in the Dow Jones Industrial Average.
July 08, 2011
This morning, the S&P 500 Index e-mini futures are tumbling lower by 15.00 points to 1336.75 per contract. The catalyst for the decline is the Labor Department's weak non-farm payroll report. Yesterday, the ADP payroll report was much higher than expected and many traders and investors were looking for huge job growth, however, the non-farm payroll today posted just 18,000 jobs created. The whisper number expectations were for nearly 200,000 new jobs on Wall Street. Today's job report was a complete disappointment, especially since the unemployment rate increased to 9.2 percent.
July 07, 2011
This morning, the major stock market indexes are surging higher after a strong ADP payroll report. The European Union is rallying higher this morning as well, however, for a different reason. The European Central Bank(ECB) President Jean Claude Trichet raised interest rates in the European Union by 25 basis points to 1.5 percent. He then went on to say that he will suspend the application of the minimum credit rating to debt instruments by the Portuguese government. Here is another central banker that is changing the rules in the middle of the game. This basically means that the ECB will continue to print money in order to keep Portugal from needing another bailout.
July 06, 2011
This afternoon, the major stock indexes have traded sideways, to slightly higher, on extremely light volume. This is a holiday shortened trading week as markets in the United States were closed for the Independence Day holiday. Tomorrow, all eyes will be on the ADP payroll report. On Friday, the government will release its monthly non-farm payroll report and this should be even more important for the markets. Last month, the ADP job report and the Department of Labor job report both disappointed investors, both reports were well below analysts expectations.
July 05, 2011
This morning, the leading coal stocks started the morning very strong. Since the gap higher open, many of these leading coal stocks have pulled back off their early highs. This industry group looks to have started the morning higher after a pipe broke in the Yellowstone River that was owned by Exxon Mobil Corp.(NYSE:XOM). Exxon Mobil stock has recovered most of its early losses that were made at the open.
July 05, 2011
Last week, the large financial stocks caught a sharp bid higher after the Greek bailout vote passed. Many of the leading financial stocks in the United States surged higher helping to lift the major stock indexes. Most investors and traders believe that second Greek bailout is really just another bailout for large financial institutions that are holding Greek and Euro-zone debt. This morning, it seems that large financial stocks are coming under some slight selling pressure. This type of activity is common after a multi-day rally, often markets need to retrace or pullback after making a strong move higher.
June 27, 2011
When the U.S. Dollar Index declines the major stock indexes inflate and rally higher. This inverse relationship between the U.S. Dollar Index and the major stock indexes are as inverse as they have ever been. Traders and investors can simply look at the chart below to how correlated these two charts are. As long as the U.S. Dollar Index remains on the weak side and continues to decline the major stock indexes should hold up and keep the intra-day gains into the close. Should the U.S. Dollar Index catch a bid and trade higher off of the lows it would be prudent to expect the major stock indexes to pullback.
June 28, 2011
One of the leading financial stocks in the entire stock market is Goldman Sachs Group Inc.(NYSE:GS). Since April 2010, this stock has been surrounded by a black cloud. Last year, the company paid out a record $550 million to settle with the Securities and Exchange Commission (SEC) over fraud charges. Earlier this year, the stock has come under numerous allegations by many leading politicians.
June 29, 2011
The stock market rally is continuing for the third consecutive day. Austerity measures in Greece were voted through this morning. This was widely anticipated but is still being cheered by Wall Street. The market is moving higher today mainly because of the rise in the Euro. The Euro is jumping as Greece will no longer default on debt, saving the European economy for now. As the Euro moves higher, the Dollar moves lower. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $143.70, +0.60 (+0.42%). In response, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%).
June 29, 2011
Recently, there has been a new wave of initial public offerings reaching Wall Street. Everyone is getting very excited about all of the new internet companies that are roaring on the market place. This year we have seen companies such as LinkedIn Corp.(NYSE:LNKD), and Pandora Media Inc.(NYSE:P) become publicly traded companies. These two stocks have seen volatile trading action since their IPO, however, the demand for these stocks before coming public was enormous and over subscribed.
June 30, 2011
The markets are sharply higher again today. This is the fourth day in a row major gains are being seen on Wall Street. The Dollar again is sharply lower as the Greek aid package is essentially signed, sealed and delivered. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.22, -0.10 (-0.47%). Remember, a weak Dollar is positive for the stock market. As things look better in Europe, the Euro gets stronger. As that currency strengthens, the Dollar must weaken in response.
June 21, 2011
Today's rally is very broad based as there are very few leading stocks that are trading lower this afternoon. The S&P 500 Index is trading higher by 19.00 points to $1297.00. the Nasdaq Composite is soaring higher by 57.00 points or 2.15 percent. Almost every major stock is trading higher as investors expect positive news out of Greece this evening regarding the government confidence vote. Should the Greek confidence vote turn out to be a negative vote it could mean turmoil for the markets in the short term.
June 22, 2011
The markets are holding on the flat line as they await the Federal Reserve FOMC policy statement and the press conference that will follow later today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.66, +0.21 (+0.16%). After a monster rally yesterday, the markets are waiting to hear if there will be some sort of QE3 or in the very least some QE2.5. With the economic data of late and the massive problems inside of Europe, the Federal Reserve may be poised to bring some sort of secondary easing plan. This plan will most likely come later this year or early in 2012 though. Be ready for the next swing trade alert on the Federal Reserve's action.
June 22, 2011
There are mega players in technology land that have been monsters in the past. These companies are still a force to reckon with, however, their stock prices have fallen drastically. The three main old school tech stocks are Cisco Systems, Inc. (NASDAQ:CSCO), Microsoft Corporation (NASDAQ:MSFT) and Hewlett-Packard Company (NYSE:HPQ). All three of these technology stocks are hovering well off their all time highs and most are near their 52 week lows.
June 23, 2011
This morning, the International Energy Agency (IEA) announced that its 28 member countries have agreed to release 60 million barrels of oil in the coming month. This action is causing WTI oil to plummet lower by $5.00 to $90.46 a barrel. While oil and almost every energy stock is deflating lower this morning, there is one sector which is flying higher, the airline sector.
June 24, 2011
When the U.S. Dollar Index(DXY) rallies higher the major stock market indexes will come under pressure and deflate lower. That is exactly what is happening this morning at the start of the trading day. As soon as the DXY traded higher everything in the market sold off, especially commodity related stocks. At this time the most important chart that a trader can follow is the U.S. Dollar Index.
June 20, 2011
In nearly every trading session over the past six weeks, the major stock market indexes have struggled into the close of the trading session. Four out of the past six Friday's have been sell offs. This is a very unusual occurrence and a change in character for the major stock indexes. Even today, the major stock indexes will rally higher only to sell off sharply after 20 – 30 minutes of upside. These markets simply continue to face selling pressure.
June 20, 2011
Apple Inc.(NASDAQ:AAPL) is one of the most highly followed and loved stocks by traders and investors. This morning, the innovative tech giant is coming under major selling pressure. The stock is trading lower by $8.12 to $312.07 a share. The stock has been under pressure since April 21, 2011 when it traded as high as $355.13 a share. Traders can watch for two important intra-day support levels. The first important support level is around the $310.50 area. That level was just tested a few minutes ago and is holding up so far. The second important intra-day support level for AAPL stock will be around the $300.00 area. Apple Inc. is the second largest stock in the United States with a market capitalization of $290 billion. The only stock that has a larger market capitalization than AAPL is Exxon Mobil Corp.(NYSE:XOM). Exxon Mobil's market capitalization is around $390 billion at this time.
June 14, 2011
This morning, the major stock indexes are soaring higher in a broad based advance. As we know, the major stock indexes have been under pressure over the past month. At this time many traders are wondering if this rally is just a short term bottom, or just a one day bounce from a very oversold condition. In any case, the markets are higher at the start of the day. Despite this morning's rally, there are a few stocks that struggling to stay positive and we shall review them.
June 14, 2011
The market shot higher today right out of the gate. While many investors and analysts have been extremely bearish in the last few days, this Chief Market Strategist has been bullish, slowly accumulating long positions. The reasons why I was bullish for this week are simple. I will do my best to explain them.
First, the overly bearish sentiment after six straight down weeks was palpable. The markets always try and stay in equilibrium. Whenever the markets get too bearish or too bullish, the opposite price movement always occurs.
June 15, 2011
The major stock market indexes are once again starting the morning sharply lower. This looks to be a broad based decline as most leading stock sectors are trading lower. There are a few stocks that are showing some early strength despite the stock market decline. A few of the stocks that are showing intra-day strength include the cloud computing stocks.
June 15, 2011
After a one day stock market rally, all hell has broken loose again. This can be blamed on multiple factors but mainly the Euro collapse because of Greece and the Dollar surging in response. As the U.S. Dollar surges, the markets sell sharply. This inverse relationship has been intact for years now. The Dollar bottomed in early May 2011, just as the markets topped. Coincidence? I think not.
June 16, 2011
With uncertainty clouding almost all China stocks, there has been a fall of epic proportions. Many Chinese stocks have fallen over 75% in the last few months, dumping to levels never imagined. Growth rates in these stocks are unparallelled in the United States, or so they would have you think. These falls have been due to accounting issues, mostly in RTO's. RTO stands for reverse takeover and describes a company getting listed in the United States by buying a shell company that is already listed. In this case, this allows the Chinese companies to avoid much of the due diligence done prior to allowing a listing on the U.S. exchanges. Just yesterday, China-Biotics Inc. (NASDAQ:CHBT) was halted as they said they would delay the filing of their annual report. These accounting issues seem to be stemming from the companies reporting on contracts that actually do not exist. In other words, inflating their stock prices with phony revenue and earnings streams.
June 16, 2011
Speculation continues to swirl over the next Greek bailout. After the massive decline in the markets yesterday, today there is more calm. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.93, +.91 (+0.72%). It appears the latest rumor is that a Greek aid package may be on its way regardless of them making the necessary cuts in spending. This is an obvious result of the market tremors felt around the world over the last few weeks. Ultimately Greece will default on its debt. Every intelligent person is aware of this. However, at this time it is about doing it in a manner that does not trigger another Bear Sterns or Lehman Brothers type collapse in the world.
June 07, 2011
As election results were tallied, Ollanta Humala was the reported winner with 52.6% of the vote. Humala is known as a left-wing nationalist that may bring the country the way of Hugo Chavez. The stock market in Peru collapsed 14% on these results as fears of nationalization spread quickly. Stocks all over the world with ties to Peru also collapsed. Precious metals miner Compania de Minas Buenaventura SA (NYSE:BVN) dropped from $42.00 to $35.75 and copper producer Southern Copper Corporation (NYSE:SCCO) fell 10% on this news.
June 07, 2011
The markets are floating slightly higher today as the Dollar has fallen sharply once again. Federal Reserve Chairman Ben Bernanke is set to speak at 3:35pm ET today. Knowing this, gave Wall Street a good idea that the markets would most likely see weakness in the Dollar and an up market. The market expects Bernanke to say positive things and always be a friend to the markets, thus the markets positive today. The SPDR S&P 500 ETF (NYSE:SPY) $129.63, +0.59 (+0.45%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.04, -0.11 (-0.52%).
June 08, 2011
Banks have been punished all year long. After making highs in early 2011, stocks like Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C) have all come crashing down. Goldman Sachs hit a high of $175.34 in January before selling off to its recent price of $133.25. Both Bank of America and Citigroup have performed equally as poorly as have others.
There is a persistent fear of massive new regulations coming to the financial institutions in the next few months. These upcoming regulations sparked a question by Jamie Dimon from JPMorgan Chase & Co. (NYSE:JPM) to Ben Bernanke yesterday during his speech. The question essentially spoke to the possibility of these new regulations causing banks not to lend. In addition, Dimon brought to the forefront the possibility that if the banks do not lend, a new recession may begin.
