InTheMoneyStocks Daily Analysis - Page 107

Gold Miners Try To Dig Out Of Yesterday's Hole 

This morning, all of the leading gold mining stocks are ticking higher. Yesterday, gold, silver, and leading mining stocks were slammed sharply lower as the U.S. Dollar Index rallied. Traders should realize that when markets stage an outside day on heavy volume it is usually an indication of lower prices to come. The popular and highly traded Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading higher by 0.12 cents to $55.52 a share. The daily chart is signaling that the GDX will sell down to the $52.00 area before reaching some near term support. Short term traders can watch for intra-day support around the $54.67 and $54.00 levels. 

Some leading gold mining stocks that will be volatile over the next week will be Randgold Resources Ltd (NASDAQ:GOLD), Royal Gold, Inc (NASDAQ:RGLD), Yamana Gold Inc (NYSE:AUY), and Newmont Mining Corp (NYSE:NEM). All of these stocks could be vulnerable to further declines in the near term. Please understand that gold and most gold mining stocks will trade inverse to the U.S. Dollar index.

Nicholas Santiago
InTheMoneyStocks.com

Oil Services Stocks Are Lagging Crude

Crude oil has been surging higher as of late. On December 16, 2011 light sweet crude was trading as low as $92.52 a share. A few days ago crude traded near $110.00 a barrel. This morning, the highly followed and traded United States Oil Fund (NYSEARCA:USO) is trading higher by 0.30 cents to $41.22 share. Oil remains in a very strong uptrend on the daily charts at this time. 

It is important to note that the Oil Service Holders Trust (NYSEARCA:OIH) is lagging the price of crude. The OIH is still trading below it's October 27, 2011 high which was $45.30 a share. Normally, when oil is so strong most investors would want to own the oil service stocks, however, every chart has its own cycle. Short term traders can watch for intra-day resistance on the OIH around the $44.00 area. Some leading oil service stocks that could be susceptible to declines in the near term are Halliburton Co (NYSE:HAL), Baker Hughes Inc (NYSE:BHI), and Transocean Ltd (NYSE:RIG).

Nicholas Santiago
InTheMoneyStocks.com

The Shady Reason For A Bank Stock Surge

Stocks are moving higher today on the back of the banking sector. Banks are surging today as the ISDA (International Swaps and Derivatives Association) decided not to declare Greece in bankruptcy. This is positive for the banks as they will not take massive losses (as of now). Ultimately, it is just a short term stay of execution but one that is causing the banks to surge higher and lift the market. Interestingly enough, one might wonder who the main players that have influence in the ISDA decision are? The answer is simple and obvious, JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Morgan Stanley (NYSE:MS). Essentially, it is self serving and not surprising they did not vote to declare the bankruptcy.

Goldman Sachs is trading at $119.7, +4.60 (+4.00%), JPMorgan Chase is trading at $40.37, +1.13 (+2.88%) and Morgan Stanley is trading at $19.07, +0.53 (+2.86%).

Gareth Soloway
InTheMoneyStocks.com

First Solar Key Levels

First Solar, Inc. (NASDAQ:FSLR) is trading at $30.38, -1.92 (-5.94%). The stock continues to get hit after reporting quarterly results that did not meet expectations. While this news has sent the stock price lower, many traders are looking for the bottom. The key is to look at the chart and discover the next major support levels. The first obvious level is the 52 week low. The stock price is coming coming into that level at $29.87. This will be a double bottom and a support level.

While the stock price will find some support there, it is likely to go even lower after a small bounce. I know, the longs do not want to hear that but the charts speak the truth. The major support where the stock will be a longer term buy is at $24.75.

Gareth Soloway
InTheMoneyStocks.com

Energy Retreats Early And Here Is Why 

This morning, spot oil and many of the leading energy stocks are pulling back. As you know, oil has been surging higher since mid-December 2011. Yesterday, oil spiked higher after a false report cited a fire in a Saudi Arabian oil field. While geopolitical events and weather can effect energy prices, it is usually the weaker U.S. Dollar that will cause energy and most other commodities to rise. Today, spot crude is declining lower by $1.38 to $107.36 a barrel. Please note the U.S. Dollar Index futures (DX- H2) are trading higher 0.64 cent to $79.48 per contract. Should the U.S. Dollar Index decline throughout the session one could expect oil and the energy stocks to catch a bid higher off of the morning lows.

