InTheMoneyStocks Daily Analysis - Page 78

Intra-day Dollar Dip Helps To Inflate Indexes 

This afternoon, the major stock indexes have rallied sharply higher off the morning lows. The major stock indexes are still trading in negative territory on the session, however, if the U.S. Dollar Index continues to decline many leading stocks could continue to inflate and trade higher throughout the session. Despite all the problems in the European Union, it is the U.S. Dollar Index that dominates the market movement. Stock indexes simply trade inverse to the U.S. Dollar Index. Short term traders should watch for intra-day support on the U.S. Dollar Index futures around the $75.70 level. If the U.S. Dollar Index futures bounce before that support area it would be prudent to expect another stock market sell off.

The SPDR S&P 500 Trust(NYSE:SPY) has rallied off the lows of the day by nearly $1.00 to $130.57 a share. Similar moves higher were made in the Powershares QQQ Trust(NASDAQ:QQQ), and the SPDR Dow Jones Industrial Average Trust(NYSE:DIA). Traders should remember, as easily as these indexes rallied on a U.S. Dollar Index decline they can sell off just as fast on a U.S. Dollar Index bounce.

Nicholas Santiago
InTheMoneyStocks.com

The Sky Looks Clear For The Cloud

This morning, the major stock indexes are all trading sharply higher to begin the day. The technology heavy NASDAQ Composite has been the leading index trading higher by 1.57 percent. Last night, International Business Machines (NYSE:IBM) reported earnings that are being well received by investors this morning. The move higher in IBM is setting the tone for the technology stocks today.

Some of the leading technology stocks that are rallying sharply higher include the cloud computing stocks. This group of stocks remains very strong on the charts despite a recent pullback.

Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting provider for businesses and enterprises worldwide. This stock is trading higher by $1.30 to $43.74 a share. Recently, RAX stock pulled back from a short term oversold condition on the daily chart. The stock is now rallying back up towards the recent highs. Short term traders should watch for intra-day resistance around the $44.00 area.

NetApp Inc.(NASDAQ:NTAP) is a leading data and storage provider. This stock is trading higher by $1.45 to $51.63 a share. The stock remains in a large choppy trading range on the daily chart. Short term traders can watch for intra-day resistance around the $52.00 area.

F5 Networks Inc.(NASDAQ:FFIV) is a leading networking company. FFIV stock is trading higher by $4.21 to $116.01 a share. Short term traders can watch for intra-day resistance around the $116.70 area. The daily chart of FFIV remains very strong as the stock is trading above its daily chart 50 and 200 moving averages.

Riverbed Technology Inc.(NASDAQ:RVBD) is another leading networking and communication company. This stock is trading higher by $1.53 to $40.33 a share. Short term trader can look for intra-day resistance around the $40.50, and $41.00 levels. It is important to note that RVBD stock is scheduled to report earnings after the close this afternoon.

Nicholas Santiago
InTheMoneyStocks.com

Some Financial Stocks See Sunlight

This morning, some of the leading financial stocks have caught bids higher and some are still looking like fish out of water. Goldman Sachs Group Inc.(NYSE:GS), and Bank of America Corp.(NYSE:BAC) both reported earnings today before the opening bell. These two financial giants have been very weak on the daily charts as of late and now we definitely know why. Both stocks are trading lower on the trading session and remain in a poor technical position on the daily charts.

Often, when a stock that is trending lower reports earnings the bad news is already factored into the stock price. This time it is unsure if all of the bad news is factored into GS and BAC. These stocks are struggling to trade higher this morning. Traders can watch for intra-day support on GS stock around the $126.60 area. BAC stock will have some intra-day support around the $9.50, and $9.30 levels.

Some other leading financial stocks that are trading higher today include Wells Fargo & Co.(NYSE:WFC), J.P. Morgan Chase & Co.(NYSE:JPM), and Morgan Stanley(NYSE:MS). Traders must follow the financial stocks very closely as this sector has lead the stock market decline since early May 2011.

