InTheMoneyStocks Daily Analysis - Page 116

Bounce For Profit: Metal Stocks Holding Major Supports

The metal stocks continue to hold key support levels on their daily charts. Stocks like Goldcorp Inc. (USA) (NYSE:GG) and Silver Wheaton Corp. (USA) (NYSE:SLW) are into major support as shown in the chart below. These stocks have seen a dramatic decline in recent months as the Dollar has surged and gold and silver have fallen. The SPDR Gold Trust (ETF) (NYSEARCA:GLD)  hit a 52 week high in 2011 at $185.85. Today, the low was $148.98.

As scary as the charts look on the miners like Silver Wheaton and Goldcorp, a bounce is likely in this range. They are oversold and into major support.

Gareth Soloway
InTheMoneyStocks.com

The Only Financial Stock That You Need To Follow

J.P. Morgan Chase & Co (NYSE:JPM) is the most important financial stock that any trader can follow at this time. This stock has lead the major market indexes higher throughout the first three months of 2012 and now the same stock is leading the markets lower. JPM stock has come under some major scrutiny after reporting a $ 2 billion trading loss in its investment unit. The daily chart of JPM stock remains very weak as the stock has cut through the important daily chart 200 moving average. Short term traders should watch for intra-day support around the $35.00 level. 

Some other leading financial stocks that should also be followed closely include Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS), and Deutsche Bank AG (USA) (NYSE:DB). Generally, these stocks will trade in tandem with each other, however, from time to time they can trade independently. All traders should remember that JPM is still the most important stock in the financial sector. Until JPM stock can rally it would be prudent to expect the rest of the financial sector to be relatively weak in the near term.

Nicholas Santiago
InTheMoneyStocks.com

Agriculture Stocks Are Oversold, Here Is What You need To Know  

Most of the leading agriculture stocks have been very weak over the past few weeks. This important sector will often trade very similar to the leading commodity stocks. Most of the leading agriculture stocks are now very oversold on the daily charts, however, as long as the major stock indexes are weak these stocks could decline further. CF Industries Holdings Inc (NYSE:CF) is considered to be one of the most important agriculture stocks in the market. This stock should have some short term intra-day support around the $156.90, and $155.00 levels.

Some of the leading agricultural stocks that are trading lower today include Monsanto Co. (NYSE:MON), Potash Corp Sask Inc (NYSE:POT), and Agrium Inc (NYSE:AGU). All traders should note that these stocks are very oversold. Should the U.S. Dollar Index sell off or pullback these stocks could catch an intra-day bid off of the lows.

Nicholas Santiago
InTheMoneyStocks.com

Oil Services Cling On To Minor Gains

This morning, all of the leading oil service stocks are holding on to some minor gains. This sector along with most other energy markets has been very weak since March 2012. Today, the Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading higher by 0.20 cents to $36.16 a share. Short term day traders should watch for intra-day resistance around the $36.70, and $37.40 levels. This sector could be poised for a bounce if the major stock indexes can rally as the OIH is showing intra-day relative strength.

Some of the leading oil service stocks that are trading in positive territory today include Baker Hughes Inc (NYSE:BHI), Transocean LTD (NYSE:RIG), Diamond Offshore Drilling Inc (NYSE:DO), and Halliburton Company (NYSE:HAL). These stocks should be followed closely today as possible runners if the major stock indexes can catch a bid higher. If the major market indexes decline lower then traders should not expect these stocks to move much higher.

Nicholas Santiago
InTheMoneyStocks.com

Lock And Load: Apple Will Bounce At This Level

Apple Inc. (NASDAQ:AAPL) is falling sharply again today. The once rocket ship stock is dropping quickly to earth. Apple is trading at $534.77, -11.30 (-2.07%). The media and analysts were pumping the stock when it was trading over $600.00 per share. Meanwhile, when Apple was $621.00 a share, I alerted the world to sell it and go short.

As Apple falls, institutions and analysts have asked me to tell them where the next bounce will occur. The chart below explains it beautifully. The level for an Apple bounce will be $520-$525. The stock will bounce 5% off of this level before resuming its downward track below $500.00.

Gareth Soloway
InTheMoneyStocks.com

This is the day when Facebook (NASDAQ:FB) will debut for trading on the open market. Facebook is the most highly anticipated initial public offering (IPO) since Google Inc (NASDAQ:GOOG) came public on August 19, 2004. Facebook stock is being priced at $38.00 a share by the lead underwriters. The stock is expected to trade higher once it opens for trading around 11:00 am EST. The company is expected to be valued at about $100 billion dollars.