Some leading stocks and ETF's that are coming under early selling pressure include United States Oil Fund (NYSEARCA:USO), United States Gasoline Fund (NYSEARCA:UGA), ConocoPhillips (NYSE:COP), and Exxon Mobil Corp (NYSE:XOM). These stocks should see intra-day bounce opportunities as the U.S. Dollar Index rarely holds up throughout the entire trading day.

Nicholas Santiago
InTheMoneyStocks.com

Base Metal Stocks Slide Without Greece

This morning, all of the leading base metal stocks are declining lower. Normally, the catalyst for the weakness in the base metal stocks is the weak European markets and the problems in Greece. Today, the catalyst for the sell off in the leading base metal and commodity stocks is the weakness in the Chinese growth forecast for 2012. Leading base metal stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), BHP Billiton Ltd (NYSE:BHP), and Tech Resources Ltd (NYSE:TCK) are all trading lower on the session. These stocks are likely to remain weak throughout the day, however, if the U.S. Dollar Index starts to decline sharply it will help to inflate these stock off the morning lows.

The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) is trading lower by 0.86 cents to $49.49 a share. This ETN tracks the action in copper which is known as a leading stock market indicator. Short term traders can watch for intra-day support around the $49.50, and $48.85 levels.

Nicholas Santiago
InTheMoneyStocks.com

Defense Stocks Are Telling Of Major Market Events

Defense stocks have been sneaking under the radar lately as the major stock indexes make new 52 week highs. Most investors will only take notice of these stocks when a war or some type of new conflict takes place. However, it is these stocks that will often react positive before any important military event occurs. It is well documented that their could be a crisis brewing in the Middle East with Iran, and Israel. While there have been tensions in the region for years now, this time oil is involved and that effects the lives of almost everyone in the world. The leading defense stocks have steadily been on the rise since late September 2011. In this Weekly Market Report, we will review three leading defense stocks and find where these stealth market leaders will face important chart resistance. The resistance levels located in this report will serve as powerful trading points and dictate where the stocks should see selling pressure.
Lockheed Martin Corp (NYSE:LMT) is a leading defense company based out of Bethesda, Maryland. Last week, the stock made a new 52 week high at $90.15 a share. Since that high, the stock has pulled back slightly closing the week at $88.50. The daily chart of LMT remains very strong at this time. The stock is trading above all of its major moving averages which puts the stock in a strong technical position on the charts. The only problem with the stock at this time is that it is a bit overbought and extended on the weekly chart. This tells us that a pullback or some consolidation is possible in the near term. Traders should watch for near term daily chart resistance around the $92.50, $97.00, and $102.50 levels. Should LMT stock pullback from current levels the stock should have near term support around the $84.00, and $82.50 levels.



Raytheon Co (NYSE:RTN) is another leading defense company that has surged higher since mid-September 2011 when the stock traded as low as $38.35 a share. Last week, RTN stock finished at $51.37 a share which is just below its 52 week high of $53.12 made on March 9, 2011. The stock is in a confirmed uptrend at this time trading above all of the major daily chart moving averages. Traders must watch for the double top resistance level from last years high. The next important near term resistance levels will be $54.00, 58.75, 62.00, and 67.00. Should the stock retreat from current levels there will likely be daily chart support around the $48.00 area.



General Dynamics Corp (NYSE:GD) is the last major defense company that we shall cover today. This stock has soared higher by $19.00 a share since September 23, 2011 when it traded around $54.00 a share. Traders should watch for near term resistance around the $73.50, $75.00, $78.00, and $83.00 levels. The stock remains in a strong uptrend at this time. Should GD stock pullback from current levels traders must watch for near term support around the $68.50 area.

