InTheMoneyStocks Daily Analysis - Page 113

Analysis: Markets Whip In Wild Intra Day Action

The markets are whipping between the positive and negative side in wild intra day trading. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $138.19, -0.40 (-0.29%). This wild action is a result of a decent bond auction in Spain and poor economic news in the United States. Jobless Claims came in near a four month high and the Philly Fed Index was surprisingly weak. The combination of a good auction and bad economic news has investors unsure as to which direction the markets should trade. In addition, it is options expiration week which naturally means wild trading.

More earnings will be reported today. Some of the standouts to watch are Microsoft Corporation (NASDAQ:MSFT), Chipotle Mexican Grill, Inc.(NYSE:CMG), Riverbed Technology, Inc. (NASDAQ:RVBD) and Capital One Financial Corp. (NYSE:COF).

Gareth Soloway
InTheMoneyStocks.com

The Real Shark Week

Today, is options expiration Friday. This trading week is a time when the markets will trade all over the map. There will usually be a lot of game playing in many of the popular stocks by the institutional traders. Often leading stocks such as Apple Inc (NASDAQ:AAPL), Green Mountain Coffee Roasters Inc (NASDAQ:GMCR), Netflix Inc (NYSE:NFLX), First Solar Inc (NASDAQ:FSLR) and others will be extremely volatile throughout the week.

Remember, this is the time to be a contrarian trader. If every investor in the world is buying puts (option contract betting that the stock declines) on a stock such as Amazon.com Inc (NASDAQ:AMZN), or Akamai Technologies Inc (NASDAQ:AKAM) the institutional traders will usually move the stock higher in order to shake out the small retail options trader. Most novice retail options traders will generally try to make money from the increase in the premium paid and never actually exercise the option. Another mistake that the small retail option trader will make is that they will usually buy the near term expiring contract because it is cheap. Believe me, it is cheap for a reason and that is because the clock is ticking and the option is losing intrinsic value by the minute. When trading options it is best to give yourself some time, buy the next expiration date.

This options expiration volatility and game playing will take place each and every month. Inexperienced retail options traders will usually become the victims of the large institutional traders during the week of options expiration every month. This is the real shark week and everyone should know what to expect next month.

The IYT Gets Transported South

This morning, the important and highly followed iShares Dow Jones Transportation Average ETF (NYSEARCA:IYT) is trading lower by $1.84 to $91.52 a share. This is a 2.00 percent decline for the major transportation index. Traders and investors will usually follow the transport index very closely as a sign of economic growth and contraction. The daily chart of the IYT will have short term support around the $90.70 area. Short term traders can watch for intra-day support around the $91.50 and $91.00 levels. 

Some of the leading transportation stocks that are coming under selling pressure today include Kansas City Southern (NYSE:KSU), CSX Corporation (NYSE:CSX), Delta Air Lines, Inc. (NYSE:DAL), and Ryder System, Inc.(NYSE:R). All of these these transport stocks are trading lower with the major stock indexes, therefore, investors may want to time any trades with the important IYT.

Nicholas Santiago
InTheMoneyStocks.com

Can The Greenback Fall Enough To Save The Markets

Nearly every trading session when the stock market is lower the U.S. Dollar Index is higher. Well, that is certainly the case once again today. This morning, the U.S. Dollar Index futures (DX-M2) are trading higher by 0.38 cents to $79.69 per contract. While 0.38 cents does not sound like much in the U.S. Dollar Index; it can move markets. If you are a trader that does not have a chart of the U.S. Dollar Index you can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) which will emulate the action in the U.S. Dollar. 

Generally, most leading commodities such as oil, gold, copper, iron and other will trade inverse to the U.S. Dollar Index. These days most leading stock indexes including the NASDAQ Composite, and the Russel 2000 will trade inverse to the U.S. Dollar. Should the U.S. Dollar Index begin to decline traders should watch for indexes such as the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM), SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), and the ProShares Ultra S&P500 (ETF) (NYSEARCA:SSO) to catch an intra-day bid off of the morning lows.

Nicholas Santiago
InTheMoneyStocks.com

IBM Hits Daily Support Level

International Business Machines Corp. (NYSE:IBM) is trading lower today at $197.22, -2.38 (-1.19%). The stock has dropped sharply since it reported earnings. While the price action is negative, IBM has hit its first major support on the daily chart. This level is at $196.80 and can be seen on the chart below. A bounce from this level in the short term is likely. IBM hit a 52 week high of $210.69 on April 3rd, 2012. It has fallen 6.6% since its high.

