By InTheMoneyStocks.com on February 1st, 2010 12:18pm Eastern Time
The markets are moving higher with the DOW up just under 100 points today. This move is on the back of some harsh selling the last two weeks after worries over the global recovery surfaced on the back of China tightening its lending policy. In addition, strong comments from President Obama as he knocked banks and discussed halting their ability to take high risk investments. Earnings for the most part have not impressed either creating a triple threat type event in the markets.
The catalyst to the move higher today was earnings from Exxon Mobil Corporation (NYSE:XOM). Their earnings came on the back of Chevron Corporation (NYSE:CVX) Friday morning. Chevron had a poor showing and with the Friday selloff, both Exxon and Chevron ended lower.
As a Chief Market Strategist I love situations like this and I will explain why I was able to call a long play to all the members at InTheMoneyStocks.
1. Exxon Mobil beautiful move into the weekly master support triple bottom at $64.50.
2. Extreme Technical Oversold Signals.
3. Chevron Sympathy Lowers Overall Expectations For Exxon Making It Likely For Exxon To Beat.
4. Market Due For An Oversold Bounce.
These three signals made it a low risk earnings play for an upside move. Sure enough, Exxon Mobil reported a profit of $6.05 billion with earnings per share at $1.27. Expectations had been for earnings at $1.19 per share. The stock jumped higher by 2.75%. Members are enjoying the profits and I am back at work looking for the next big play.
In addition, the dollar is also helping oil prices which in turn help Exxon Mobil. The dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP) is falling slightly today which is pushing crude up. The United States Oil Fund LP (ETF) (NYSE:USO) is up 1.40% on the day. The UUP (dollar index ETF) hit the 200 moving average on Friday and I expected it to fall back. Follow the technicals, it will open a whole new world of profits.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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