June 09, 2011
If you were following my Rant and Rave blog articles at InTheMoneyStocks.com, this rally was accurately called. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.45, +1.03 (+0.80%). The reasons to expect a rally today were simple. First, options expiration is next week. This may not seem significant but it is. Institutions sell a majority of the options to retail investors and smaller hedge funds. With the mega bearish sentiment, a huge amount of puts had been bought in the last month. A put is a bet the market will go down. Those puts are significantly in the money and the large institutions are set to take big losses. The one way to reduce those losses and possibly turn them into a profit is to have the market bounce. Considering the power of these mega institutions, the markets were going to bounce.
June 02, 2011
This morning, two of the leading copper stocks are trading higher to start the day. Yesterday, copper stocks where crushed lower on heavy volume. Often, after a high volume rally or decline the next trading session stocks will retrace a little bit. That seems to be what is happening with the leading copper stocks today.
June 05, 2011
The markets enter the week with fear bubbling up. The bears seem to be taking control from the bulls after an ugly Non Farm Payrolls report that only saw the creation of 54,000 jobs for the month of May. This clearly shows an economic slowing and investors are jumping ship quickly. While this slowd...
June 06, 2011
The markets sold off early in the session, tagging a master pivot low from April 18th, 2011. This low on the SPDR S&P 500 ETF (NYSE:SPY) was at $129.55. This level represents a short term major support for the market and it is very possible a multi day bounce will occur. In addition, sentiment is about as bearish as it has been in 2011. This also works as a solid contrarian indicator telling us a small bounce is on the horizon.
June 01, 2011
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.
June 01, 2011
The markets dropped sharply this morning on the back of the ADP Private Sector Employment numbers. Analysts had expected a solid 190,000 private sector jobs to have been created last month. The number reported today at 8:15pm ET was a meager 38,000. The futures had been slightly higher prior to this number, looking to build on a multi-day rally. However, once the number hit the markets, the futures sold. The selling continued once the markets opened as investors ran for cover. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.59, -1.31 (-0.97%), the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is at $124.05, -1.45 (-1.16%), while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is at $57.88, -0.48 (-0.82%).
May 26, 2011
Once again, the major stock market indexes have come under pressure this morning. Once again, it is the intra-day strength in the U.S. Dollar Index(DXY) that has deflated the major stock indexes. We are living in a society where the stock market can only rally if the U.S. Dollar Index declines.
This morning, many of the major energy stocks are all coming under sharp selling pressure. Stocks such as Chevron Corp.(NYSE:CVX), Devon Energy Corp.(NYSE:DVN), and ConocoPhillips(NYSE:COP) are all trading lower. Energy stocks now account for 16.0 percent of the S&P 500 Index. Therefore, when these market leaders decline the markets seem to decline.
May 26, 2011
The markets are heading slowly north as predicted in my article yesterday. This is classic pre-holiday action caused by the Federal Reserve and their POMO, along with light volume and an overbought Dollar short term. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.88, +0.49 (+0.37%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) has fallen to $21.63, -0.08 (-0.37%).
May 31, 2011
This morning, the major stock indexes are all trading higher as the U.S. Dollar Index remains at the lows of the session. The rally today is broad based with early strength in energy, commodities and technology. Two leading technology stocks are not participating in the morning rally and they are Salesforce.com Inc.(NYSE:CRM), and VMWare Inc.(NYSE:VMW).
May 31, 2011
Broadcom Corp.(NASDAQ:BRCM) is one of the leading semiconductor stocks that has come under selling pressure this afternoon. BRCM stock is trading lower today by $1.14 to $35.38 a share. This stock is selling off sharply lower today after staging a three day rally into important daily chart resistance. Short term day traders should watch the $34.60 area as intra-day support.
May 20, 2011
This morning, the U.S. Dollar Index futures are trading by 0.29 cents to $75.59 a share. When the U.S. Dollar Index trades higher on the session the major stock indexes will usually deflate and trade lower. The energy sector looks to be declining the most in the early part of the trading session. Leading integrated energy stocks such as Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP) are leading the sector lower. When the leading energy stocks fall the major stock market indexes will normally follow these stocks lower. Energy stocks account for 16.0 percent of the S&P 500 Index.
May 24, 2011
This morning, the leading energy sector is bouncing higher helping to lift the S&P 500 Index. It is important to note that the energy sector accounts for roughly 16.0 percent of the S&P 500 Index. WTI oil is trading higher this morning by $1.60 to $98.30 a barrel. Leading financial firms Goldman Sachs Group Inc.(NYSE:GS), and Morgan Stanley(NYSE:GS) upgraded WTI oil to $130.00 a barrel. This upgrade looks to be having a positive effect on spot crude and most energy stocks to start the day.
May 25, 2011
Finding a great chart is often better than making love. While both give you pleasure, a great chart setup will pay you hundreds, if not thousands. On the other hand, making love means we often end up paying dearly for the hot passion desired, either monetarily, nagging or other means. At least after a great swing trade you can roll over and go to sleep instead of cuddling. Having said that, let's find some charts that we want to make love to.
May 13, 2011
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.
May 11, 2011
Politically it is a tough decision. What will get you re-elected? What is best for the American people in the short run and long term? A higher stock market or a stronger Dollar. Very few average Americans understand that we cannot have both. The stock market moves 100% inverse to the stock market. Dollar up, market down. Dollar down, market up. Today, the stock market is slightly lower with the SPDR S&P 500 ETF (NYSE:SPY) trading at $135.28, -0.59 (-0.43%). Why is the market lower today? The Dollar is rising. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.47, +0.09 (+0.42%). Please recognize that the percentage the Dollar is up, is identical to the percentage the markets are down.
May 10, 2011
The financial stocks have been weak throughout 2011 as the Federal Reserve QE2 comes to a close. New rules and regulations have hampered them as well. As the markets have recently hit new 52 week highs, many financial stocks have made or are near new 52 week lows. Today, as the markets uptick again, financial stocks are finally catching a little bit of a bid and moving higher. Goldman Sachs Group, Inc. (NYSE:GS) is trading at 150.24, +1.12 (+0.75%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $45.25, +0.29 (+0.65%). Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC) are also up approximately one-percent on the day.
While the financial stocks are seeing a rare move higher, it is likely they will see more downside in the near term. None of these stocks mentioned above have solid support. Goldman Sachs has major support at $143.00, JPMorgan at $43.00 then $42.00, Bank of America at $11.50 and Wells Fargo at $26.50.
These levels are key supports and should they hit, then these stocks will have a reward to risk that is worthy of a long. Until then, today appears to be a minor dead cat bounce in an otherwise ugly sector.
Gareth Soloway
InTheMoneyStocks
May 03, 2011
All eyes turn to the Non Farm Payrolls number this coming Friday. The market is looking for continued positive readings on job creation. Lately, the market has been perplexed by higher Jobless Claims, last week hitting 426,000. This number is a sharp jump from a month ago when Jobless Claims were in the mid 380,000 range. In addition, the GDP reported last week was nothing to write home about, coming in at 1.8%. For a market that is getting steroids from the Federal Reserve, it seems somewhat on the weak side. As the Federal Reserve continues their quantitative easing policy, and the Dollar dives day by day, is the economy stalling out already?
May 04, 2011
This morning, the major takeover news comes as Applied Materials Inc.(NASDAQ:AMAT) buys out Varian Semiconductor Equipment Associates Inc.(NASDAQ:VSEA) for $63.00 a share in cash. This buyout is causing some of the other leading semiconductor equipment makers to rally sharply higher this morning.
April 26, 2011
Yesterday, the iShares Silver Trust(NYSE:SLV) traded over 189 million shares. This was the highest volume ever in the SLV, which will usually signal exhaustion buying. Many times before a stock, ETF, or commodity top out or are getting set for a pullback it will surge higher on heavy volume. That was exactly what took place yesterday for silver. This morning the SLV is trading lower by $1.65 to $44.19 a share. Please understand that the SLV was very overbought and extended on the charts. The SLV has climbed higher by more than 80.0 percent since January 25, 2011 when the SLV traded around $26.00 a share.
April 27, 2011
Oil stocks are in a precarious position which leaves no alternative but to sell them. We have seen oil prices advance sharply higher over the last two months. This has been a combination of a stronger global economy and instability in the Middle East. With this rise in energy, stocks like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) have soared. In July 2010, Chevron was trading at $67.00 per share. It now trades at $108.00, just off its 52 week highs. This gain is huge, coming in at over 60%. Exxon has had the same type of move as has other oil stocks like SandRidge Energy Inc. (NYSE:SD) have soared over 200% in that same time.
April 20, 2011
The leading gold and silver mining stocks have recently lagged the precious metals themselves. Sometimes the leading mining stocks will lead the metal, however, they have been lagging the precious metals since mid-March 2011. Gold and silver are making new highs this morning while the Market Vectors Gold Miners ETF(NYSE:GDX) is still trading below its December 2010 high which was $64.62 a share. This morning the GDX is trading higher by $1.45 cents to $63.10 a share. The GDX will have intra-day resistance around the $63.50 level.
April 18, 2011
The markets are getting crushed today on the back of a negative outlook issued by Standard and Poor's on the United States credit rating. Stocks are getting smacked across the board on this market weakness. While many stocks are taking a hit, some key names are hitting master support levels and may see a bounce for the remainder of the week.
April 06, 2011
A common theme is developing in the markets this week. Each day, the markets have been up nicely and by the close, faded to the flat line. This seems to be happening again today. The SPDR S&P 500 ETF (NYSE:SPY) is at $133.37, +0.13 (+0.10%) after being as high as $134.00. The high of the day was only a small distance from the 52 week high on the SPY at $134.69.
April 04, 2011
The markets are floating neutral to higher today on the back of light volume and continued global optimism. Last Friday, the Non Farm Payrolls Report showed a rosy picture of the job market. Being the first Monday of the new quarter, it is likely to see new mutual fund money keep the markets flat to positive as well. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.23, +0.08 (+0.06%).
April 18, 2011
The major stock indexes are all coming under pressure this morning as the S&P 500 e-mini futures(ESM1) are trading lower by 8.00 points to 1310.75 per contract. Corporate earnings season is under way this week as countless stocks will report earnings. Citigroup Inc.(NYSE:C) was one of the leading financial stocks that reported earnings this morning. The stock is trading higher by 0.05 cents to $4.47 a share. The earnings for Citigroup were very similar to what J.P. Morgan Chase & Co.(NYSE:JPM), and Bank of America Corp.(NYSE:BAC) reported last week. Goldman Sachs Group Inc.(NYSE:GS) is scheduled to report earnings tomorrow before the opening bell. It will be interesting to see the markets reaction to this leading financial stock. Goldman Sachs Group has come under some very negative press recently after a U.S. Senate report places a lot of the blame on the company for the financial crisis in 2008.
April 12, 2011
The S&P 500 Index e-mini futures (ES M1) are trading lower this morning by 7.00 points to 1312.50 per contract. The decline in the futures comes after Alcoa Inc.(NYSEAA) reported earnings last night and missed analysts estimates. Alcoa stock is trading lower by 0.77 cents to $17.00 a share. The major stock indexes are finally starting to pullback a little after the huge rally from the March 16, 2011 pivot low.
April 13, 2011
The Wednesday before options expiration is usually one of the most volatile trading sessions of the month. As we all know options expiration is on the third Friday of every month. The April expiration will be on April 15, 2011 this month. Many of the small retail options traders will trade the near term expiration because they do not have to lay out a large amount of capital in order to take a position in a stock. By the Wednesday before options expiration the institutions have taken care of most of their business by shaking the small retail options trader out of there option position. Please understand that the small retail options trader is usually just trying to capture the a gain in the premium paid for the option. They will rarely exercise a stock option and will almost always settle the position for a gain or loss before the actual expiration date. Therefore, the entire trading week before the actual expiration date is very volatile.
