InTheMoneyStocks Daily Analysis - Page 75

Goldman Sachs Sinks Despite Market Rally 

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.

The stock topped out on April 18, 2011 at $175.34 a share. This afternoon Goldman Sachs stock is trading around $128.50 a share which is a new 52 week low. The decline today comes as the major stock indexes are surging higher by over 1.00 percent. This stock is in a downtrend at this time and is signaling weak relative strength. Intra-day, GS stock will have some support around the $128.50, and $128.00 levels.

Other leading financial stocks that are declining today include Piper Jaffray(NYSE:PJC), Jeffries Group Inc.(NYSE:JEF), and Morgan Stanley(NYSE:MS). When these leading financial stock fail to rally higher with the major stock indexes it is a sign of a temporary stock market rally. The leading financial stocks should lead the markets higher, not lag the major stock indexes.

Nicholas Santiago
InTheMoneyStocks.com

Forget Greece, It Was Baked Into The Cake 

Once the Greek parliament voted in favor of the austerity vote the U.S. Dollar Index has rallied higher off the morning lows. Should the U.S. Dollar Index trade higher throughout the trading session we could expect the major stock indexes to fade or deflate throughout the day. The European Union has many hurdles in front of it besides Greece. Countries such as Ireland, Portugal, Spain, Italy, and Belgium are just a few countries that could face the same crisis as Greece in the near future.

The major stock market indexes have soared higher over the past two trading sessions. The S&P 500 Index has climbed higher by more than 25.00 points in just two trading sessions. Often, when markets rally sharply higher in such a short span of time they will need to pause or consolidate before moving higher. This market is not out of the woods just yet despite it staging a sharp two day rally. Traders should simply keep an eye on the U.S. Dollar Index throughout the day.

Some leading stocks that could deflate quickly on the back of a stronger U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF).

Nicholas Santiago
InTheMoneyStocks

Large Financial Stocks Rally On Greek Austerity Vote 

The large financial stocks are trading sharply higher this morning. This sector has been under severe selling pressure until today. It appears that the Greek austerity vote has helped to lift the large financial stocks this morning. Recently, there have been many rumors in the trading community that the large financial companies such as J.P. Morgan Chase & Co.(NYSE:JPM), Goldman Sachs Inc.(NYSE:GS), and Morgan Stanley(NYSE:MS) have had a lot of exposure to Greek and European debt. Therefore, the passing of the Greek austerity vote kicks the can down the road before Greece will have to default on its debt.

Some of the leading financial stocks that are climbing higher this morning include Wells Fargo & Co.(NYSE:WFC), Goldman Sachs Group Inc.(NYSE:GS), J.P. Morgan Chase & Co.(NYSE:JPM), and Morgan Stanley(NYSE:MS). Traders should use caution when trading these stocks at this time. The daily charts on the large financial stocks are still very poor and remain in down trends at this time.

Nicholas Santiago
InTheMoneyStocks.com

Markets Extend Gains On Commodity Stocks 

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%).

As the Dollar weakens, oil is surging higher. United States Oil Fund LP (ETF) (NYSE:USO) is trading at $37.50, +1.08 (+2.97%), As oil rallies, major components of the Dow Jones Industrial Average are rallying the market. Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are both solidly higher. In addition, other commodity related stocks are surging today. United States Steel Corporation (NYSE:X) is trading at $46.00, +2.69 (+6.21%).

It is clear that Wall Street is having a rally today on the back of commodity plays. This is coming from the weakness in the U.S. Dollar.

Gareth Soloway
InTheMoneyStocks.com
 

Did You Miss It: Another Bailout For The Banks 

The financial stocks are soaring today on yet another bailout. Europe just bailed out Greece and by doing so, saved the world from yet another global financial crisis. Many will not understand how this was a bank bailout, yet again. Let me explain. If Greece did not get their bailout, they would default. European banks would take large losses if that happened because of credit default swaps and derivatives, among other things. U.S. banks have less exposure but still some.

While this event would not cause the collapse of the global banking system, it would most likely start a chain reaction, domino effect, spreading to Spain, Portugal, Italy and so on. If each one was allowed to fail, the banks would take huge losses and most likely become insolvent once again. In essence, the bailout of Greece now means the banks will not take losses. Ultimately, the leaders in Europe made a decision to bailout Greece instead of having to bailout the banks directly in a year. Either way, it is the same thing. It just sounds prettier and more worldly to bailout a country.

