InTheMoneyStocks Daily Analysis - Page 112

Wal-Mart Is The Only Leading Retailer That Is Down Today 

This afternoon, all of the leading retail stocks are trading higher on the session. The Merrill Lynch Retail HOLDRS ETF (NYSEARCA:RTH) is trading higher by 0.47 cents to $41.07 a share. This signals that most retail stocks are trading higher today. Other leading retail stocks such as Target Corporation (NYSE:TGT), Big Lots, Inc. (NYSE:BIG), and The TJX Companies, Inc. (NYSE:TJX) also have solid moves in positive territory. On the surface everything looks fine and dandy in the retail world. 

The one lone retail stock that is declining today is Wal-Mart Stores, Inc. (NYSE:WMT). The stock is trading lower by 0.21 cents to $59.72 a share. While the stock is not down much; it is failing to catch a bid today and that is worth noting. The daily chart is trading below the important 50 moving average which puts the stock in a weak technical formation. The stock will have some daily chart support around the $58.25 level. Short term traders can watch for intra-day support around the $59.50 area.

Nicholas Santiago
InTheMoneyStocks.com

Gasoline On The Rise 

Once again, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.60 cents to $57.13 a share. Last week, the UGA pulled back after making a new three year high at $58.88 a share. The recent pullback in the UGA also occurred as the major stock indexes sold off. This tells us that the UGA is trading inverse to the U.S. Dollar Index futures (DX-M2). This morning, the U.S. Dollar Index futures are trading lower by 0.43 cents to 479.56 per contract. Unfortunately, if the stock market is going to inflate and trade higher the price of gasoline is usually going to trade higher as well. Short term traders should watch for intra-day resistance on the UGA around the the $57.50 level. Yesterday, the UGA recaptured the daily chart 50 moving average and this is a short term sign of strength. The average price of unleaded gasoline in the United States is now $3.91 a gallon. 

Light sweet crude is also rebounding higher today. Spot crude is trading higher by 0.78 cents to $103.48 a barrel. The iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), and the ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO) are all trading higher on the session. These equities will also trade inverse to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

McDonald's Gets Fried

This morning, the leading fast food stock McDonald's Corp (NYSE:MCD) is trading lower by $1.06 to $97.50 a share. This leading restaurant stock is one of the only stocks in the sector to decline while the major stock indexes are rallying higher. Short term traders should watch for intra-day support around the $97.00 area. The daily chart of MCD stock has been making lower highs and this could cause the stock to trade lower over the next week or so. MCD stock still has good short term daily chart support around the $94.50 level. 

Most other lead leading fast food restaurant stocks are trading higher on the session. Leading restaurant stocks such as Yum! Brands, Inc. (NYSE:YUM), The Wendy's Company (NASDAQ:WEN), and Panera Bread Co (NASDAQ:PNRA) are all trading in positive territory today.

Nicholas Santiago
InTheMoneyStocks.com

Rally Today: Market Preps For Major Earnings And Data

Stocks are jumping for the second day in a row. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $138.42, +1.52 (+1.11%). This strong move up is coming prior to major economic and earnings news in the next 24 hours.

Today, after the markets close, Google Inc (NASDAQ:GOOG) will report earnings. Wall Street estimates expect a profit of $9.64. The whisper number is for a profit of $9.87. This is the first major technology earnings report of the season and will shape the action tomorrow. Last quarter Google took a major hit after disappointing Wall Street.

Tonight, China will report its GDP numbers. There is a rumor on the street that they will be better than expected. This is likely the cause to the rally today. Caterpillar Inc. (NYSE:CAT) is surging as well which gives credence to the rumor on China GDP. CAT is very reliant on strong China growth to excel.

Tomorrow morning, the first major bank will report earnings. JPMorgan Chase & Co. (NYSE:JPM) is expected to report earnings of $1.17 wit\h a whisper number at $1.20.

As it stands now, China GDP will be of great importance for the entire global economy. In addition, the technology sector and financial sector will be rocking one way or another. While often quiet on a Friday, tomorrow should be very exciting.

Gareth Soloway
InTheMoneyStocks.com

Retail Stocks Slip With Indexes

This morning, many of the leading retail stocks are declining lower to start the session. The important Merrill Lynch Retail HOLDRS ETF (NYSEARCA:RTH) is declining lower by 0.20 cents to $41.28 a share. This ETF will have intra-day support around the $41.25, and $40.93 levels. The daily chart for the RTH is still trading above the 50 moving average and this tells us that the ETF still has some strength. 

