By Gareth Soloway on May 13th, 2010 11:53am Eastern Time
Key stocks like SanDisk Corporation (NASDAQ:SNDK), Baidu, Inc. (NASDAQ:BIDU) and Netflix, Inc. (NASDAQ:NFLX) all made new 52 week highs today with large surges in the first hour of trading. Baidu, Inc. jumped on continued retail buying after the 10 for 1 stock split. This jump after a stock split is normal as the retail investor now finds the stock cheap enough to buy. As they buy, the institutions unload. Baidu, Inc. gapped higher this morning, pushing to a high of the day of $82.29. A negative bias was issued with a bearish outlook on the Pro Trader Watch List. As projected, the stock has fallen back to go negative at $77.21 -1.00 (-1.27%). Always remember, stocks following a split usually jump on retail buying. Never get caught in this buying frenzy, you will ultimately end up on the wrong side of the trade. We are seeing this today.
SanDisk Corp. made a new 52 week high today, hitting $45.20. This stock is extremely extended and was also added to the Bearish Pro Trader Watch List according to InTheMoneyStocks. In the Intra Day Stock Chat as it crossed $45.00, it was alerted as an Even Number Play. The Even Number Play is a master trading play created by Chief Market Strategist at InTheMoneyStocks. Since the short over $45.00, SanDisk is now trading back at $43.93 -0.34 (-0.77%). Everything that is discussed and done is based on proprietary technical analysis at InTheMoneyStocks.
Another huge surge in Netflix, Inc. took the stock to a high of $119.50. This was a huge move to a new 52 week high. Since that point, the stock has dropped back to earth. It is now trading at $114.00 +6.17 (5.72%). This is a $5.50 fall off the highs of the morning session. Be careful of stocks that surge higher on short covering make new 52 week highs in this market. Understand that technical levels. Netflix was also added to the Bearish Pro Trader Watch List at InTheMoneyStocks.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By Gareth Soloway on May 13th, 2010 12:35pm Eastern Time
The markets continue to hover slightly lower today. The wild swings seem to be on pause as the S&P 500 (INDEXSP:.INX) is trading at 1,167.17 -4.50 (-0.38%). The The Dow Jones Industrial Average (INDEXDJX:.DJI) hovers at 10,869.25 -27.66 (-0.25%) and the NASDAQ Composite (INDEXNASDAQ:.IXIC) drops to 2,411.68 -13.34 (-0.55%).
The markets seem to be unable to make a decision on which way to go in the short term. The bulls are still lurking while the bears are still enjoying the 1000 point flush on the Dow Jones Industrials just a week ago. Jobless Claims were somewhat disappointing today as they continue to hover around the 450,00 - 440,00 level each week. There is no job creation going on and that seems to be keeping any possible continued rally at bay. In addition, the dollar PowerShares DB US Dollar Index Bullish (NYSE:UUP) is slightly stronger again against the Euro CurrencyShares Euro Trust (NYSE:FXE) and Pound CurrencyShares British Pound Ster. Trst (NYSE:FXB). This continues to keep the markets from continuing the rally we saw yesterday.
Many of the top stocks today were slightly higher earlier but have fallen to the negative side by lunch. Apple Inc. (NASDAQ:AAPL) was higher by $3.00 but is now trading flat while key stocks like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co. (NYSE:JPM) are all lower on the day. These three stocks are part of the Dow Jones Industrials and are keeping the index under some minor pressure.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By InTheMoneyStocks on May 13th, 2010 10:22am Eastern Time
This morning the leading internet stocks are on the move trading higher. This sector is giving a lift to the tech heavy NASDAQ index.
Ebay Inc. (NASDAQ:EBAY) is the leading online auction company that has been beaten down lately on the charts after making a high in late March $2010 around $28.00. Today the stock is trading higher by $0.55 cents to $23.04. The stock has short term daily chart resistance around the $23.75 level.
Amazon.com, Inc. (NASDAQ:AMZN) is trading higher by $2.55 to $136.42 this morning. Amazon Inc is the leading online retailer that has bounced sharply from last Thursday's flash crash. The stock will have short term resistance on the daily chart around the $138.00 level.
Google Inc. (NASDAQ:GOOG) is the leading online search engine worldwide. The company has really sold off sharply since pulling it's business operations out of China. The stock is trading higher this morning by $11.11 to $516.70. Google Inc will have short term daily chart resistance at the $522.00 level.
Baidu, Inc.(ADR) (NASDAQ:BIDU) is the leading search engine in China. The stock has surged to new all time highs after Google Inc pulled out of China. Baidu Inc recently split their share price and is now trading very heavy volume. This stock is starting to look extended on the daily chart, however, it is still in a sharp uptrend.
When the leading internet stocks trade higher they will usually keep the technology heavy NASDAQ strong for the day. Should these stocks begin to pullback or reverse lower the index will come under pressure. The NASDAQ is holding up very well today considering Cisco Systems, Inc. (NASDAQ:CSCO) is now trading lower by $0.90 cents to $25.80 after reporting earnings. Cisco Systems Inc is a leading stock and a major Nasdaq 100 component.