This can clearly be seen in U.S. bank stocks, which have been trading at their 52 week lows for the last couple weeks. Today however, on the back of the Greek austerity vote which solidified the aid package, they are surging. Bank stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC) are all up two to three percent.

Gareth Soloway
InTheMoneyStocks.com
 

New Kids On The Block

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.

The internet is the new form of media. People can now access the internet 24 hours a day, seven days a week through their computer or cell phone. This revolution is here to stay and the internet competition is getting fierce. Many investors are now waiting for companies such as Groupon, Living Social, Twitter, and even Face Book to become publicly traded in the near future.

At this time, we have not seen so many internet and technology companies coming public since the 1990's. Most of these stocks have real business models and many of them actually make some money, unlike the majority of the dot coms in the 1990's. Some of these companies will be swallowed up or taken over in time by the likes of Google Inc.(NASDAQ:GOOG), Microsoft Inc.(NASDAQ:MSFT), Netflix Inc.(NASDAQ:NFLX) and Apple Inc.(NASDAQ:AAPL). This could be exactly what the doctor ordered for the stock market in the next few years. It is no secret that the stock market only moves higher when it is artificially inflated by a weaker U.S. Dollar. Perhaps in due time,the new tech companies can make a real difference in the economy. We shall see. I'm rooting them on and hope they are all successful.

Nicholas Santiago
InTheMoneyStocks.com

Lululemon and Nike Bounce Off Lows 

This morning, leading Canadian yoga apparel maker Lululemon Athletica Inc.(Nasdaq:LULU) started the morning lower trading below $110.00 a share. The early decline seemed to be caused by a downgrade. The stock has surged higher by 35.0 percent since making a low pivot on June 6, 2011 at $82.36 a share. This downgrade is understandable as the stock is very extended on the daily chart at this time. Short term traders can watch for intra-day resistance around the $112.85 level.

Nike Inc.(NYSE:NKE) is another leading athletic footwear and apparel manufacturer that has surged higher recently after reporting earnings. This stocks remains very strong on the charts by trading above all of its major moving averages. The stock looks to have hit some daily chart resistance around the $90.00 level which was the March 2011 high. Nike stock is also very extended on the daily charts and looks as if it needs to pullback and consolidate before making another move to the upside. Short term traders can watch for some minor intra-day support around the $89.00 level. The intra-day resistance levels for Nike stock will be around the $91.25 area should the stock trade higher.



Nicholas Santiago
InTheMoneyStocks.com

F5 Networks and Netflix Are The NASDAQ Laggards 

This morning, the major stock indexes are rallying higher for the fourth consecutive trading day. The NASDAQ Composite is trading higher by over 24.00 points to 2765.00. Just about every leading NASDAQ 100 stock is trading higher on the day. There seems to be just a couple of leaders that are lagging the tech heavy index. The two leading tech stocks that are trading lower are F5 Networks Inc.(NASDAQ:FFIV), and Netflix Inc.(NASDAQ:NFLX).

F5 Networks is a leading networking stock that has surged higher by $15.00 since June 20, 2011 when the stock traded as low as $96.21 a share. Short term traders can look for intra-day support around the $109.43 level should the stock decline throughout the session. The stock will have intra-day resistance around the $112.25 area should it rally higher.

Netflix Inc.(NASDAQ:NFLX) is the leading provider of online movie rental subscriptions. The stock has been a stock market leader for the past two years. This morning, NFLX stock is declining by $2.44 a share to $262.50 a share. Traders should watch for short intra-day support around the $262.00, and $260.00 levels.

Nicholas Santiago
InTheMoneyStocks.com

Rare Earths Are Still The Rage

The rare earths stocks really became well know and popular in late 2010. This sector looks to have peaked in early May 2011 with the overall stock market indexes. The rare earths have been staging a short term rally on the daily chart since June 16, 2011. This morning, all of the rare earth stocks are trading higher. This recent move higher in this sector is now getting a little long in the tooth, therefore, this sector is likely going to pullback soon.