April 07, 2011
The markets opened quietly today on the back of an expected interest rate hike by the ECB and Jobless Claims that came in at 382,000. These were no shock to the markets which opened slightly lower on a stronger Dollar. No sooner had the markets opened, a flurry of buying came in as the Dollar fell down in its normal daily spiral. The markets advanced towards the high from yesterday with the SPDR S&P 500 ETF (NYSE:SPY) hitting $133.98. All of a sudden, the markets turned down, collapsing with ferocity and massive volume. News had hit that Japan was struck with a massive earthquake, measuring 7.2. Worries about more damage, another Tsunami and of course those nuclear plants surged. The SPY went from a high of $133.98 to $132.66 before having a gigantic bounce. It is currently trading in the middle range at $132.84, -0.72 (-0.54%).
April 08, 2011
Is this a sick April fools joke, or is it reality? The United States Gasoline Fund(NYSE:UGA) is making a new 52 week high this morning and the major stock market indexes around the world are all trading higher. At some point the high gasoline prices will certainly take its toll on the U.S. consumer. Please remember that consumer spending in the Unites States accounts for 70.0 percent of the U.S. gross domestic product. The average price of gasoline in the United States is $3.74 a gallon. Last week the average price was $3.60 a gallon in the United States. Gasoline prices in California are well over $4.00 a gallon at the moment. Please remember that the state of California is the eighth largest economy in the world.
April 11, 2011
The markets opened slightly higher today on the back of a drop in oil. The markets have maintained their slight positive open as volume dries up. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.30, +0.44 (+0.33%) as the United States Oil Fund LP (NYSE:USO) has fallen to $44.74, -0.41 (-0.91%). Not only was oil extremely extended but talk of a cease fire in Libya is mounting. These are putting pressure on the commodity and the market is liking it. Higher oil means less spending money for the average American. Lower oil means more spending. Obviously, the markets like the more spending option, especially during this economic recovery.
April 01, 2011
The S&P 500 e-mini futures(ES M1) are trading higher this morning by 7.75 to 1328.75 per contract. The futures started to ramp up higher around 2:00 am EST as the Shanghai Index(China) rallied sharply higher last night. The stock market rally continues to live on and no one should be surprised as the markets have shot straight up since the March 16, 2011 correction low. The Department of Labor reported a gain of 216,000 jobs for the month of March. Analysts had expected just 185,000 jobs reported. When do the analysts ever get it right and who can really believe these reports? The reaction from the market is really all that matters when you are a trader.
March 30, 2011
What can we say? The S&P 500 Index futures (ES M1) are trading higher again this morning by 6.00 points to 1322.50 per contract. The S&P 500 futures have now rallied higher by 81.0 points in just 10 trading sessions. The rally higher has been on much lighter volume and this is certainly a concern for many traders and investors. However, price action is all that matters and it seems to climb regardless of the geopolitical events around the world.
March 30, 2011
The markets continued their march higher today, closing in on the 52 week highs. The SPDR S&P 500 ETF (NYSE:SPY) are hammering on the highs of the day at $132.76, +0.90 (+0.68%). This is just slightly off the 52 week highs on the SPY at $134.69. The markets are higher today on the back of continued optimism after ADP Private Sector Employment was reported. The private sector gained 201,000 jobs which is very bullish for Friday's jobs report. On Friday, at 8:30am ET, the Non Farm Payroll Report will be released. Wall Street is now hoping for a number above 200,000.
March 29, 2011
It was just three weeks ago when oil spiked higher, causing the market to sell sharply. As oil traded over $100 per barrel, the markets got jittery over fears it would crush a slowly recovering economy. Today, the markets are loving oil as they trade together, tick for tick. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.51, +0.53 (+0.40%). This is the high of the day. The United States Oil Fund LP (NYSE:USO) is trading at $41.83, +0.41 (+0.99%). This is also the high of the day. So what happened? Why is higher oil all of a sudden good for the markets?
March 28, 2011
This morning the U.S. Dollar Index(DXY) is declining lower by 0.34 cents to $76.05. Last week, the U.S. Dollar Index staged a small bounce on the daily chart, however, today the U.S. Dollar Index failed to trade above its daily chart 20 moving average. Please note that the DXY remains below all of the major moving averages and this puts the U.S. Dollar Index in a down trend. The U.S. Dollar Index has declined lower by 15.0 percent since June 7, 2010.
March 28, 2011
The markets opened the day slightly higher, then had a strong push into the double top highs from Friday. After attempting to push through this level many times, the markets pulled back to the flat line. The SPDR S&P 500 ETF (NYSE:SPY) is holding just slightly positive at $131.39, +0.09 (+0.07%).
March 24, 2011
Apple Inc. (NASDAQ:AAPL) has been on a wild ride over the last month. On February 16th, 2011, Apple made an all time high at $364.90. Since then, things have started to fall apart. The stock has plummeted to a recent low of $326.26 as the market has had a small correction and the brain, Steve Jobs took a leave of absence.
March 25, 2011
All of the leading oil refiner stocks have been strong since mid-January and continue to remain strong on the charts. The refining sector has outperformed other sectors in the energy space.
March 21, 2011
This morning all of the major stock indexes are soaring higher. The rally is broad based as almost every industry group seems to be catching a bid. One industry group is helping to lift the Dow Jones Industrial Average(DJIA) and the S&P 500 Index sharply and that is the integrated energy stocks.
Exxon Mobil Corp.(NYSE:XOM) is trading higher this morning by $2.35 to $83.21 a share. This still is a major component of the DJIA and the S&P 500 Index. Exxon Mobil Corp. has the largest market capitalization in the stock market at over $400 billion. XOM will have intra-day resistance around the $78.50 level intra-day.
March 16, 2011
The markets are again testing the double bottom from yesterdays low. This level on the SPDR S&P 500 ETF (NYSE:SPY) is $126.50. If this area breaks, the SPY will fall to $125.90. Earlier today, the $126.50 level was tested but the Federal Reserve stepped in and extended their open market operations to help save the market. The markets are continuing to spin and worry about inflation, housing problems and of course Japan, the Middle East and Europe's debt problems. Watch this key $126.50 level. If it holds, we could rally back up into the markets close, if it breaks, $125.90 is next.
March 16, 2011
The markets opened slightly lower and slowly started their light volume climb back to the flat line. Things in Japan appeared to be quiet for the time being as the Nikkei rallied 5% last night. The markets came all the way back to the flat line with the SPDR S&P 500 ETF (NYSE:SPY) hit a high of $128.57. Yesterday, the SPY closed at $128.56. This created a perfect gap fill.
March 15, 2011
Some of the leading Japanese ADR's have bounced sharply off the intra-day session lows this morning. Often when the trading volume lightens up the major stock market indexes in the United States will trade higher.
February 23, 2011
Everyone is watching the world protest over high food prices. Oil prices are the driving force in the stock market today as the geopolitical events in the Middle East become front and center news. Today spot crude reached $100.00 a barrel before pulling back into the close at the New York Mercantile Exchange. Can the world handle $100.00 crude?
February 24, 2011
This morning April oil is trading over $100.00 a barrel and that is front and center for the stock markets. The S&P 500 e-mini futures(ES H1) are trading lower by 5.25 points to 1300.25 before the opening bell at the New York Stock Exchange. S&P 500 Futures have now declined by 42.00 points in just three days. The catalyst for the market sell off is the continued tension and protests in the Middle East and Northern Africa. Libya is taking over where Egypt left off as a revolution looks to be occurring against Moammar Gadhafi. Oil is trading higher from this news and can spike higher if the situation worsens in the region and spreads into Saudi Arabia.
March 07, 2011
The markets are continuing to sell sharply today even though oil has pulled back nicely. This is a new aspect to the markets over the last month and something that may signal a significant shift in market activity. Technology is falling today, leading the markets lower. The Nasdaq is trading at 2,734.30, -50.37 (-1.81%). Apple Inc. (NASDAQ:AAPL) ran into the key resistance at $360.00. It is taking a hit today, trading at $353.45, -6.55 (-1.82%). In addition, Amazon.com, Inc. (NASDAQ:AMZN) is getting smacked, trading at $167.75, -3.92 (-2.28%). However, AMZN is now inching into the key double bottom from January 28th, 2011. Note the chart below.
March 08, 2011
Ah, the media is finally talking about the European Union debt crisis again. Bond yields in Greek and Portuguese debt are soaring higher this morning continuing to climb from yesterday's advance. Spain, Italy, Belgium, and other European nations still face major debt problems. Central banks(ECB and the Federal Reserve) can only mascaraed the debt problems by purchasing bonds for so long. Yesterday, Moodys downgraded Greek debt by three notches. Many investors thought that Greece was already bailed out in May 2010. More money creation in Europe by central banks may only help to increase the price of gold and silver.
February 25, 2011
This morning the S&P 500 E-mini futures(ES H1) are trading higher by 7.75 points at 8:30 am EST. The stock market seems to be reacting positive as oil is pulling back below $100.00 a barrel. This morning, April crude is trading around $96.85 a barrel. Crude remains the driving force behind every stock market move. Yesterday afternoon when oil prices pulled back below the $100.00 level the stock market indexes actually rallied higher off of its intra-day lows.
February 28, 2011
This morning both silver and gold are trading higher and remains near 52 week highs. The iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.54 cents to $33.10 a share which is a new 52 week high. The SLV looks to have some minor intra-day resistance around the $33.25 level. Should the U.S. Dollar Index continue to decline the SLV could see higher prices.
February 23, 2011
The markets continue to sell today with the SPDR S&P 500 ETF (NYSE:SPY) trading at $130.68, -1.15 (-0.88%). Libya is on the verge of civil war and the markets continue to worry that the unrest and protests will spread to Saudi Arabia. Oil continues to run higher today, the United States Oil Fund LP (NYSE:USO) is trading at $40.03, +1.54 (+4.00%). Should Saudi Arabia see massive protests and violence, oil could go to $150.00 per barrel very quickly.
February 18, 2011
The commodity silver is surging today, making new 52 highs. Not only is silver a store of value during inflationary times, but more importantly, it is used in many products and the production of products. Therefore, it makes sense that it is running higher ahead of gold due to the solid economic outlook. The iShares Silver Trust (ETF) (NYSE:SLV) is jumping, hitting a new 52 week high at $32.08. This chart is extremely extended and could see a solid pull back.
February 15, 2011
After the lightest trading day of the year yesterday, the markets kicked it up a notch. They opened lower after retail sales came in below expectations. After an initial move higher from the gap down, the markets sold sharply as the Dollar gained. Then, as the lunch time volume kicked in, the markets moved back, heading towards the flat line. This is options expiration ....
February 14, 2011
Rewind and replay, that is the motto of the stock market each day. Stocks like Exxon Mobil Corporation (NYSE:XOM) gap lower, only to have the buy programs hit via the Federal Reserve's POMO QE-2. These stocks then move higher, minute after minute, keeping the markets floating in the neutral to positive direction. You can look back at XOM each of the last few days. This is a repeating pattern. XOM will gap lower, then go on a major move higher, keeping the markets from collapsing. Remember, XOM is the largest market cap stock and a major player in the Dow Jones Industrial Average which is made up of only 30 stocks. It is becoming somewhat of a joke between seasoned intelligent traders who are making money hand over fist as they play the Federal Reserve's POMO each day. "Buy the dip", everyone screams. As of now, the markets are a casino and everyone is being paid out.
February 09, 2011
The markets are having a rare late morning, pre lunch drop, as the Dollar has spiked higher. The trading day started much like all the rest. A small gap lower and a float back to the flat line on light volume. However, once the flat line was achieved, the markets started to drop at 11am ET. Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.93, -0.64.
February 11, 2011
Agriculture stocks jumped to new 52 week highs today as the cost of food continues to rise. This rising price of food has been one of the main drivers behind the protests and riots all over the world. Many poor nations with high unemployment spend a majority of their money on food. As inflation jumps, food prices rise as well. This is making more and more of the worlds poor unable to feed themselves. The unrest stems largely from that.
February 03, 2011
The stock market dropped early on a strong Dollar but made its way back to the flat line by mid day. All eyes appear to be on the Non Farm Payrolls Report and Unemployment Report tomorrow at 8:30am ET. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.38, - 0.11 while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.34, +0.16. The markets fell sharply early in the morning session as the Dollar shot higher.