Nicholas Santiago
InTheMoneyStocks.com
 

Trade Alert: Markets Rally As Fear Fades

The markets are in rally mode as fear is fading around the globe. Earnings are giving investors a fresh reason to buy the markets and the Dollar is dropping. Yesterday, International Business Machines Corp. (NYSE:IBM) reported solid quarterly results. This morning, more great reports emerged from the likes of The Coca-Cola Company (NYSE:KO) and Wells Fargo & Company (NYSE:WFC). On the slightly negative side, Bank of America Corporation (NYSE:BAC) and Goldman Sachs Group, Inc. (NYSE:GS) both reported earnings that did not meet Wall Street expectations.

Overall, the earnings picture has been good and the markets are rejoicing. In terms of a solid risk reward play, it appears Bank of America is at a level which is now finally attractive. The negative earnings loss of $8.8 billion should be factored in by the close today, and the overly bearish sentiment on the financial stocks near a climax. When all others hate it, start loving it. That is the golden ticket.

Gareth Soloway
InTheMoneyStocks.com
 

Alert: Market To Hit 52 Week Highs

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.

Inevitably, the debt ceiling in the United States will be raised. The markets will spike higher on it. In addition, earnings should continue to be better than expected. As things quiet down in Europe in the short term, the Euro will gain traction and the Dollar will fall. A falling Dollar pushes the U.S. markets higher.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.41, -0.07 (-0.33%).

Today, after the market closes, Apple Inc. (NASDAQ:AAPL) will report earnings. The stock has rallied sharply into earnings. The earnings will most likely be stellar, but the big question will be, how does the stock price react. After such a gain, it is hard to imagine more than $10.00 in upside. Downside is also possible.  Apple stock has rallied around 20% in the last month. This is an epic rally for the largest market cap stock out there.

Gareth Soloway
InTheMoneyStocks.com
 

Stocks Rally, Gold Drops, Bonds Soar, Something Has To Give

The major stock indexes are surging higher this afternoon. The NASDAQ composite is leading the charge as the tech heavy index is trading higher by 2.17 percent. The strange thing about today is that everything is rallying higher. Bonds are soaring higher with the major stock indexes. Even the U.S. Dollar Index has rallied higher off of the morning lows.

The popular iShares Barclays 20 + Year Treasury ETF is trading higher by $1.54 to $96.80 a share. Rarely, will the bond market and the stock market trade sharply higher together.

Gold and silver are also declining sharply lower this afternoon. The SPDR Gold Shares(NYSE:GLD) is trading lower by $2.15 to $154.42 a share. The iShares Silver Trust(NYSE:SLV) is declining lower by $1.40 to $38.05. Gold and silver were both slightly extended and overbought on the daily chart.

The U.S. Dollar Index futures(DX U1) has also rocketed off of the morning lows. Around 10:10 am EST the U.S. Dollar Index futures were trading as low as $75.18 per contract. Since that morning low, the U.S. Dollar Index futures have rallied higher by 0.40 cents to $75.60 per contract. Normally, when the U.S. Dollar Index rallies higher the major stock indexes will deflate and decline lower. That is not the case this afternoon as everything is rallying higher.

There are a few leading stocks that are failing to participate in today's large stock rally. Wynn Resorts Ltd.(NASDAQ:WYNN) is a leading stock that reversed lower after a sharp gap higher open. This stock is making a sharp outside day pattern on the daily chart. Traders must use caution when trying to buy this stock now, the current pattern usually indicates further downside.

Sina Corp.(NASDAQ:SINA) is a leading Chinese internet stock that is also making a reversal on the daily chart. SINA stock is trading lower by $1.34 to $119.66 a share. Traders should watch for more of a pullback in this stock before committing to buying this stock. Stocks that fail to rally higher on strong trading days are often warning traders that they may need to pullback and consolidate before trading higher again.

Nicholas Santiago
InTheMoneyStocks.com

Tech That Still Looks A Wreck

The NASDAQ Composite has been the strongest major stock index recently. Yesterday, the tech heavy index soared higher by nearly 2.5 percent. Leading technology stocks such as Apple Inc.(NYSE:AAPL), and Google Inc.(NYSE:GOOG) have lead the NASDAQ higher since late June 2011. While many leading technology stocks have soared recently there are a few leading tech stocks that just seem to be dead money at this time.