Molycorp Inc.(NYSE:MCP) is the leading rare earth stock in the stock market. This stock has rallied higher by $14.00 since June 16, 2011. the stock is now trading into its daily chart 50 moving average which is going to be short term resistance. This morning, the stock is trading higher by $3.57 to $60.60 a share. Short term traders should watch for intra-day resistance around the $61.50 area. The stock will have intra-day support around the $58.90 level should it decline throughout the trading session.

Other rare earth stocks that are trading higher this morning include Avalon Rare Metals Inc.(AMEX:AVL), Rare Element Resources Ltd.(AMEX:REE), and China Shen Zhou Mining & Resources(AMEX:SHZ ). Traders should remember that these stocks often do well when the U.S. Dollar Index is weak and trades lower.

Nicholas Santiago
InTheMoneyStocks.com

Stock Market Slams Into The 50 Moving Average 

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.

While the markets are turning bears into bulls, it is extremely important to recognize that the major indexes are slamming into the daily 50 moving average. This is major resistance. It can be seen clearly on the daily charts of the SPDR S&P 500 ETF (NYSE:SPY) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). After a four day sharp rally in the markets, this resistance level may signal a pull back in soon. Possibly as early as tomorrow or next week. It also allows for swing traders to jump on the short side for a couple days.

Gareth Soloway
InTheMoneyStocks.com
 

Two Stocks That Will Pull Back Next Week 

The bears are morphing into bulls and the Greek aid package is solidified. This week, the Dow Jones Industrial Average is up close to 500 points. This move in the market is one of the biggest in a one week period in years. Stocks have gone from being at major low pivot support levels to huge resistance levels. They have gone from oversold to overbought in days. Below are two stocks that are extended and should see a pull back next week.

Caterpillar Inc. (NYSE:CAT) is currently trading at $105.75, +2.39 (+2.31%).  The stock has rocketed in the last two weeks from a low of $94.00. Once this stock hits $106.70, it will pull back. The $106.70 level is a double top, pivot high and is major resistance.

International Business Machines Corp. (NYSE:IBM) is trading at $172.18, +1.64 (+0.96%). The major component of the Dow Jones Industrial Average has jumped over $10.00 in the last two weeks. It is quickly approaching its all time high, which will also be a double top. This level is at $173.54. Should it hit this level, the stock should have a multi day pull back and be a great swing trade short.

These stocks have made impressive moves but are extremely extended. Look for them to pull back in the coming week.

Gareth Soloway
InTheMoneyStocks.com
 

Is This The Next Leg Of The Bull Market Or Just Bull Shhh?

There is really no person that can deny the size of the rally over the past four trading sessions. The highly popular and followed Dow Jones Industrial Average(DJIA) has surged higher by 460.00 points in just four trading sessions. This is an enormous move in such a short period of time. One would think that cancer was cured with the action in this stock market. In reality, all that happened was the can of problems in Greece, and the European Union, was kicked down the road a little bit. There is not anyone on the earth that really expects Greece to resolve it's problems in the next few years. The country will ultimately have to default.

You see, the stock market really is not about Greece, it is about banks. Yes banks, the banks are the institutions that are holding Greek, and European paper, or what we call Greek bonds(debt). If Greece defaulted the banks would lose a lot of money, as there so called bond investment went sour. It is always about the banks. In 2008, when the stock market crashed and every leading financial institution was insolvent, it was about the banks. Nothing has changed since that time, bailouts continue to occur on a daily basis. This action by the central banks and the International Monetary Fund will continue until the people lose faith in paper money. Until that time, it would be prudent to simply expect more bailouts for other nations and states down the road.

As traders, we continue to simply trade what we see on the charts. Traders really do not buy into the story that is being sold to the public via the mainstream media. How many times have we seen a public official rescind a comment, or statement that they have made six months or a year earlier? The answer is that we see it and hear it all the time. For example, when President Obama ran for office he said that he was against debt, now he says we need debt. The debt is over $14.3 trillion at the moment, how much do we really need? Lets take the Federal Reserve Chairman Ben Bernanke, in 2007, he said sub-prime loans were not a problem, then in 2008, sub-prime loans were the problem. Currently, Chairman Bernanke says that there is no inflation, yet the world is crying about inflation. Can anyone believe this stuff anymore? The only truth is the charts. The charts were oversold and the stock markets bounced ahead of a major U.S. holiday. As fast as these markets go up they can just as easily come down. If you want the really scoop on the markets just stick with the charts.

