The FTSE is expected to decline into the early February time frame. However, it is short term oversold and could see some bounces before that time. As long as the FTSE trades below the 5159 level it remains weak technically. Each of the following support level could see a bounce as these are short term master levels. the master levels are 5088, 5016, 4946, 4876, and 4806.
Read more…
By Chief Market Strategist Gareth Soloway on January 29th, 2010 12:06am Eastern Time
The markets have tumbled over the last two weeks giving a sour start to 2010. Many point to the fall as being a result of President Obama's tough talk on bank regulation, not allowing them to take risks that have been the key driver of profits. The Financial Select Sector SPDR (ETF) (NYSE:XLF) has tumbled in the last two weeks over 7%. Stocks like Goldman Sachs Group, Inc. (NYSE:GS) has tumbled from its the highs on January 7th, 2010 of $179.75 to recent lows of $148.27. While many blame earnings and the Presidents tough talk against Wall Street there is another culprit.
It seems that the real key to the drop on Wall Street is none other than the U.S. Dollar. The dollar has spiked higher over the last few months killing commodity prices. Price of oil had dropped dramatically along with gold. Stocks like Southern Copper Corporation (USA) (NYSE:PCU), Steel Dynamics, Inc. (NASDAQ:STLD) had crashed in the last three weeks. These two stocks have fallen 27% and 25% respectively. In addition, the biggest players in the commodity realm have also seen a major price correction. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), each a major component of the DOW have collapsed almost 10%. Being a major part of the DOW, this type of drop has a dramatic effect on the index itself and could be looked as a major portion of the losses in the last two weeks in the markets. The root of the issue all comes back to the dollar.
As the dollar has ripped higher, commodities have fallen. iPath S&P GSCI Crude Oil Total Return (NYSE:OIL) has fallen from $27.22 to $23.44. That is a 14% drop in a mere two weeks. The impact on the markets of this type of fall in commodities is earth shattering.
To find the bottom in this market, the point where this market will get a significant bounce, one must turn to the charts of not oil, not gold, not XOM, CVX, GS or the XLF but to the U.S. Dollar. Everything comes back simply to the dollar. PowerShares DB US Dollar Index Bullish (NYSE:UUP) is closing in on a major resistance area and should spell a pullback. As we know, if the dollar pulls back, commodities will bounce. If commodities bounce, commodity stocks like XOM and CVX will bounce. If those stocks bounce, they will have a direct and major impact on the DOW. The markets will surge.
This level on the dollar is the 200 moving average. It is close to hitting. In fact, the UUP (dollar ETF) is only a dime ($0.10) away. With this resistance point looming, expect the dollar to fall back and a bounce to come into the markets any day. This will most likely only be a short term bounce but a solid one. Enjoy the chart below of the dollar ETF, the UUP and the 200 moving average.
Read more…
By Elliott Wave InternationalLike a spy who gets a burn notice, Federal Reserve Chairman Ben Bernanke has suddenly lost his support.Bernanke has gone from being Time magazine's Man of the Year in 2009 to … what? A Fed chairman embroiled in a controversial reconfirmation process before U.S. Congress. Why the sudden turnaround in his fortunes?Robert Prechter, president of the research firm Elliott Wave International, has written about the history of the Fed and its chairmen several times over the years, and his research shows that their popularity rises and falls with social mood, which is measured by the stock market. Here is a compilation of excerpts from Prechter's monthly market letter, The Elliott Wave Theorist, from 2005-2009 about the trouble he sees brewing at the Fed.Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you'll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.(November 2005) The Coming Change at the Fed | Public figureheads have a way of representing eras. This is certainly true of entertainment icons and politicians. The history of Fed chairmanship implies a similar tendency for changes of the guard to coincide with changes in social mood and therefore stock prices and the economy. [The chart below] depicts our social-mood meter—the DJIA—since the Fed's creation in 1913, marked with the reigning chairmen according to a list on the Fed's website.