Research In Motion LTD.(NASDAQ:RIMM) is a leading designer and manufacturer of wireless mobile devices. This stock has been in a steady decline since February 2011 when the stock traded as high as $70.50 a share. The stock remains in a downtrend at this time by trading below its daily chart 20 and 50 moving averages. This morning RIMM stock is declining lower by 0.67 cents to $26.09 a share. The stock will have very good daily chart support around the $21.00 level. Short term traders can watch for intra-day support around the $25.50, and $25.00 levels.

Hewlett Packard Co.(NYSE:HPQ) is another leading technology stock that remains very weak despite the recent technology rally. HPQ stock remains below the important 50 and 200 daily chart moving averages. This pattern puts the stock in a weak technical position at this time. Short term traders can watch for intra-day support around the $35.00 area.

Other leading technology stocks that look to be very weak on the daily charts include Cisco Systems Inc.(NYSE:CSCO), and Yahoo Inc.(NASDAQ:YHOO). These stocks do not seem to be as innovative as they were in the past. Until these stocks can regain and trade above there important 50 moving average these stocks can be good for short term trades and really nothing more.

Nicholas Santiago
InTheMoneyStocks.com

Congrats to those who played this BAC level, it worked like a charm for a very nice profit!
 

Quote:

Originally Posted by inthemoneystocks 

Trade Alert: Markets Rally As Fear Fades

 

The markets are in rally mode as fear is fading around the globe. Earnings are giving investors a fresh reason to buy the markets and the Dollar is dropping. Yesterday, International Business Machines Corp. (NYSE:IBM) reported solid quarterly results. This morning, more great reports emerged from the likes of The Coca-Cola Company (NYSE:KO) and Wells Fargo & Company (NYSE:WFC). On the slightly negative side, Bank of America Corporation (NYSE:BAC) and Goldman Sachs Group, Inc. (NYSE:GS) both reported earnings that did not meet Wall Street expectations.

Overall, the earnings picture has been good and the markets are rejoicing. In terms of a solid risk reward play, it appears Bank of America is at a level which is now finally attractive. The negative earnings loss of $8.8 billion should be factored in by the close today, and the overly bearish sentiment on the financial stocks near a climax. When all others hate it, start loving it. That is the golden ticket.

Gareth Soloway
InTheMoneyStocks.com
 

Stock Markets Relax As Eyes Back To Debt Ceiling 

The stock market looks to be pausing today after a monster upside move yesterday. This upside move came on the back of great recent corporate earnings from big players like International Business Machines Corp. (NYSE:IBM) and Google Inc. (NASDAQ:GOOG). In addition, fears out of Europe subsided somewhat, allowing the Dollar to fall against the Euro.  The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $132.85, +0.12 (+0.09%).

The markets are looking towards the government over the rest of the week. This is a good reason for a pause day today and maybe even a little downside. The politicians have days to complete some sort of debt ceiling resolution or face a possible U.S. default. While unlikely, the market hates uncertainty.

Earnings will continue to be reported in the next few days, however, with such good earnings driving the markets higher, future earnings reports must be even better to get the same market reaction. Note today how Apple Inc. (NASDAQ:AAPL) is having little impact on the markets. They reported a stellar quarter but with such gains in the markets already, it appears it was already priced in.

Gareth Soloway
InTheMoneyStocks.com
 

Bank Stocks Jump Higher On Valuation

The bank stocks are surging today on the back of cheap valuations. Since the beginning of 2011, most financial stocks are down dramatically, continually hitting new 52 week lows. This past week, earnings have come from all the major players. Solid earnings were reported by JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC), while weak earnings emerged from Goldman Sachs Group, Inc. (NYSE:GS) and Bank of America Corporation (NYSE:BAC).  Most amateur traders would be surprised to see Goldman Sachs and Bank of America rallying sharply today. The reason behind this is clearly valuation. The negative earnings news was already priced into both stocks. In fact, it appears it was overpriced based on their strong move higher today. Always remember, the news is already known by the big boys, thus the stocks generally reflect it already. When Bank of America reported close to a $9 billion loss, the mutual funds and small investors started selling. This is exactly the right time to do the opposite and buy. Sure enough, the stock reversed yesterday, and is soaring today. Bank of American is trading at $9.92, +0.35 (+3.66%). 