Nicholas Santiago
InTheMoneyStocks.com

Global Market Play Book: Master Levels

The major stock indexes in the United States and Europe have staged a massive rally over the past week. The catalyst for the large point move is credited to another Greek bailout package. This is the second bailout and austerity package for Greece in just two years. This current bailout has very little to actually do with Greece itself. This bailout for Greece was just another way to protect many of the major banks that are holding bad European debt. In any case, the major European stock indexes rallied sharply higher into the end of the trading week. In this week's report, we will isolate important resistance levels for a few of the leading European stock indexes.

The German DAX Composite has been the strongest stock index in the European Union. This index did not come close to its March 2011 lows which were just under the 6500 level. This leading Euro-zone index continues to lead the markets higher and must be followed closely by all traders. Please examine the chart below to find all near term resistance levels of which the Pros will keep on their radar.

The Spanish Bolsa de Madrid IBEX 35 Index soared higher this past week after the Greek austerity vote passed. This is one of the weaker stock indexes in the European Union. You can easily see that the low made last week in this important index exceeded the March low. Traders should know that new lows are always a sign of weakness. Spain, and Italy, are the two nations in the Euro-zone that are expected to eventually need a bailout. The unemployment rate in Spain remains extremely high, especially among young people. Traders can look at the chart below for important resistance levels.

The French CAC 40 Index rallied higher along with every other major stock index last week. Unlike the Spanish Bolsa chart this index made a higher low pattern by not trading down to the March 2011 level. Many investors consider France to be the strongest country in the Euro-zone next to Germany. Traders should follow the chart below to see the next important resistance levels for this leading European stock index.

Nicholas Santiago
InTheMoneyStocks.com

Financial Stocks, Too Big To Sail

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.

J.P. Morgan Chase & Co. (NYSE:JPM) is trading lower by 0.41 cents to $41.15 a share. The stock looks to have short term intra-day support around the $41.00 level. Should the stock decline further throughout the trading session traders must watch the $40.40 area as the next important intra-day support level.

Goldman Sachs group Inc. (NYSE:GS) is trading lower by $2.07 to 134.58 a share. This leading financial stock will have intra-day support around the $134.30 level. Should this support area fail to hold, short term traders can watch the $133.00 area as the next important support level.

Other leading financial stocks that are declining this morning include Bank of America Corp. (NYSE:BAC), Wells Fargo & Co. (NYSE:WFC), and Morgan Stanley (NYSE:MS). The leading financial stocks are very important in order for the stock market rally to continue. These stock have lead the markets throughout 2011.
 

Nicholas Santiago
InTheMoneyStocks.com

Coal Stocks Lose Some Of Their BTU

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.

Peabody Energy Corp. (NYSE:BTU) is the leading coal stock in the stock market. This stock gapped sharply higher before the opening bell. The stock is trading higher by $1.11 to $60.54 a share. The stock will have intra-day resistance around the $61.00 level which was the morning high. Should the stock pullback and decline traders should watch for short term intra-day support around the $60.00, and $59.50 levels. Both support areas could see small intra-day bounces.

Alpha Natural Resources Inc. (NYSE:ANR) is another leading coal stock and energy leader. This stock has declined into negative territory after starting the morning higher. Traders can look for short term intra-day support around the $45.85 level. Should that support level fail to hold traders can look at the $45.00 area as the next important intra-day support level.

Patriot Coal Corp. (NYSE:PCX) and James River Coal Co. (NASDAQ:JRCC) are two other leading coal stocks that have faded from the gap higher open. PCX stock will have some minor intra-day support around the $22.55 level. JRCC stock will have short term intra-day support around the $20.70 level.

Nicholas Santiago
InTheMoneyStocks.com

Markets Digest As Tech Stock Leaders Roar 

The market is pausing today after one of the biggest week long rallies in history. The Dow Jones Industrial Average gained over 6% last week, its biggest one week gain since July 2009. Today, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.52, -0.40 (-0.30%). Volume is extremely light as many traders are extending their July 4th holiday, one extra day.  One of the main reasons for the slight market weakness is due to the Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.25, +0.05 (+0.24%).