Some leading retail stocks that are coming under selling pressure include Costco Wholesale Corporation (NASDAQ:COST), Target Corporation (NYSE:TGT), and Dollar General Corp. (NYSE:DG). All of these stocks are still holding up on the daily charts, however, this week the leading retail stocks have seen some profit taking.

Nicholas Santiago
InTheMoneyStocks.com

Beware Of The Dow Jones Industrial Average Lead Rally

How To Trade It: Technology Tumbles, Europe Fears Go

The markets opened nicely higher only to get slammed once again. Last week the markets saw their largest decline of 2012. The down cycle called by Chief Market Strategists at InTheMoneyStocks is fully in play. European worries continue to increase and technology has seen a sharp pull back from its recent highs.

Spanish yields surged above 6% on the 10 year overnight. This continues to show Europe will need to bailout yet another nation. After Spain, Italy and Portugal are sure to follow. The U.S. market has largely ignored the problems in Europe in recent months. However, these problems are now getting too dramatic to ignore.

Technology has been crushed in the last few trading sessions. Google Inc (NASDAQ:GOOG) reported earnings last Thursday evening. Since then, the stock has fallen from over $650 to a low today of $601.66. In addition, the strongest technology stock has collapsed sharply. Apple Inc. (NASDAQ:AAPL) has been the biggest hyped stock in recent months but has lost its shine. The stock topped out last week at a 52 week, all time high of $644, hitting a low today of $582.30.

This week the markets have a lot to deal with. Not only is Europe erupting once again but major earnings will be reported. In addition, it is options expiration which usually creates some wild swings in the market.

Gareth Soloway
InTheMoneyStocks.com

Amazon Major Trend Line To Watch

Amazon.com, Inc. (NASDAQ:AMZN) hit a major trend line once again today. Note the chart below. This level has been hammered on for months and will eventually break. Look for the stock to see a multi day bounce while forming a bear flag. Next time it goes into that level, it should break. The target would be $167.00.

Gareth Soloway
InTheMoneyStocks.com

Falling U.S. Dollar Saves The Markets Again

The most important chart that anyone can follow is a chart of the U.S. Dollar Index. The major stock indexes and most leading commodities will usually trade inverse to the world's reserve currency. For over ten years now the general stock market direction has moved opposite or inverse to the U.S. Dollar Index. 

This morning, the U.S. Dollar Index futures (DX-M2) topped out shortly after the opening bell rang at the New York Stock Exchange. When the U.S. Dollar Index declined that is exactly when the S&P 500 Index and the popular Dow Jones Industrial Average rallied higher. This is very evident by comparing a chart of the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) against the ProShares Ultra S&P500 (ETF) (NYSEARCA:SSO), and the ProShares Ultra Dow30 (ETF) (NYSEARCA:DDM). Traders should remember that the opposite effect can be seen when the U.S. Dollar Index trades higher, the major stock indexes will deflate and decline lower.

Nicholas Santiago
InTheMoneyStocks.com

Home Depot & Lowes Finally Pause

The two leading home improvement retail stocks are finally retreating today. The Home Depot Inc (NYSE:HD) and Lowe's Companies Inc (NYSE:LOW) are trading slightly lower on the session after making new 52 week highs yesterday. Both of these stocks remain above the daily chart 50, and 200 moving averages which indicate a strong technical chart position. This small pullback should not be viewed as anything serious at this time.

Short term traders should watch for intra-day support on HD stock around the $51.27, $50.97, and $50.36 levels. The intra-day support levels for LOW stock is $31.90, $31.75, and $31.50. All of these levels could help these stocks have small intra-day bounces.

Nicholas Santiago
InTheMoneyStocks.com

Financial Stocks Lead The Charge

This morning, all of the leading financial stocks are trading higher on the session. Goldman Sachs Group Inc (NYSE:GS) is the one financial stock that is trading negative after reporting earnings earlier today. J.P. Morgan Chase & Co (NYSE:JPM) is the most important financial stock that any trader can follow. Today, JPM stock is trading higher by 0.35 cents to $43.68 a share. Short term traders should watch for some intra-day resistance on JPM around the $43.75 and $44.18 levels. Should JPM decline intra-day the stock will have very good intra-day support around the $43.00 level. 