 
Nicholas Santiago
InTheMoneyStocks.com

Australian Dollar Gets Hit Early

This morning, the Australian Dollar is coming under some selling pressure. The AUD/USD is trading lower 0.63 percent. Short term traders should look for intra-day support around the 1.0650, 1.0625, and 1.060 levels. The daily chart of the AUD/USD will have short term daily chart support around the 1.0430 area. Traders can also play the Australian Dollar by using the CurrencyShares Australian Dollar Trust (NYSEARCA:FXA).

Nicholas Santiago
InTheMoneyStocks.com

Markets Dragged Lower With Key Stock Setups

The markets are seeing some selling on worries stemming from China and Europe. China lowered its growth rate to 7.5%. This is bearish for the entire globe as most advanced economies rely on China. In addition, European issues have started to bubble up again. Things with Greece are getting messy and Spain has said they will not meet the spending cuts required by the bailout of 2011. These raise new concerns of a European defaults.

Apple Inc. (NASDAQ:AAPL) is also selling sharply today. The stock makes up approximately 20% of the NASDAQ 100 and a large portion of the S&P 500. In recent months, Apple has surged higher. This has lifted the markets. However, with a drop in Apple today, the markets are under pressure. Generally, it is not wise to have one stock with such a large weighting on indexes.

Key Stock Moves

International Business Machines Corp. (NYSE:IBM) surged through $200.00 early in the trading day, hitting a high of $201.19. This was a new all time high. While the stock is still positive on the day, it has pulled back under the $200.00 even number. Currently, there is a topping tail on the daily chart that needs to be watched. It could mark a short term top.

Just over a week ago, Caterpillar Inc. (NYSE:CAT) was given as a swing trade short at $116.05. The charts showed a fall on the horizon. Sure enough, CAT hit its first target of $109.55 today. The reason for the fall is multi leveled. First, the stock was extremely extended and into a master level. In addition, there was a topping tail on the daily chart which was never negated. Lastly, the news from China was bearish for CAT's business. All of these combined for great profit.

First Solar, Inc. (NASDAQ:FSLR) is trading at $28.04, -1.98 (-6.60%). This is a new 52 week low for the stock. While most traders thought a major support would have been hit at the double bottom, it has been clear for days that First Solar is headed for $24.50. This is the next major bounce area for the leading solar player.

Gareth Soloway
InTheMoneyStocks.com

Retail Strong But At Warning Level

Regardless of the market weakness today, retail is doing well. The Merrill Lynch Retail HOLDRS ETF (NYSEARCA:RTH) is trading at $40.00, +0.04 (+0.10%). This is one of the most extended sectors in the market but still showing strength.

Stocks like Dillard's, Inc. (NYSE:DDS) and Macy's, Inc. (NYSE:M)  are higher today and still trading at or near 52 week highs. Retail has done well as economic news from the United States has been very strong. Anticipation of strong retail spending has propelled these stocks to multi year highs.

Based on current analysis, most of these plays are overbought. Any hiccup in economic news could send these stocks south very quickly. The key this week will be to watch the Non Farm Payrolls on Friday. Should these numbers disappoint, watch for retail to get weak quickly.

Gareth Soloway
InTheMoneyStocks.com

Casino Stocks Crap Out 

This afternoon, all of the leading casino stocks are trading lower. Last night, China announced a lower growth forecast and this news could certainly be weighing on many of the large casino stocks. It is important to note that the Macau, China market has accounted for a large amount of the earnings for the casino operators. 

Some of the leading casino stocks that are coming under some selling pressure today include Wynn Resorts Ltd (NASDAQ:WYNN), Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM). Today's pullback in these stocks does not make a trend, however, these stocks could still see further downside in the near term.

WYNN stock is usually the most important of all the casino stocks and it is used as a barometer for the industry group. Traders should watch for near term daily support around the $111.00 level. The stock will have intra-day support around the $120.30, and $118.30 levels.

Nicholas Santiago
InTheMoneyStocks.com

Agriculture Stocks Get Buried

This morning, all of the leading agriculture stocks are coming under heavy selling pressure along with the major stock market indexes. The Market Vectors Agribusiness ETF (NYSEARCA:MOO) is trading lower by $1.24 to $50.72 a share. The MOO should have some short term daily chart support around the $50.00 level. The MOO will have intra-day support around the $50.50 area.