January 31, 2011
After a wild, huge volume day on Friday, the markets returned to "normal". The volatility of Friday has been sucked out, volume dry and the drama ancient history. The Middle East and Northern Africa continues to be caught up in riots and protests but the U.S. markets seem to be shrugging it off as key stocks lead the market higher and the Dollar drops. Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.25, +0.53 (+0.41%).
February 01, 2011
Many investors will often say that the stock market leads the economy. While in the past this has appeared to be the case on many different occasions, is it really true? That question is open for debate. The current situation for the economy looks to be slightly different. Throughout the past 97 years every time the Federal Reserve Bank(which is the central bank to the United States) has lowered interest rates to extremely low levels the stock market has inflated higher and recovered. Currently, the Federal Reserve has the benchmark fed funds rate at zero to a quarter percent since December 2008. The central bank has also purchased over $1 trillion in U.S. Treasury bonds. At this time the Federal Reserve is in the middle of it's $600 billion quantitative easing part two program which is meant to help inflate asset prices. This is an unprecedented amount of money being thrown at these markets in order to create inflation and higher stock prices.
February 02, 2011
Solar stocks continue to rocket higher on the back of positive press releases and high oil prices. MEMC Electronic Materials, Inc. (NYSE:WFR) reported earnings and raised their full year guidance. The stock soared on this news, jumping to a current price of $12.89, +1.26 (+10.83%). Recent positive news from First Solar, Inc. (NASDAQ:FSLR) has also kept the sector on fire.
January 31, 2011
This morning the major stock market indexes are all starting the session higher to begin the day. The talking heads in the media are now saying how everything is fine once again in the world with the exception of Egypt. The Asian markets traded mostly lower last night with the lone exception of the Shanghai Index which was higher by 1.38 percent. We all know the market loves to see the Chinese market higher because many economists believe the Chinese economy is the growth engine of the world. All in all it looks as if the media has forgot the bloodbath market that took place before the weekend on January 28th, 2011.
January 25, 2011
Gold has been hammered over the last couple weeks, after making all time highs. The SPDR Gold Trust (NYSE:GLD) has fallen from an all time high of $139.54 to a low today of $129.07. This fall has been categorized by bearish flag pattern after bearish flag pattern playing out to the downside. It has been classic. While gold has fallen sharply, it now is entering a level where it may find some solid support. In addition, many gold stocks have fallen to their 200 moving averages on the daily charts. This also tells us there may be a bounce in the short run. Just to make it clear, this is not a long term bounce, just a bounce over a few days that may start today or tomorrow.
January 27, 2011
Many traders and investors have simply been buying the dip every time the stock market declines. This method has worked because the daily chart trend is up. As long as the daily chart remains up the buying the dip method will work. However, day traders or scalpers must deal with two trends and this makes day trading a much more skillful endeavor. Day traders or scalpers must watch and know the daily chart trend plus the trend of the intra-day time frame that they may be using to find support or resistance.
January 27, 2011
Hanmi Financial Corp (NASDAQ:HAFC) returned to profitability. Those headlines surged across the screen this morning. The stock jumped, soaring to $1.50, +0.33 (+28.21%). The company reported net income of $5.3 million, or 4 cents a share. This was major for a beaten down small cap financial stock and set other small cap financial firms roaring higher. Shorts in these stocks began to cover and buyers inched in. Hopes that other small cap financial firms will perform as well started growing. With this optimism, so came share price increases.
January 24, 2011
Many recently beaten down areas of the market are seeing a positive move today on the back of a slightly weaker Dollar. The markets are floating higher as volume is about as light as imaginable. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.96, +0.59 (+0.46%). Rare earth stocks and other metal plays are getting a bounce today. It was alerted on this very blog last week that Molycorp, Inc. (NYSE:MCP) was going to the 50 moving average on the daily chart at around $40.00. Today it hit the 50 moving average perfectly and from there took off to the upside, now trading back at $45.06, +2.07 (+4.82%).
January 21, 2011
Options expiration week is always a very volatile and sometime violent trading week. This is a time period when the institutional money will bully stocks around like a nerd on the playground. It is always important to realize that the institutional money(hedge funds, bank prop firms, mutual funds) will try and move stock prices away from the popular strike price that the retail investor or trader is betting on. It is always important to note that most retail options traders usually play options because they do not have the cash to actually by the stock, therefore, they will buy calls or puts as a cheap way of playing the stock market and settle their trades before or during the week of expiration. That is why this is such a very difficult week to trade stocks. Then when you add earnings season into the mix it is really only the true professional trader that can take advantage of the short term opportunities in the market during the week of options expiration.
January 21, 2011
Earnings from the big name companies cannot seem to keep the markets floating any longer. By 10:00am ET, the SPDR S&P 500 ETF (NYSE:SPY) hit a high of $129.17. Since then, they have fallen all the way back to new lows of the day at $128.30. This is extremely unusual for a light volume market on a Friday and must peak ones interest. Over the last three months, the markets have floated non stop higher, especially on Fridays and even more so when the U.S. Dollar is weaker, like it is today. So what gives?
January 19, 2011
These two stocks are nearing a level where they will finally become attractive to the buy side. Both have fallen sharply in the last month after making new 52 week highs almost daily. The first is Target Corporation (NYSE:TGT) which just crossed the 200 moving average to the downside today. This is generally bearish but it appears in this specific case, it is reaching for a gap fill at $53.75. In addition, as always stated, a move below the 200 moving average is only bearish if it confirms. This is a key methodology point revealed in the Research Center. Should TGT hit $53.75, the long will trigger for a bounce back to $55.00 in the short term.
January 19, 2011
The market is lower today after key earnings announcements were not quite enough to keep the recent massive gains in the markets. Apple Inc. (NASDAQ:AAPL) reported stellar earnings, blasting past Wall Street estimates. However, regardless of what they made last quarter, now AAPL investors must face uncertainty with future earnings from a company without Steve Jobs. This is bringing some sellers out on the stock. The stock is only trading up +1.70 (+0.50%) at $342.35.
January 13, 2011
Initial Claims for the first week of 2011 shot higher by 35,000, jumping to 445,000. This shocked the market slightly as many had hoped the jobs market had turned a corner. During the last couple weeks of December, jobless claims had dropped to the 400,000 range. The key to the previous low numbers was mainly due to the holidays. Many companies will wait to lay off employees until after the new year, not wanting the bad press of a Chistmas firing. In addition, many newly unemployed workers will wait to file for unemployment until after the holidays, opting to spend time with their families. This happens every year and in January, Jobless Claims shoot higher again. This was no different in 2011.
January 12, 2011
The U.S Dollar dropped today, pushing the stock markets higher. The inverse relationship continues to hold true. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $23.16, -0.11 (-0.47%) while the SPDR S&P 500 ETF (NYSE:SPY) trades higher at $128.60, +1.17 (+0.92%). The markets continue to have extremely light volume. At this point, the markets are waiting for the Federal Reserve's Beige Book at 2:00pm ET.
Commodities are leading the charge for the second day in a row. Chevron Corporation (NYSE:CVX) has hit a new 52 week high at $92.75 while Exxon Mobil Corporation (NYSE:XOM) has done the same. These are two major Dow Jones Industrial Components and are both helping keep the markets nicely higher.
January 07, 2011
Earlier this week on January 5th, 2011 the payroll processing company ADP reported that the U.S. economy had added 297,000 jobs. The economists went wild raising the expectations of today's government non-farm payroll report to over 200,000 jobs. However, today the job report was released at 8:30 am EST and the U.S. Labor Department only reported a headline number of 103,000. This is quite a disappointment for all those who thought the economy was adding much more jobs as the ADP report suggested.
January 07, 2011
Expectations were soaring high going into the Unemployment and Non Farm Payroll Report. The ADP Private Sector Employment numbers reported on Wednesday were extremely bullish, coming in at 297,000. The reports this morning were mixed, with Non Farm Payrolls for the month of December increasing just 103,000. However, the Unemployment Rate dropped to 9.4% from 9.8%. The futures dropped sharply after the Non Farm Payrolls came in much lower than expected. The market had hoped for a number above 200,000. However, between the Unemployment Rate dropping and the Dollar falling, the losses were paired and the futures have turned positive. The SPDR S&P 500 ETF (NYSE:SPY) dropped $0.50 on the number this morning, then surged back to postiive territory while the Dollar, which was positive has now turned flat to negative.
January 07, 2011
After a lackluster jobs report this morning, the markets opened higher on a weaker Dollar. However, by 10:30am ET, the Dollar caught a bid and surged to the upside. This move higher, compiled with the poor Non Farm Payrolls number, killed any possible rally. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $126.87, -0.52 (-0.41%).
January 05, 2011
Two of the major winning stocks in 2010 were Dollar Tree Inc.(NYSE:DLTR), and Family Dollar Stores Inc.(NYSE:FDO). Dollar Tree Inc. was trading around $32.00 in January 2010. Yesterday the stock traded over $56.00 a share before staging a sharp high volume reversal. The stock cut right through its daily 50 moving average which puts the stock in a weak technical position on the charts. Today DLTR is trading lower by $2.53 to $52.21 a share. The stock will have daily chart support around the $50.00 level and much more around the $46.50 area.
January 06, 2011
Solar stocks have been weak of late with many selling off from recent 52 week highs while the market has pushed higher. Stocks like Solarfun Power Holdings Co., Ltd. (NASDAQ:SOLF), JA Solar Holdings Co., Ltd. (NASDAQ:JASO) and SunPower Corporation (NASDAQ:SPWRA) are all dramatically down from their 2010 highs. However, there seems to be a small shift going on, as money flow is beginning to move towards them at these discounted levels. JASO and SOLF are both beginning to move off their base levels after sometime. The sentiment may be on the verge of changing in the short run for a move higher. The key factor for the solar stocks is oil. Oil has moved sharply higher in recent weeks and as it heads towards $100, alternate energy will become a much more viable option.
January 06, 2011
Research In Motion Ltd.(NASDAQ:RIMM) announced today that Sprint Nextel Corp.(NYSE:S) will be the primary carrier for their new tablet computer product. The stock is trading lower today by $1.75 to $60.17. RIMM should have short term intra-day support around the $59.42 level. Should RIMM decline further below that level the next intra-day support area would be at the $58.90 level.
January 04, 2011
The bullish sentiment on metal stocks has grown to a roar. Many of these stocks have soared 50 to 100% in recent months with some going even higher. Over the first couple days of the new year, new money has been thrown at the markets. This new money has looked for easy profits thus chasing metal and other commodity plays. While this pushed these stocks up the first day, it appears the buying is quickly drying up. Many of these plays are and will be amazing shorts in the days and weeks to come. Yesterday, to my members, I noted that Southern Copper Corporation (USA) (NYSE:SCCO) had a topping tail in place. This was a sign of a bigger pull back to come. I told them to let it gap higher today and short it. Sure enough, Southern Copper opened at $49.99. It has quickly fallen to $48.73 for big profits already. It most likely has more downside to go as well. The two other stocks I gave to my members as shorts were United States Steel Corporation (NYSE:X) and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Both these stocks have fallen nicely today as it looks like the craze and new year money flow is subsiding.
January 04, 2011
The major stock market indexes are trading mixed today. The Dow Jones Industrial Average is trading slight positive on the session while the S&P 500 Index, NASDAQ Composite, and the Russel 2000 Index are all trading lower. Since the Federal Reserve Bank announced its quantitative easing(QE-2) program in late August all the major stock indexes have rallied together like a pack of wolves. Today we are seeing the stock indexes diverge from each other and that is a change in character that is worth noting.
January 03, 2011
Today is the first trading day of 2011. The major stock market indexes all started the trading session with a large gap higher open. The leading stocks in 2010 where the commodity stocks and they remain the leaders today. Remember, once the Federal Reserve Bank Chairman Ben Bernanke announced his quantitative easing or U.S. Treasury purchase program the stock markets have gone wild to the upside. Remember in late August 2010 the Dow Jones Industrial Average was trading under the psychological 10,000 level. Today the Dow Jones Industrial Average is trading around 11,686.00. That is a 1600 point rally in just four months. Many traders and investors have have seen oil, gasoline, gold, silver, copper, cotton, and most every other commodity soar to new highs for the year.
