InTheMoneyStocks Daily Analysis - Page 115

Falling Dollar Saves The Day

We can only wonder when the falling U.S. Dollar Index will no longer come to the rescue of the major stock indexes. Nearly every trading day, when the major stock indexes are plunging lower the U.S. Dollar Index will decline intra-day and help almost every stock and commodity to inflate off of the morning lows. Earlier today, the U.S. Dollar Index futures (DX-M2) were trading as high as $80.07 per contract, however, the U.S. Dollar Index futures are now trading around the $79.85 area. When the dollar drops the market pops, that is all traders need to remember at this time.

Some leading equities that have rallied off of the morning lows when the dollar declined were Deere & Company (NYSE:DE), Exxon Mobil Corporation (NYSE:XOM), Amazon.com Inc(NASDAQ:AMZN), and the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). As you can see, nearly every stock and major stock index will react positive to the falling U.S. Dollar.

Nicholas Santiago
InTheMoneyStocks.com

Oil Services Sink Again

This morning, all of the leading oil service stocks are declining lower with the major stock indexes. The important Market Vectors Oil Services ETF (NYSE:ARCA:OIH) has been selling off for over a week and this sector is entering short term oversold conditions; therefore, a small bounce in the next few day is possible. The OIH will have intra-day support around the $37.00, and $36.50 levels. 

Some of the leading oil service stocks that are coming under selling pressure include Halliburton Co (NYSE:HAL), Baker Hughes Inc (NYSE:BHI), Apache Corp (NYSE:APA), and Schlumberger Ltd (NYSE:SLB). All of these leading stocks are part of the OIH. These stocks are all nearing short term oversold conditions which could lead to a small short term bounce soon.

Nicholas Santiago
InTheMoneyStocks.com

Upside Coming: Inverse Head And Shoulders Triggered On AAPL

Apple Inc. (NASDAQ:AAPL) is trading higher today. The technology mega player is trading at $571.12, +2.94 (+0.52%). An inverse head and shoulder pattern has triggered on AAPL and may be telling us of further upside. While a head and shoulder pattern is bearish, an inverse head and shoulder pattern is bullish. Note the chart below. The target on Apple is $584.00 on this pattern. In addition, should Apple run to this target, the market may fully recover from the losses today and move into positive territory.

Gareth Soloway
InTheMoneyStocks.com

Bullish: First Solar Starts To Show Signs Of Life

Solar stocks have been pounded for well over a year. While most investors continue to stay away from them, the right decision may actually be to buy them now. Based on valuation levels, they are extremely attractive at current levels. First Solar, Inc. (NASDAQ:FSLR) is trading at $16.85, +0.31 (+1.87%). This is one of the leaders in the sector and trading higher on a down day on Wall Street. At this stage of the game, any horrid news is priced into the stock and the sector. Solar prices are low, but unlikely to go much lower. First Solar has been able to maintain itself during these times.

A good example would be the recent major pop in natural gas. While the price was down sharply in recent years, it will only go so low before demand picks up. Many natural gas stocks have popped significantly in recent days. Considering First Solar as best of breed, this is the player to be in. Any sort of pop will see extended upside due to short covering. Short term, a move back above $20.00 is likely.

Gareth Soloway
InTheMoneyStocks.com

Gold Miners Finally Shine

This afternoon, all of the leading gold mining stocks are are catching a bid higher. This important stock sector has been extremely weak since peaking out in September 2011. At that time, the important Market Vectors Gold Miners ETF (NYSEARCA:GDX) was trading around the $67.00 area. Today, the GDX is trading higher by 0.86 cents to $43.03 a share. What a difference eight months can make for the GDX. The big question that traders are asking themselves, is this the low for the GDX? The truth is that the trend is down and this bounce today should really not be viewed as anything more than an oversold bounce. Until the GDX can recapture the important daily chart 50 moving average the ETF remains in a vulnerable technical position. The GDX will have intra-day resistance around the $36.00, and $36.50 levels. 

Some leading gold mining stocks that are trading higher today include Newmont Mining Corporation
(NYSE:NEM), Vista Gold Corp (NYSEAMEX:VGZ), Allied Nevada Gold Corp. (NYSEAMEX:ANV), and Yamana Gold Inc. (USA) (NYSE:AUY). All of these stocks have similar chart patterns to the GDX, therefore, until these stocks can have another day of upside this bounce may not last very long.

