Blog

All Posts (10733)

Sort by

Markets: The Truth Revealed (NYSE:UUP) (NYSE:SPY) (NYSE:USO) (NYSE:CVX) (NYSE:XOM) (NASDAQ:GOLD)

Posted by Aadil on April 9, 2011 at 1:26pm
The markets opened sharply higher. The key to the markets higher open was a crushing of the Dollar that took place overnight. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.53, -0.14 (-0.65%), making a new 52 week low. A weaker Dollar is positive for the markets as stocks are treated like commodities in regards to Dollar fluctuations. A drop in the Dollar means individual companies must be valued higher in terms of Dollars just like a drop in the Dollar means gold must be valued higher in terms of the greenback. Black box trading programs are programmed this way. Until those programs are changed, expect the same going forward. Take a one week free trial to the Research Center. Click here. Get hardcore analysis, swing trades and more.

The SPDR S&P 500 ETF (NYSE:SPY) pushed to a high of $133.99 in the first ten minutes of the trading day before collapsing lower. This level happened to be a perfect triple top from the last two trading days and a major sticking point of resistance. The sharp fall in the markets can be blamed on the technical resistance points as well as a continue push in oil. Spot crude is nearing $112.00 per barrel and showing no signs of slowing. The United States Oil Fund LP (NYSE:USO) is trading at $44.53, +0.54 (+1.23%). Silver and gold are both spiking higher again, making new 52 week highs. As volume lightens up this afternoon, look for the markets to start to float sideways, possibly even slightly higher.

With commodity prices soaring, there is just one group to blame, the Federal Reserve. Their weak Dollar, print money policy is the culprit. By flooding the world with tons of new Dollars, the Dollars value declines. As the value of the Dollar declines, commodity prices must rise. This effect was obvious from the very start but did little to deter Ben Bernanke and his minions. As commodity prices have soared, the middle class is fading. Articles have been written that to survive as the middle class, many have to work two jobs. As energy and food continue higher, the middle class is finding themselves to be no more. The poor in this country, those that could barely afford to buy food to feed their family are relying on food stamps. As prices rise, this is not even enough to help them get by. Take a one week free trial to the Research Center. Click here. Get hardcore analysis, swing trades and more.

The Federal Reserve has said food and energy do not count when looking at inflation. That is probably the biggest joke ever spoken. What is the largest percentage of income spent on by the average American family? After housing, food and energy. In this simple Chief Market Strategists view, food and energy should be the main keys to monitoring inflation.

The bottom line is this, two years ago I spoke of the repercussions of a print money policy. I discussed how energy and food would rip higher and the average American, with few jobs and slow wage growth would get crushed. This is happening and will continue to happen as long as the Federal Reserve continues to print money and the Dollar goes down. I believe the Federal Reserve to be decently intelligent, therefore I must conclude they knew this would happen. That leaves me with one final thought, they wanted this to be the outcome. Was this all planned? Are they attempting to create two classes, rich and poor? Time will tell but without wage growth and jobs, the hardships are just starting as oil heads north of $112.00 per barrel.

Related: Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), Randgold Resources Ltd. (NASDAQ:GOLD)

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Read more…

Market On Growth Hormone (NYSE:DIA) (NYSE:DDM) (NYSE:SSO) (NYSE:USO)

Posted by Aadil on April 7, 2011 at 11:39pm
The intra-day activity in this market is nothing short of wild. The Dow Jones Industrial Average has seen a couple of 100 point intra-day swings by the noon hour. Since that time there have been sell offs and light volume rallies bringing the major stock indexes right back up. There have not been light volume buy programs like this since mid 2008 when the market was in the middle of the credit crisis. Who is trading these markets for the bounces to be so robust? Has the 'fat finger' trader from the May 6, 2010 flash crash come back to play again. 

It is rather amazing that the major stocks indexes are not down sharply lower today as spot oil is trading at $110.00 a barrel. The Middle East seems to be getting worst by the minute as Israel and Palestine have begun to fight again. Problems in Libya, Syria, and other nations in the region do not seem to be getting any better. Japan had another 7.1 magnitude earthquake earlier and we do not know how bad the already damaged nuclear reactors are. Portugal needs a bailout and Spain could be next on horizon. What else could go on in this world? It seems that everything except the kitchen sink has been thrown at this market and it still holds up and bounces back almost immediately. 