December 29, 2010
Rare earths stocks are all the rage right now. Every trader, investor, and financial media figure cannot stop talking about this industry group. Where were the rare earth stocks a year ago? Every since China mentioned that they would limit the export amount of their rare earth metals over the weekend these stocks have soared higher and caught a ton of media attention.
December 28, 2010
The SPDR Gold Shares(NYSE:GLD) are trading higher this morning by $1.87 to $136.90. Gold is a double edged sword and will often trade higher when the U.S. Dollar Index declines or a geopolitical event arises. This morning the U.S. Dollar Index is starting the morning sharply lower and this is certainly helping to inflate the commodity and stock markets.
December 27, 2010
This weekend the Chinese central bank called the 'Peoples Bank of China' raised interest rates by 25 basis points. This move by the central bank was expected weeks ago as the consumer price index was indicating high inflation for the Chinese economy. The Chinese economy has been known to be the growth engine of the world. Should the Chinese take further steps to cool off its hot economy this action could effect many of the leading commodity stocks in the United States and around the world.
December 21, 2010
Last night the Asian markets all surged higher. The Shanghai, Hang Seng, and the Nikkei Indexes all traded higher by more than 1.50 percent. The rally overseas took place as China voiced support for the recent actions in the European Union. Apparently the world markets are listening to every word that the Chinese are saying. However, the Chinese economy is dealing with it's own set of problems and that is flat out inflation. Recent reports out of China show that inflation continues to increase at an alarming rate and the Chinese central bank(Peoples Bank of China) will need to raise interest rates very soon. The Chinese have increased bank reserves five times already to try and curb real estate speculation. Ultimately, the Chinese will need to raise interest rates and this should slow down the worlds hottest economy a little. Only the Chinese know when rates will increase as many economists have expected the rate hike already only to find out that rates remain the same.
December 22, 2010
This morning spot crude for January delivery is trading above $90.00 barrel. The high oil prices come as the United States and Europe reach very cold temperatures at the start of the winter season. Oil has a tendency to also increase in price before the Christmas and New Years holidays. This morning the United States Oil Fund(NYSE:USO) is trading higher by 0.19 to $38.48. The popular ETF will have minor resistance around the $38.75 level and much more resistance at the $40.00 level.
December 20, 2010
The Federal Reserve Bank pulled off two separate POMO(permanant open market operations) operations today for a total purchase of $13 - $18 billion worth of U.S. Treasuries. This action by the central bank has helped to inflate the stock markets higher since it was announced by the Federal Reserve Bank Chairman Ben Bernanke on August 27th, 2010. It is rather obvious that the central bank wants to keep the mood very jolly into the Christmas holiday which is on December 25th, 2010. The Fed also has a double POMO operation scheduled for tomorrow. This has been the first time that the Fed has orchestrated back to back double POMO injection days since QE-2 began.
December 21, 2010
Since the December 1st pivot date the entire stock market has rallied higher. Most industry groups have participated in the broad based advance. Often money will rotate from one sector to the next depending upon how far a particular sector has rallied. Well, it now appears that the home builder sector has now reached the top of its trading range. When a stock or industry group reaches the top of its range the institutions that own the stocks will usually look to start unloading or sell the stocks. This is usually when the public or the retail trader is buying the stock because they feel that they want to own something that is up so much. The public usually does the opposite of the institutions.
December 21, 2010
Small biotechnology companies are making moves not seen in months if not years. Stocks like Radient Pharmaceuticals Corporation (AMEX:RPC) has shot higher by a massive 100% in the last couple days. Other stocks like Antigenics, Inc. (NASDAQ:AGEN) and Poniard Pharmaceuticals, Inc. (NASDAQ:PARD) have shot higher as well. The key seems to be many of these biotech players are sitting at their dead lows while the rest of the market has soared. Many are also sitting on a lot of cash with some promising drugs in their pipelines. As speculative money runs out of places to go, these small biotechnology companies are the logical candidate. A solid play for a run over $1.00 appears to be Labopharm Inc. (NASDAQ:DDSS). They are sitting on approximately $50 million in cash with solid revenue growth based on higher licensing revenue, as well as revenue from the provision of services related to the commercialization of OLEPTRO™ to Angelini Labopharm under the joint venture agreement with Gruppo Angelini. The market cap is only slightly higher than cash at $65 million.
December 17, 2010
The major stock market indexes have opened up basically flat again this morning. Many traders and investors are talking about the Bush tax cut extension that is expected to be signed by President Obama as a market catalyst . This tax cut extension was already factored in by the stock market and is really not having much effect on the major stock indexes.
December 07, 2010
The markets jumped higher today at the open, rallying on a sharp drop in the Dollar once again. Commodities were off to the races, with gold and silver leading the charge. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a high at the open of $139.54 while the iShares Silver Trust (ETF) (NYSE:SLV) hit a high of $30.00. This move was driven by the hype over the last week and yesterday. Amateur traders and investors were buying with reckless abandon, after hearing rumors that JPMorgan Chase & Co. (NYSE:JPM) was caught short and an inevitable short squeeze on silver was looming. Even the media and talking heads on TV were all over the squeeze.
December 14, 2010
The Federal Reserve Bank made it's decision to keep interest rates unchanged at 0.00 – 0.25 percent. This is the same level that the overnight bank lending rate has been since December 2008. The Federal Reserve also said that they would continue with it's quantitative easing or treasury purchasing p...
December 15, 2010
Can The Dollar Decline Enough To Save The Day?
As many of us all know by now when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Yesterday all the major stock indexes sold off from their intra-day highs as the U.S. Dollar Index rallied higher late in the afternoon. When the U.S. Dollar Index rallies or trades higher the stock markets around the world will simply deflate and decline. Today the U.S. Dollar Index is starting the trading day slightly higher and this has put pressure on the stock market futures at the open of the trading session.
December 15, 2010
A bubble has started to inflate and once again the Federal Reserve has a direct relationship with it. The markets have soared over the last few months as the SPDR S&P 500 ETF (NYSE:SPY) has gone from $104.50 to a recent high of $125.20. This move has lifted the SPY twenty percent. Behind the move is the Federal Reserve, printing and pumping money into the system to create an asset bubble. As they print, the Dollar declines and in response, all assets must adjust their prices higher. Higher assets like 401k's make the average American feel richer and thus spend more. While they may feel richer, in actual terms they are not. As their investment accounts move higher, the buying power is adjusting lower. Most Americans have no perception of this but they will feel the pinch currently at the supermarket and when paying their energy bills. In the not too distant future, they will feel it in every other purchase they make. As the asset bubble inflates, common sense says eventually it will collapse.
December 15, 2010
Since the Federal Reserve Bank announced it's $600 billion quantitative easing program on November 3rd, 2010 yields on the 10 and 30 Year Treasury Notes have soared higher. On November 4th the 10 Year Treasury yield was around 2.46 percent and the 30 Year Treasury yield was around 3.85 percent. Since that time the 10 Year T- Bond yield jumped by more than a full point and is now trading around 3.55 percent. The yield on the 30 Year T-Note is now around 4.60 percent. This is a major increase in interest rates in just a short amount of time. Is this what the Federal Reserve was aiming for for when they announced QE-2? The whole point of QE-2 according to Ben Bernanke was to keep rates artificially low to try and stimulate the housing and job markets.
December 13, 2010
It looks like certain semiconductor and storage plays have possibly topped out today. After an initial gap higher, they have turned to the downside even as the markets remain higher. Their daily charts are extremely extended and into major resistance. The first stock that has shown a good top reversal is Cree, Inc. (NASDAQ:CREE). In two months CREE has gone from $48.00 to a gap up high today of $72.85. Even with the markets near the highs of the day, this stock has now reversed and gone negative. The second stock is Riverbed Technology, Inc. (NASDAQ:RVBD). RVBD opened higher at $37.60. Since then, it has dropped, going negative on the day. RVBD was a $12.00 stock at the beginning of 2010. Just in the last month, RVBD is up almost $10.00 per share. The reversal today, could spell a solid short term pull back in the stock. The semiconductor ETF is also looking like a top is near or already in the stock. Semiconductor HOLDRs (ETF) (NYSE:SMH) is extremely extended. Watch for a pull back. To gain more guidance, swing trades and education, join the Research Center.
December 10, 2010
The airline sector is pulling back again today. This highly popular sector has been in correction mode since early November. Each individual airline stock has its own support level where the stock will bounce or begin to rally, however, at this time most of the stocks are still in selling mode.
December 10, 2010
This weekend many economists and investors are expecting China to raise interest rates to cool off their sizzling economy. The Chinese have already increased bank reserve requirements six times this year in hopes to cool inflation and excessive speculation in housing. These actions by the Chinese central bank have caused the iShares FTSE/Xinhua China 25 Index(NYSE:FXI) to remain at the low range of the daily chart. The FXI should have daily chart support around the $41.75 area which is around the daily 200 moving average. Almost every market in the world is being effected by the Chinese economy, therefore, this market must followed closely on a daily basis.
December 06, 2010
The retailers look suspended in mid air without any fuel left to propel them higher. Expectations have been so high for retail sales, it appears there is almost no possible way they can go much higher before a pull back. The top pull back candidates are the high end retailers like Tiffany & Co. (NYSE:TIF), Coach, Inc. (NYSE:COH). These have had the biggest moves higher, many up 50-100% in the last six months. If retail sales falter even a tiny bit, these could come down hard. In addition, even if retail sales perform up to par, these stocks have factored that in already. Another factor holding back high end buying by the rich is the uncertainty over taxes in the coming year. This will keep some from purchases from being made.
December 08, 2010
Yesterday most commodities staged reversal days on the charts. Gold, silver, and copper have been market leaders and made new highs for the year yesterday morning. However, in late afternoon trading yesterday these leading commodities all sold off sharply. Commodities have soared higher since Ben Bernanke announced his quantitative easing program back on August 27th, 2010. All of these commodities have been very extended and overbought on the charts. China is also very likely to raise interest rates very soon and that would definitely curb the appetite for commodities. Since Monday the U.S. Dollar Index has bounced higher and we all know when the U.S. Dollar Index trades higher the commodity markets will usually deflate and trade lower.
Today the SPDR Gold Shares(NYSE:GLD), the iShares Comex Gold Trust(NYSE:IAU), and the iShares Silver Trust ETF(NYSE:SLV) are all trading lower by 1.60 percent. These market leaders look to be in corrective mode at this time. However, after an extended 7.0 to 10.0 percent pullback these leading precious metal names will likely present a buying opportunity again.
December 09, 2010
This year the market caught an explosive bid higher on December 1st, 2010. On that day the Dow Jones Industrial Average(DJIA) climbed higher by 248.00 points. That is certainly a major move higher for a single trading day. The very next trading session the DJIA gained another 107.00 points making the total gain from December 1st and 2nd around 355.00 points in total. That gain put the DJIA at 11,362.00. However, since December 2nd the DJIA has gained only about 25.0 points from that time. The DJIA could be just consolidating or perhaps this market rally is losing steam again.
December 02, 2010
Commodity stocks remain extremely hot in the current market. From copper and gold, all the way to steel and molybdenum. Stocks like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) are at 52 week highs while even stocks like United States Steel Corporation (NYSE:X) has broken dramatically higher in recent weeks. It is getting harder and harder to find a good investment in a commodity play.
November 29, 2010
The European situation continues to unravel after Ireland got a $113 billion bailout over the weekend. Spain and Portugal are next, with more countries on the horizon. This sent the Dollar spiking higher. A stronger Dollar is bad for the artificial wealth effect that the Federal Reserve has been pushing. Thus the markets are lower. If things quiet down, the Dollar may pull back helping the market off the lows. The strongest sector of the day is financial firms and banks. Goldman Sachs Group, Inc.