(December 2009) Bernanke's greatest achievement was not the measly $1.25t. of debt that he arranged to have the Fed monetize; it was convincing the government to shift the burden of debt default from the speculators and creditors to taxpayers.(September 2009) Thanks to the Fed Chairman and two Treasury Secretaries, profligate bankers have been cashing checks off the Fed's and the Treasury's accounts, and the poor savers and taxpayers who fund these institutions are unaware that their personal bank accounts are being tapped by counterfeiters and thieves.That lack of awareness may soon change. Declining social mood is fueling the drive to expose the Fed's secrets. [Ed. note: Bloomberg News has sued the Fed under the Freedom of Information Act; Congressmen Ron Paul, R-Texas, and Barney Frank, D-Mass., are leading a charge to audit the Fed.] Exposing the Fed's secret deals could lead to scandal and the collapse of major money-center banks. But most important to our monetary outlook, it will serve to curb the Fed's reflation efforts. As I have written many times, deflation will win. Social mood is impulsive and cannot be stopped. The downtrend will claim its victims by whatever measures it must take to do so.(August 2009) On July 26, in a speech in Kansas City, MO, Fed Chairman Ben Bernanke declared, "I was not going to be the Federal Reserve chairman who presided over the second Great Depression." (WSJ, 7/27) We think this implication of a fait accompli is premature. Clearly, the Fed Chairman and the majority of economists are of the opinion that the worst of the financial crisis is past and that the Fed's unprecedented lending has averted deflation and depression. But wave 3 down in the stock market will dispel these illusions. Years ago, we suggested that Chairman Greenspan quit if he wanted to keep his lofty reputation. He didn't do it. Now Chairman Bernanke should consider this option.So will Bernanke serve a second term as Fed chairman? The January 2010 Elliott Wave Financial Forecast says, "Social mood is still too elevated to deny Bernanke reappointment as head of the Fed. ... But rising political tension confirms that his next term will be far more stressful than his first."Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you'll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.A link to a lensRobert Prechter, Chartered Market Technician, is the founder and CEO of Elliott Wave International, author of Wall Street best-sellers Conquer the Crash and Elliott Wave Principle and editor of The Elliott Wave Theorist monthly market letter since 1979.Read more…
By IntheMoneyStocks on January 27th, 2010 10:42pm Eastern Time
Stock futures climbed on all the major indexes as the President of the United States delivered his first 'State of the Union' address of the year to Washington and the American people. The President did mention a tax on the large banks to repay the tax payers for the bank bailouts last year. However, he did not mention the new rules that would be implemented to the large banks that are similar to the former Glass Steagall Act of 1933.
The former Glass Steagall Act of 1933 was a legislative safeguard designed tp prevent commercial banks from engaging in investment banking activities; also authorized deposit insurance. The Glass Steagall Act of 1933 was repealed in 1999 in a bi-partisan vote by the Senate and the House of Representatives and signed into law under President Bill Clinton.
Read more…
By InTheMoneyStocks.com on January 26th, 2010 12:31pm Eastern Time
Many of the stocks highlighted last Friday and over the weekend are continuing their run into general targets. JASO was the latest to get there with an ultimate target of a cross of $5.00. It just hit $5.04 a little while ago. In addition, stocks like TAN are up again nearing a target of $9.45 and Chief Market Strategist Gareth Soloway took half off the table on FSLR at $115.38 and is holding the rest with a break even stop for a target of $117.09. XOM is getting a solid bounce today while all the other plays mentioned are inching higher as well.
Another correct call on the overall market as Chief Market Strategist Gareth Soloway went bullish for a 1-3 day bounce as of Friday's close. The futures overnight were under quite a bit of pressure but have recovered as the indexes have all gone positive. At this point a majority of profits should be taken with just a few remaining half long positions. All remaining half positions should have a break even stop.
Read more…
By InTheMoneyStocks.com on January 22nd, 2010 5:44pm Eastern Time
January 11th, 2010, the bulls were running. Scanning the media outlets showed nothing but bulls and bullish sentiment. Wait, wait one minute. There was a top called, it was called that very day by Chief Market Strategist Gareth Soloway at InTheMoneyStocks.com. The top called was at $115.00 on the SPY on the gapup on January 11th, 2010. The market never went higher. Chief Market Strategist Gareth Soloway and Nick Santiago were the only two in the financial world willing to stick their necks out on the line and call a top. In doing so, their premium subscribers loaded the boat on shorts. They did not have to wait long. The market concluded a 3 day drop losing 5%. While everyone else was bullish, InTheMoneyStocks anlayzed the markets and avoided the Wall Street hype. They nailed it and with it has come world recognition. Calls and emails are flooding in from all over the world for interviews and financial advice.
