FROM PRETORIA: Ashraf attending the World Cup but finding time to tweet (twitter.com/alaidi) and send some IMTs. Just when the euro was extending its rally on broadening risk appetite, Moody's hits Greece with a downgrade into junk status. EURUSD loses a full cent from its $1.23 high despite managing to post its first 4-day winning streak of the year. The next obstacle is to close above $1.2320 (will explain later rationale). We may be on vacation but won't forget the importance of a close above 1107 in SP500 and 10290 in Dow-30. GBP traders watch tomorrow's CPI figures. See Ashraflaidi.com/calendar.
Read more…
By Nicholas Santiago on June 14th, 2010 3:17pm Eastern Time
This afternoon the U.S. Dollar spiked higher after Moody's downgraded the Greek debt to junk. While this move by Moody's was not a major surprise it did cause a surge of capital into the U.S. Dollar Index. As we all know by now when the dollar rises the markets deflate and vice versa when the dollar declines the markets inflate. This inverse lockstep relationship is still very much in play. Every trader should keep an eye on the dollar.
Read more…
By InTheMoneyStocks on June 14th, 2010 4:03pm Eastern Time
The S&P 500 Index started out very strong today rallying higher into the lunch hour. Then again just as we have seen the past few Monday's the market rolled over reversing a sharp positive gain. This sell off is just the opposite of what we saw in the market when the trend was up. Every Monday during 2009 and into April 2010 was a strong positive Monday. Hence the term "mutual fund Monday" or "merger Monday". Now we can call the market "mutual fund selling Monday" as it rarely closes positive.
Read more…
By ITMS News on June 14th, 2010 1:16pm Eastern Time
(MarketWatch) -- Moody's Investors Service on Monday downgraded Greece's government bond ratings by four notches to junk status of Ba1 from A3, reflecting its view of the country's medium-term credit fundamentals.
Read more…
By Gareth Soloway on June 14th, 2010 12:22pm Eastern Time
Financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Bank of America Corporation (NYSE:BAC) have had a lot of trouble rallying over the last few days as the market has shot higher. This is partly due to financial regulation on the horizon among other issues. Any way you cut the action in the financial stocks, unless they participate and do so soon, this rally may be very short lived. The markets cannot have a sustainable rally unless financial stocks are moving higher. Goldman Sachs is the barometer. The three day rally in the markets has seen Goldman Sachs stay flat. Three trading days ago, Goldman Sachs closed at $136.80. It trades today at $135.78, down just over $1.00. If this stock goes, the markets have more legs.
The recent rally has been simply a Euro up, Dollar down rally which has seen commodities stocks rip higher in dramatic fashion. The markets hit a key double top today from June 3rd, 2010. Unless the financial stocks pick up the slack and participate, this market will stall here. To get more information, analysis, guidance and swing trade calls, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStock.comRead more…
The U.S. Dollar Index remains the most important chart in the trading universe right now. Simply put when the dollar declines the stock market inflates, and when the dollar rallies the stock market indexes deflate. It is just that cut and dry. The only time the dollar does not have an effect on the markets is when the trading volume on the stock indexes is extremely light and the market seems to be in euphoria over some bullish news or economic report like we saw in February and March 2010. Other then that, the Dollar is the driving force behind every rally and decline. Last week the U.S. Dollar Index pulled back closing lower by 0.98 cents to $87.25 after making a new high for the year on Monday June 7th, 2010. As the chart outlined last week the dollar was getting a bit extended and did come into near term resistance on the weekly chart. Therefore, a pullback is not a huge surprise. From this pattern the dollar could pullback further or even have a correction. However, once a pattern is in place again this currency could move back to new highs. At this point take it one week at a time.
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). Understand your key levels in this market, learn to utilize them properly and profit from this incredible traders market!
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…
The SPDR Gold Trust (ETF) (NYSE:GLD) gained 0.82 cents for the week ending Friday June 11th, 2010 closing at $120.01. The GLD actually made a new all time high briefly intra-day on Tuesday, June 8th at $122.45 before pulling back. The GLD chart remains near a double top resistance level from early December. Therefore, it could be forming a consolidation pattern here which would turn out to be bullish going forward. However, over the past three weeks the shorter pattern could be forming a small bearish wedge pattern which could lead to a pullback down to the $115.00 level. Most traders and investors continue to buy gold on any pullback as the weekly chart remains in a nine year bull market. As long as the central banks around the world continue to print money gold will likely continue to be bought or accumulated on any correction.
Read more…
By InTheMoneyStocks.com on June 13th, 2010 10:46am Eastern Time
The S&P 500 Index gained 26.72 points for the week ending Friday June 11th, 2010. This was another volatile trading week with dramatic large point swings in both directions before the market staged a sharp rally on Thursday June 10th, 2010. Whether or not this correction is over remains to be seen. However, these markets were oversold and into a major support area which made the probability of a bounce high. The important thing to realize is that this was the first time since March 2009 that the market corrected over 10 percent. The previous two corrections in June 2009 and January 2010 were for about 8 percent. It is also important to note that the February 2010 low was tested several times and held. The S&P 500 Index is now trading above the weekly 50 moving average and this could be short term bullish. Next week is options expiration for the month of June and that usually makes for another choppy and volatile trading week. Therefore, respect these markets as anything can happen at anytime. However, as long as the markets hold the February lows it should remain a traders market presenting numerous profit making opportunities for those who utilize it properly. Please note the moves of the S&P 500 Index can also be traded utilizing the SPDR S&P 500 ETF (NYSE:SPY).
Read more…