Some other leading financial stocks that are climbing higher today include Deutsche Bank AG (USA) (NYSE:DB), BlackRock, Inc. (NYSE:BLK), and Credit Suisse Group AG (ADR) (NYSE:CS). As long as all of these leading financial stocks are holding up the major stock indexes are likely to hold up. On the flip side, if the financial stocks start to decline and trade lower it could be a warning sign that the major stock indexes are going to roll over and face some selling pressure.

Nicholas Santiago
InTheMoneyStocks.com

See It Here: NASDAQ 100 Hits Technical Level, Bounces

The markets surged higher as expected today. This was a result of a technical level hit on the NASDAQ 100 yesterday when the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) tagged a low of $65.25. This price happened to be the 50 moving average on the daily chart.  Based on the dramatic fall in stocks like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG)  which make up the NASDAQ 100, the 50 moving average would likely lead to a bounce.

Sure enough, the markets are surging today and the bounce came in perfectly. This was a relatively easy call to make when studying the daily chart of the QQQ and understanding tech influence on the overall market.

Gareth Soloway
InTheMoneyStocks.com

Resistance: Intra Day Short Level On Apple

Apple Inc. (NASDAQ:AAPL) has surged dramatically higher today. In the first few minutes of the trading day, Apple dropped to a low of $571.91. Since then it has soared back, hovering just below $600.00. Should Apple continue to move higher, the next shorting level will for an intra day trade will be at $604.25.

Gareth Soloway
InTheMoneyStocks.com

Nat Gas Stocks Are Trading On Fumes

All of the leading natural gas stocks are still trading in a confirmed down trend on the daily charts. This afternoon, these stocks are barely participating in the broad based stock market rally. Traders should note that the low natural gas prices have certainly hurt the leading natural gas stocks such as Devon Energy Corporation (NYSE:DVN), Southwestern Energy Company (NYSE:SWN), and Chesapeake Energy Corporation (NYSE:CHK). 

The best stock in this group is Devon Energy which is trading higher today by $1.17 to $68.17 a share. This stock has faded from its intra-day high of $68.73. Ttraders should watch for intra-day support around the $67.70 level. The daily chart will have short term support around the $66.50 level. All of the natural gas stocks are very oversold and due for some type of short term bounce soon.

Nicholas Santiago
InTheMoneyStocks.com

Transports Looking Top Heavy

The important and highly followed Dow Jones Transportation Index ETF (NYSEARCA:IYT) has rallied higher since April 10, 2012 when it traded as low as $90.45 a share. This morning the IYT is trading higher by 0.03 cents to $94.69 a share. This ETF looks to have very good resistance around the $95.00 to $96.00 levels. Over the past two months, this has been the area that the transportation index has met resistance. Always remember, it is important for a stock, index, or ETF to prove itself when reaching important resistance levels. The IYT should have intra-day resistance around the $95.50 area.

Some of the leading transportation stocks that are trading higher today include Union Pacific Corp (NYSE:UNP), Norfolk Southern Corp (NYSE:NSC), and United Continental Holdings Inc (NYSE:UAL). All of these stocks are nearing very good daily chart resistance levels which could lead to a short term pullback in the sector.

Nicholas Santiago
InTheMoneyStocks.com

Here Is The Chart That Saves The Markets  Everyday

Nearly everyday, the U.S. Dollar Index (DX-M2) will decline after the opening bell rings at the New York Stock Exchange. Today is a perfect example of how the U.S. Dollar Index will sell off when the major stock indexes are close to a break down. Earlier today, the European markets were coming under some heavy selling pressure. The selling was also picking up in the U.S. markets, however, once the dollar declined the major stock indexes in the U.S. rallied back. Tomorrow, Spain is going to hold an important bond auction. Many investors are waiting to see what the yields are going to be on Spanish debt after the auction is complete. What investors do not realize is that the central banks are buying the bonds in order to keep the yields from rising. This has been openly stated by the European Central Bank (ECB) on numerous occasions. 

