InTheMoneyStocks Daily Analysis - Page 77

Stock Alert: Novellus Tries To Hold Support 

Novellus Systems, Inc. (NASDAQ:NVLS) is getting smacked today on the back of a poor outlook. The stock is trading at $31.90, -3.88 (-10.83%). This area is interesting for one main reason. On the daily chart, it is a key support level. The big question is, will it hold?  Watch for this level to possibly see a solid bounce higher. While the stock market is moving slightly higher, NVLS is near the lows. Wall Street is definitely not cheering their future outlook. 

Gareth Soloway
InTheMoneyStocks.com

Small Alternate Energy Stocks Smoking Hot 

Small alternate energy stocks have been lighting up the night sky over the past few days. In the last few days, Quantum Fuel Systems Technologies (NASDAQ:QTWW) jumped from $4.30 to a high today of $5.88. In addition, Clean Diesel Technologies, Inc. (NASDAQ:CDTI) started to run today, jumping from $4.21 to a high of $6.12. These monster moves make traders aware of other small cap alternate energy plays.  This technique is called finding the sympathy play. Find the right one and a 25% gain could be yours in just one day.

A few alternate energy small cap stocks to watch are FuelCell Energy, Inc. (NASDAQ:FCEL), Hoku Corporation (NASDAQ:HOKU) and Ballard Power Systems Inc. (NASDAQ:BLDP).

Gareth Soloway
InTheMoneyStocks.com
 

QE-3 Rumor Is Typical Before Options Expiration 

This afternoon, the Federal Reserve released their minutes from the June meeting. Apparently, some voting members from the Federal Reserve suggested that the stock markets needed more stimulus. Well, this Fed rumor lead to a drop in the U.S. Dollar and spike in the major stock market indexes. Obviously, the leading commodity stocks surged higher as soon as the U.S. Dollar Index declined. Stocks such as Chevron Corp.(NYSE:CVX), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Exxon Mobil Corp.(NYSE:XOM), all surged higher. Gold, silver, and oil also reacted positive to the inflationary news rumor.

Traders should now realize that these Federal Reserve minutes are from the June meeting and not from today. Many traders and investors do not believe these reports that are released a month later. After all, in a time where people can tweet each other across the world in seconds, why in the world do we have to wait a month to hear what the Federal Reserve had to say? Does anyone else feel this way?

On Friday, the options for the month of July will expire, therefore, this trading week will usually have a lot of rumors spread into the end of the week. Notoriously, during the week of options expiration the markets are filled with rumors as the options on popular stocks get set to expire. We should all certainly expect a lot more volatility before this week is over.

Nicholas Santiago
InTheMoneyStocks.com

Markets Bounce Early, Will Rally Hold?

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.

The key to direction in this market will be the action in the U.S. Dollar Index. Should the U.S. Dollar Index decline or pullback then the major stock indexes will inflate and trade higher. On the flip side, if the U.S. Dollar Index rallies higher throughout the trading session then the major stocks indexes will deflate and trade lower. In short, the market will generally trade inverse to the U.S. Dollar Index.

If the U.S. Dollar Index declines throughout the session traders can watch for leading commodity stocks to trade higher. Leading commodity stocks such as ConocoPhillips(NYSE:COP), U.S. Steel Corp.(NYSE:X), and Cliffs Natural Resources Inc.(NYSE:CLF) will usually trade higher on the back of a weaker U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

Commodities Explode Higher On Bernanke Stimulus Talk

This morning, the chairman of the Federal Reserve, Ben Bernanke, is testifying in front of the House Financial Services Committee. Chairman Bernanke has hinted that further stimulus could be needed if the market starts to slump. Most of the leading commodity stocks have jumped higher on this news. Copper, steel, iron ore, gold, and silver are soaring higher on this news.

The SPDR Gold Shares(NYSE:GLD) have soared higher by $1.40 to $154.17 a share. This is a new all time high for the GLD. Traders should watch the $155.00 level as the next important intra-day resistance level for the GLD.

The iShares Silver Trust(NYSE:SLV) is also surging higher this morning. The SLV is trading higher by $1.74 to $36.96 a share. Short term traders can watch for intra-day resistance around the $37.50 level.

The iPath DJ-UBS Copper TR Sub-Index ETN(NYSE:JJC) is trading higher by 0.45 cents to $58.14 a share. Short term traders should watch for intra-day resistance around the $58.25 and $58.50 levels.

