By Nicholas Santiago on April 22nd, 2010 12:51pm Eastern Time
Today the major stock indexes are all under some pressure. The weakness in the market could be due to geopolitical fears in Europe and talk of financial reform by President Obama. In any case there are still stocks that are making new 52 week highs today. However, there are a few new highs that are looking a bit extended and could be due for a pullback after the euphoria wears off.
Starbucks Corp (NASDAQ:SBUX) is at a new 52 week high. The retail coffee chain reported better than expected earnings and is receiving a positive reaction by the markets today. The stock is trading higher by 1.56 today to 26.95. While the stock is very strong technically on the daily chart it will have daily resistance at the 27.75 level. Therefore, watch for a pullback in Starbucks Corp around that level as the stock is now getting extended.
Boeing Co (NYSE:BA) is another major stock that is hitting new 52 week highs today. This stock is a leading aerospace designer and manufacturer. The stock hit a new 52 week high today at 76.00 before pulling back slightly intra-day. Boeing Co will have daily chart resistance around the 77.00 and more around 81.00. Watch for a pullback around these levels in the stock.
The next stock that is rallying to a new 52 week high is Netflix Inc (NASDAQ:NFLX). This stock beat analyst expectations and is soaring above the 101.75 level today. This stock has daily chart resistance around this 102.00 level and more around 106.00. Therefore, a pullback could take place shortly as this stock gets extended on the daily chart.
While the major indexes are all negative today there are some stocks at new highs for the year. Always watch for stocks that are getting too extended and stretched on the daily charts as they could be close to a pullback.
Nicholas Santiago
Chief Market Strategist
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By Gareth Soloway on April 22nd, 2010 11:44am Eastern Time
The markets dropped sharply at the open today on the back of poor earnings reports from eBay Inc. (NASDAQ:EBAY) and QUALCOMM, Inc. (NASDAQ:QCOM). In addition, major worries continue about Europe, specifically Greece. Today, Moody's dropped Greece's sovereign ratings to A3 from A2 and placed them on review for further possible downgrade. The dollar was sharply higher while the markets dumped lower.
Yesterday, I wrote an article calling for a market top on the back of Apple Inc. (NASDAQ:AAPL) inability to rally the market on amazing quarterly earnings. This was a key signal to me, alerting to a market that just did not have anymore energy to go higher. If Apple could not rock the markets higher with those star earnings, then what could be reported to push it higher?
JPMorgan Chase & Co. (NYSE:JPM) is dropping today, down over 2.00%. Financial stocks are mixed overall. As I mentioned, the dollar is much stronger today putting a lot of pressure on Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX). In addition, other commodity stocks continue to be under pressure.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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: EURO NEUROSIS as SPREADS GONE WILD; Greece-German 10 yr spreads hit new record of 5.77%, Portuguese-German spread at 1.8%, USD BROADENING STRENGTH ESCALATES as EURUSD hits $1.3280, while EURGBP tests its 200-WEEK MA for the first time since 2007. US Mar existing home sales rose 6.8% vs exp +4.6%. Commodities sell-off drags oil below 81.90, eyeing 81.50, but 80.40 is the next target, which is the 38% retracement of the 69.5-87 move. AUDCAD seen testing 0.9210, Cable eyeing 1.53, especially on prolonged LDP gains ahead. USDCAD target stands at 1.0070. USDX PROBING 4-week trend line resistance at 81.72, eyeing 82.
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GBPAUD consolidation enters its 4th week, but a perfect storm aiding the cross would be a favourable GBP outcome from tonights UK election debate as well as soft Aussie data, such as weak CPI next week. Tory officials have been vocal at indicating that a strong showing by the LDP would drag the country into hung parliament to the detriment of the currency. Will David Cameron and Gordon Brown aim at reducing Nick Cleggs lead by attacking him at the debate? Any signs of Cameron coming out ahead in the debate would boost GBP, while a strong showing from Brown is to have the opposite effect. GBPAUD is seen supported at 1.6450, while prelim resistance starts at 1.6680, followed by 1.6760. GBPUSD extends recovery, but pressure seen emerging at $1.5480, followed by 1.5540.
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Posted by tomasthetank on April 21, 2010 at 11:21pm
http://www.cnbc.com/id/36695054I believe this is going add alot of downward pressure bank stocks tomorrow...not sure if it has been priced into market and may trigger correction
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AUSSIE & FREEPORT-MCMORAN chart http://chart.ly/fyysmt are both on their way down as copper extend losses in 4 out of the last 5 days (see latest weekly article on BDI). FCX, one of the worlds biggest copper producers, beat earnings by 20 cents/per share today but it looks like markets are already pricing in the economic recovery, which may limit any upside in copper and related companies/currencies. HEAD&SHOULDER in FCX is evident. FCX today also falling below BOTH its 55 and 100-day MA. We mentioned yesterday how Aussie fortunes are increasingly gloomy against USD and AUD, with prelim targets at 0.9150 and 0.9215/
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By Trader X on April 21st, 2010 9:42am Eastern Time
Apple Inc is gapping sharply higher by more than 14.00 points to 258.65 after reporting earnings last night. The AAPL earnings estimates came in much better than analyst expectations. AAPL will have intra-day resistance around the 261.00 level.
