By Gareth Soloway on April 22nd, 2010 2:24pm Eastern Time
SPDR S&P 500 ETF (NYSE:SPY) dropped sharply early in the morning on the back of a downgrade of Greek debt and earnings from eBay Inc. (NASDAQ:EBAY) that surprised the market on their negativity. However, like so many other days in the last few months, the markets just will not stay down. Again, the credit must be given to the bulls as the market has reversed coming up underneath gap fill on the SPY. This will be a significant resistance level and may work as a solid shorting opportunity for a short term intra day trade.
The bears continue to get smoked as every significant attempt at a drop gets thrown in their faces with a late day light volume rally. The culprit aside from light volume seems to be the dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading just slightly off the lows of the day after falling in the last hour. Notice how the markets have jumped to the highs of the day and to gap fill.
The markets await Amazon.com, Inc. (NASDAQ:AMZN) earnings after the close today. Amazon is strong today, higher by 2.00%. I expect earnings to be in the range of $0.70 to $0.75 per share. If earnings come in this range, and the future outlook is improved, Amazon may be able to trade higher. If it comes in lower, the stock may fall sharply after the recent run up. Watch for comments on the Kindle and sales projections. With Apple and the IPAD as a major competitor, people may assume sales of the Kindle will fall sharply.
Gareth Soloway
Chief Market Strategist
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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
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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: 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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