As long as the U.S. Dollar Index continues to decline lower the leading commodity stocks should trade higher. The opposite would be true if the U.S. Dollar Index catches a bid off the lows, the leading commodity stocks could deflate and decline from the intra-day highs.

Nicholas Santiago
InTheMoneyStocks.com

F_Yeah! Stock Market Cheers QE3 Talk 

The markets surged today as Ben Bernanke testified on Capitol Hill. The reason for the monster surge in the markets was due to his preliminary comments on the possibility of QE3. As of today, QE3 is definitely a possibility. The Dollar tanked and the markets jumped higher. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.20, +1.80 (+1.37%). The Dollar opened slightly lower and collapsed on his comments. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.43, -0.27 (-1.24%).

Notice how the Dollar has fallen the same amount as markets have risen. This tells us that in real terms, the markets have not gained at all. Instead, the markets have been revalued in real terms to the cheaper Dollar. In other words, in buying power, the average American has not gained in their portfolio today.

Bernanke is trying to control the markets. He was fully aware that his comments would sink the Dollar and rally the markets. It is all calculated. In addition, he is trying to help the Euro stabilize through this crisis. The world is all interconnected and a collapse in Europe would lead to a collapse in the United States. While in theory, manipulating the markets this way may be positive, especially in the short run, Bernanke is creating another bubble which will burst. Inevitably this bubble will be much bigger than the last with global catastrophic implications.

In the mean time, enjoy the volatile trading on this options expiration week. Swing trading is the only way to manage your 401k, IRA or investment accounts.

Gareth Soloway
InTheMoneyStocks.com

Stock Market Movers And Key Small Cap Alert

As the markets shoot higher on QE3 prospects, many stocks are outperforming or look ready to blast higher. Let's take a look at a few. First, notice how the U.S. Dollar is collapsing today. This is helping commodity stocks rocket higher. Chevron Corporation (NYSE:CVX)  is trading at $106.29, +1.90 (+1.82%). This is on the back of a powerful up move in oil.

On the technology side, Apple Inc. (NASDAQ:AAPL) continues to near its 52 week, all time high at $364.90. It currently is trading at $359.25, +5.50 (+1.55%). Technology overall is having a big day. The Nasdaq is trading +39 points.

The financial stocks are also having a solid day. Of late, these have been lagging but appear to be helping the markets today. Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM) are leading the charge. This is broad based rally today.

The key stock I wish to feature is OXiGENE, Inc. (NASDAQ:OXGN). This is a small cap, low float play with tons of shorts. It is a biotechnology stock with just a $23 million market cap. While it is currently trading at $2.43, it did trade higher than $6.00 just a few months ago. The consolidation pattern on the chart tells of a possible massive move up on the horizon. This would coincide with a squeeze to the shorts. The key to this play is the pattern on the chart as well as the massive short position. Any sort of upswing would cause a larger move due to short covering. Watch this one in this range.

Gareth Soloway
InTheMoneyStocks.com
 

This Is Why It Is Called Whipsaw Wednesday 

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.

Then all of the sudden the major stock indexes began to slowly decline. The leading bank stocks such as J.P. Morgan Chase & Co.(NYSE:JPM) and Wells Fargo & Co.(NYSE:WFC) started to give back a bulk of the morning gains. When the financial stocks rollover it is often a good sign that the major stock indexes will pullback as well. Today, is also the Wednesday before options expiration. This is usually the most volatile trading day of the entire trading week. Traders should always stay nimble during options expiration.

This is a time when the large financial institutions will play a lot of games. Often the small retail options trader will get faked right out of their shoes during options expiration week. Just think about how many retail traders bought puts before the close yesterday when the major stock indexes dropped sharply in the afternoon, only to see the Dow Jones higher by 150.00 points this morning. Many of these same retail options traders closed out those put positions at a lose this morning, only to see the major stock indexes reverse lower this afternoon. Options expiration is a volatile and turbulent trading week. Now you know why we call this session, “whipsaw Wednesday.”

Nicholas Santiago
InTheMoneyStocks.com

Financial Stocks Take Leadership Early

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.

Other leading financial stocks that are trading higher in sympathy to JPM stock include Bank of America(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), Citigroup Inc.(NYSE:C), and Goldman Sachs Group Inc.(NYSE:GS). Should JPM stock happen to decline or fade later in the session, traders should watch for a decline in the entire financial sector which is still very weak on the daily charts.

