By Gareth Soloway on July 26th, 2010 11:49am Eastern Time
The SPDR S&P 500 ETF (NYSE:SPY) is trading higher on the back of June Home Sales which jumped 23.6% to a seasonally adjusted annual rate of 330,000, higher than the 316,000 expected by analysts. The market had been trading flat into this number but got a significant bid following its release. The SPY his higher by +0.99 (0.86%) to $111.40. Keep in mind, volume is extremely light and that has a tendency to keep the markets floating higher as well.
The key level to watch would be the 200 moving average on the SPY daily chart. This will act as a magnet for the markets and once hit, significant resistance. Note the chart below.
The strongest key leading stocks today are Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM). Both are surging to the upside on the continued positive news on commodity demand, especially out of China. In addition, the U.S. homes sales data is positive for commodities as well.
Small cap stocks continue to see substantial upside today. Chinese small caps that have been lagging the market are jumping. Many of these are trading at P/E ratios of three to six with high growth rates. It appears they are finally getting discovered. For more trades, including Chinese small caps picked up today, guidance, analysis and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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