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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
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
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