Some leading agriculture stocks that are trading lower today include Potash Corp./Saskatchewan (NYSE:POT), Mosaic Co (NYSE:MOS), Intrepid Potash Inc (NYSE:IPI), and CF Industries Holdings Inc (NYSE:CF). All of these stocks look as if they can have some further downside on the daily charts. Please remember, the agriculture stocks often react very similar to commodity stocks and will usually trade inverse to the U.S. Dollar.

Nicholas Santiago
InTheMoneyStocks.com

European Stock Indexes Slide Deep Into The Red

All of the leading European stock indexes have been declining since the opening bell rang at the New York Stock Exchange. Fear is starting to spread in the market as many investors are expecting some European countries to need another bailout. The Institute for International Finance warned that a disorderly default by Greece would likely force Italy and Spain to seek financial aid. Portugal and Ireland have also been rumored to need a second bailout and everyone is now wondering where this new money is going to come from. The European Central Bank (ECB) has already loaned out over $1 trillion to European banks via its Long Term Refinancing Operation (LTRO). 

Traders and investors can watch for weakness in many of the European stock indexes. ETF's such as the iShares MSCI Italy Index ETF (NYSEARCA:EWI), iShares MSCI Spain Index ETF (NYSEARCA:EWP), iShares MSCI France Index ETF (NYSEARCA:EWQ), and the iShares MSCI Germany Index Fund ETF (NYSEARCA:EWG) are all trading lower by over 3.00 percent. The EWG is considered the strongest European stock index at this time. Traders can watch for intra-day support around the $21.90, and $21.35 levels.

Nicholas Santiago
InTheMoneyStocks.com

Markets Collapse As River Theory Shows Everywhere

The markets are taking a beating today on the back of major worries out of Greece and the rest of the European Union. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $134.64, -2.11 (-1.54%). This is the biggest drop in the markets in almost three months. In addition, it is coming off the double top in the SPY from May 2nd, 2011 as well as the Dow Jones Industrial Average hitting 13,000 and the NASDAQ hitting 3,000. The fact that the market failed to confirm above these levels is significant and probably speaks to a multi month top.

The gap down today fits the criteria for a River Theory. This and Confirmation are both proprietary techniques that are truly amazing signals on future market direction. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)  and SPY opened below their 20 moving averages. This puts in play further downside over the next few days.

Shorts in Caterpillar Inc. (NYSE:CAT), Mastercard Inc (NYSE:MA), Microsoft Corporation (NASDAQ:MSFT) and the S&P 500 are all doing very well.. In addition, the time factor of a major cycle date is on the horizon. This looks to be playing out as well.

Gareth Soloway
InTheMoneyStocks.com

There Is Red Everywhere

The major stock indexes are experiencing the first severe stock decline of 2012. The Dow Jones Industrial Average (DJIA) is trading lower by more than 200.0 points this afternoon to 12,750.29. The last time the DJIA closed down more than 100.0 points you have to go back to December 2011. Today's decline is broad based as almost every leading stock sector is trading sharply lower. The NASDAQ Composite has been leading the markets higher and today the tech heavy index is trading lower by 1.44 percent. 

As you may know, the trading volume has been extremely light over the past three months. Today, the trading volume is slightly heavier than normal. The highly popular SPDR S&P 500 Trust (NYSEARCA:SPY) is trading around 150 million shares as of 3:29 pm EST. The three month average volume on the SPY is around the 154 million share level.

The Powershares QQQ Trust (NASDAQ:QQQ) has staged an amazing move since December 19, 2011 when it traded as low as $54.17 a share. This afternoon, the QQQ is finally tagging the important 20 moving average on the daily chart. It is important to note that the last time the 20 moving average was tested was on December 30, 2011. This tells you that this market is long overdue for some type of pullback.

Some leading stocks that are coming under selling pressure this afternoon include China Life Insurance (NYSE:LFC), WPP plc (NASDAQ:WPPGY), Lululemon Athletica Inc (NASDAQ:LULU), and Steven Madden Ltd (NASDAQ:SHOO). When the market leaders start to decline it is always a little bit of a warning signal. As of this time, the market sell off could simply be profit taking.