While many investors are very excited about the huge internet IPO, it could not be going public at a worse time. The major stock indexes have been declining sharply lower since May 1, 2012. Many traders are eagerly awaiting Greece to depart from the European Union. Most of the European stock indexes remain under heavy pressure as the credit rating agencies downgrade European banks and Euro-zone countries on a daily basis. Asian stock markets have also been under heavy selling pressure lately as the markets continue to deflate and trade lower. None of these important factors make for an ideal environment for the Facebook IPO.

If FB stock would have come public in early April 2012 when Apple Inc (NASDAQ:AAPL) was running to new highs this stock would have probably traded over $100.00 a share, however, that is not the case today. Many of the internet IPO's this year have been flops. Highly anticipated stocks such as  Groupon Inc (NASDAQ:GRPN), Pandora Media Inc (NYSE:P), Zynga Inc (NASDAQ:ZNGA) and FriendFinder Networks Inc (NASDAQ:FFN) are already trading below their IPO prices. One stock that has been very volatile is LinkedIn Corporation (NYSE:LNKD). This stock is trading above its IPO price and remains a very popular stock at this time.

Many investors are now wondering if Facebook will be a good stock a year from now. That is certainly anyone's guess. One fact that we all know, the company is the largest social network in the world. Is this social networking stuff just a fad? I'm sure we all remember the social network MySpace. That company was bought by News Corp (NASDAQ:NWSA) for $580 million in 2006. Recently, News Corp sold MySpace for roughly $35 million taking a huge loss on the company. Now let's understand, it was Facebook that put MySpace basically out of the public's eye. Either way, it will be fun to see the euphoria in the public, however, most seasoned traders will sit back and watch the show. Until this stock can be charted there is really not much that I will be doing with the Facebook stock.  

Nicholas Santiago
InTheMoneyStocks.com


 

Gold Intra Day Level

GDX: Short term traders should watch for intra-day resistance around the $43.00, and $43.50 levels. Take note, the GDX is still trading below the important daily chart 50, and 200 moving averages, this technical position puts the important ETF in a weak technical position. All of the leading gold mining stocks are holding up very well on an intra-day basis. Most of the daily charts of the gold mining stocks are still very vulnerable to declines after this short term bounce concludes. 

Facebook: Retail Investors The Losers As Institutions Smile

Home-builders Stocks Raise The Roof

Toll Brothers Inc. (NYSE:TOL) is looking to have intra-day resistance at the $27.50 level. The stock is trading higher by 58 cents to 27.14 on the back of higher home sales.

Nicholas Santiago

InTheMoneyStocks.com

JPMorgan Bounce Target

(click to enlarge)

First Solar Trades Up: Bottom May Be In

First Solar, Inc. is trading at an attractive valuation level ($13.72, +0.12 (0.90%), this is also a makes FSLR a possible buyout candidate. New tariff rules passed on Chinese solar companies makes First Solar one of the lowest cost solar producers on the market.

Gareth Soloway

InTheMoneyStocks.com

Intra-day Levels On COST & DLTR

Costco Wholesale Corporation (NASDAQ:COST), and Dollar Tree Inc. (NASDAQ:DLTR) are holding up the retail sector both of these stocks are trading higher by over 1%. Intra-day resistance on COST is around $85.00 and $85.50; DLTR is around the $100.75 and $101.28 levels. Some other retail stocks trading higher include Wal-Mart Stores Inc. (NYSE:WMT), The TJX Companies Inc. (NYSE:TJX), and Zumiez Inc. (NASDAQ:ZUMZ).

Nicholas Santiago

InTheMoneyStocks.com

Base Metal Stocks Rally On Chinese Stimulus

The base metal stocks are rallying higher on the expectation of a Chinese Stimulus plan. Many of the base metal stocks including BHP Billiton Limited (ADR) (NYSE:BHP), Rio Tinto plc. (ADR) (NYSE:RIO), Cliffs Natural Resources Inc. (NYSE:CLF), and Southern Copper Corp (NYSE:SCCO) could see a potential rally over the next few days. BHP is trading higher by $2.31 to $64.12 a share; look for intra-day resistance around the $64.25, and the $65.05 levels.