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By Gareth Soloway on April 21st, 2010 12:08pm Eastern Time
The markets opened slightly higher, inching up throughout the morning session towards the 52 week highs. The SPDR Dow Jones Industrial Average (NYSE:DIA) hit $111.50, just $0.12 off the 52 week high while the SPDR S&P 500 (NYSE:SPY) hit $121.23, just $0.33 off the 52 week high. The tech laden PowerShares QQQ Trust, Series 1 (NASDAQ:QQQQ) hit the exact 52 week high at $50.19. The markets now sit back down on the flat line, barely able to hold any gains. The top is in on this market.
Why would I make such a statement? Mainly because of the price action we are seeing today off of earnings from companies like Cree, Inc. (NASDAQ:CREE), Yahoo! Inc. (NASDAQ:YHOO) and of course Apple Inc. (NASDAQ:AAPL). CREE and YHOO are seeing nice declines after reporting solid earnings but the real significant piece of data comes with AAPL. AAPL had unbelievable earnings and huge increases in sales of IPODS and IPHONES. However, the market is trading flat to lower. If Apple cannot prop up the market, what else can?
This seems like the first time in the last year where great news is not able to shoot the markets higher, especially from a company like Apple. I think this could be significant. Apple is the leader among leaders. It is up 5% on the day and the Nasdaq is flat. The price action speaks for itself in this Chief Market Strategist opinion. We will watch and find out in the coming weeks.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
To get more 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!
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By Gareth Soloway on April 21st, 2010 12:33pm Eastern Time
After unbelievable moves higher, many metal stocks are now seeing unique price action over the last couple weeks, going against the flow of the markets. The markets have inched higher, making a new 52 week high in the last week, but key stocks that are a solid gauge of a healthy economic rebound have stalled and some have fallen sharply. This may be as sign of trouble brewing as they can often be an economic leading indicator.
Take a look at these charts below. Southern Copper Corporation (NYSE:SCCO) topped out in January at a 52 week high of $36.29. While most other stocks have since taken out that January high in the recent stock market run up, Southern Copper has not. The stock hit a low of $30.84 today, well off that January high. This is a tremendous fall since January. Southern Copper is known as a leader, and strong price action would dictate global economic growth.
Next, let's look at AK Steel Holding Corporation (NYSE:AKS). The stock also topped out at a 52 week high at $26.75 in January and has since never even looked back. In fact, in the last two weeks, the stock has collapsed lower, hitting $18.51 today. This again does not show us a robust growth situation in the global economy which is what the markets supposedly have rallied on, over the last few months.
Stocks like United States Steel Corporation (NYSE:X), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and many other metal plays show the same chart.
In understanding how the metal stocks play a key role in showing economic growth, it leaves me to wonder if we truly do have as robust of a recovery on our hands or if it can last once the stimulus is taken away. In addition, it makes me wonder if these stocks rolling over could be a leading indicator for the markets to lose ground shortly. Join the Research Center to gain access to the secret techniques, guidance, plays and education that the hedge funds utilize to make billions.
Metal Stocks Are Getting UGLY (NYSE:FCX) (NYSE:X) (NYSE:CLF)
By Nicholas Santiago on April 21st, 2010 12:25pm Eastern Time
Most savvy investors and traders know that when the industrial metal stocks trade higher it is a sign of economic growth. The legendary trader, Jesse Livermore used to say that all houses are built with copper roofs. What he meant by that is, when copper is strong it is an indication that the stock market is strong. Therefore, when we look at the leading metal stocks at the present time there are some negative signs brewing in this market.
The first major metal stock that is acting poorly is Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). This stock is still sharply below its January high which was 90.00 a share. Today the stock is trading down 2.00 points to 78.43. The stock will have some daily chart support in the near term from a technical oversold condition around 77.00 and 74.00. In any case this market leader has been weak and has more downside in the cards.
The next important metal stock that seems to be under pressure on the daily charts is United States Steel Corporation (NYSE:X). This stock has declined sharply since forming a recent top on April 6th, 2010 at 70.00 a share. Today the stock is down 1.24 to 57.65. The daily chart looks to have more downside to come. The stock will have some daily chart support in the near term around the 55.00 – 54.00 level from an oversold condition .
Another major market leader in the industrial metal space that is showing weakness is Cliffs Natural Resources Inc (NYSE:CLF). This leading iron ore pellet producer topped out recently around 76.00 a share on April 15th, 2010. The stock is lower today by 1.70 to 68.41. This stock will have good support on the daily chart around the 60.00 level. Although, it is weak and may still have further to decline in the near term.
The overall market indexes are still very strong and in a technical uptrend. However, these leading metal stocks are painting a different picture. We all know China is trying to cool off its real estate market by curbing mortgage lending. This could be a good reason for the pullback in these industrial metal names. If the emerging markets cool off what is left to this rally? Beware.
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