By InTheMoneyStocks on June 1st, 2010 9:38am Eastern Time
This morning the stock index futures are all trading sharply lower as the world's problems continue to pour in. The Euro currency made a new low against the dollar this morning putting pressure on the inflation trade. However, since 6:00 am EST the U.S. Dollar Index has pulled back over $0.40 cents to help the stock market indexes trade off the morning lows. When the dollar declines the markets will simply inflate and vice versa when the dollar rises the stock market indexes deflate.
Gold is trading higher this morning by 12.00 points to $1227.00 an ounce. The SPDR Gold Shares (NYSE:GLD) are trading higher this morning by $0.96 cents to $119.87. Gold will often surge higher when traders and investors become fearful of the markets.
July crude is lower by $0.74 cents to $73.25 to start the day. The United States Oil Fund (NYSE:USO) is trading lower by $0.43 cents to $33.61.
The U.S. Dollar will dictate every move in the market intra-day. Traders and investors who 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 who 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 join the ranks of the Pros!
Read more…
By Gareth Soloway on June 1st, 2010 11:43am Eastern Time
"Watch out below! It's going to blow!" These are common screams expected to be heard on a rig or oil platform somewhere around the world. However, it seems more and more apparent these are used to describe the drilling stocks themselves. After the Gulf of Mexico oil spill failed to be stopped over the weekend, the drilling stocks as a whole are being pounded. BP plc (NYSE:BP) has taken the brunt of the storm with a massive drop in recent weeks. Even today, the stock is down 12% more. Other drilling stocks taking a major hit are Anadarko Petroleum Corporation (NYSE:APC) down 15%, Transocean LTD (NYSE:RIG) down 8% and Halliburton Company (NYSE:HAL) down 10%.
The problem with these drillers is the same problem we had with nuclear energy. No one wants it in their back yard. Should a spill occur, we now see the results in the Gulf of Mexico. The economic impact is severe and the harm to the wildlife is extremely saddening.
In any case, the fear here is that drilling in many places will now be halted like it is in the Gulf of Mexico. While I agree this may be a short term issue, I believe as soon as gas prices go north of $3.00 per gallon, people will forget the impact and trust that government safety oversight. These companies will find other areas to drill in and rebound strongly.
BP is responsible and will be the fall “guy” as it should be. Lawsuits will come and there will be problems for years. However, stocks like Halliburton and Anadarko Petroleum could be looked at as having a great risk to reward ratio. These stocks are currently trading well off their 2010 highs. Halliburton traded as high as $35.22 just a month ago. It hit $22.27 today. That is a drop of 37%. In addition, Anadarko traded as high as $75.07 a month ago and today hit a low of $43.63. That is a drop of almost 42%. These do seem overdone in the short run and can be looked at as value plays at these levels.
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 join the ranks of the Pros!
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By InTheMoneyStocks.com on May 31st, 2010 11:37am Eastern Time
Chief Market Strategist Gareth Soloway will kick start the new Research Center feature No Hype Live - Broadcasts with an event on Monday, May 31st, 2010 at 8:00pm ET (Tonight).
View charts live, hear live commentary on your phone or through your computer speakers.
Chief Market Strategist Gareth Soloway will go over the futures, any news over the weekend, the global markets and stock charts for tomorrow while discussing news and key things to watch this week. InTheMoneyStocks will start the week with a bang with this event. Be ready!
Enjoy the new and improved Research Center!
-Team InTheMoneyStocks
http://www.inthemoneystocks.com/index.phpRead more…
2010.05.31 00:23: YEN BIGGEST LOSER in Asian trade on a combination of improved risk appetite and a split in the Japanese govt coalition. Japans Social Democratic Party has exited the tri-partite coalition (SDP, DPJ and PNP) after the DPJ's decision to allow the US military base to stay in Okinawa rather than have it move totally from the Island. Although the coalition maintains its majority in parliament, it will become weaker ahead of July's upper house elections. JPY is weakest currency, followed by USD and GBP. Both London and New York markets are closed for Bank Holiday. USDJPY breaks the May 4 trend line, eyeing 92.15, while CADJPY eyes initial resistance at 87.450-50, followed by 88.20-25the 50% retracement of the decline from the 94.38 high to the 92.09 low. REGISTER FOR ASHRAF's SEMINARS IN AUSTRALIA (Melbourne on Tuesday, Sydney on Wednesday) https://www.cmcmarkets.com.au/forms/lg-seminar-invitationRead more…
By Gareth Soloway on May 30th, 2010 10:38am Eastern Time
A sharp sell off rocked Wall Street into the close on Friday in the final minutes. Stocks like Exxon Mobil Corporation (NYSE:XOM) and Microsoft Corporation (NASDAQ:MSFT) sold particularly hard. These two stocks have been some of the weakest in recent weeks. The weakest stocks will always be hardest hit on any sharp sell. The reason for the sharp sell off into the close can be looked at from multiple angles. It is important to understand these angles as it will help us understand the coming week and how to profit
The Memorial Holiday weekend means three days that the U.S. markets are closed. In recent weeks, the weekends have been treacherous with news out of Europe dominating the wires. In recent weeks, the North and South Korea issues have also been hampering the markets. Not only do traders want to be mostly in cash prior to any weekend, but add an extra day in there and it means even more risk and more of an incentive to sell into the close on Friday.