Nicholas Santiago
InTheMoneyStocks.com

Financial Stocks Lead The Rally

This morning, all of the leading financial stocks are catching a bid higher. This is the first real bounce for this important sector in about a week. The most important financial stock in the market is J.P. Morgan Chase & Co (NYSE:JPM). This leading financial stock is is trading higher by 0.68 cents to $41.30 a share. Short term traders should watch for intra-day resistance around the $41.50, and $42.00 levels. 

Some of the other leading financial stocks that are inflating higher today include Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC), and Credit Suisse Group (NYSE:CS). Usually, the major stock indexes will hold up when the financial stocks are strong. The financial sector accounts for roughly 14.0 percent of the S&P 500 Index.

Nicholas Santiago
InTheMoneyStocks.com

Transports Struggle Despite Higher Market

One of the most important stock sectors that any trader or investor can follow is the transportation sector. Many investors will look at the transportation sector as a sign of market strength and economic expansion when the sector trades higher. On the flip side, when the transportation sector trades lower it is usually viewed as a sign of economic contraction. Today, the iShares Dow Jones Transport ETF (NYSEARCA:IYT) is trading lower by 0.09 cents to $91.96 a share. This ETF is not really down that much today, however, it is struggling to catch a bid when the Dow Jones Industrial Average is trading higher. Another way to view it, the transports should lead the markets higher and not lag them. Short term traders can watch for intra-day support around the $91.40, and $91.00 levels. 

Some leading transportation stocks that are coming under selling pressure today include FedEx Corp (NYSE:FDX), Kansas City Southern (NYSE:KSU), and China Eastern Airlines Corp. Ltd. (ADR) (NYSE:CEA). The transportation sector is a very important index for every trader and investor to follow. It is one of the ways that the market talks to us.

Nicholas Santiago
InTheMoneyStocks.com

How To: Swing Trading The Facebook IPO

The Facebook IPO is scheduled to debut late next week. This is possibly the most anticipated IPO since Google Inc (NASDAQ:GOOG). While the hype of Facebook makes it a high risk buy at the debut price, there are other ways to swing trade the social networking stock. Both Zynga Inc (NASDAQ:ZNGA) and Groupon Inc (NASDAQ:GRPN) are trading at all time lows. In theory, the hype of the Facebook IPO over the next week should lift these stocks as much as 10-15%. Considering where these social networking stocks are trading, this may be the smartest way to swing the Facebook IPO. The trade would be to buy these stocks in the next few days and sell the day of the Facebook IPO.

Gareth Soloway
InTheMoneyStocks.com

Can The Dollar Fall Enough To Save The Day?

Once again, the U.S. Dollar Index (DX-M2) is declining lower after the opening bell rings at the New York Stock Exchange. This happens very often when the major stock indexes are breaking lower. You see, when the dollar declines everything in the stock and commodity markets will inflate and trade higher. Just the opposite will happen when the U.S. Dollar Index rallies, the stock markets will decline and deflate lower. 

As you all know by now, J.P. Morgan Chase & Co (NYSE:JPM) reported a $2 billion trading loss in the highly controversial derivative market. This action caused the futures market to decline sharply lower overnight. Traders should note that the stock market really moves inversely to the U.S. Dollar Index. This morning, the major stock indexes have moved to the positive side as the U.S. Dollar Index declined lower. Some leading indexes that have reversed earlier losses include PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), iShares Russell 2000 Index (ETF) (NYSEARCA:IWM), and the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA).

Nicholas Santiago
InTheMoneyStocks.com

Home-builder Stocks Show Early Relative Strength

This morning, all of the leading home-builder stocks are showing some early strength despite the over-all stock market weakness. This industry group is displaying good intra-day relative strength and could lead the markets higher if bounces take place in the major stock indexes. Lennar Corp (NYSE:LEN) is considered to be one of the leading home-building stocks in the sector. LEN stock is trading higher by 0.65 cents to $29.10 a share. Short term traders should watch for intra-day resistance around the $29.20, and $29.75 levels. 

Some of the other leading home-builder stocks that are trading higher today include NVR, Inc. (NYSE:NVR), D.R. Horton, Inc. (NYSE:DHI), M.D.C. Holdings, Inc. (NYSE:MDC), and Toll Brothers, Inc. (NYSE:TOL). This sector has been very strong throughout 2012. As long as interest rates remain at extremely low levels this sector should continues to hold up.