-PR Editor InTheMoneyStocks
"It takes some guts to go against the crowd sometimes, however, we read the charts and make the call. I never had a second thought about making the call of a top. The billionaires of the world take risks, educated and calculated risks. The charts told me there was a 90% chance of a major market tumble. I listened and spread the word to my premium subscribers of the Research Center and Intra Day Stock Chat. They all made tons of money and I could not be happier for them. If it comes with fame for us that is just a bonus. I work for the small, new, eager trader, swing trader, investor. I fight for the small investor, not the big firms."
Quote
-Chief Market Strategist Gareth Soloway
Read more…
InTheMoneyStocks.com's Chief Market Strategists continue to make dead on calls!!
After calling the exact top on the market a week ago, the markets have tumbled over 3%. Research Center and Intra Day Stock Chat members were given short swing trades, day trades, guidance and education. They banked it all!
Join now and be there for the next call tomorrow!
By InTheMoneyStocks.com on January 21st, 2010 7:12pm Eastern Time
Read more…
By InTheMoneyStocks.com on January 20th, 2010 12:07pm Eastern Time
After the markets were rocked off the upper channel trendline given to premium subscribers of the Research Center and Intra Day Stock Chat, an intra day in spirit of bull flag may be forming. This could have a small upside move in the works middle of the day on the SPY. Note the chart below. Join the Research Center and/or the Intra Day Stock Chat as the profits continue to flow.
Read more…
The no brainer play of the day is brought to you by the letter P for Profits and the symbol $. China Precision Steel, Inc. (NasdaqCM: CPSL) is without a doubt the highest probability runner here on the back of China commodity stocks ripping higher. Look at the charts of Sutor Technology Group Limited (NasdaqCM: SUTR) and China Direct Industries, Inc. (NasdaqGM: CDII). Both stocks are ripping over the last week and well on their way to 50% or more gains.
China Precision Steel, Inc. is in the right sector being: Steel. Look at steel stocks like United States Steel (NYSE: X) on the charts. This stock has soared as well. The last arena to conquer for a short term swing trade is China steel plays. With most of them already running, the last one is China Precision Steel, Inc. While it trades at $2.25 I have accumulated here and below over the last week in anticipation of this eventual run. Time will tell if I am right but with the moves in SUTR and CDII, I think it is a ticking time bomb. Of course this is just my humble opinion.
The sympathy play is one of my favorite high percentage plays that I utilize. I am giving it an extreme upside bias with a target at $2.75. However, I do believe it has a high probability of getting over $3.00. I will look to start taking profits as it gets into the target area.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Read more…
By ITMS News on December 28th, 2009 4:26pm Eastern Time
** The below analysis was posted on December 28th, 2009 11:56am Eastern Time on this very blog; note the chart below and bear witness to the accuracy of our Chief Market Strategist **
It has been a move for the history books. Stocks like United States Steel (NYSE: X), Alcoa Inc (NYSE: AA), Titanium Metals Corp (NYSE: TIE) and Century Aluminum Company (NasdaqGS: CENX) soaring into the end of 2009 like a rocket ship headed for the stars. Just in the last month or two, these metal stocks have ripped higher by 25 - 50%. It now looks like they are coming into massive resistance levels and I am issuing a red alert sell signal.
Based on valuations, growth projections and technical extensions above key levels, these stocks have been added to my red alert drop list. I expect them to see 10% or more corrections in the near term of January. Already today, United States Steel has started to form a daily bearish candle along with Alcoa Inc. U.S Steel has rocketed higher since the hit of the 200ma on November 3rd, 2009 at $34.00 to a high today of $58.19. It is far above the 20ma and after a four day surge, multiple indicators are showing a January or sooner correction coming. Look for price to fall back to the 20ma.
The same can be applied to all the other stocks listed. The extension moves they have had were due partly to short squeezes and partly to momentum runners as hedge fund and money managers looked to show these in their portfolios for year end statements. Come January or sooner, I am issuing a red alert sell signal on all these stocks. Be smart, learn the technicals, understand the fundamentals and go the opposite of the crowd. Learn, Live, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Read more…