November 23, 2010
Many investor and stock traders will always say that the great bull market began in 1982 when President Ronald Regan took office. While the S&P 500 Index did make a pivot low around that time the great bull market actually began much earlier than that. Believe it or not the great bull market began in 1974. At that time the Federal Reserve Bank had the Fed funds rate(overnight lending rate to the large major banks) around 12.92% in August of 1974. In September 1974 the Federal Reserve Bank began to slowly lower the Fed funds rate and that marked a significant low in the S&P 500 Index and the Dow Jones Industrial Average. The rally or boom cycle from the 1974 stock market low lasted about 13 years. The 1987 stock market crash was the top of that boom cycle.
November 22, 2010
This morning Ireland is expected to accept a bailout from the European Central Bank (ECB) and the International Monetary Fund. However, there is still a lot of uncertainty regarding which nation in the European Union will need a bailout next. At this time Portugal is the one country that looks as if would be the next bailout candidate. It is important to remember that in May 2010 the ECB did a $1 trillion European bank bailout that was similar to the Toxic Asset Relief Program (TARP) in the United States. However, as we can see this bailout by the ECB did not last that long. Spain and Italy are also being mentioned as candidates for a bailout in the not so distant future.
November 05, 2010
Every since the $1 trillion European Union TARP program took place in May 2010 it has taken a back seat in the media. It seems as long as the stock markets around the world inflate higher on the back of the weaker U.S. Dollar Index everything is fine. However, the problems continue to surface in the European Union. The Irish bund spreads are as wide as they have ever been. The yield spread between Irish 10-year government bonds and the benchmark German 10-year bund has reached a new high of 541 basis points. In the past a spread this wide has spelled trouble. Greece, Spain, and Portugal do not fare much better despite not receiving the media attention.
October 19, 2010
China struck back today, raising interest rates in a surprise action that shocked the world. The real reason behind this was most likely to strike back and the United States officials like Tim Geithner who have been calling more harshly than ever for China to let their currency float against the U.S Dollar. Treasury Secretary Tim Geithner has been calling China a major currency manipulator. This move by China smacked the Federal Reserve and Government policy of a weak U.S. Dollar right in the face. The Dollar soared today on the back of this China move. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) jumped dramatically today, trading at $22.64, +0.32 (+1.43%).
October 19, 2010
This morning most commodity stocks are selling off sharply after China raised interest rates by 25 basis points. While this move by the Chinese could slow down their economy it will certainly effect many commodity stocks. Commodity stocks will usually trade higher when the Chinese government continues to post positive economic news. This move by the Chinese is also likely to have caused the U.S. Dollar Index to spike higher. The U.S. Dollar Index is now trading higher $1.01 to $77.94. This is a lot of meat and potatoes in the currency world.
October 14, 2010
Cracks are slowly showing in the policies of the Federal Reserve. A weak Dollar policy may ultimately fail to do what the Federal Reserve wanted and in the process hurt all Americans buy killing their buying power. Overnight, the U.S. Dollar was crushed again, dropping off another cliff and going to parody with currencies like the Canadian Dollar and the Australian Dollar. This morning, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading near 2009 lows at $22.21. The cracks are beginning to show as inflation is starting to bite at the heels. Producer Price Index (PPI) was released showing an increase of 0.4%.
October 12, 2010
Since June 7th, 2010 the U.S. Dollar Index has declined by more than 12.0 percent. This means that everyone that uses this currency has seen their purchasing power diminish substantially. Please realize when the U.S. Dollar index declines the stock markets around the world will inflate and trade higher. The declining U.S. Dollar Index has been the catalyst for the stock markets trading higher since the 2008 financial collapse. The plan by most central banks and governments has been to simply inflate the stock markets back to health. The question now that many people must ask is if this is the right medicine for the sickness? After all it is this same remedy of induced inflation that has caused this problem in the first place.
The Truth Revealed: The Biggest Ponzi Scheme EverThe markets jumped higher again today as the U.S. D
October 13, 2010
The markets jumped higher again today as the U.S. Dollar continued its rapid decent. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.13, +1.12 (+0.96%). Like a plane in a nose dive, the Dollar is showing no signs of stabilizing. In all fairness, the Federal Reserve has the Dollar doing exactly w...
October 12, 2010
The markets opened lower, driven by a slightly stronger Dollar and a drop in Asian markets. Wall Street is looking towards the FOMC Minutes which will be released at 2:00pm ET. The driving force behind the recent rally has been QE2 (quantitative easing two). The markets expect some major buying of treasuries which will infuse massive money into the system, thus inflating and creating an artificial wealth effect.
October 13, 2010
This morning J.P. Morgan Chase & Co.(NYSE:JPM) reported earnings. The headline in the media stated that the company's earnings rose or increased by 23 percent. This would normally be a huge beat and most people would believe the stock would skyrocket higher. However, while the headline number was very good the stock is actually trading lower as I write this small article. Let us ask why this is happening?
October 08, 2010
The markets are floating to the positive side today after the Non Farm Payrolls and Unemployment Report turned out to be a non event. The Non Farm Payrolls number came in at -95,000. The market had expected a flat number. While at first glance, this number seems very negative, the key number inside the Non Farm Payrolls was the Private Sector Employment which gained 64,000. Initially the markets flushed lower, then recovered quickly to move back to the flat line. This number had an initial negative reaction, but was pacified by the Private Sector Employment gain.
October 06, 2010
The market is slightly higher again today after the U.S. Dollar again sank sharply mid morning. This has been the real factor in keeping the markets higher. The Federal Reserve cannot lower interest rates any more but has control over the Dollar to prop up the markets. The markets were lower on the day until the last thirty minutes when the Dollar rolled sharply. The SPDR S&P 500 ETF (NYSE:SPY) is now trading at $116.24, +0.20. This is all coming on the back of a monster move to the upside yesterday on another massive drop in the Dollar.
October 04, 2010
The markets sold mid morning as the SPDR S&P 500 ETF (NYSE:SPY) fell into the key support of last Thursdays low at $113.60. It has been a slow bleed which may tell us after a bounce at this current support, the markets have more downside to go. If the markets dropped sharply on heavy volume, it generally tells us there is an exhaustion of selling and the markets may bounce for a longer period. The SPY is trading at $113.71, -0.90.
September 15, 2010
The Unites States Natural Gas Fund(NYSE:UNG) has taken another leg down since June 15th, 2010. On August 9th the popular ETF triggered a bearish head and shoulders top pattern and has declined sharply from that date. The ultimate target for that bearish pattern is around $5.60. However, these patterns will have bounces along the way and do not go straight down.
September 19, 2010
The iShares Russell 2000 Index ETF (NYSE:IWM) finished the week by gaining 0.52 cents. This index was the strongest during the 2009 rally. However, since late April this index which represents small business in America has actually lagged and still remains below the June and July highs. This could ...
September 07, 2010
This morning the major stock market indexes are all under pressure ahead of the opening bell. Problems have once again emerged out of Europe and many investors are really wondering if these countries are really out of the woods. As you all know by now when the European Union faces headwinds the U.S. Dollar Index will usually catch a bid higher. That is certainly the case this morning as the U.S. Dollar Index is trading higher by 0.51 cents to $82.56. When the dollar rallies the major stock market indexes will often deflate and decline. Usually, the commodity stocks will decline first and that can be seen this morning ahead of the opening bell.
September 07, 2010
After a monstrous three day surge higher late last week, the markets are pulling back today. How does one realize the markets are due for a pullback? How does a swing trader position themselves to profit from it? Simply put, use the technical levels of leading stocks to confirm the oversold market.
September 03, 2010
This year we really have to tip our cap to the institutional money that moves markets. So far during the summer of 2010 the major stock market indexes have rallied before every major holiday. If you look at a chart of the S&P 500 Index beginning around late May you will notice that the markets found a low on May 25th, and rallied into the Memorial Day holiday which was celebrated on May 31st. This was a period when traders and investors were very fearful because of the flash crash that occurred on May 6th.
August 31, 2010
In March 2009, the S&P 500, and the Dow Jones Industrial Average found a low and staged a sharp recovery rally into April 2010. Throughout that time that the market rallied higher the volume was extremely light. However, when the stock market indexes had corrections in June 2009, and January 2010, the volume on the decline was very strong telling us that this was institutional selling and not the traditional retail investor selling stocks.
August 31, 2010
The hand of "GOD" or maybe just the Plunge Protection Team
The markets were looking ugly this morning, hanging onto a master trend line support on the daily chart that would dictate whether the Hindenburg Omen would play out in a crash scenario. Yesterday, the markets gave up almost all the gains from the Friday rally, a very bearish signal. A move lower today would have sealed the fate of this market, the SPDR S&P 500 ETF (NYSE:SPY) headed towards $101.00 and then $95.00 easily.
August 26, 2010
Commodity stocks are lifting the stock indexes higher today. Leading commodity names such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp. (NYSE:SCCO), and AK Steel Holdings Corp. (NYSE:AKS), are all trading higher on the trading session. This move in these commodity stocks come as the U.S. Dollar Index trades sharply lower. As many of our readers know when the dollar declines the commodity stocks will inflate higher.
August 26, 2010
After a solid reversal yesterday, the markets opened the day higher but quickly gave back the gains. Initial Jobless Claims were reported at 473,000 after last weeks shocking 500,000. A lower number is positive for the markets and the futures saw an initial move higher at 8:30am ET. After chopping sideways for the first hour of trading, the markets sold back to the flat line. Tomorrow is the highly anticipated Federal Reserve Chairman Ben Bernanke speech.
August 27, 2010
This morning the GDP revisions were better than expected as most economist expected the number to be revised to 1.4% the actual number that was reported was 1.6%. That slightly better than expected revision is really not a surprise to anyone and is still a poor number when you consider all the stimulus in this market. The major stock market indexes all caught a strong bid higher after the GDP revision number was announced.
August 27, 2010
The markets gapped higher and sold sharply into key comments by Ben Bernanke. Within minutes of those comments, the market started to rip higher and was off to the races. I will explain why.
The market had sold into the close yesterday on worries that the GDP revisions would come in well below ...
August 25, 2010
When a trader or investor looks back at the past ten years of the market action they must wonder what really went wrong. Many investors are now calling the past 10 years the lost decade in the stock market. In 2000, the Dow Jones Industrial Average traded as high as 11,750.00. In 2007, the Dow Jones Industrial Average reached a top at 14,198.00. On the surface it looks as if the market recovered from the 2000 top which marked the tech and dot com bubble. However, the S&P 500 and the NASDAQ never made new highs the way the Dow Jones Industrial Average did. Please realize that the Dow Jones Industrial Average traded higher by 20 percent in 2007 from the 2000 high. The S&P 500 high in 2000 was 1552.00. The high in 2007 for the S&P 500 was 1576.00.
August 24, 2010
Regardless of what the government says the market action has been weak. The powers that be such as the U.S. Treasury and the Federal Reserve Bank(U.S. Central bank) must be shaking their heads wondering what they have to do next in order to inflate these markets again. Since late April 2010 the majo...
August 24, 2010
The markets gapped sharply lower on the back of continued global concerns over growth and specifically the U.S. recovery. More and more data points to another double dip recession in the United States. After the initial gap down at the open, the markets traded at a major daily technical support level on the SPDR S&P 500 ETF (NYSE:SPY) at $105.80. This happens to be the pivot low going back to the July 20th, 2010 shown on the chart below. The markets traded in this range into the 10am ET economic data release of the Existing Home Sales.
August 20, 2010
As many of our readers now by know the market rarely sells off sharply on a Friday. Today is also options expiration in the month of August which could make for a very light volume trading session after the first couple of hours after the open. This morning the U.S. Dollar Index surged higher by 0.70 cents to $83.14.
August 20, 2010
Every week I take a few minutes and vent my frustrations to our readers. This week is strictly about out politicians. Is there really any difference between a Republican or a Democrat? These parties seem to be one in the same. They are spending addicts and unfortunately spending other peoples money ...
August 19, 2010
The major stock market indexes seem to follow one sector very closely. That sector is the large integrated energy stocks. Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), and ConocoPhillips (NYSE:COP), are the big three stocks in this leading industry group. When these stocks rally the markets follow and will usually trade higher. The opposite is very true when these stocks decline, the major stock market indexes will often sell off. Therefore, these stocks are extremely important when tracking the major stock market indexes.