Nicholas Santiago
IntheMoneyStocks.com

Is Coal Heating Up?

One of the worst performing industry groups in 2012 has been the coal sector. This sector remains in a confirmed downtrend at this time by trading well below the important daily chart 50, and 200 moving averages. Please note, while this sector has been extremely weak throughout the year many leading coal stocks are trading positive today. The only reason that we want to know about this bounce is because the Dow Jones industrial Average and most every other stock index is declining lower by more than 1.0 percent. Believe it or not, the coal sector is actually bucking the trend today and showing intra-day relative strength. 

Alpha Natural Resources Inc (NYSE:ANR) is considered to be one of the leading stocks in the coal sector. Today, ANR stock is trading higher by 0.44 cents to $13.61 a share. Short term traders should watch for intra-day resistance around the $13.75, and $14.00 levels.

Some other leading coal stocks that are trading higher include Peabody Energy Corporation (NYSE:BTU), Arch Coal Inc (NYSE:ACI), and James River Coal Company (NASDAQ:JRCC). This sector still looks very poor on the daily charts. Currently this bounce should be viewed as nothing more than a dead cat bounce as nothing goes straight down in the market.

Nicholas Santiago
InTheMoneyStocks.com

Bottom In The Making: Miners Reverse Off Lows Again

For the second time in a week, the miners have reversed off early lows. Stocks like Goldcorp Inc. (USA) (NYSE:GG), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Yamana Gold Inc. (USA) (NYSE:AUY) are all off their lows, trying to move to the positive side in an ugly market sell off. These stock have all been hammered in recent months, trading at or near 52 week lows. This second reversal in a week speaks of a possible bottom forming in the sector. Stocks like Goldcorp could be setting up for a multi week bounce higher. Traders are taking note.

Gareth Soloway
InTheMoneyStocks.com

Predicted: Facebook Hype Spreads To Zynga, Groupon

Last Thursday, I predicted a bounce higher in the social networking stocks like Zynga Inc (NASDAQ:ZNGA) and Groupon Inc (NASDAQ:GRPN). I described how these two stocks had been hammered with tons of shorts jumping on board. In addition, the Facebook IPO would create a bounce where easy money could be made.

Today, this prediction has started to come true. Zynga is trading at $7.97, +0.49 (6.55%) while Groupon is trading at $11.01, +1.11 (11.20%). This was a no brainer play and easy money for anyone who followed the article.

Gareth Soloway
InTheMoneyStocks.com

Retail Stocks Signal Early Strength

This morning, the leading retail stocks are showing early strength. The popular Market Vectors Retail ETF (NYSEARCA:RTH) is trading higher by 0.11 cents to $41.23 a share. This leading ETF has been under selling pressure since May 1, 2012 when it traded as high as $42.69 a share. Short term traders should watch for intra-day resistance around the $41.50, and $41.80 levels.

Some of the leading retail stocks that are climbing higher today include The TJX Companies, Inc. (NYSE:TJX), Ross Stores, Inc. (NASDAQ:ROST), Nordstrom, Inc. (NYSE:JWN), and Bed Bath & Beyond Inc. (NASDAQ:BBBY). Traders should remember that all of these stocks could trade higher if the major stock indexes catch a bid today as they are signaling strong relative strength.

Nicholas Santiago
InTheMoneyStocks.com


 

Steel Sector Slumps  

The leading steel stocks have really struggled to catch a bid higher since mid-March 2012. Today, is really no exception for the important sector as most of the leading steel stocks continue to trade lower. U.S. Steel Corp (NYSE:X) is considered one of the leading stocks in the industry group. This leading stock is trading lower by 0.30 cents to $25.23 a share. Short term traders can watch for intra-day resistance around the $25.00, and $24.00 levels.

Some other leading steel stocks that are declining lower today include Nucor Corporation (NYSE:NUE), ArcelorMittal (ADR) (NYSE:MT), Steel Dynamics, Inc. (NASDAQ:STLD), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). All traders should remember that the steel sector will usually trade inversely to the U.S. Dollar. Today, the U.S. Dollar Index is trading sharply higher and this is certainly putting pressure on the sector.

Nicholas Santiago
InTheMoneyStocks.com

Stock Market: Beware Today Dictates The Future

All the charts and calculations have shown today to be the day of all days. What does this mean? The market is at a major pivot point on this Tuesday, May 15th, 2012. If the market is able to hold up, investors would experience a one to two week neutral to higher move. If the markets break lower today, down side is likely until the SPDR S&P 500 ETF (NYSEARCA:SPY) hits $129.00. As of now, the markets are squeaking out a slight gain. The SPY is trading at $134.68 +0.55 (0.41%).