Gareth Soloway
InTheMoneyStocks.com

Riverbed Sits Above A Support Level

Riverbed Technology, Inc. (NASDAQ:RVBD) is trading lower again today, following an ugly earnings report late last week. The stock is hovering at $19.47, -0.38 (-1.91%). Many traders and investors are wondering where the stock will finally bounce. After analyzing the chart, the price level is near and clear, $18.50. There is a major double bottom going back to early October 2011. Note the chart below. This swill be support for this beaten down company.

Gareth Soloway
InTheMoneyStocks.com

Natural Gas Stocks Finally Heat Up

All of the leading natural gas stocks are catching a bid higher despite the broad stock market sell off. The natural gas stocks have been selling off sharply since mid-February. Devon Energy Corp (NYSE:DVN) is considered the best natural gas stock in the group. DVN stock is trading higher by 0.77 cents to $66.00 a share. Traders and investors can watch for intra-day resistance around the $66.60 level. The daily chart of DVN will have very good daily chart support around the $64.00 level. 

Some of the other leading natural gas stocks that are trading higher today include Chesapeake Energy Corp (NYSE:CHK), and Southwestern Energy Co (NYSE:SWN). All of these leading stocks are still trading below the important daily chart 50, and 200 moving averages. This chart formation puts these stocks in a very weak technical position, therefore, all bounces in these stocks might just be short term as the trend still remains down.

Nicholas Santiago
InTheMoneyStocks.com

Not Made Of Steel

This morning, all of the leading steel stocks are declining despite an early stock market bounce. United States Steel Corporation (NYSE:X) is considered the leading steel stock in the sector. X stock is declining lower by $1.14 to $27.08 a share. Short term traders can watch for intra-day support around the $26.95, and $26.50 levels. The daily chart support for X will be lower as the stock is trading below the important 50, and 200 moving averages. 

Some of the leading steel stocks that are declining along with U.S. Steel include Nucor Corporation
(NYSE:NUE), Steel Dynamics, Inc. (NASDAQ:STLD), AK Steel Holding Corporation (NYSE:AKS), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). All of these stocks will generally bounce intra-day when the U.S. Dollar Index declines.

Nicholas Santiago
InTheMoneyStocks.com

Chips Remain Stuck In The Mud

Many of the leading semiconductor stocks continue to struggle to catch a bid higher. The important and highly followed Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) is trading lower by 0.12 cents to $44.45 a share. Short term traders should watch for intra-day support around the $32.20 and $32.90 levels. The daily chart price for the SMH is now trading well below the important 50 moving average. This chart position puts this important ETF in a vulnerable position on the charts. It is also important to note that the SMH is short term oversold and small bounces are always possible.

Some leading chip stocks that are declining lower today include ARM Holdings plc (ADR) (NASDAQ:ARMH), NVIDIA Corporation (NASDAQ:NVDA), and Marvell Technology Group Ltd. (NASDAQ:MRVL). All of these stocks mentioned here are nearing short term oversold conditions on the daily chart, therefore, small bounces are possible in the next few days.

Nicholas Santiago
InTheMoneyStocks.com

Next 24 Hours: Markets Hold Breath For Apple And FOMC

The markets are floating around the flat line. All eyes are focused on the after market earnings release from Apple Inc. (NASDAQ:AAPL)  and the FOMC policy statement scheduled for Wednesday. This is keeping investors very nervous as worries of an iPhone sales miss is looming large. In addition, the markets are looking for Ben Bernanke to give a hint at future quantitative easing once again. The Wall Street thought process is that more problems in Europe and weaker U.S. economic data might push Bernanke into saying QE3 is a possibility again.

The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $137.19 +0.40 (+0.29%).  Tomorrow will likely be a major up or down day as Apple earnings will be revealed and comments from the Federal Reserve will be given. Be ready for a wild ride.

Gareth Soloway
InTheMoneyStocks.com

Can Sears Holdings Bounce At Key Level

Sears Holdings Corporation (NASDAQ:SHLD) has fallen sharply over the last two months. On March 16th, 2012 the stock hit a 52 week high of $87.66. Today, it hit a low of $50.58. The stock is now into a key support level and traders are watching to see if it holds. This level is a pivot point as well as a key gap fill going back to February 2012.

Gareth Soloway
InTheMoneyStocks.com

 Cloud Stocks Fail To Float Higher

This morning, many of the leading cloud computing stocks are failing to rally with the technology sector. This is very strange since the NASDAQ Composite is higher by 2.00 percent at the open of the session. One of the leading cloud computing stocks in the market is Salesforce.com Inc (NYSE:CRM). This stock is trading lower by 0.73 cents to $149.25 a share. The stock is sitting right on the daily chart 50 moving average which is short term support. Should this level fail to hold as support and break lower the the stock could decline down to the $142.75 area. Short term traders can watch for intra-day support around the $148.00 and $144.50 levels.