August 17, 2010
The markets have rallied beautifully today on light volume and positive earnings and buyout news. Walmart reported great numbers and raised guidance while Home Depot reported better than expected numbers as well. Both stocks are soaring today. In addition, Potash received a buyout offer BHP Billit...
August 16, 2010
This morning the S&P 500 e-mini futures(ES-U0) are trading lower 3.25 to $1072.75. This small decline lower comes despite a early rally higher in some leading commodities and commodity stocks. Often when the U.S. Dollar Index declines most leading commodities will inflate and trade higher. Oil, gold...
August 16, 2010
Amazon.com, Inc. (NASDAQ:AMZN) recovered quickly from sub par earnings and rallied higher just weeks ago. It pulled back last week after hitting key resistance at $130.00. The pull back took it to a beautiful support level on the daily 20 moving average.
August 13, 2010
This week has been a brutal decline for the major stock indexes such as the S&P 500, NASDAQ, and the Dow Jones Industrial Average. Yesterday the market indexes followed through to the downside declining even further closing at a new low for the week. However, today is Friday and rarely do we see the...
August 11, 2010
There is great song by the rock band Matchbox 20 called, "How Far We've Come". When you think about it it is pretty amazing how far the world has come on the back of inflation. The popular economist John Maynard Keynes was one of the first to come up with this inflation style of economics. If you lo...
August 09, 2010
Today the major market indexes followed their usual pattern. The SPDR S&P 500 ETF NYSE:SPY) dipped lower during the first half hour of the day only to rally higher on light volume for the rest of the session so far. There were a couple of factors in the market that were telling us that the markets would trade this way. The first was the light trading volume ahead of tomorrow's highly anticipated FOMC meeting. Light volume always favor the upside action.
August 05, 2010
The markets received the Jobless Claims report this morning at 8:30am ET. This number was poor, showing an increase in filings for unemployment to 479,000 last week. Economists had expected a number in the range of 450,000 - 460,000. Jobless Claims continue to be stuck just under 500,000 and show little adjustment down. This tells Wall Street that job growth will continue at an extremely slow pace, if at all.
August 03, 2010
The stock market indexes all surged higher yesterday clearing above important technical resistance levels. Yesterday's rally higher was broad based and very powerful point wise. At face value it looked very impressive. The catalyst for the rally yesterday was a strong Chinese market and a weak U.S. Dollar Index. This seems to be the perfect short term elixir for stock market upside.
July 25, 2010
The S&P 500 Index surged higher this past week gaining 38.34 into Friday's close. The early July support level remains intact at this time, and the broad based index has closed above the important July 15th pivot high resistance point. As long as the index can stay above this current 1100.00 area it could see further upside. However, as we have seen from the past six trading sessions this index can be very volatile. Therefore, it would be prudent to prepare for surprises in both directions with large point swings. If July has proven one thing
July 21, 2010
As we all know the major stock market indexes found a short term low in early July. Since that time the major indexes have bounced around six to eight percent. Many investors are saying the worst is behind us and the correction that began in April is now over. While the major market indexes have cer...
July 21, 2010
After a monster reversal day yesterday, the markets are hovering just slightly lower on the day. It is key to understand that markets and realize they are just like a long distance sprinter. The markets ran a huge marathon yesterday, today they need a rest day.
The SPDR S&P 500 ETF (NYSE:SPY) ju...
July 19, 2010
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 know...
July 15, 2010
Recently before the stock market bounce in early July the majority of traders and investors were frightened by the so called death cross on the Dow Jones Industrial Average and the S&P 500 Index. This is when a major moving average on a chart crosses over the larger moving average to the downside. M
July 13, 2010
What can we say about the market since the July low? It has been a straight move higher since July 3rd for the major stock market indexes. This rally has been broad based and many of the leading stocks have all lead the charge. On the surface this rally looks great, however,
July 11, 2010
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 everyon
July 08, 2010
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. Continuin...
July 08, 2010
The media and many analysts have painted China as the Great Depression reborn. You would think China is in such a mess right now, hell has actually frozen over. I love the panic and fear as some China small caps are now sparkling like diamonds in the rough. Many Chinese small caps are trading at...
July 05, 2010
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) 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 inv...
June 30, 2010
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 dol
June 30, 2010
Often many traders and investors will watch the leading stocks in the sector to identify strength in the stock market. The financial sector leader is Goldman Sachs Group Inc (NYSE:GS). The energy sector leader is Exxon Mobil Corp (NYSE:XOM). Therefore, when these two stocks trade higher the markets ...
June 22, 2010
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 mar...
May 30, 2010
A sharp sell off rocked Wall Street into the close on Friday in the final minutes. Stocks like Exxon Mobil Corporation (NYSE:XOM) and Microsoft Corporation (NASDAQ:MSFT) sold particularly hard. These two stocks have been some of the weakest in recent weeks. The weakest stocks will always be hardest...
May 13, 2010
The markets continue to hover slightly lower today. The wild swings seem to be on pause as the S&P 500 (INDEXSP:.INX) is trading at 1,167.17 -4.50 (-0.38%). The The Dow Jones Industrial Average (INDEXDJX:.DJI) hovers at 10,869.25 -27.66 (-0.25%) and the NASDAQ Composite (INDEXNASDAQ:.IXIC) drops t...
May 13, 2010
Key stocks like SanDisk Corporation (NASDAQ:SNDK), Baidu, Inc. (NASDAQ:BIDU) and Netflix, Inc. (NASDAQ:NFLX) all made new 52 week highs today with large surges in the first hour of trading. Baidu, Inc. jumped on continued retail buying after the 10 for 1 stock split. This jump after a stock split ...
May 10, 2010
If you can't fix it, print some more money. That is the policy of the world leaders today as Europe has in place an almost one-trillion bailout package of sorts. After last weeks market decline, this is not surprising. Bottom line is, if you can't fix it, print it.
Stocks continue to hold most ...
May 04, 2010
The writing was on the wall and most of my previous articles over the last week told the Street this was the case. In recent days, I talked about the metal stocks like AK Steel Holding Corporation (NYSE:AKS), Southern Copper Corporation (NYSE:SCCO) and United States Steel Corporation (NYSE:X)
May 03, 2010
The markets are bouncing back today after a $145 billion bailout of Greece and no further negative news on Goldman Sachs Group, Inc. (NYSE:GS). The dollar has surged all morning as most economists and traders expect Greece to just be the tip of the iceberg. Portugal and Spain are next on the list ...
April 28, 2010
The sun rose again, after the dramatic sell off yesterday. The markets dropped over 2% on the back of ugly news out of Europe on Greece and Portugal while back in the United States, Goldman Sachs Group, Inc. (NYSE:GS) was getting grilled by the Senate on Capitol Hill. The markets had their biggest...
April 26, 2010
A pinch of earnings, a dash of mergers and acquisitions and the market is showing us a stereotypical Monday. Monday's for the last two to three months have been known to be light on volume and generally flat to positive. Today the volume is light and of course, that is keeping the markets steady on the flat line.
April 24, 2010
While I glance at countless stocks hundreds of percentage points off their lows, I cannot help but find one sector that does not mesh with the overall economic recovery theory. I sit here and find myself trying to figure out why agriculture stocks have not moved higher off the
April 23, 2010
A recovery on the economy from massive amounts of stimulus and market propping is still a recovery according to retailers like Polo Ralph Lauren Corporation (NYSE:RL), Bed Bath & Beyond Inc. (NASDAQ:BBBY), Urban Outfitters, Inc. (NASDAQ:URBN), Target Corporation (NYSE:TGT), The Gap Inc. (NYS
April 23, 2010
Since February 5th, 2010 the major market indexes have had one of the most impressive rallies in an incredibly short span, trading higher by more than 15 percent. The SPDR S&P 500 ETF (NYSE:SPY) traded as low as 104.58 on February 5th, 2010 and is now trading at 121.25. That is almost 17 points higher in le
April 21, 2010
After unbelievable moves higher, many metal stocks are now seeing unique price action over the last couple weeks, going against the flow of the markets. The markets have inched higher, making a new 52 week high in the last week, but key stocks that are a solid gauge of a healthy economic rebound have
April 20, 2010
The energy stocks have lead today's market higher right from the opening bell. During the first hour of the day the m
April 19, 2010
The markets are slightly lower on the back of continued worry about financial regulation in the aftermath of charges of fraud against Goldman Sachs Group, Inc. (NYSE:GS). In addition, a volcanic eruption spewing tons of soot in the air in Iceland has put a stop to most air travel across Europe.
April 14, 2010
Today the market headlines were nothing more than sensational. Corporate earnings from Intel Corp. (NASDAQ:INTC), J.P. Morgan Chase & Co. (NYSE:JPM), and CSX Corp. (NYSE:CSX) were all better than analysts expected. Everything is great in the stock world again. Day after day the stock market climbs h...
April 09, 2010
DOW 11,000 is closing quickly. Today is Friday, light volume continues to plague the markets and this makes it a perfect opportunity for the "powers that be" to push the DOW over 11,000. As of now we are hovering within an jump of that key level.
April 07, 2010
The official start of earnings season is next week. Be ready for a wild ride! The last few weeks in the markets have been plagued with extremely light volume. This is partly due to the holidays recently and lack of participation by institutions. However, a large part of the light volume has been because Wall Street is awaiting earnings season. It has arrived.
April 06, 2010
Every time since the beginning of the markets existence it has been easy money and low rates that have lead to a bubble. In 1929, it was easy credit and loose money that lead to massive speculation and the worst financial crisis ever know to America. If one looks back at 2001-2002 it was easy credit and loose money that lead to the second greatest financial crisis since the 1929 depression. Now the words "recovery" and "expansion" are being thrown around as th
April 05, 2010
The bull rally from the March 2009 lows is now euphoric. It seems that the kitchen sink can be thrown at the market and it will still rise. A little over a year ago if someone sneezed the market would decline, and drop sharply. Today, it goes up on a daily basis as the market has been down only a ha...
March 18, 2010
Ford Motor Company (NYSE:F) is forming what could be a tell tale sign of a top on the daily chart. The candle formation is known as a possible topping tail. A topping tail occurs when a stock runs up intra day early and then pulls back later in the day. It creates a long tail on the top and a clo...
March 17, 2010
One interesting coincidence to look at is the President Obama tough talk. Where has it gone? Did anyone notice how Wall Street rebelled as soon as President Obama started talking about regulation for Wall Street? This started in mid January and Wall Street fought back. The markets tumbled drastically, dropping almost 10%. Since that happened, has anyone heard a peep from the President on Wall Street regulation? I think n
March 12, 2010
As I research the markets day after day, I find some interesting technical signals and signs recurring. One that I mentioned recently was in relation to the previous 52 week high on the SPDR S&P 500 ETF (NYSE:SPY). The previous 52 week high was $115.14, until it was taken out over the last few day...
March 10, 2010
Oil made a short term bottom on February 5th, 2010 after hitting an intra-day low price of 69.50. Since that time oil has rallied over 10 points to a high of 82.50 on March 9th, 2010. The continuous gasoline contract on the NYMEX was 1.87 on February 5th and it hit a recent high on March 9th at 2.29...
March 11, 2010
As a Chief Market Strategist, I love to look at charts, analyze and discover swing trades in any direction. It is like going through old baseball cards and not sure when I will find the Mickey Mantle or Babe Ruth or better yet, sifting through sand or dirt and finding diamonds. The markets today a...
The markets initially rallied today on the back of great retail sales numbers and an announcement th
March 04, 2010
The markets initially rallied today on the back of great retail sales numbers and an announcement that Wal-Mart Stores, Inc. (NYSE:WMT) raised its dividend. Stocks like Abercrombie & Fitch Co. (NYSE:ANF), Family Dollar Stores, Inc. (NYSE:FDO) are soaring today as sales numbers, expected to be poor ...
