By InTheMoneyStocks on March 18th, 2010 3:45pm Eastern Time
What can a trader say? The volume remains extremely light. The market has continued to float higher since the February 5th pivot day. Simply put the light volume favors the upside. Hence, the old market adage, 'never short a dull market'. This is certainly as dull as we have seen in quite a while.
Perhaps this afternoon the market will sell off into the close since tomorrow is quadruple witching options expiration. However, when the volume is this light the odds are simply not in the favor of a decline.
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By InTheMoneyStocks.com on March 18th, 2010 3:50pm Eastern Time
An inverse head and shoulder pattern is a bullish pattern. There is one in play on JPMorgan Chase & Co. (NYSE:JPM). As long as it stays above the breakout line, it is in play. If it fails, look for a strong reversal as failed patterns create big moves in the opposite way.
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By Nicholas Santiago on March 18th, 2010 1:14pm Eastern Time
What can one say about the markets when they just don't seem to fall? The United States has been spending money like a homeless person that just won the lottery. Deficits are now in the trillions of dollars and growing by the minute. The unemployment level in the U.S. is at 9.7 percent according to government standards and around 17 percent from other reports. Then there is the housing crisis that continues to plague the United States. Home foreclosures and now shadow foreclosures are increasing, literally by the minute. Stimulus programs such as home tax credits are everywhere and houses are still falling by the wayside. Banks in the U.S. are still not making loans, however, they are making profits. When you can borrow at nearly zero from the Federal Reserve Bank and buy U.S. Treasuries you can make money even if you are an idiot. Add proprietary trading to that and who needs to lend. Once the mark to market accounting was removed for the banks, the toxic assets no longer needed to appear on a balance sheet. Simply brilliant when you think about it yet just hiding the obvious from the average American.
Then the stock market rallies since March 2009. President Obama tells the country that it is a good time to buy stocks for the long term. The market has rallied ever since that statement. I have to admit, it was due for a bounce at that time and what a bounce it has been. While the volume trends have been extremely poor, you cannot fight the price action. The market floats higher everyday regardless of the news.
Then we have the European Crisis. The Euro Union is in complete disarray. Greece, Spain, Italy, Ireland, Portugal, Lithuania, and possible a few other countries that I'm forgetting are all insolvent. Bailouts are necessary for all of these countries. Then we have England which has its own debt problems that are also soaring. Remember England is independent form the European Union. The British Pound has been getting pounded since mid November. However, the FTSE index (INDEXFTSE:.FTSE) has made new highs for the year.
Then we have China. It has been crowned the leader of economic growth. Can you believe a communist country is leading the world in growth? China now seems more of a capitalist country than the U.S. Don't tell Google Inc (NASDAQ:GOOG) that. China supposedly buys every commodity on the face of the earth and consumes all the energy they can get their hands on. China continues to keep their currency called the Yuan pegged to the U.S. Dollar. Why wouldn't they keep their currency pegged when they hold about a ½ trillion dollars worth of U.S. Treasuries and maybe more.
The moves in the SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF
(NYSE:DIA), PowerShares QQQ Trust, Series 1 ETF (NASDAQ:QQQQ), and iShares Russell 2000 Index ETF (NYSE:IWM) have all been simply amazing over the past year. This is wild action in the wild west. When the volume is this light it can continue to float higher.
Nicholas Santiago
Chief Market Strategist
InTheMoneyStocks.com
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By Gareth Soloway on March 18th, 2010 11:48am Eastern Time
The dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP) has jumped dramatically higher today as the Euro, CurrencyShares Euro Trust (NYSE:FXE) fell off a cliff. Fear appears to be emerging over future problems in Europe. We all know about the problems with Greece but this is just the start I fear. Where there is one rat, there is a hoard. Be ready for the next one to emerge soon in my opinion.
While a dramatic rise like this in the dollar usually has a major negative impact on the markets, the stock market has barely moved. Volume is dead and the powers that be continue to hold it in check on this options expiration week. It is truly astounding that the common American has no idea what truly goes on behind the scenes. The manipulation, the printing of money, the intervention and propping of the markets. Bottom line is, if we did not learn from past history we are doomed to repeat our mistakes. You cannot manipulate your way out of problems and ultimately it makes them far worse. Case and point, lowering rates to 1% under Greenspan was one of the key catalysts to creating the free money policy, which lead to the credit bubble and housing collapse. Our government officials are far too short sighted unfortunately, looking to get re-elected in the short term, instead of the long term prosperity of the economy.