While the markets seem to be pausing, some key technology stocks are continuing their surge. The leaders in the tech sector were up big last week and are continuing their run. Apple Inc. (NASDAQ:AAPL) is trading at $348.70, +5.44 (+1.58%), Google Inc. (NASDAQ:GOOG) is trading at $531.83, +10.81 (+2.07%) and Amazon.com, Inc. (NASDAQ:AMZN) is trading at $212.71, +3.22 (+1.54%). The only stock at new 52 week highs in the group is Amazon.

This strength in technology is based off of a renewed positive outlook for the economy after last week Greece was essentially bailed out. In addition, new money is flowing into the markets at the start of the third quarter. This usually has a short term positive impact as well. 

Gareth Soloway
InTheMoneyStocks.com
 

Chinese Net Stocks Continue Surge

While the markets hover around the flat line, Chinese internet stocks continue their surge. After dropping as much as 75% on worries over a Chinese slow down and accounting issues, stocks like Youku.com Inc (NYSE:YOKU) and Renren Inc (NYSE:RENN) and E Commerce China Dangdang Inc (NYSE:DANG) are all up again. The bounces are a combination of being oversold weeks ago but also a continued short squeeze. The move up for these Chinese plays should be coming to an end soon. They are due for a pause and some consolidation before any future upswings. RENN is up 50% off its lows and YOKU has surged almost 50% as well. Truly amazing moves. Eyes should be now focused on small cap Chinese plays. Some of these plays are still at their 52 week lows and could see significant upside in the coming weeks.

Gareth Soloway
InTheMoneyStocks.com
 

Key Levels On Google

Google Inc. (NASDAQ:GOOG) has soared for the last six days, jumping from $473.00 to a high today of $534.73. This move of over $60.00 has been epic but many traders are wondering if it will continue. Clear chart analysis shows that in the short term Google is hitting resistance. This resistance level is at the $533.00 level and can be seen in the chart below. Should the stock blast through that level, the next spot would be at $545.00. It is likely that Google will pull back in the short term off the $533.00 level.

Gareth Soloway
InTheMoneyStocks.com
 

The Downgrade Of Portugal Is Already Baked Into The Cake

This afternoon, the U.S. Dollar Index has soared higher after Moody's downgraded Portugal's debt rating to Ba2 from Baa1. Are you kidding me? Traders have been saying this would happen for weeks. Obviously, Ireland is going to be the next country to get downgraded as they, along with Greece and Portugal were just bailed out. This downgrade was already baked into the cake by most institutional stock market investors and traders. The stock market is barely trading lower on the news. When you combine this news with the light trading volume the S&P 500 Index may finish the day flat to positive by the close.

The real shock will hit the stock market when the rating agencies downgrade countries such as Spain, and Italy. These are much bigger economies that will cause a real shock to the system. Most traders and investors know that these countries will eventually have to be bailed out by the European Union. This is going to be the event that rocks the boat. The German citizens are also going to grow tired of these bailouts for other nations. The European Union seems like a failed science project that is effecting millions of lives. The recent rally in gold, silver, and oil are telling us that the European Union is eventually going to be doomed.
 

Nicholas Santiago
InTheMoneyStocks.com

It Is Still The Most Important Chart

This morning, the major stock market indexes are pulling back slightly. The pullback in the stock market indexes come as the U.S. Dollar Index begins the morning trading higher. Often, when the U.S. Dollar Index starts the day higher before the opening bell, it will fade throughout the trading session. Should the U.S. Dollar Index decline during the trading session the major stock indexes will usually inflate and trade higher. If you simply look at a daily chart of the U.S. Dollar Index you can easily see that that the major stock indexes will trade inverse to the major stock indexes. Last week, the stock market rally was on the back of the declining U.S. Dollar Index.

Traders should watch leading commodity and energy stocks to move higher if the the U.S. Dollar Index declines intra-day. Stocks such as Exxon Mobil Corp.(NYSE:XOM), Cliffs Natural Resources Inc.(NYSE:CLF), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) will often react quickly to the upside when the U.S. Dollar Index declines. On the flip side, should the U.S. Dollar Index rally higher throughout the day these same stocks will usually decline quickly.

This stock market is really just one big currency trade. The U.S. Dollar Index is still the most important chart in the market at this time.

Nicholas Santiago
InTheMoneyStocks.com