By Gareth Soloway on June 28th, 2010 11:43am Eastern Time
The markets and the SPDR S&P 500 ETF (NYSE:SPY) have an inverse head and shoulder possible breakout coming. Should the markets break to the upside above the inverse head and shoulder neckline, this market should head to $109.50 on the SPY. Note the chart below. The markets are hovering slightly higher on this extremely light volume Monday. This week the markets are awaiting the Non Farm Payrolls and Unemployment Rate on Friday. In addition, this coming week is the July 4th holiday. That will make for a very light volume week. Light volume usually is a positive for the markets and it appears we are seeing that today. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a new all time high of $123.56 before pulling back and turning negative. Oil is hovering just slightly negative on the day. The United States Oil Fund LP (ETF) (NYSE:USO) down 1%.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
About a week ago, the Euro gapped up on the China currency deal but it only rose right to a resistance level hence we basically had a confused market.Right now Im seeing Euro Dollar exchange rate as being even more positive then last week, it is lower but really more important is that it has not fallen alot. Within the context of 6 months of Euro gloom its actually acting positive.Ive no idea if it can last but just like last week the shares were dragged down, I think we could have some reversal to the upside. Im always interested to see how it actually turns outHeres the accompanying chart, look for 1.236 to be maintained otherwise it failed I guess
Read more…
The U.S. Dollar Index dropped again this past week losing 0.38 cents for the week. Normally when the dollar declines the stock markets will inflate and trade higher. That was not the case this past week as the U.S. Dollar declined slightly and the stock markets dropped sharply. The U.S. Dollar chart still remains one of the most important charts to be followed by traders. The dollar will have minor support around the $85.10 area. The next major support after that level will be around the weekly 20 moving average which is $83.00.
Traders and investors that want to trade the U.S. Dollar index to the long side can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP). For the traders and investors that would like to trade the dollar to the downside or short the currency can use the PowerShares DB US Dollar Index Bearish (NYSE:UDN).
Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!
Read more…
By InTheMoneyStocks on June 27th, 2010 3:03pm Eastern Time
The S&P 500 Index is truly the pulse of the stock market . This index consists of 500 major stocks that are market cap weighted. It is important to remember that most people in the public watch the Dow Jones Industrial Average (INDEXDJX:.DJI). The DJIA represents just 30 blue chip stocks that are price cap weighted. While the DJIA should still be followed it is important to realize that just one high priced stock will effect the index much more than a low priced stock. Therefore, a stock such as International Business Machines Corp. (NYSE:IBM) is more important than General Electric Company (NYSE:GE), despite the fact that the market capitalization of both companies is very similar. Therefore, the S&P 500 will give a more broad and accurate picture of the market.
This past week the S&P 500 Index lost 42.00 points for the week as the options expiration prop job came to an end. It is very important to note that the S&P 500 Index is still above the May 25th pivot low and that should be respected. As long as the index holds above that critical level it could still bounce around. This market downturn is now nine weeks in length and has been the sharpest of the corrections since the March 2009 low. The weekly support level is 1040.00 at this time. Next week will be interesting to see if the market can bounce back ahead of a major holiday in the U.S. on July 4th. This weekend was also the G20 meeting in Toronto, Canada where the different nations will speak about their economic concerns. Prior meetings of this type have coincided with short term bounces afterward.
Traders and investors can utilize the SPDR S&P 500 ETF (NYSE:SPY) as an alternative means of tracking the S&P Index.
Read more…
REVALUATION REVERBERATIONS die down as China ends up doing nothing after last weekend's announcement to render its currency regime more flexible. In fact, Beijing never actually said it would revalue its currency, but instead, will add flexibility to its basket system, which is allowed to move +(-) 0.5% daily. We noted in Sunday's IMT that Asian currencies and global equities would rally on hopes of higher purchasing power in the yuan, but also warned the importance of seeing through the rally into week's end. As stocks lost all of those gains, emphasis shifts back to Spanish banks, Greek debt, US housing (post-home buyer credits) and growth impact of austere UK budget. Yuan revaluation remains in the cards, but don't bet on anything more than 7-8% from here onto year-end. USA WORLD CUP SQUAD seeks to avenge the 2006 defeat against Ghana as it faces the sole African team in the WCup in Rustenburg tonight. We expect Ghana to beat Bradley's boys and advance to 1/8th finals. Santiago had riots last night following Chile's defeat to Spain, despite the fact that both nations advance to 1/8 finals. Perhaps the Chileans were angry by the fact that their inability to head the Group sends them to face Brazil, rather than Portugal, which will face Spain in the IberoClash.
Read more…
By Gareth Soloway on June 25th, 2010 12:10pm Eastern Time
Financial regulation is almost complete as lawmakers put the final touches on a new bill in the next few days. The financial stocks have been worried about this bill and have sold off accordingly in the last few months. As this saga is now coming to a close, the financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are all starting to rally. Why when the bill is just about to be put into play are they rallying? Stocks much like the stock market and people are much more fearful of the unknown, rather than the known. Knowing exactly what these companies will have to now deal with gives investors, fund managers and traders an idea about future profitability and growth. They now have the facts on the table and can make an education decision. The unknown is always scarier than the known and in this situation, it proves correct. The financial sector is up today.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!
Read more…