The Currency Shares Euro Trust (NYSE:FXE) which usually trades inverse to the U.S. Dollar Index has a major head and shoulders top formation in place. If this pattern were to trigger and play out all hell would break loose in Europe as the Euro would drop sharply lower, however, the central bankers know that. Therefore, as long as the U.S. Dollar can decline it will keep that pattern from triggering.

Traders and investors are no longer trading stocks, earnings, or anything else, they are trading central banks and the action in the U.S. Dollar. Very often you will hear about the news in Europe or Asia, however, it is the action in the U.S. Dollar that drives every important stock market move around the world. Some traders and investors are probably tired of hearing this rant, however, it is the truth behind every stock market move. Traders and investors can watch how equities such as ConocoPhillips (NYSE:COP), Bank of America Corp (NYSE:BAC), and Hewlett Packard Co (NYSE:HPQ) will trade inverse to the dollar. These are three stocks in three different sectors. Simply put, almost every market trades inverse to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com

Stocks On Shaky Ground Following Earnings

The markets opened lower after earnings reports from International Business Machines Corp. (NYSE:IBM) and Intel Corporation (NASDAQ:INTC). Both reports were slightly shy of Wall Streets expectations. As those stocks dropped, so did the markets. While down, the markets are only hovering slightly lower with the SPDR S&P 500 ETF (NYSEARCA:SPY)  trading at $138.78, -0.31 (-0.22%). Fears from Europe have calmed in the last two days. This was the major reason for the monster rally yesterday.

Gareth Soloway
InTheMoneyStocks.com

Earnings: Chart Analysis For QCOM, VMW, YUM

QUALCOMM, Inc. (NASDAQ:QCOM) reports earnings today. The company is expected to report $0.95-$0.99 profit per share. While the analysts have given their opinions, I find it far more accurate to analyze the charts.

First, the stock has surged dramatically in 2012. It has jumped from $54.70 to a recent 52 week high of $68.87. This move represents a 26% move. While the stock has pulled back slightly off its highs, it has made a bear flag pattern which tells of likely downside coming. Based on the chart, this stock has a slightly better chance of dropping on earnings than moving higher.

VMware, Inc. (NYSE:VMW) and Yum! Brands, Inc.(NYSE:YUM) will also report earnings after the market closes today. Both charts are extremely extended. While there is always a chance of further upside, it is hard to think even on good earnings, the stocks could jump much. Poor earnings could see a solid fall.

Gareth Soloway
InTheMoneyStocks.com

Gold Miners Continue To Dig A Hole Lower

This afternoon, all of the leading gold mining stocks are coming under selling pressure. The popular Market Vectors Gold Miners ETF Trust (NYSEARCA:GDX) is trading lower by 0.65 cents to $46.48 a share. The trend on this leading ETF remains down as the GDX price is trading below the daily chart 50, and 200 moving averages. The GDX should have some short term daily chart support around the $45.00 level. Short term traders should watch for intra-day support around the $46.25 area. 

Some of the leading gold mining stocks that are falling lower today include Newmont Mining Corp (NYSE:NEM), Goldcorp Inc (NYSE:GG), and Agnico-Eagle Mines Limited (USA) (NYSE:AEM). All of these stocks look very similar to the GDX, therefore, further downside is possible for all of these leading gold mining stocks.

Nicholas Santiago
InTheMoneyStocks.com

The Skinny on Gold And Silver

One of the best indicators of inflation and deflation is the action in gold and silver. When gold and silver rally it is telling us that inflation is taking hold, the opposite is true when gold and silver decline. The precious metals will usually trade inverse to the U.S. Dollar Index. This morning, the U.S. Dollar Index plunged after the opening bell rang at the New York Stock Exchange. This type of action in the dollar happens very often. A falling U.S. Dollar is always beneficial to the precious metals. 

The popular SPDR Gold Trust (NYSEARCA:GLD) is trading higher 0.61 cents to $159.90 a share. The GLD will have intra-day resistance around the $160.75 area. Traders must remember that if U.S. Dollar Index rallies higher the precious metals are likely to pullback further. Some other ways to play the precious metals will be use equities such as iShares Gold Trust(ETF) (NYSEARCA:IAU), Sprott Physical Gold Trust (NYSEARCA:PHYS), and the ProShares Ultra Silver (ETF) (NYSEARCA:AGQ).

Nicholas Santiago
InTheMoneyStocks.com