Gareth Soloway
InTheMoneyStocks.com
 

Fades Of The Day

This morning, the highly popular real estate website Zillow Inc.(NASDAQ:) debuted for trading. The stock was originally priced at $20.00 a share, however, the stock opened at $60.00 a share. The shares of Zillow stock plummeted as investors took profits right away when the stock began trading at 10:30 am EST. Zillow stock is now trading around $38.00 a share. This type of trading activity happens all the time with these high flying IPO's. Normally, it is the small retail trader that jumps on these stocks as soon as they open for trading. Unfortunately, these traders will usually find out that the stock will usually decline faster than a bowling ball being dropped from a skyscraper.

Many amateur traders and investors bought another IPO at the open today called Skullcandy Inc.(NASDAQ:SKUL). This company makes fancy headphones, and iPod cases with a skull logo printed on their product. The stock opened up at $23.00 a share, it traded as high as $23.40 a share a few minutes after it began trading. Right now the stock is trading at $20.00 a share. Again, it is the small retail trader that jumped into this stock right at the open. If you happened to buy this stock at $23.00 you are now underwater by $3.00 or 13.00 percent.

Traders and investors should usually wait for the stock to settle in for a few days to weeks after an IPO. If you are one of the fortunate investors that received shares from the underwriter it is great to simply sell the shares at the open for a huge gain, however, are not that fortunate. Traders and investors can simply look at the popular Linkedin Corp.(NASDAQ:LNKD) IPO on May 19, 2011 as another example that went bad if you were not quick on the trigger. That stock opened at $83.00 a share and traded as high as $123.00 by 11:30 am EST. Soon after that extended rally the stock began to violently sell off. That day the stock closed at $93.00 a share. Within a couple of weeks the stock was trading as low as $60.00 a share. Traders must be very savvy when trading these IPO's. It is always prudent to wait until IPO sets a trend in a few weeks or months. Then traders can trade off the patterns on the charts.

Nicholas Santiago
InTheMoneyStocks.com

Just Follow The Money

This morning before the opening bell, the U.S. Dollar Index futures (DX U1) plummeted lower after trading as high as $75.37 per contract. The U.S Dollar Index futures are trading at $74.61 per contract as the opening bell rings at 9:30 am EST. The catalyst for the decline in the U.S. Dollar Index is the due to the news out of Europe that Greece will have a selective default. As most traders and investors know by now, when the U.S. Dollar Index declines the major stock indexes around the world will inflate and trade higher. At the open all of the major stock indexes are trading higher. Traders must follow the U.S. Dollar Index very closely, Should the U.S. Dollar Index catch a bid higher these stock indexes could deflate and sell off quickly.

Traders should watch the leading commodity stock to be most effected by a stronger U.S. Dollar Index. Stocks such as Freeport McMoRan Inc.(NYSE:FCX), and Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF) will usually decline quickly on a stronger U.S. Dollar Index. The opposite is true when the U.S. Dollar Index declines, these same stocks will usually jump and inflate higher very quickly. At this time, the major stock indexes and commodities continue to trade inverse to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

Swiss Cheese Rally Filled With Holes

The major stock indexes have soared higher over the past three trading sessions. Once again, stock indexes are trading higher this morning. Many leading stocks such as Apple Inc.(NASDAQ:AAPL), Google Inc.(NASDAQ), and International Business Machines(NYSE:IBM) have soared to new highs. The problems in Europe seem to be under control for now. Everything looks fine in Mayberry.

There are a few problems with the recent rally that traders and investors should know. First, the stock market seems to rally only when the U.S. Dollar Index plummets lower. We all know that the U.S. Dollar is the worlds reserve currency, however, the more the dollar declines the more inflation is created. Gasoline has been climbing sharply higher since June 27, 2011. The United States Gasoline Fund (NYSE:UGA) is just three points from its 52 week high. Everyone knows that the consumers in the U.S. cannot handle $4.00 gasoline at the pump.