March 03, 2010
United States Steel Corporation (NYSE:X) is running higher today on the back of a solid drop in the dollar. X is up $2.00 (3.57%). The dollar is getting hammered today as global optimism is chasing money away from the safety of the U.S Dollar. The PowerShares DB US Dollar Index Bullish
(Public, N...
March 01, 2010
Research In Motion Limited (NASDAQ:RIMM) is stuck still trying to break through the gap windown created by a poor earnings report back on September 24th, 2009. This gap window was formed when after the markets closed, Research In Motion released a less than stellar earnings report according to Wall...
February 26, 2010
Palm, Inc. (NASDAQ:PALM) has been under intense sell pressure since the January 9th, 2010 high was made at $14.17. Since that point, the stock price has fallen to a low today of $6.07. This is just slightly off the 52 week low of $5.85. The 5 week dramatic fall in Palm, Inc.
February 24, 2010
After the Consumer Confidence numbers came out at a pathetic 46 from 56.5 last month, many began to wonder where the disconnect was? The President and his economic team have said the economy is on the road to recovery while many firms on Wall Street have reported stellar earnings. Yet the consumer ...
February 25, 2010
The markets are significantly lower on a strong dollar (NYSE:UUP) and shockingly poor economic news.
Jobless Claims were released at 8:30am and showed a sharp i
February 25, 2010
The markets continue to get hammered today with the DOW lower by 1.65%, Nasdaq down 1.40% and the S&P 500 dropping 1.50%. This is all on the back of economic data released over the last three day
February 23, 2010
Solar flares are sputtering from the solar sector of late as margins look to be under excessive pressure and outlooks appear cloudy. First Solar, Inc. (NASDAQ:FSLR) reported earnings last week and disappointed Wall Street. The stock was punished. Today again, First Solar Inc. is under quite a bit ...
February 22, 2010
Home Depot, Inc. (NYSE:HD) is beginning to look like it is in the process of making a top. The Federal Reserve raised the discount rate a quarter basis point last week and that may spell trouble for the home improvement retailers. While the discount rate does not impact them directly, it may signal ...
February 18, 2010
During many administrations regardless of political party, the markets either rallied higher or sold off when someone important from the executive branch speaks. Since President Obama's inaugura
February 18, 2010
Hewlett-Packard Company (NYSE:HPQ) reported fantastic quarterly sales, beating analysts expectations. HPQ 's net earnings jumped 25%. to $2.3 billion making them $0.96 per share. Excluding a one time charge, HPQ earned $1.10 which was above analysts expectations of $1.06 per share. In addition,
February 14, 2010
Auditing the Federal Reserve? The clamor has been silenced. The last time I heard anything about that was months ago. Slowly, over the last decade, the Federal Reserve has been taking control of the financial markets. How have they been doing this? The Federal Reserve has been shifting the markets into a pure dollar play. Have you all noticed how the markets move opposite the dollar? Every time the dollar ticks higher, the markets move lower and every time the dollar
February 10, 2010
There is no other way to describe the last couple weeks in the market other than choppy! From a master reversal and bottoming tale on Friday
was a beauty. It essentially told me we would go into a short term
choppy upward direction. That is exactly what we have gotten. Monday
saw a pullback or
February 04, 2010
The rally from the March 2009 lows was one of the largest rallies we have ever witnessed in stock market history. While the ninth year of a decade is usually a bullish trading year there a very few people who expected an advance over fifty percent off the lows. Many traders and investors including myself would have expected at least one 10 percent correction during that rally; as we all know that did happen. The closest that we did come to a ten percent correction in the major indexes was in June through
February 01, 2010
The markets are moving higher with the DOW up just under 100 points today. This move is on the back of some harsh selling the last two weeks after worries over the global recovery surfaced on the back of China tightening its lending policy. In addition, strong comments from President Obama as he k...
February 01, 2010
The U.S. Dollar (NYSE:UUP) has really been the catalyst for the major moves in the stock market. In March 2009 when the stock market was crashing the U.S. Dollar rallied to its 2006 high. Since that point the dollar went into a virtual free fall. The high print in March 2009 for the U.S. Dollar was 89.62. At this time the SPX (NYSE:SPY) hit a low of 666.79 as fear was running wild across
January 25, 2010
The volatility last week was wild with earnings that just did not cut it. However, the real shock came when President Obama, due to a republican win in MA and the super majority gone in the senate, was forced to talk of tightening the noose on bank and the future risk they wish to take. Considering these banks like Goldman Sachs Grp. (NYSE: GS) made half their revenue from trading, a high
January 27, 2010
What a day in the market! This morning Treasury Secretary Tim Geithner and former Treasury Secretary Hank Paulson will be on the hot seat regarding the bailout of American International Group (NYSE:AIG). The members on Capital Hill are wondering and asking why AIG was bailed out? The perception from many
January 28, 2010
The markets staged a late rally after the Federal Reserve left interest rates unchanged. In addition, their comments alerted the markets that interest rates would remain at rock bottom levels for the foreseeable future. With interest rates low, stimulus money flowing, growth and the re-inflation rally continuing in the near term are likely. The markets surged into the close turning from a negative day into a solid positive day.
January 21, 2010
Goldman Sachs Grp. (NYSE: GS) reported net profits of $8.20 per share on revenue of $9.62 billion. This blew away the earnings per share number which was expected at $4.97, however, missed the revenue number slightly which had been expected at $9.65 billion. When analyzing these numbers, this is just the start.
January 19, 2010
After earnings announcements from Alcoa Inc. (NYSE: AA), Intel Corporation (NasdaqGS: INTC) and JP Morgan Chase Co. (NYSE: JPM) did not live up to expectations and their stocks fell, the market is beginning to get a little nervous. We have seen the market have some recent sharp declines on these earnings, each following day it has bounced back and recovered most of its losses. What
January 07, 2010
Oil has spiked over the last month, moving well above the $80 level in the last week. This has partly due to the dollars pullback off a recent high yet more so because the outlook on the global economy has improved dramatically. Everywhere you look, stocks are near or at new 52 week highs, commodities are there as well. While everything seems fine and dandy, I am putting my reputation on the line again to ma
January 08, 2010
As the markets float slightly to the downside, the market continues to digest the Non Farm Payrolls and Unemployment data from this morning. Non Farm Payrolls for December dropped by 85,000. This was slightly below estimates as many analysts had expected a positive growth in the jobs number. The November Non Farm Payroll number was adjusted slightly to a positive number. While overall, this report was not what many were hoping for, the real drama should be the unemployment rate.
January 04, 2010
The SPX (NYSE:SPY) market is trading higher to start the first trading session of 2010. This all comes on the back of a weaker U.S. Dollar (NYSE:UUP). Many traders and investors have been discounting the weak dollar/stronger stock market relationship over the past three weeks as both hav
December 29, 2009
Today's markets are slightly higher as the volume is as light as a feather. However, today the leading names are trading lower. Apple Computer (Nasdaq:AAPL), Google (Nasdaq:GOOG), and Potash (NYSE:POT) are all negative today even as the market is positive. All of these leading stocks have had tremendous moves in 2009. These could all be leading candidates for a correction in the New Year.
December 30, 2009
Since the March low when the SPX traded at 666 the market has had a rally beyond comparison. The SPX is currently trading at 1125 and this is a 460 point move in ten short months. It is important to realize since this bull run began that the market has not experienced a single 10 percent correction. This is not healthy action. This is a market on steroids and as we all know using artificial hormones are not healt
December 29, 2009
Often a case can be made that the media controls the people who live on earth. If you look back over the past fifty years many can argue that the media has actually been the main catalyst for actually electing a president or any elected official for that matter. If you go back to the 2000 election many people still shake their heads when Al Gore lost the election to George W. Bush after being the vice president of the administration that was in power during the biggest stock market rally in history in the 1990's(Clinton administration). However, as we all know President Bush was declared the controversial winner and proclaimed by the media as the person who Americans would most likely share a beer with. I'm not sure that
December 21, 2009
The markets are moving higher today on the back of solid moves from Alcoa Inc (NYSE: AA), Amazon.com, Inc. (NasdaqGS: AMZN), Intel Corporation (NasdaqGS: INTC) and JP Morgan Chase Co (NYSE: JPM). Volume has started to trail off and is expected to starting around 10:30am ET each day this week. This is due to traders leaving early for the holidays and the lack of news after the morning session on Wall Street. This week we will see quite a bit of economic news, but it is all pushed into the pre market session or the 10am ET time frame. Once 10:30am comes around, traders will be essentially done for the day.
December 16, 2009
One can only wonder if Charles Manson is due to receive the Congressional Medal of Honor, or tiger woods receiving the Husband of the year award.
December 10, 2009
I cannot help but watch this market like I am watching a cheesy horror movie which is both disgusting, funny and scary all rolled up into a perfect 90 minutes. The problem is, this 90 minute horror flick seems like it is lasting an eternity and it just gets worse and worse as it continues. Today we got jobless claims. The number of people filing claims for state unemployment benefits rose by 17,000 to a seasonally adjusted 474,000 in the week ending Dec. 5. This was basically in line with expectations and continues to show improvement from the side of being below the 500,000 key level on initial claims. Continuing claims continued to fall moving towards the 5 million level. The key with continuing claims is how many of these claims are falling off because people are getting jobs while how m
November 26, 2009
As we all manned our trade stations and prepared for another day, the admin staff answered calls, the interns looked to impress the traders, the veterans got their coffee, the office was nearly full and the day was beginning like any other. Only this would be a day we would remember for the rest of our lives. As I sat at my desk, finger on the trigger ready to fire off trades, all of a sudden
October 22, 2009
Often most bull markets are due to a decline in the fed funds rate; the interest rate that the Federal Reserve Bank charges other large institutions for overnight lending. Obviously this has a major influence on the money supply. The lower the rate, the easier credit should be, and the more money is in the system. In 1980 and 1981 these rates fluctuated from 10%-19% respectively.
October 12, 2009
Gold since the beginning of recorded time has been viewed as the one true currency. Ancient civilizations such as the Egyptians, Persians, Babylonians, Greeks, and Romans all had gold as the one true currency in their monetary systems. While fiat money systems have come and gone gold has stood the test of time. Even Christopher Columbus was seeking to trade for gold when he founded the new world. Why was gold so heavily sought after?
October 04, 2009
The year was 2007 and the markets were in rally mode. Every economist with the exception of a handful didn't see any problems on the horizon. This was after a sharp...
September 15, 2009
You may ask why? Why is government debt so bad if it gets us out of this horrible recession? Well, for starters.....
September 02, 2009
2009 is now being called the turnaround of the "great recession." For the sake of the world, I suppose this is better than the "Second Great Depression." However, one must ask, what has really been changed?
August 23, 2009
I have made a career of finding small cap stocks that are undervalued or just getting discovered. It is my passion and the profits can truly be addicting. The adrenaline jolt to my body as I watch a small cap jump 25% or more...
August 18, 2009
We all know the Federal Reserve has been printing money, trillions in fact. Money to buy bonds, bailout banks, stimulus packages and more. However, it goes even deeper. Ever since the run up in the markets dating back to 2006 to 2007, oil stocks and other commodities have been added to the S&P 500. The weighting has increased more and more. This has made it so the market's overall are tied extremely tightly to the price of oil and other commodities. Therefore, the price of commodities is directly related to the levels of the S&P and other indexes. To manipulate the price of commodities higher would have a direct bailout effect on the markets. When oil is higher, the markets are higher.
August 12, 2009
It is important to remember that this was a time when things were very different. Wall Street was a club of the elite. There were no computers pushing orders through using ECN's. It was big boys ruling the small.
August 03, 2009
Many traders know that the markets are ruled by emotion. The late Jesse Livermore used to say that there are four main emotions that control the markets. They are fear, greed, hope, and ignorance.
July 31, 2009
Be afraid. Main Street is having a major disconnect from Wall Street. Along with Wall Street, our government, Federal Reserve and the media are too blame. The wool is been pulled over your eyes!
While the markets continue to soar, I sit back and shutter. Why you ask?