Some other leading cloud stocks that are failing to rally higher today include F5 Networks, Inc. (NASDAQ:FFIV), Netflix, Inc. (NASDAQ:NFLX), Riverbed Technology, Inc. (NASDAQ:RVBD), and Akamai Technologies, Inc. (NASDAQ:AKAM). At this time, the weakness in the cloud computing sector should be noted. Should the major stock indexes start to decline these stocks would likely lead the markets lower as they have poor relative strength today.

Nicholas Santiago
InTheMoneyStocks.com

Coal Stocks Cannot Ignite

All of the leading coal stocks have been in a down-trend throughout 2012. This morning, many of the leading coal stocks are failing to catch a bid despite the early stock market rally. The leading coal stock that most traders follow is Peabody Energy Corp (NYSE:BTU). The stock is trading lower by 0.14 cents to $29.81 a share. Short term traders should watch for intra-day support around the $29.59, and $28.75 levels. The daily chart of BTU still remains very weak as the stock trades below the important daily chart 50, and 200 moving averages. 

Some other leading coal equities that are coming under early selling pressure include Alpha Natural Resources, Inc. (NYSE:ANR), Arch Coal Inc (NYSE:ACI), and the Market Vectors-Coal ETF (NYSEARCA:KOL). All of these leading equities still appear very weak on the daily chart and are susceptible to further declines.

Nicholas Santiago
InTheMoneyStocks.com

First Solar Continues To Collapse

First Solar, Inc. (NASDAQ:FSLR) continues to drop, even in the face of a solid rally on Wall Street. The stock is trading at $18.12 -0.52 (-2.79%). This stock broke its previous support of $20.00 on Monday and is now headed for $17.00. Once at $17.00, First Solar becomes an attractive bounce candidate.

Solar stocks have been under pressure for well over a year on the back of a slowing global economy and an oversupply of solar panel cells from China. These problems continue to persist and are hurting the sector.

Gareth Soloway
InTheMoneyStocks.com

BP Resistance Levels Intra-Day

BP plc (ADR) (NYSE:BP) is running into the first resistance point of the day.  This stock has been beaten down in the last few months but is jumping nicely today. The first short scalp level is at $43.25 and the second scalp short level is at $43.40.

Gareth Soloway
InTheMoneyStocks.com

IBM Master Swing Short Level

International Business Machines Corp. (NYSE:IBM) continues to rally higher today. The stock is trading at $204.81, +1.24 (+0.61%). On Monday, IBM made a low at $196.80. This big move higher may continue into early next week but will soon yield a great shorting opportunity. The short level on IBM is $207.40. This is a key gap fill point and major resistance on the chart. The next leg down should begin once this price point is achieved.

Gareth Soloway
InTheMoneyStocks.com

Head And Shoulders Pattern Triggers On Dollar

The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) has a clear head and shoulders pattern on the daily chart. Head and shoulders patterns are bearish in nature and usually mean more downside for that particular chart. This pattern has triggered on the UUP which is the Dollar tracking ETF. Because the Dollar trades inverse to the markets, the markets could see a little more upside in the coming days. This would be prior to the next fall that is on the horizon.

Gareth Soloway
InTheMoneyStocks.com
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Financial Stocks Are Weak Early

This morning, all of the leading financial stocks are declining lower. J.P. Morgan Chase & Co (NYSE:JPM) is considered the most important financial stock in the United States. This stock will often lead the major stock market indexes. Today JPM stock is trading lower by 0.39 cents to $43.40 a share. Short term traders should watch for intra-day support around the $43.15 and and $42.64 levels. The daily chart will still have support around the $41.00 level. 

Some other leading financial stocks that are coming under early selling pressure include Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), and Morgan Stanley (NYSE:MS). Please remember the financial sector will likely be very volatile over the next few months as all of these stocks have some relationship to the European markets.

Nicholas Santiago
InTheMoneyStocks.com

Final Trading Session In April

Restaurant Get Cooked Early

This morning, many of the leading restaurant stocks are declining lower. Chipotle Mexican Grill Inc (NYSE:CMG) has been one of the stronger restaurant stocks in the market. This leading stock sold off sharply on April 19, 2012 when it traded as high as $439.40 a share. Today, CMG stock is trading lower by $4.61 to $414.18 a share. Short term traders can watch for intra-day support around the $413.50, $411.00, and and $408.70 levels. The daily chart will still have minor support around the $401.00 area. 

Some other leading restaurant stocks that are coming under early selling pressure include Yum! Brands, Inc. (NYSE:YUM), Panera Bread Co (NASDAQ:PNRA), and Tim Hortons Inc. (USA) (NYSE:THI). All of these stocks are trading together today, however, they will very often trade in their own direction. Traders must judge each chart individually when it comes to the restaurant stocks.

Nicholas Santiago
InTheMoneyStocks.com