The second negative factor for this rally is the semiconductor sector. The semiconductors are really lagging the NASDAQ Composite. This is usually a sign of weakness for the markets. The semiconductor sector should be leading the NASDAQ Composite, not lag the tech heavy index. Traders can simply compare a chart of the Semiconductor Holders Trust (NYSE:SMH) with the Powershares QQQ Trust (NASDAQ:QQQ). It is obvious and easy to see how the semiconductor sector is still very weak, that is not a sign market strength.

Another problem for these markets is copper. Copper is one of the most important commodities in any rally. Strong copper represents growth in construction. We all know that growth is not taking place in the United States and Europe, however, growth is taking place in Asia. The Chinese and Indian economies have been the strength for copper. Asia is clearly starting to slow down now. Just look at the Chinese data last night, Chinese manufacturing is beginning to slow. Chinese growth is more important than anyone realizes at this time. Last night, the Shanghai Composite traded down by more than 1.0 percent. If the Asian markets slowdown investors better watch out.

These are just a few of the obvious signs that traders can see as major headwinds for the markets. There are many more reasons for the coming weakness such as the poor action on the financial stocks, more European problems on the horizon and the weak trading volume. Stay tuned as this rally may not have much more strength left in the tank. This is a traders market and it should be this way for the remainder of 2011.

Nicholas Santiago
InTheMoneyStocks.com

The Wild Commodity Ride, Understand It 

The stock market is in rally mode again today. Positive comments were made towards Greece and handling a selective default by the European regulators. This drove the Euro higher and the Dollar lower. The up cycle is in full effect and should remain choppy to higher for the next week or so. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $134.26, +1.61 (+1.21%). The Dollar is collapsing sharply lower as the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.13, -0.20 (-0.94%).

With the Dollar falling sharply, industrial demand commodity prices are jumping. Industrial demand pertains to oil and other commodities used in the running and building of the world. This is helping key index plays like Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM). Both stocks are leading the Dow Jones Industrial higher.

On the other hand, gold and silver are falling nicely. Some may wonder why these two commodities are falling with the weaker Dollar? It is simple. Gold and silver are stores of safety. Investors run to them when fear is rising. Today, fear is falling, thus investors are selling gold and silver and move into stocks. Those commodities are falling but as optimism is picking up on the global economy, oil is moving higher.

Gareth Soloway
InTheMoneyStocks.com

Alert: A Stock Top Of The Century

When looking at stocks, one might wonder where to buy or sell. As stocks enter this up cycle, it is wise to begin looking at stocks that may be setting up for a drop in the second half of the year. To do this, we must look at the charts and understand exactly where a stock might hit a pivot long term high. To do this, look at the weekly and monthly charts.

A stock that is nearing a monster level of resistance is Simon Property Group, Inc (NYSE:SPG). This is a commercial real estate play that is trading at $121.45, +0.95 (+0.79%). When real estate was at its height in 2007, SPG traded to $123.96. We all know real estate has not improved in the last few years. In fact, it has gotten much worse. With no end to the real estate problems on the near term horizon, when this stock hits that double top from 2007, it becomes the short of the century. The valuation makes little to no sense and with the double top nearing, look for a significant fall in the second half of the year.

Gareth Soloway
InTheMoneyStocks.com
 

Not Everything Is Pretty Out There

This afternoon, the major stock indexes are surging higher on heavier volume. Earnings reports for the most part have been good for the large mega cap stocks such as Apple Inc.(NASDAQ:AAPL), International Business Machines(NYSE:IBM), and Google Inc.(NASDAQ:). It is important to note that there have been some earnings reports which were not well received by investors. Traders must remember, if these weak stocks fail to rally in a strong market the problems could last for these stocks.

Here is a small list of leading tech stocks that have sold off sharply due to poor earning, or in sympathy to other companies reporting poor earnings:

Novellus Systems Inc.(NASDAQ:NVLS) was trading at $36.00 before earnings, today the stock is trading at $32.50.