Nicholas Santiago
InTheMoneyStocks.com

This morning, all of the major stock indexes are rallying higher. The rally looks to be broad based as most stock sectors seem to be participating. The Powershares QQQ Trust(NASDAQ:QQQ) is trading higher by 33.cents to $58.09 a share. There are a few key technology stocks that are trading lower this morning, this could be signaling weakness to come in the Nasdaq Composite.

Akamai Technologies Inc.(NASDAQ:AKAM) is a leading provider of services and applications for accelerating and improving the delivery of content and applications over the internet. AKAM stock is trading lower by 0.90 cents to $30.05 a share. The stock will have some minor intra-day support around the $30.00 level. Should the stock decline further throughout the session, the next intra-day support area will be around the $29.50, and $29.00 levels.

Riverbed Technology Inc.(NASDAQ:RVBD) is a leading cloud computing stock that focuses on networking and communication. This stock remains strong on the daily chart by trading above it's 20, 50, and 200 daily chart moving averages. This morning, RVBD stock is trading lower by 0.21 cents to $39.67 a share. Short term traders can watch for intra-day support around the $39.50 area, and more support around the $38.80 level.

Citrix Systems Inc.(NASDAQ:CTXS) is another leading cloud computing stock that develops and provides solutions that deliver information technology services on-demand worldwide. The stock has been pulling back on the daily chart recently. This morning, CTXS stock is trading lower by 0.17 cents to $75.72 a share. Short term traders can watch for intra-day support around the $75.00 level. Should the stock decline lower throughout the session, the $74.50 level would be the next intra-day support area.

Nicholas Santiago
InTheMoneyStocks.com

Markets Slammed As Bernanke Whipsaws 

The markets were nicely higher this morning on the back of solid earnings from JPMorgan Chase & Co. (NYSE:JPM), a solid drop in Jobless Claims to 405,000 and yesterdays comments from Ben Bernanke that QE3 was possible. As the Dollar continued its fall today, the markets opened higher and pushed on, with the SPDR S&P 500 ETF (NYSE:SPY) hitting a high of $132.78. This was about a 0.75% gain on the day for the major indexes.

All of a sudden Ben Bernanke reappeared on camera at 10:30am ET. This was his second day of testimony on Capitol Hill. This time, he made sure to say that QE3 was a long shot and should not be expected.  The Dollar ripped higher, surging from a dramatic loss to the flat line. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) hit a low of $21.34 and has since surged back to $21.44. This powerful move on the Dollar killed the markets which have now turned a solid positive day into a negative one. While still early, this downward move in the markets looks much like the reversals seen over the last two days, as positive gains were negated in the second half of trading.

While this market looks to many like a market that is ready to sell, do not jump the gun. Everyone is expecting a major sell off today. I am in the camp that because everyone is expecting it, the markets may in fact start moving back to the positive side and close there.

Gareth Soloway
InTheMoneyStocks.com
 

Stock Market Alert: Head And Shoulder Pattern 

The SPDR S&P 500 ETF (NYSE:SPY) which mirrors the S&P 500 has a classic head and shoulder pattern developing. A head and shoulder pattern is a bearish pattern.  The neck line of the head and shoulder pattern must be broken to see this pattern play out. Note the neck line below in pink.  If the market trades below, the SPY could easily fall to a $130.25 target in the coming days. Remember, it is only valid IF it breaks the neck line. That has not happened yet.

The markets continue to be under pressure after Ben Bernanke said it was unlikely to see a QE3. This goes in the opposite direction of what he said yesterday. As the markets whip up and down, a classic options expiration is playing out.  Commodities have been going nuts today, with gold hitting a new all time high only to fall back down.  The SPDR Gold Trust (NYSE:GLD) hit $155.24 before falling over a $1.00 off its highs. Silver continues to higher on the day but well off its high of the day. The iShares Silver Trust (NYSE:SLV) is trading at $37.73, +0.50 (+1.34%). Oil is falling  sharply today on demand worries. A lack of QE3 could mean a slower recovery. In addition, Europe continues to be a horrible mess. The United States Oil Fund LP (NYSE:USO) is trading at $37.69, -0.66 (-1.72%).

Gareth Soloway
InTheMoneyStocks.com
 

Debt Ceiling, What Debt Ceiling?

The major stocks indexes have traded in a wild range over the past two weeks. The stock market has rallied sharply higher in early July, just after the second Greek bailout in two years was passed. Now the major stock indexes decline sharply as more European Union problems emerge. The United States also has its own soap opera going on. The U.S. Congress is fighting against President Obama on raising the debt ceiling. President Obama is looking to raise the debt by more than $2 trillion dollars. Please note that the debt ceiling has been increased seventy times in the past already. Debt ceiling, what debt ceiling?