Nicholas Santiago
InTheMoneyStocks.com

Transports Could Be Set For Short Term Rebound

Many of the leading transportation stocks have sold off recently. The railroad stocks have been some of the sharpest decliners in the transport sector. Many of these leading stocks are now trading around short term daily chart support levels. Stocks such as Union Pacific Corp (NYSE:UNP), CSX Corp (NYSE:CSX) and Norfolk Southern Corp (NYSE:NSC) are all trading in positive territory this morning. It is important to note that all of the leading railroad stocks are now trading below the daily chart 50, and 200 moving averages. This chart formation puts these stocks in a weak technical position at this time, therefore, the bounces from the current support levels could be short lived.

Some other leading transportation stocks that are also trading higher this morning include FedEx Corp (NYSE:FDX), United Continental Holdings Corp (NYSE:UAL), and United Parcel Service Inc (NYSE:UPS). Please remember that oil prices will have a major effect on all of the transportation stocks.

Nicholas Santiago
InTheMoneyStocks.com

Cloud Stocks Float  

This morning, all of the leading cloud computing stocks are catching a bid higher. Yesterday, the cloud computing stocks were sold off with the major stock market indexes. One of the leading cloud computing stocks that are trading higher today is Rackspace Hosting Inc (NYSE:RAX). This stock is trading higher by 0.41 cents to $51.73 a share. Short term traders should watch for intra-day resistance around the $52.57 and $53.25 levels. RAX stock is still trading above the daily chart 50 moving average which tells us that the stock still has strength. 

Some other leading cloud computing stocks that are trading higher include F5 Networks Inc (NASDAQ:FFIV), Riverbed Technology Inc (NASDAQ:RVBD), Aruba Networks Inc (NASDAQ:ARUN), and Salesforce.com, Inc (NYSE:CRM). All of these stocks are still holding up well on the daily charts.

Nicholas Santiago
InTheMoneyStocks.com

Today: Snap Back Rally Or Bearish Consolidation

The markets are experiencing a bounce back from the sharp drop yesterday. After falling $2.00 yesterday, the SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $135.65, +0.98 (+0.73%). Wall Street is looking at this bounce and wondering if it is a snap back rally that will lead to new highs or just technical bounce, prior to more selling.

The proof is purely in the charts. After the biggest drop of 2012, any trading higher but under the recent 52 week highs must be viewed as bearish consolidation. If at any point the recent market highs are eclipsed, any trace of the bear would be gone.

In going by the numbers, the markets can float up to $138.19. As long as they do not take that level out, a technician would view this as inside consolidation and an in-spirit-of bear flag. If $138.19 is taken out, all bear cases are off the table.

Gareth Soloway
InTheMoneyStocks.com

First Solar Master Level

As I stated a week ago, First Solar, Inc. (NASDAQ:FSLR)  would break through the 52 week lows and head far lower. The target price I gave for the move was $24.50. Today, FSLR is trading at $25.75, -1.88 (-6.79%). The master level is nearing. This call has played out beautifully.

Gareth Soloway
InTheMoneyStocks.com

Has Exxon Mobil Run Out Of Gas?

This morning, Exxon Mobil Corp (NYSE:XOM) is trading lower by 0.89 cents to $84.93 a share. This leading stock is not participating in the early morning stock rally. XOM stock is the second largest stock by market capitalization behind Apple Inc (NASDAQ:AAPL). In other words, XOM stock can move markets as it is a major part of the Dow Jones Industrial Average. Short term traders can watch for intra-day support around the the $84.75, and $84.00 levels. The daily chart will have near term support around the $83.75 area. 

Most other leading integrated energy stocks are all trading higher today. Leading integrated energy stocks such as ConocoPhillips (NYSE:COP), Chevron Corp (NYSE:CVX), and BP plc (NYSE:BP) remain strong despite the decline in Exxon Mobil Corp (NYSE:XOM). All traders should remember that a weaker U.S. Dollar Index will usually help inflate most of the energy stocks.

Nicholas Santiago
InTheMoneyStocks.com