Research In Motion LTD.(NASDAQ:RIMM) is another leading stock that was trading at $34.50 a share before announcing earnings June 16, 2011. The stock is trading at $27.88 a share today.

Riverbed Technologies Inc.(NASDAQ:RVBD) blew up after reporting earnings on July 19, 2011. The stock was trading as $41.40 before earnings, today the stock is trading at $31.42 a share. There will be support for this stock around the $29.00 area.

F5 Networks Inc.(NASDAQ:FFIV) is getting double hit, the stock declined yesterday in sympathy to RVBD. Again today, the CEO said that growth in Europe has slowed and the stock is getting crushed. On July 19, 2011 the stock was trading as high as $118.69, today the stock is trading at $99.05 a share. Not a pretty haircut for the cloud computing networking stocks.

Other leading stocks that have sold off sharply over the past few days have been VMWare Inc.(NYSE:VMW), Salesforce.com Inc.(NYSE:CRM), and Citrix Systems Inc.(NYSE:CTXS), and Netflix Inc.(NYSE:NFLX). While the major stock indexes are surging higher today many of the leading stocks are rolling over. Traders simply need to take note of this current scenario as the mega can't simply lead the markets higher. There also needs to be a supporting cast of stocks to accompany the tech giants and that will help the markets rally further.

Nicholas Santiago
InTheMoneyStocks.com

Oil Services Stocks Are Looking Overbought 

The oil services stocks have simply been on fire as of late. The popular and highly traded Oil Services Holders Trust (NYSE:OIH) has rallied higher by $20.00 since June 27, 2011. That is a 15.0 percent increase in less than one month. Many of the leading oil services stocks have had even better moves. The sector still looks very strong on the charts trading above all of the major moving averages. The only problem that a technical chart trader can see is that the sector is overbought and extended at this time. Normally, when a stock, or sector gets this extended it will need to pullback and consolidate before moving higher. Institutional traders will usually let the stock pullback or form a base before buying more shares.

Some of the leading oil services stocks that are short term extended at this time are Halliburton Co.(NYSE:HAL), Schlumberger LTD.(NYSE:SLB), and Baker Hughes Inc.(NYSE:BHI). These stocks are still leading stocks that remain strong on the charts, however, at these levels a pullback or consolidation is in order.

Nicholas Santiago
InTheMoneyStocks.com

Waiting To Exhale

Once again, as soon as the U.S. Dollar Index futures begin to trade higher the major stock indexes deflate and retreat quickly. This inverse relationship between the U.S. Dollar Index and the major stock indexes has been going over for about 10 years now. From time to time, the inverse correlation will break apart, however, that rarely occurs. This morning, traders can clearly see in chart below at how the up ticking U.S. Dollar Index will send the major stock indexes lower. The U.S. Dollar index is still one of the most important charts that any trader can follow.

Traders and investors should watch the commodity and energy stocks to come under pressure when the U.S. Dollar Index trades higher. Leading energy stocks such as Exxon Mobil Corp.(NYSE:XOM), and Chevron Corp.(NYSE:CVX) will usually trade lower on the back of a strong U.S. Dollar Index. Leading commodity stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), and Freeport McMoRan Inc.(NYSE:FCX) will usually decline lower when the U.S. Dollar Index rallies higher. It is important to note, these same stocks will generally rally higher as soon as the U.S. Dollar Index pulls back or declines. These days, traders that are long simply have to hold their breath that the U.S. Dollar Index will fall in order for the stock market indexes to inflate and trade higher.

Nicholas Santiago
InTheMoneyStocks.com

Pros Weekly Play Book - Get Ready!

At this time, many investors are focused on the problems in the European Union, and the U.S. political debate over the debt ceiling being raised. As a trader, the focus should simply be on the charts and the patterns that stocks and commodities are making. In the last report which was posted on July 10th, 2011, the focus was on the Dow Jones Transports. The charts at that time told us that transportation index was extended and due for a pullback - and that is exactly what happened. Readers can easily go back to that last report and see how those charts played out in the iShares Dow Jones Transportation ETF (NYSE:IYT), FedEx Corp. (NYSE:FDX), and Union Pacific Corp. (NYSE:UNP).  Learn to read the charts properly and profit.