The politicians made a crucial mistake when they even set a debt ceiling. The current debt in the United States stands at $14.5 trillion, meanwhile, President Obama wants to increase the debt ceiling by over $2 trillion to $16.5 trillion. This number is just to get the U.S. into 2012. The numbers that are being discussed are simply astronomical. The United States has added $4 trillion in debt under President Bush in 2008. President Obama added $2.52 trillion in his first 19 months in office. The question that everyone must ask themselves is why does the debt ceiling have to be so high? Why is the U.S. government spending more than it takes in each month? Why does the United States have so many military installations around the world? Why is the United States in five different wars right now? These are the questions that the United States citizens needs to ask politicians. In other words, why are you politicians wasting my money?

Most U.S. citizens do not really have a clue on what is going on in world. Most people are too busy playing with there i-phone or some other new fancy electronic gadget. People are too busy running around trying to get through week to week in this country. Capitalism has fallen by the wayside, that is obvious with the bank bailouts, auto bailouts, European Union bailout, unemployment bailouts, homeowner mortgage bailouts, welfare bailouts, and any other bailout that I may have forgot to write down. We live in a world of bailouts and we have had this system in place for the past 50 years.

Ladies and gentleman, the debt ceiling will be raised. It is really all politicians know how to do. It does not matter what party is in power, politicians love to spend other peoples money. Congressman Ron Paul(R-Texas) is the only politician that has opposed every debt increase and will not vote for it now. The rest of these politicians including the new freshman Tea Party members are already rolling over like a dog that is getting a biscuit treat. In any case, we can all enjoy the soap opera until the final deal is struck by the political elite.

Nicholas Santiago
InTheMoneyStocks.com
 

Large Financial Stocks Send Mixed Signals 

The large financial stocks have been some of the weaker stocks over the past three months. This morning, Citigroup Inc.(NYSE:C) reported earnings that were better than expected. Citigroup stock is trading higher by 0.81 cents to $39.82 a share. Yesterday, J.P. Morgan Chase & Co.(NYSE:JPM) reported earning that were well received by investors in the early part of the trading day. The daily charts of all the financial stocks still remain very poor. All of the 'too big to fail' stocks still remain below their daily chart 50 and 200 moving averages which puts this sector in a weak technical position. Even this morning, JPM and Citigroup have faded sharply from the opening bell. This is not a good sign of strength for the markets.

Some other leading financial stocks that are fading from the opening bell include Goldman Sachs Group Inc.(NYSE:GS), Wells Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). Short term traders can watch for intra-day support on JPM around the $39.60 level. It is prudent to keep a close eye on the financial stocks as these stocks have been leading the markets for months now.

Nicholas Santiago
InTheMoneyStocks.com

Markets Rollover Again

The major stock indexes have once again rolled over from a gap higher open. During every trading day this week, the major stock indexes have given back the early morning gains. This is an options expiration Friday, which usually makes for a volatile and turbulent morning. Yesterday, the major stock indexes really traded all over the map in a very violent manner. There were 10 minute swings where the S&P 500 e-mini contract moved 6-7 points, now that is violent action. Traders should always expect volatile action throughout the week of options expiration and this week has certainly proved that.

Traders must always follow the action in the U.S. Dollar Index. As the U.S. Dollar Index goes the major stock indexes will generally do the opposite. Even this morning, when the U.S. Dollar Index rallies higher the major stock indexes deflate and decline lower. The SPDR Dow Jones Industrial Average ETF(NYSE:DIA) started the day around $124.75 and is now trading down to the $123.83 area, the decline in the DIA came once the U.S. Dollar Index started to trade higher on the day.

Many leading stocks will also fade or decline when the U.S. Dollar Index rallies higher on the day. Traders can just look at the stocks such as Exxon Mobil Corp.(NYSE:XOM), BP PLC(NYSE:BP), and James River Coal Co.(NASDAQ:JRCC), these stocks have sold off from their morning highs on the back of a stronger U.S. Dollar Index. Should the U.S. Dollar Index decline intra-day these stocks should inflate and trade higher.
 