Read more…
By InTheMoneyStocks on May 13th, 2010 9:30am Eastern Time
This morning the Euro currency traded down to a new low ahead of the open at the New York Stock Exchange. This is not all that much of a surprise since the European Central Bank announced a $1 trillion bailout for the European banks. Often when the U.S. Dollar trades higher it will put pressure on the commodity sector. However, the new liquidity thrown at the market may just lift all boats.
Continue to monitor the U.S. Dollar Index. Should the dollar decline it is likely that the stock market will catch a bid and vice versa. As for the Euro currency traders are not expecting any major bounces higher at this point.
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). The Currencyshares Euro Trust (NYSE:FXE) can be used to trade the Euro currency. Investor's can also use Currencyshares British Pound Sterling (NYSE:FXB) to trade the British Pound.
Read more…
The AUDUSD HotChart from May 4 in this link http://bit.ly/bsVQuY called for a 0.90 target followed by 0.87. 3 days later, AUDUSD did collapse to 0.87. Since then, AUDUSD has yet to regain 0.9080, which is the previous channel support, now acting as a solid resistance. Overnight, Australian figures showed the net creation of 33,700 jobs in April, with the unemployment rate holding steady at 5.4%. The RBA is expected to keep rates unchanged next month after raising rates 6 times since October. Improved risk appetite today could raise AUDUSD towards 0.9040-45, but any break beyond it seen capped at 0.9070 before a gradual retreat back below 0.89 in the medium term and onto 0.8780. GBPUSD awaits its trade data at 8:30 GMT. GBPUSD hourly eyeing $1.4930.
Read more…
STERLING LOSES all of yesterdays gains after the Bank of Englands inflation report reinforced expectations that any positive sterling impact from deficit-reduction plans may not survive the growth implications of these measures. The BoE reiterated that inflation will drop below the 2% target in 2010, which will maintain interest rates at 0.50% for some time. We warned in last nights IMT about the negative impact that could occur from the inflation report. GBPUSDs failure at the Apr 27 trend line resistance of $1.5050 could risk extending losses towards $1.4770. This also translates to a possible 0.8580 in EURGBP after the pair held at the 0.84 support. AUDUSD remains capped at 0.9050, targeting medium term objective of 0.8780 (before end fo quarter).
Read more…
By Nicholas Santiago on May 12th, 2010 2:10pm Eastern Time
As everyone knows, gold is now trading at new all time highs. Throughout history the yellow metal has been the one true currency of choice, regardless of countless attempts for nations to try to have a fiat money system. Once again, gold is emerging as the one true currency to the world. It is important to realize that gold is in a nine year bull market with no real signs of slowing down. SPDR Gold Trust (ETF) (NYSE:GLD).
Throughout 2009, gold lead the markets higher as the central banks around the world tried to inflate the market back to health. Obviously everyone knows that the banks around the world have been bailed out by printed money for years now. This past weekend European Central Bank and the International Monetary Fund announced a $1 trillion European bank bailout to keep the European Union together for a little while longer. This money is not going to the countries that are defaulting on their debt. Instead, this money is going to the banks the same way the TARP (Toxic Asset Relief Program) money went to the large banks in the United States.
Here in lies the problem; the European nations all have extremely high tax rates already. Now the taxpayers are going to pay more taxes and lose their benefits or entitlements that they currently receive. The tax payer is going to become outraged as we have seen from the Greek protests. The world is starting to get fed up with these bailouts. The U.S. is now starting to see a new movement developing called the Tea Party. This movement is begining to spring up in almost every city and town in the country. People are now recognizing more and more that the current two party system in the United States is a double headed monster in which they spend money to fix the problem while creating more. Where does the money come from? What is it backed by? First the money is printed or in modern times created on a computer. Second it is backed by the U.S. taxpayer and that taxpayer is getting tired of this system.
Households cannot function or stay above water by leveraging themselves or by taking on massive debt. That being the case, how can a nation or a government do it? They simply cannot incur more debt and remain healthy; this is what gold is telling us. Every fiat money (money which has no intrinsic value and cannot be redeemed for a commodity) supply system from the beginning of time has failed. This is not a good track record for a world that prints money out of thin air everyday. Gold has been the currency since biblical times and is still the currency of choice.
Is gold in a bubble? Normally when a stock or currency gets this much press it is in a bubble. However, that is not the case right now. If you ask anyone on the street, most people do not own any gold outside of their jewelry. Most Americans have never seen gold bullion or even a gold coin for that matter. Therefore, this is not a fade like Crocs, Inc. (NASDAQ:CROX) or the Silly Band Bracelets that my young children wear. This is the world currency from the beginning of time.
Read more…
By InTheMoneyStocks.com on May 11th, 2010 5:00pm Eastern Time
One of the best and most simple patterns to find is the double top. While most intraday double tops will be a good resistance level and a possible intraday scalp trade area, they are not all created equal. As traders all we look to do is put the odds in our favor. Therefore, utilizing a technical approach our goal is to take advantage and read the best support/resistance levels possible.