Nicholas Santiago

InTheMoneyStocks.com

LCC Starts Higher

The Airline sector has rallied from weaker oil prices. Leading airline stocks such as U.S. Airways Group Inc. (NYSE:LCC) is trading higher by 9 cents to $12.78 a share; intraday resistance could be found around the $13.00 level.

Nicholas Santiago

InTheMoneyStocks.com

Divergences Appear: May Signal ECB Stimulus Coming Shortly

The market is showing positive divergences in two major areas. These areas signal stimulus and possible bank recapitalization from the European Union and the ECB. Ultimately, the markets are signaling something big on the horizon that could cause the market to pop sharply in the short run. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.96 -1.74 (-1.30%).

The first positive divergence has occurred between the S&P 500 and the Dollar. These usually trade inverse to each other but lately, the Dollar has soared to new 2012 highs, but the market has not made new lows. This signals a coming market push. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) 22.92 +0.12 (0.53%).

The second divergence is happening today. Gold opened sharply lower and has rallied back to the flat line. This is extremely unusual with the Dollar higher on the day and the markets lower. This tells us of stimulus on the horizon in Europe. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) hit of low of $148.61 but is now trading at $151.31, +0.29 (0.19%). This is a huge reversal and speaks to a big factor coming on the horizon.

Ultimately, things are pointing to an announcement in the next week of bank bailouts in Europe and possible stimulus. This would cause a sharp 300 plus point rally in the Dow Jones Industrial Average.

Gareth Soloway
InTheMoneyStocks.com

OIH Intra Day Support

The Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading lower by 0.91 cents to $35.05 a share. The oil services sector has been weak since late February. The OIH daily chart is trading below both the 50 and 200 moving averages; look for intraday support at the $35.00 and $34.00 levels.

Nicholas Santiago

InTheMoneyStocks.com

The European Levels You Must Know

As we all know by now, the problems in the European Union are starting to increase by the moment. Many investors are now talking about a complete breakup of the European Union as we know it. The debt problems in all of these nations is simply becoming to much to for the European Central Bank (ECB) and the International Monetary Fund (IMF) to handle. In other words, debt can only bail out debt for so long. Has the debt society as we know it finally come to an end? 

In this weeks report, we will examine three of most important European banking stocks in the stocks market. After all, the problems in Europe and around the world are really a banking crisis and not just a sovereign debt crisis. Austerity measures in Europe have been implemented and the banks continue to struggle. It appears that the one way the European banks could be saved in Europe is by the ECB printing money. However, at this time, the ECB can not print money. Therefore, we shall see if that rule is changed by the end of the year. I suspect in time it will, making the ECB more like the Federal Reserve.

Deutsche Bank AG (USA) (NYSE:DB) is a Germany-based global investment bank. This stock plunged lower by 3.10 percent on Friday, June 1, 2012. The stock will have some short term daily chart support around the $28.00 area, this is the weekly chart low from September 12, 2011. The weekly chart could be signaling a decline to the $19.00 area if this downside momentum continues over the next few months. Either way, unless some surprise resolution arises out of the European Union in the near term DB stock looks to be headed lower.



Banco Santander, S.A. (ADR) (NYSE:STD) is a Spanish based financial institution primarily engaged in retail banking. The stock chart of STD looks very similar to the Deutsche Bank chart. This tells us that the European banks are trading in tandem with each other and the banking crisis is systemic. Traders should watch for near term support around the $4.85 area which is also the March 9, 2009 low. Should the stock continue to decline below this support area the next support level on the chart is really anyone's guess. Simply put, the stock looks dreadful on the charts at this time.



Credit Suisse Group AG (ADR) (NYSE:CS) is another leading European financial giant that has been under serious selling pressure in 2012. This leading financial stock made a new 52 week low last week and is also currently trading at the March 2009 low level. The next important support levels for the stock are around the 2003 and 2002 lows. The low in 2003 was at $15.53, this would be short term support for the stock. The 2002 low for CS stock was $13.25. This level will be the last line of defense before fresh all time lows are made for the stock.

 

Please remember, all of the stocks mentioned today are short term oversold on the daily charts at this time. The trend remains down in all of these stocks and that tells us that any bounces in the near term could be short lived. This year is going to be very challenging for the European bank stocks.

Nicholas Santiago
InTheMoneyStocks.com

Intra-day Resistance Levels on $NAV

Navistar International Corporation (NYSE:NAV) will come into resistance on the 50 moving average and pivot low from June 6th, 2012. Note the Chart Below.

Gareth Soloway

InTheMoneyStocks.com

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