Today, technology is leading the upside charge with Amazon.com, Inc. (NASDAQ:AMZN) trading at $230.09, +7.16 (3.21%). Apple Inc. (NASDAQ:AAPL) is also trading nicely higher along with Google Inc (NASDAQ:GOOG). Financial stocks are also bouncing after a multi day slide.

The bottom line continues to be the close in the markets today. If the markets can hang on to the gains, look for further upside for about one week. If the gains are sold and the markets collapse into the end of the day, watch out below.

Gareth Soloway
inTheMoneyStocks.com

Interview: Market And Stock Comments From A Pro

This is a question and answer interview with Chief Market Strategist Gareth Soloway of InTheMoneyStocks.com. He gives his insight and we profit from it during this trading session.

Q: What do you think of the stock market today? The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $127.26, +0.31 (0.24%).
A: The markets are doing their best to hold up. We are at a pivotal point where a down day could yield another major leg lower. Should the markets hold up, a bounce is likely for one week. Things are scary in Europe but the charts tell the truth and we must watch them closely today.

Q: Research In Motion Limited (USA) (NASDAQ:RIMM) continues to fall. Is it going out of business?
A: They have made some serious errors in the past, underestimating their competitors. I do not think they go out of business but the stock will go under $10.00 a share. At that level it becomes attractive as a buyout play. They still have some value and I would consider buying in that range.

Q: Gold continues to fall with many analysts talking about further downside. Do you agree?
A: Gold will head lower until the third quarter of 2012. However, in the near term I expect a bounce before the next dump. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) has great support around the $150 level here. Today, their may be a reversal and bottoming tail forming for a quick long swing trade.

The Dollar Breakout Brings Down Markets

By now everyone should know that when the U.S. Dollar Index is strong the major stock and commodity markets will deflate and trade lower. Most leading commodity stocks are falling sharply lower today as the U.S. Dollar Index futures surge higher. Traders can easily see how the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading higher by 0.17 cents to 22.51 a share.

This afternoon, most leading oil, mining, and coal stocks are trading sharply lower. Leading stocks such as Newmont Mining Corp (NYSE:NEM), Cliffs Natural Resources Inc (NYSE:CLF), and Chevron Corp (NYSE:CVX) are all coming under selling pressure. As I always say, every trade is a trade on the U.S. Dollar Index. Should the U.S. Dollar Index pullback from its intra-day high there could be an inflation bounce in the market, however, until that time the U.S. Dollar Index is very strong.

Nicholas Santiago
InTheMoneyStocks.com

Base Metals Catch An Early Bid

This morning, all of the leading base and industrial metal stocks are catching a bid higher. It is important to note that this sector has been very weak since the start of the year. A case can be made that the leading base and industrial metal stocks have been weak since March 2011. One of the leading stocks in the sector is Freeport McMoRan Copper & Gold Inc (NYSE:FCX). This stock is very oversold on the daily chart and is really due for a short term bounce. Today, FCX stock is trading higher by $1.22 to $33.87 a share. Short term traders should watch for intra-day resistance around the $33.90, and $34.85 levels.

Some of the other leading base metal producers that are bouncing today include Southern Copper Corp
(NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and Vale (ADR) (NYSE:VALE). Please note, all of these stocks will generally trade inverse to the U.S. Dollar, therefore, it is very important to follow the U.S. Dollar index very closely.

Nicholas Santiago
InTheMoneyStocks.com

Transports Finally Head North

Many of the leading transportation stocks are trading higher today. This leading sector has been extremely weak since May 3, 2012. Today, the important iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) is trading higher by $1.15 to $92.41 a share. Short term traders should watch for intra-day resistance around the $92.60, and $93.10 levels. This sector was very oversold in the short term with most other sectors and due for a bounce.

Some of the leading transportation stocks that are trading higher include FedEx Corporation (NYSE:FDX), CSX Corporation (NYSE:CSX),Kansas City Southern (NYSE:KSU), and Ryder System, Inc. (NYSE:R). Traders must now trade this sector one day at a time as it is likely to remain very volatile over the next few weeks.

Nicholas Santiago
InTheMoneyStocks.com