This week, the extended stocks are coming out of two different sectors. The first sector that is extended is the oil services stocks. Therefore, we shall examine the Oil Services Holders Trust (NYSE:OIH). The second group of stocks that appear extended at this time come from large capitalization technology stocks such as Google Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and International Business Machines (NYSE:IBM). Lets find levels when each of these stocks will have good daily chart resistance and present the best trading opportunities.

The Oil Services Holders Trust (NYSE:OIH) is a basket of the leading oil services stocks. The OIH gained $7.87 last week, closing at $161.53 a share. Price has surged higher by $22.37 a share since its June 27, 2011 pivot low when the stock traded at $139.16 a share. The recent surge higher in the OIH indicates strength by trading above 20, 50, and 200 moving averages. The only problem with the OIH is that price is now extended and overbought on the daily chart. These types of patterns will usually need to pullback or consolidate before moving higher. The next important resistance levels for the OIH will be around the $163.25 area. Should the OIH continue to climb higher the $169.00 level would be the next important weekly resistance level. It is possible to see pullbacks from these resistance areas. Should the OIH pullback traders can watch for short term support around the $156.25, and $153.25 levels.

Apple Inc. (NASDAQ:AAPL) is the leading technology stock in the world at this time. This company designs, manufactures, and markets personal computers, mobile communication media devices, and portable digital music players. As well as sells related software, services, peripherals, networking solutions, and applications around the world. In other words, this stock is the technology market. Recently, Apple stock has surged higher by 85.0 points since June 20, 2011 when the stock traded as low as $310.50 a share. Traders must now realize that the stock is overbought and extended at this time. This does not mean that the stock cannot trade higher, it simply means that it will need to pullback or consolidate very soon. Traders should watch for near term resistance around the $405.00 level. It is possible that the stock could begin to pullback before reaching that resistance area. Should Apple stock pullback, there should be short term support around the $375.00, and $363.00 levels. Join the Pros live as they trade these stocks and more in our Intra Day Stock Chat - view live charts, live trades, profit. Start your Free Trial Now click here.

Google Inc. (NASDAQ:GOOG) is another leading technology stock that has exploded higher since June 27, 2011 when the stock traded as low as $473.00 a share. Last week, the stock closed at $618.23 share, that is an increase of $145.00 in just four weeks. What a move! The stock is now short term overbought and extended on the daily chart. This is when the stock needs to pullback or consolidate before moving higher. The next important resistance area for Google stock will be around the $623.00, and $637.00 levels. The stock will also come into a very important double top resistance level at $643.00 from its January 2011 high. Google stock will have short term daily chart support around the $598.00, and $585.00 levels.

Nicholas Santiago
InTheMoneyStocks.com


 

Mining Equipment Stocks Begin To Dig Out Of Last Weeks Hole

This morning, the mining and farm equipment stocks are all trading in positive territory. Last week, this sector was under pressure after Caterpillar Inc.(NYSE:CAT) reported earnings. Often after a sharp decline in a stock the next trading day the stock will retrace higher from the decline. This is what looks to be happening today in the mining equipment stocks.

Caterpillar Inc.(NYSE:CAT) is the leading mining equipment stock in the world. Last week, the stock dropped sharply lower after reporting earnings. This morning, CAT stock is trading higher by 0.24 cents to $105.37 a share. Traders must now watch for intra-day resistance around the $106.75 level. Should the stock decline throughout the day there should be intra-day support around the $104.00, and $103.00 levels.

Deere & Co.(NYSE:DE) is another leading farming and mining equipment stock. DE Stock is trading higher by 0.62 cents to $81.85 a share. This stock will have intra-day resistance around the $82.50, and $83.00 levels. Should the stock pullback, the intra-day support levels will be around the $81.00, and $80.50 levels.

Joy Global Inc.(NASDAQ:JOYG) is a leading mining equipment stock that is trading higher this morning by 0.47 cents to $100.32 a share. JOYG stock will have intra-day resistance around the $101.50 area. The intra-day support levels for JOYG stock will around the $99.20 level.

Nicholas Santiago
InTheMoneyStocks.com