In addition, while bounces have occurred in this brutal market, bounces have not lasted more than a day or so. With Thursday's monster 2.5% gain in the markets, traders do not feel the markets can sustain the rally for a longer period. Profits were taken.
As of Friday afternoon it was pretty apparent the Gulf of Mexico oil spill was not going to be stopped. This "Top Kill" by BP plc (NYSE:BP) had been dragging on all week. It did not take a genius to see it was not working from the live feed available to the public. As of Friday, the markets were beginning to get nervous again over this factor. Overall, the oil spill is more of a driller issue but its impact causes problems for the overall market. The oil spill adds to the overall negativity for the markets. Not only is Europe a mess, the Euro collapsing, Asia a mess, but here in the United States, this oil spill just reminds the markets to be negative. The economic impact to the Gulf coast is also brutal and will have long lasting effects. Not only did BP get hit sharply but other drillers like Transocean LTD (NYSE:RIG) found themselves down almost 5% for the day.
Overall these factors helped cause a sharp sell off in the final minutes of trading. In this market, it must be expected that any extended market closure for any reason will make traders sell positions for the safety of cash. Should things remain calm over the entire holiday weekend, the markets may get a small relief push early on Tuesday. Watch the Euro, that will give us a great idea about the direction of the markets on Tuesday.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By InTheMoneyStocks.com on May 30th, 2010 4:51pm Eastern Time
This past week the S&P 500 INDEX,RTH (INDEXSP: .INX) gained 1 point when all was said and done into Friday's close. The broad based market cap weighted index did happen to close above the weekly 50 moving average after testing and briefly piercing the February 5th pivot low. The pattern on the weekly chart is a bottoming tail at a support level which could lead to further upside. However, every rally has been sold recently and that type of continued action cannot be ruled out. Next week is a holiday shortened week in the U.S. as the market is closed on May 31, 2010 for the Memorial Day holiday. Therefore, the holiday will give the European Union an extra day to come up with some calming news before the U.S. markets resume trading on Tuesday June 1st, 2010. As of this time it is prudent to expect more volatility as the markets remain uncertain.
Read more…
The U.S. Dollar Index gained $1.63 for the week closing at $86.76. While the dollar remains near the $87.00 - $87.50 resistance level it is starting to build a small base and remains strong on the charts. The rally in the dollar that began in late November 2009 is now is now 27 weeks long. There will be resistance every point higher from here for the dollar with the next major weekly resistance area around the $90.00 level. Simply put when the dollar rises the Euro currency CurrencyShares Euro Trust (NYSE:FXE) declines and the markets deflate. The opposite is true when the dollar declines the markets inflate and trade higher. This chart PowerShares DB US Dollar Index Bullish (NYSE:UUP) is one of the most important charts in the market right now as the movement in the dollar dictates every move in the stock indexes.
Read more…
With this currency pair I haven't got an elliott wave count... just a classical pattern that could be forming.The chart is on a weekly time scale, so the possible future price action shown by the blue arrows may take quite some time to materialise.The point of this chart is that we seem to be having a possible bullish pennant building up... not 100% certain yet but the support (blue line) seems to be holding for now and has done so for the past 4 weeks!Will keep an eye on this one, but it looks like some interesting development at the moment.
Read more…
Hi Guys, here is the GBP/USD pair through the eyes of an elliottician. To be honest I have not had very much success applying Elliott Wave to currency pairs... but I couldn't resist. :)Here is a possible scenario for this pair. The reason I have put up this chart is because from an Elliott point of view, it looks like there is a completed 5 wave pattern and a bounce is expected. I personally feel abit more bullish on this pair, but have put up a key guideline: if we rally, 1.5693 needs to hold as resistence for the bears to still have a chance of bringing us the market back down to the floor.We shall see what happens, I will be interested to see aswell as I say, currency and Elliott Wave hasn't been one of my best areas... hopefully that can change.
Read more…
By InTheMoneyStocks on May 28th, 2010 2:01pm Eastern Time
The U.S. Dollar Index surged higher once Spain was downgraded by Fitch. As we all know by now when the dollar rises the market deflates. That is occurring again today. Normally, ahead of a holiday the markets will just pause or trade higher. That is not the case as investors are now in sell mode. Should the dollar pullback look for the markets to rise or inflate. Until then it is sell, sell, sell!
Read more…
By Gareth Soloway on May 28th, 2010 11:41am Eastern Time
The stock markets in the United States floated slightly lower today ahead of the Memorial Day holiday weekend. The SPDR S&P 500 ETF (NYSE:SPY) was lower by .88%, which is a small pull back considering the massive move up yesterday. This move in the markets may be some profit taking after that move ahead of a three day weekend when anything could happen in Europe or in Asia. Many traders do not want the added risk over a three day weekend when it seems at any time the Euro may collapse again. Should the long weekend remain calm, expect further upside early next week.
Most stocks are seeing slight decline after the massive runup yesterday as well. In the commodity arena, stocks like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are down around half a percent on the day. This again can be looked at as solid consolidation after the big move they had yesterday.
Technology is also seeing a little pullback with stocks like Intel Corporation (NASDAQ:INTC) pulling back a little over one percent. Apple Inc. (NASDAQ:AAPL) is bucking the trend after releasing the IPAD in Europe. Apple Inc. is up .70% on the day.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
