By Gareth Soloway on July 8th, 2010 11:44am Eastern Time
The markets gapped higher again today, trying for a third straight up day and a five percent gain in total. Jobless claims finally showed a solid drop coming in at 454,000. The 450,000 level is a major milestone. Wall Street is hoping next week we will see a move below that key level. Continuing claims also dropped dramatically. However, it is highly likely that many people are no longer able to collect unemployment. That would result in the dramatic drop in continuing claims.
The markets gapped higher today to the $107.00 level on the SPDR S&P 500 ETF (NYSE:SPY). Initially the markets inched higher but quickly fell back down. On a technical analysis basis, the market is extremely extended from yesterday, it needed to pause and have a small pull back. Since that gap higher, the markets have fallen to gap fill and are hovering slightly higher on the day.
Financial stocks which helped the market rally the last couple days are stalling and pulling back. The two key stocks to watch are Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM). Both are down over one percent on the day. The other key stocks responsible for helping the markets rally are also pausing today. These stocks are the oil and commodity plays. Follow Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM). These two stocks are fractionally lower on the day. As we always discuss, anytime a rally is sustainable, the financial and commodity stocks must participate. If they do not, be suspect of the rally. The last few days, these two groups did join forces.
The key turn date we alerted to worked out perfectly. This was given to our premium members of the Research Center and Intra Day Stock Chat last week. Positions long were taken in accordance and profits have been big. The master turn dates are based off unique technical analysis methods we have developed over years of market study. We encourage you to join the Research Center to get market guidance, swing trades, alerts, education and more.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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