When trading the double top pattern intraday we want to spot a top that occurred several days ago. In fact, the longer back the better the odds. For example, look at the Costco Wholesale Corporation (NASDAQ:COST) 15 minute chart below. In this chart example you will see that COST made a significant pivot high on December 7th around the $59.75 level. Then a number of days later at the open of trading, COST trades up to that same level and then sells off. As a trader you should always keep a 10 day chart up on the smaller time frames as this will help you identify prior major resistance levels and reveal high probability trades.
Learn the key technical tools and methodology InTheMoneyStocks teaches; Price, Pattern, and Time, and begin to trade in a truly simplistic yet highly effective manner. Utilizing the methodology will make you a truly well rounded and very profitable trader/investor - your first step in advancing your skills should be our world renowed Webinar: "Methodology Revealed" which we have scheduled for Saturday, the 15th of May. This "Methodology Revealed Webinar" will open your eyes to the market in a way you never thought possible. In the webinar you will learn InTheMoneyStocks proprietary time counts and cycle techniques, how to read and chart anything in a truly scientific yet simply way, identify tops/bottoms in any market, calculate pattern like the Pro's, live chart analysis, much, much more! But most importantly, learn the key tools that no one else is teaching. Learn the exact key trading tools and techniques our Pro Traders use everyday to profit from the markets -- and apply it the very next trading day! Also, as a bonus webinar attendees will receive InTheMoneyStocks "Forcast For Profits" which will detail where the markets are and the direction of the markets for the remainder of the year!! Watch as the markets play out exactly as you anticipated and PROFIT from the action!
Space is limited! Sign up now!
Read more…
By InTheMoneyStocks on May 12th, 2010 9:32am Eastern Time
The U.S. Dollar Index is flat this morning ahead of the opening bell at the New York Stock Exchange. Normally, when the dollar is flat to lower the stock market index futures will usually be flat to positive. That is the case this morning as the S&P 500 e-mini futures are higher by 5.25 to 1157.50. Traders and investors should keep their eye on the dollar as the markets will usually trade inverse to the dollar.
Gold is higher again this morning trading up 17.00 points to 1237. This is a new all time high for gold as it now emerges as a true global currency. As long as central banks continue to print money in order to bail out banks gold could trade higher. The SPDR Gold Shares (NYSE:GLD) are trading higher by 0.54 to 121.18.
The Ishares Silver Trust (NYSE:SLV) is also trading higher by 0.16 this morning to 19.12. Often silver is a cheper way to play the rise in gold for many investors and traders.
The U.S. Dollar Index is the magic wand that controls the markets. When the dollar is higher the overall markets will usually be under pressure and vice versa.
Read more…
Sterlings Tuesday rally was the first daily gain after 7 days of losses, as financial markets applaud the combination of a market-friendly Conservatives victory and the LibDems contribution to achieving a majority government. Considering LibDems opposition to stringent spending cuts, this will help allay concerns of Conservatives usual aggressive stance on spending cuts. UK MAR CLAIMANT UNEMPLOYMENT due at 8:30 GMT expected at -20K from -32.9K, unemployment rate seen at 8%. GBPUSDs recovery to $1.4990s would have no issues in extending past the $1.5020 resistance and onto $1.5180 in the event of a market-friendly jobless figures. TRADERS MUST BE AWARE OF the Bank of Englands quarterly Inflation tomorrow, which could dampen sterling gains if it reiterates that inflation will return below target. News that Morgan Stanley is being investigated for abusing it sales of derivatives may also weigh on risk appetite. EURUSD struggles to regain $1.2750s, at which preliminary shorts seen eyeing $1.2650s, followed by $1.2580
Read more…
DAVID CAMERON IS THE NEW PRIME MINISTER as Gordon Brown stepped down and the Conservative Party negotiates with the Liberal Democrats to establish a coalition with majority in Parliament. GBP RALLIED right before London markets closed when Labour confirmed the breakdown in its talks with LibDems. GBPUSD POSTED ITS 1st DAILY GAIN in 7 days, eyeing the interim resistance at $1.5060, followed by $1.5120. ONLY WHEN THE NEW GOVT CONFIRMS a new majority in Parliament would sterling move onto towards the next leg of the rally and possibly retest $1.5150s. OTHERWISE TRADERS MUST BE AWARE OF the Bank of Englands quarterly Inflation tomorrow, which could dampen sterling gains if it reiterates that inflation will return below target. ALSO, Mervyn Kings testimony after the report will be important for the GBP. Renewed downside towards $1.45 cannot be ruled out. medium term outlook suggests emerging resistance at $1.55As EURUSD slumps towards $1.2630s, EURGBP is expected to retest the June 2009 low of 0.84 after having broken below both the 55 and 100-week MAs 2 weeks ago. Only a weekly close below 0.8390 will be required to pave the way for 0.8280s.
Read more…