Nicholas Santiago
InTheMoneyStocks.com

Financial Stocks Hold The Cards

This morning, all of the major financial stocks are declining lower. This sector has lead the markets lower throughout the trading year. Stocks such as Bank of America Corp.(NYSE:BAC), and Morgan Stanley(NYSE:MS) are making new 52 week lows this morning. Other leading financial stocks such as Goldman Sachs Group Inc.(NYSE:GS), J.P. Morgan Chase & Co.(NYSE:JPM), and Citigroup Inc(NYSE:C), are trading near their lows for the year.

Should the financial stocks catch a bid or trade higher throughout the day the major stock indexes could reverse the early declines and rally higher. At this time, the financial sector is holding the cards in this stock market. The Financial Select SPDR Fund(NYSE:XLF) will have intra-day support around $14.72, and the $14.60 levels.

Nicholas Santiago
InTheMoneyStocks.com

Gold Miners Soar, Are They Extended?

All of the leading gold mining stocks have soared higher over the past month. This morning, the popular Market Vectors Gold Miners ETF(NYSE:GDX) is trading higher by $1.01 to $60.75 a share. The move in the the GDX has been nothing short of sensational, however, price is now very extended, and overbought at this time. The GDX may trade a little bit higher, but whenever a stock or ETF goes straight up the way the GDX has it must pullback or consolidate soon. Traders should look for a pullback in the GDX soon.

Other leading gold mining stocks that are trading higher this morning include Newmont Mining Corp.(NYSE:NEM), Yamana Gold Inc.(NYSE:AUY), and Goldcorp Inc.(NYSE:GG). All of these leading stocks are very extended on the daily chart and may need to pullback soon.

Nicholas Santiago
InTheMoneyStocks.com

U.S. Dollar Index Surges

By now, most traders should know that when the U.S. Dollar Index surges higher the major stock market indexes will deflate and decline lower. That is exactly what is happening this morning, the major stock indexes are declining sharply lower as the U.S. Dollar Index rallies. Short term traders must watch for some short term intra-day resistance on the U.S. Dollar Index futures(DX U1) around the $76.08, and $76.34 levels.

Should the U.S. Dollar Index pullback at some point throughout the trading session this is when the major stock indexes are likely to catch a bid higher. As long as the U.S. Dollar Index continues to climb higher throughout the trading session it would be prudent to expect much lower stock prices. The inverse relationship between the U.S. Dollar Index and the major stock indexes remains firmly intact at this time.

Nicholas Santiago
InTheMoneyStocks.com

BS Stress Test: Jitters In Europe Spike Dollar, Drop Market

The U.S. markets collapsed lower today on the back of more worries out of Europe. The much hyped stress test results for European banks were nothing more than nonsense, spewed by those that are trying to cover up the severity of the situation. The results, released last Friday did not included a possible default of Greece.  Thus, eight banks failing the test means absolutely nothing if Greece were to default. A stress test is supposed to factor in the worse case scenario. This obviously did not. The fact that eight banks still failed is a testament to how bad things are.  After fooling the markets are Friday, the world is recognizing the nonsense nature of the test. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.07, -1.62 (-1.23%).

The panic out of Europe is causing the Euro to collapse lower. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $139.90, -1.05 (-0.74%)
while the Dollar is spiking higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.57, +0.14 (+0.65%).

While the markets are being hit, Apple Inc. (NASDAQ:AAPL) is bucking the trend, putting together a positive day. This move higher on Apple is on optimism for earnings on the horizon. After Google Inc. (NASDAQ:GOOG) reported a stellar quarter, all eyes are lighting on up on the prospects for Apple.

Gareth Soloway
InTheMoneyStocks.com

Financial Slaughter House

The banks are taking a big hit again on more comments and bearish sentiment on Wall Street. Bank of America Corporation (NYSE:BAC) has come crashing through the $10.00 level and is now trading at $9.62, -0.38 (-3.75%). More and more talk about the banks has been heard in regards to their exposure to Europe. Even solid earnings from JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) could not do anything for the slaughtered bank stocks.

As the U.S. stock markets continue to trade at their lows, there is little down in the minds of traders that the financial sector is going to see more hardships. The key will be figuring out when it is baked in and at what price to give them a shot. The stress test in Europe did little to reassure the global markets as Europe did not even include a default in Greece as a factor.  This makes the stress test in Europe look more a pathetic game of pull the cloth over the eyes.

Ultimately, the markets need a big flush and the U.S government to get the debt ceiling raised. Should that happen, a small back stop will be in the markets for the near term, before the next shoe drops.

Gareth Soloway
InTheMoneyStocks.com