As of 3:09 pm EST the Dow Jones Industrial Average is trading lower by just 39.00 points to 12,387.66. Traders must watch for resistance around the 12,400.00 level which looks to be the next important intra-day resistance area. Please use caution when trading in this environment intra-day as we can never predict the next major news event to cause a spike in either direction. The United States oil fund is trading at a new high for the year just above $44.00 a share. This would normally be a negative for the major stock indexes, however, it has not really seemed to matter over the past week. This is truly a market that does not want to decline.
Read more…

Action Markets: Another Earthquake Strikes Japan (NYSE:SPY) (NYSE:CVX) (NYSE:GS)

Posted by Aadil on April 7, 2011 at 6:56pm
The markets opened quietly today on the back of an expected interest rate hike by the ECB and Jobless Claims that came in at 382,000. These were no shock to the markets which opened slightly lower on a stronger Dollar. No sooner had the markets opened, a flurry of buying came in as the Dollar fell down in its normal daily spiral. The markets advanced towards the high from yesterday with the SPDR S&P 500 ETF (NYSE:SPY) hitting $133.98. All of a sudden, the markets turned down, collapsing with ferocity and massive volume. News had hit that Japan was struck with a massive earthquake, measuring 7.2. Worries about more damage, another Tsunami and of course those nuclear plants surged. The SPY went from a high of $133.98 to $132.66 before having a gigantic bounce. It is currently trading in the middle range at $132.84, -0.72 (-0.54%). Sign up for the one week free trial of the Research Center. Click here.

Chevron Corporation (NYSE:CVX) is seeing its second down day in a row, somewhat of a rarity. The stock is trading at $107.81, -0.85 (-0.78%). A second down day may actually signal a short term top in the stock as long as it closes below $108.44 today. This would be known as confirmation of a reversal. Chevron would have first major support at $106.00 while resistance would be the 52 week high at $110.00.

As the markets continue to sell, Goldman Sachs Group, Inc. (NYSE:GS) is bucking the trend. The stock is trading at $163.30, +1.41 (+0.87%). Goldman has surged in the last three trading days and continues to show abnormal strength, relative to the markets. The daily chart shows massive resistance at $165.60 while support is at $159.00. Yesterday, banks and financial firms saw massive buying interest. Join the pros by taking the one week free trial to the Research Center. Click here.

Looking forward, the markets will be analyzing the new earthquake in Japan. Is there additional damage, what is the economic impact? In addition, all eyes are now on the U.S. government and a possible shutdown tomorrow at midnight. As of now, the markets have felt it will not occur. However, should it occur there may be an economic impact as checks are not sent out and various programs shut down. Follow this closely in the next couple days. To gain more hardcore analysis, guidance, swing trades and education, take the free trial of the Research Center now.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Read more…

Bullion Bank Trading – A Closely Guarded Secret, article from Zero Hedge

Posted by L Levin on April 7, 2011 at 6:50pm
So they talk very briefly about “gold inventory” and hedging it but they don’t mention any silver inventory at all. This is very suspicious because we know from the Treasury department OCC derivatives report that they had over $9 billion in silver derivatives in that year. Why aren’t these mentioned? Does this mean they have a very small silver inventory if only a gold inventory is mentioned?        http://www.zerohedge.com/article/guest-post-bullion-bank-trading-%E2%80%93-closely-guarded-secret
Read more…

Keys: Markets Recover After Massive Sell (NYSE:USO) (NASDAQ:FSLR) (NYSE:MON)

Posted by Aadil on April 7, 2011 at 6:49pm
After a late morning massive sell off, the markets have recovered, inching back to the flat line. Earlier, another massive earthquake struck Japan measuring 7.2. The markets freaked out on fears of more economic hardships, a possible tsunami and of course more nuclear meltdowns. However, it looks as if the impact may be on the minor side and the markets are responding by moving back to the flat line. To get hardcore analysis and swing trades, take a one week free trial of the Research Center. Click here.

Oil is trading higher again today and looks to be headed towards $110.00 per barrel. The United States Oil Fund LP (NYSE:USO) is trading at $43.67, +0.30 (+0.69%). Not only has an economic recovery taken place, but fear over nuclear energy has put more emphasis on oil as the main source of energy. The uncertainty in the Middle East continues and is also adding fuel to the fire.

Solar shares are weak again today which is somewhat unusual on the back of higher oil prices. Usually, the higher oil goes, the more people will look to alternate energy. That is not happening today nor has it happened over the last week. This is structural weakness that must be watched closely. Often times when weakness like this is seen in a sector that should be strong, news will break about a miss in earnings or margin pressure. Keep a close eye on this sector over the next couple weeks.  First Solar, Inc. (NASDAQ:FSLR) is trading at $147.39, -3.21 (-2.13%). To get hardcore analysis and swing trades, take a one week free trial of the Research Center. Click here.

The fertilizer stocks are slightly weaker again today. Yesterday, Monsanto Company (NYSE:MON) fell sharply on earnings taking the sector with it. Today, it appears some weakness remains.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Read more…

Commentary by Kathy Lien: EUR: Prospect of Rate Hike Overshadows Portuguese Bailout

Posted by Aadil on April 6, 2011 at 9:36pm

There is only one thing that euro traders care about right now and it is the prospect of an interest rate hike from the European Central Bank tomorrow. Nothing else seems to matter, including Portugal’s official request for a bailout

 

http://www.fx360.com/commentary/kathy/5239/eur-prospect-of-rate-hike-overshadows-portuguese-bailout.aspx

Read more…