Stocks In Motion - Earnings
NIKE, Inc. (NYSE:NKE) is surging today as fiscal third-quarter profit more than doubled on higher sales in the U.S. and China. The stock, which was already at 52 week highs has jumped over 6% on the day. The stock is extremely extended at this level, however,
FedEx Corporation (NYSE:FDX) also reported earnings. Their results for the fiscal third-quarter earnings more than doubled, topping the company's own estimates. Initially the stock was crushed pre market and on the open. Then a major reversal took place. The stock has recovered its early losses and is now trading flat.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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FX MARKETS to soon realize that the 100-bp decline in the Greek-German 10-year spread was founded on "anticipation" of a Greek deal rather than an actual package, and will find little resistance in driving back down EURUSD towards its February lows of $1.34, followed by $1.32. A resolution over Greek aid is now unlikely before the March 25 EU Summit. Meanwhile, the Fed is due to end its purchases of $3.0 trillion in MBS this month, bringing its quantitative easing a step closer to the end. Such are the factors preventing EURUSD from regaining the all-important $1.3850 resistance. REGISTER for Ashrafs VANCOUVER SEMINAR this SATURDAY http://bit.ly/ acXvOH
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By Nicholas Santiago on March 17th, 2010 3:54pm Eastern Time
The two major energy drilling and exploration stocks are Baker Hughes Inc (NYSE:BHI), and Schlumberger Limited (NYSE:SLB). While these are the two leaders in the sector, investors want to know which stock looks better than the other at this time?
The winner of the two stocks at this time would have to be Baker Hughes Inc. The stock has rallied since December 9, 2009 when it was trading at 38.00 a share. The stock is now at 48.00 and holding up relatively well. Technically speaking on the charts the stock is trading above its daily 50 and 200 moving averages which is indicating a strong uptrend. Baker Hughes Inc is above the 50.00 level and it is likely to meet chart resistance at 55.00. Therefore the stock would have upside potential of 6 percent if the stock continues to trade higher.
Meanwhile, Schlumberger Limited started to rally in late February. The stock is still below its January high at 72.00 which is a sign of weakness relative to the S&P 500. However, Schlumberger Limited is above its daily 50 and 200 moving averages which is technically strong. The stock should face good resistance at the 67.50 – 68.00 level. Should the stock clear 70.00 it could reach its double top at 72.00. Therefore, the upside potential from a move above the 70.00 level is 3 percent.
Here you can see and judge for yourself which is the best risk reward of two different stocks, in the same sector. While both stocks are in a short term technical uptrend, Baker Hughes Inc still looks like the better trade at this point.
By InTheMoneyStocks.com on March 17th, 2010 1:44pm Eastern Time
The markets are all hovering higher today. Dow, Nasdaq and S&P 500 up over half a percent on the day. The SPDR S&P 500 ETF (NYSE:SPY) is higher by .60%. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is up the same. Since the February 5th bottom, the markets have gone straight higher. Rumors and speculation jump out on why the markets have done this. Across the board, it is looking more and more suspicious. Suspicious? Yes, it is looking like there are other factors at work in keeping the market near the highs if not making new highs.
One interesting coincidence to look at is the President Obama tough talk. Where has it gone? Did anyone notice how Wall Street rebelled as soon as President Obama started talking about regulation for Wall Street? This started in mid January and Wall Street fought back. The markets tumbled drastically, dropping almost 10%. Since that happened, has anyone heard a peep from the President on Wall Street regulation? I think not! Anyone who thinks the markets are a true barometer of the economy needs glasses. Anyone who thinks that Wall Street and big business does not control the government also needs to be admitted into a psychiatric ward in my humble opinion.
As the markets trade higher, a few key stocks are pushing this market. Exxon Mobil Corporation (NYSE:XOM) is making up for the previous lackluster days. It is surging 1.70%, a monster move for that stock! Of the oil plays, that is the leader today, no doubt about it. Technology is being headed by the semiconductors. The Semiconductor HOLDRs (ETF) (NYSE:SMH) is higher by 1.6%, a big move and even bigger, considering the SMH was up huge yesterday as well. Apple Inc. (NASDAQ:AAPL) is having a average day, just up .65%. Financial stocks continue to lead the market, charged by JPMorgan Chase & Co. (NYSE:JPM). JPM is up 1.75%.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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By InTheMoneyStocks on March 17th, 2010 9:40am Eastern Time
The U.S. Dollar Index is starting the morning down 0.05 cents to 79.71. The overnight activity in the dollar usually effects the futures in the morning. However, once the opening bell rings the market will often trade somewhat inverse to the dollar. Therefore, if the dollar declines the market will usually rise and vice versa. When the major market indexes trade with very light volume it will sometimes ignore any dollar strength if there is any.
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