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The average investor is almost as bearish as when the markets were at their 2009 financial crisis lows. With a possible default looming in the U.S. if the government does not raise the debt ceiling and a cliff dive of disaster nearing in Europe, the sentiment is highly bearish. This makes the smart investor realize a possible upswing is nearing. In fact, it may have started today with this move. While somewhat shallow, this upmove should take us back to the 52 week highs on the S&P 500. The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $131.62, +1.01 (+0.77%).  The 52 week high on the SPY would be $137.18. Take the seven day free trial of the Research Center and profit with the pros. This is the most exclusive club, now offering a free trial. Join now before it is taken away.

Inevitably, the debt ceiling in the United States will be raised. The markets will spike higher on it. In addition, earnings should continue to be better than expected. As things quiet down in Europe in the short term, the Euro will gain traction and the Dollar will fall. A falling Dollar pushes the U.S. markets higher.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.41, -0.07 (-0.33%). Learn the secrets of the pros and get swing trade alerts. Take the seven day free trial of the Research Center andIntra Day Stock Chat.

Today, after the market closes, Apple Inc. (NASDAQ:AAPL) will report earnings. The stock has rallied sharply into earnings. The earnings will most likely be stellar, but the big question will be, how does the stock price react. After such a gain, it is hard to imagine more than $10.00 in upside. Downside is also possible.  Apple stock has rallied around 20% in the last month. This is an epic rally for the largest market cap stock out there.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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What started off as a simple, if very much illegal, information gathering protocol (and yes, NOTW is most certainly not the only organization that hacked voice mails), and has since escalated to an epic shakedown of one of the world's most legendary media companies in which Murdoch himself now appears on the verge of leaving the company, appears set to ultimately result in a historic parliamentary collapse, with the Prime Minister of the UK David Cameron seen as the ultimate fallguy. As English booking agency reports           http://www.zerohedge.com/article/david-cameron-resignation-odds-surge-1001-81-hours-uk-default-risk-set-follow
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The last three years of global recession have dealt a major blow to American capitalist ideas trumpeted throughout the world on the value of “free markets.” Wall St has been revealed as a form of casino economy, with the bankster insiders gambling with other people’s, and eventually, the government’s money in the form of bailouts. As the Republicans in Congress, scenting victory in the 2012 presidential elections, hold a gun to the Obama administration’s head and rating agencies consider downgrading U.S. government bonds in light of Washington’s possible defaulting, many ideas around the world that previously seemed implausible because of the dominance of the U.S. economy are garnering renewed interest.    http://oilprice.com/Energy/Crude-Oil/Iran-Opens-Oil-Bourse-Harbinger-of-Trouble-for-New-York-and-London.html
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The U.S. markets collapsed lower today on the back of more worries out of Europe. The much hyped stress test results for European banks were nothing more than nonsense, spewed by those that are trying to cover up the severity of the situation. The results, released last Friday did not included a possible default of Greece.  Thus, eight banks failing the test means absolutely nothing if Greece were to default. A stress test is supposed to factor in the worse case scenario. This obviously did not. The fact that eight banks still failed is a testament to how bad things are.  After fooling the markets are Friday, the world is recognizing the nonsense nature of the test. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.07, -1.62 (-1.23%). Take the seven day free trial of theResearch Center to profit with the pros. Swing trade alerts, proprietary guidance and more.Join now.

The panic out of Europe is causing the Euro to collapse lower. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $139.90, -1.05 (-0.74%)
while the Dollar is spiking higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.57, +0.14 (+0.65%).

While the markets are being hit, Apple Inc. (NASDAQ:AAPL) is bucking the trend, putting together a positive day. This move higher on Apple is on optimism for earnings on the horizon. After Google Inc. (NASDAQ:GOOG) reported a stellar quarter, all eyes are lighting on up on the prospects for Apple.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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The banks are taking a big hit again on more comments and bearish sentiment on Wall Street. Bank of America Corporation (NYSE:BAC) has come crashing through the $10.00 level and is now trading at $9.62, -0.38 (-3.75%). More and more talk about the banks has been heard in regards to their exposure to Europe. Even solid earnings from JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) could not do anything for the slaughtered bank stocks. Get swing trade alerts from the top pros on Wall Street by taking the seven day free trial of the Research CenterJoin now and profit with the pros.

As the U.S. stock markets continue to trade at their lows, there is little doubt in the minds of traders that the financial sector is going to see more hardships. The key will be figuring out when it is baked in and at what price to give them a shot. The stress test in Europe did little to reassure the global markets as Europe did not even include a default in Greece as a factor.  This makes the stress test in Europe look more like a pathetic game of pull the cloth over the eyes. 

Ultimately, the markets need a big flush and the U.S government to get the debt ceiling raised. Should that happen, a small back stop will be in the markets for the near term, before the next shoe drops. Profit with the pros by taking the seven day free trial to theResearch Center. Step your game up and make money in any market.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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