http://www.reuters.com/article/2011/08/21/us-usa-fed-idUSTRE77K16520110821
http://www.reuters.com/article/2011/08/21/us-usa-fed-idUSTRE77K16520110821
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I cant find the forum thread so putting these here. Just an estimate of where stocks might go with Barc the most negative outlook
Investopedia chart explanations -
We keep an eye on stocks and gold. Stocks measure the value of America’s businesses. Gold measures the value of America’s – and the world’s – money. What are these measures telling us?
That we’re on the road to hell!
What is wrong with this financial system? Perhaps the question we should ask is, what is right with the financial system? These banks that were sold to the public as being to big to fail, are now the same financial institutions that are even bigger. What would happen if these banks were simply allowed to fail without being bailed out? These banks would simply go into bankruptcy court and be broken apart. The good assets would be sold off and the bad assets would go bust. Isn't this the way capitalism was designed to work. This may ultimately be what happens after all these bailout efforts fail.
Right now, every talking head in the media is blaming Europe for the problems effecting the stock market. Sure, the Europe Union is a mess, however, this problem involves all banks across the globe. Traders and investors know it has been the large financial stocks that lead the markets lower since 2007. These same financial institutions are still causing the same problems to this very day. There has never been a period in time when the banks stocks have behaved this poorly in a low interest rate environment. Usually, when interest rates are so low banks will make loans and markets will inflate higher. This time around everything is deflating in an extremely low interest rate environment. The reason is because banks are really not lending and there is also a lack of qualified borrowers. The economic climate has certainly changed over the past ten years. The only solution to fix this problem is simply to let these banks fail. It does not matter if these banks are in Europe or in the United States, they must simply be allowed to fail. In due time it will probably happen anyway.
These stock markets are very oversold once again. Sure, there are always possible bounces that will occur in the markets from time to time. However, until some of these markets and capitalism are allowed to function the way they were designed we will simply just repeat the current cycle over and over. Now these 500 point down days are starting to feel normal again traders will have to just take it one day at a time.
The banks and oil plays are still hovering on the positive side today. The banks have been the weakest sector over the last six months and are clinging to a minor technical bounce. With the markets lower across the board, Bank of America Corp (NYSE:BAC) is trading at $7.42, +0.02 (+0.27%) and Wells Fargo & Company (NYSE:WFC) is trading $24.62, +0.07 (+0.29%). Oil stocks continue to be generally higher even with a lower market. This is on the back of a recent big bounce in oil and even today, the energy source is slightly higher. There is talk of continued global printing of money. As long as this happens, all commodities should see a rise. Exxon Mobil Corporation (NYSE:XOM) is trading at $73.66, +0.16 (+0.22%).
Investors remain very nervous. Right now the charts are signaling continued consolidation and then another move higher towards the $125.00 level on the SPY. That view will hold true unless the $117.00 level is taken out. To get the best swing trade alerts, guidance and education, take the seven day free trial to the Research Center and Intra Day Stock Chat. Join the pros that help hedge funds make billions and investors make millions.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Yesterday, there was a solid head and shoulders top pattern which carved out perfectly on the 10 minute chart. The target for the topping pattern signaled a nice potential $1.50 decline, however, the pattern failed forty minutes after triggering. Today, another head and shoulder top formed on the intra-day chart signaling a nice $2.00 decline from the trigger to the target. This pattern also failed in just thirty minutes after the trade set up triggered. You see, knowing that this is options expiration week helps experienced day traders realize that the nice clean chart setups that usually play out like clockwork can and will usually fail. This is a week of game playing by the institutional trading desks.
Often, when you day trade after the first two hours of the day during options expiration you are essentially swimming with sharks. That's right, you are swimming with great white sharks. The only difference is that the average day trader does not have a cage (knowledge) around him to protect him from the erratic intra-day swings. Some of the leading stocks that will be most volatile are the large technology stocks such as Apple Inc.(NASDAQ:AAPL), NetFlix Inc.(NASDAQ:NFLX), VMWare Inc.(NYSE:VMW), and Salesforce.com(NYSE:CRM). Just take a look at these stocks this week and you will easily see the volatile action in these names. It is best for day traders to take it slow during the week of options expiration as the action is usually trend-less. The week leading into options expiration is the real shark week for day traders.
Do not bite the bait set out to catch the inexperienced. Trade with the best, learn and profit with them. The real Pro Traders at InTheMoneyStocks.com guide subscribers to financial freedom through two main services; the Intra Day Stock Chat is the only place a day trader or those wanting to view the Pros as they trade should be, and theResearch Center where the multi day swing trades which earn the Pros massive wealth are entering are revealed. Take a Free Trial to both services here. Let the results guide you, grab control of your financial future now.
“I read this book cover to cover, and enjoyed every bit of it. The hedge fund industry is not known for its modesty, yet this book is not only full of fascinating information but is refreshing in this respect as well.”
Andrei Shleifer, Professor of Economics, Harvard University
“Without sensationalising, Lars tells it like it is – a no-holds-barred, warts-and-all account of what it’s like to try and set and run a hedge fund.”
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The closing bell will determine everything on this market. Do the markets go up tomorrow and the rest of the week or sharply down? A slightly lower or flat close would be extremely bullish for the markets. A close at the lows of the day would be very bearish.
On a technical note, it is amazing how the low of the morning session was the pivot low from yesterday and the high of the day was a perfect gap fill. In a world where valuation seems to have no place, the technical levels are the true tell of a move in the markets. Take the seven day free trial to the Research Center and Intra Day Stock Chat. Get elite information, swing trades and guidance. Profit with the pros.
Related: International Business Machines Corp. (NYSE:IBM), Caterpillar Inc. (NYSE:CAT), 3M Company (NYSE:MMM), Exxon Mobil Corporation (NYSE:XOM).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
