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Market Technical Strategies And A Look Ahead. (NASDAQ:COST), (NASDAQ:PALM), (NYSE:SPY)

Posted by Aadil on February 28, 2010 at 6:17pm
By Chief Market Strategist Gareth Soloway on February 28th, 2010 11:51am Eastern Time The markets ended the last week of February 2010 almost flat. The SPDR S&P 500 ETF (NYSE:SPY) ended the week -$0.40. While they were basically flat, that does not describe the crazy movement and wild swings the markets displayed during the week. Between the wild swings in the U.S Dollar and the horrid economic news, the market barely held on. Looking back on the week, it almost seemed too perfect. All the bad economic news, the dollars simple trickling lower helped keep the markets from a near crash scenario. If you can control the dollar, in the near term you control the markets and can keep them up. At this point we all know the Federal Reserve controls the dollar. The economic news started badly and just got worse. On Tuesday, Consumer Confidence came in far less than expected and on Wednesday New Home Sales shocked to the downside. On Thursday Durable Goods and Jobless Claims were disappointing and on Friday, Existing Home Sales were nothing to write home about. With all this news shattering the hopes of a soon to be recovered economy, one would have guessed the market would have been crushed. Not so! The dollar fell lower for the week keeping the markets with their steroid inflated buzz. How long can it last? Watch this week closely. At some point here very shortly, Wall Street and Main Street will collide just like they did in early to mid January when the markets fell almost 10%. Just like my top call to my members in early January, there is another one coming up here shortly. The first stock to watch this week is Palm, Inc. (NASDAQ:PALM). Sales for Palm do not look good at all and the stock has dropped over 50% since the highs in January. While the company has had some ugly news of late, it is possible to see a technical bounce shortly. If there is one thing I have learned as a trader it is...nothing goes straight up or straight down. There are always short term swings available should the technicals be read correctly. The second stock to watch this week is Costco Wholesale Corporation (NASDAQ:COST). They report earnings on Thursday March 4th, 2010. Analysts expect them to report $0.71 in earnings per share but whisper numbers put expectations slightly higher at $0.73 per share. The stock has made an impressive climb from its January lows around $57 to a closing price on Friday at $60.97. One has to wonder how much of their earnings are already baked in. Below is a video summarizing the key levels and outlook for the week. Enjoy! Gareth Soloway Chief Market Strategist InTheMoneyStocks.com
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on February 27, 2010 at 6:29pm
On Feb 8, AshrafLaidi.com shared this chart http://chart.ly/8ec4fx on GBPUSD net longs/shorts, warning that MORE GBP SHORTS were ahead (read caption in chart). GBP net shorts soared to 62,884 this week from about 21,000 in Feb 8 while GBPUSD lost over 500 pips to $1.5200. On Monday Feb 22, we warned on the site and twitter.com/alaidi about the upcoming slide in CADJPY. The pair lost 200 pips by Tuesday and another 100 pips on Wednesday. Finally, Thursdays HotChart on AUDNZD speaks of itself. http://bit.ly/b9DCb9 Such is the nature of the predictions and insights given on AshrafLaidi.com, using fundamentals, technicals and marrying all major market segments. Gold did not reach our target this week, but we have not abandoned our medium term bearishness in the metal
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Gold - February 27, 2010

Posted by The Trading Solutions on February 27, 2010 at 11:00am
SummaryLong term outlook: UpMedium Term Outlook: DownShort Term Outlook: Sideways to UpRevision Point: Break above 1260Potential Medium Term Targets: 680 and lowerPreferred Strategy: Take short term positions only, till we see an end of the corrective phase..022710gold1.bmpThe market did not have any surprises during the last week. The price unfolded quite as expected. With a completed wave 2 at the January 11, ’10 high (1161.75) followed by wave I.3 at the January 28, ’10 low, followed by a.II at the February 3, ’10 high (1125.10), wave b.II at the February 5, ’10 low. We are now at or close to the completion of what we expect to be wave c.II. However, there still seems to be a potential for the price reaching close to the 1138 to 1142 mark.022710gold2.bmpIt is also important to keep in mind an alternative interpretation of the move down since December 03, ’09, while planning any potential trades:With a possible wave 1 at the December 22, ’09 low (1074.90), followed by wave A.2 at the January 11, ’10 high (1161.75), wave B.2 at the February 5, ’10 low (1044.55), we are now in the making of a five wave advance to complete wave C.2. As per this scenario, our target for the completion of wave 2 will be above the January 11, ’10 high at 1161 and close to the 1185 to the 1190 level, but keeping below the December 3, ’10 highs at 1126.30).
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on February 26, 2010 at 6:27pm
UK gilt yields showing a extreme bearishness on a price and oscillator level SEE CHART http://chart.ly/2mtrrc suggesting the ongoing weakness in GBP is here to stay. GBP is now the worst performing currency over the month-to-date, year-to-date and over the last 6-months when compared to the top traded 11 currencies. GBPUSD is now 7% below its 200-day MA, showing all the technical signs for further damage onto the $1.5050 and $1.48. Gold defies our bearish call for the week, now facing resistance at 1120., a break of which will call up the next barreier at 11134.
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Exxon Mobil And Chevron Corp May Tell the Tale (NYSE:XOM), (NYSE:CVX)

Posted by Aadil on February 26, 2010 at 6:24pm

By Nicholas Santiago on February 26th, 2010 10:26am Eastern Time When navigating through these markets one must watch the leading energy stocks. The two most important stocks that are major Dow Jones Industrial Average components are Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVX). These two stocks are not only top integrated energy companies worldwide, but, also top stock market barometers. If one looks at a chart of Exxon Mobil (NYSE:XOM) they will see that the stock is trading below it's daily 50 and 200 simple moving averages. This is a bearish trend on the daily charts that must be watched closely. The stock is also 30 points below it's 2008 all time high at 95.00. Exxon Mobil Corp is still a great company, however, the stock is in a poor technical position at this time and could be signaling lower prices to come. The chart of Chevron Corp (NYSE:CVX) is not much better than Exxon Mobile. This chart is trading on it's daily 200 moving average and lower than it's daily 50 moving average. This stock is also trading 30 points below it's 2008 all time high. Overall this is not a pretty picture on the charts for Chevron at this time. When major stocks paint this type of a picture on the charts traders and investors must beware. These two stocks are major Dow Jones Industrial Average components. Therefore, if these stocks decline from here they are likely to drag the averages down with them. While they are very good companies they do not look like very good stocks at this time.
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The Stock Indexes Pop As The Dollar Tanks

Posted by Aadil on February 26, 2010 at 6:22pm

By InTheMoneyStocks on February 26th, 2010 10:45am Eastern Time Many fundamental traders and investors might have mixed reviews of the markets after hearing today's economic numbers. Simply put all one needs to do to see how this market is reacting is to just simply look at an intraday dollar chart. The dollar made an intraday high today at 10:00 am EST. From that point the dollar took a nose dive and the market rallied higher. Every trade is a dollar trade.
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The Money Play Is Palm. Palm, Inc. (NASDAQ:PALM), (NASDAQ:RIMM), (NYSE:MOT), (NASDAQ:AAPL)

Posted by Aadil on February 26, 2010 at 6:21pm

By Chief Market Strategist Gareth Soloway on February 26th, 2010 11:41am Eastern Time Palm, Inc. (NASDAQ:PALM) has been under intense sell pressure since the January 9th, 2010 high was made at $14.17. Since that point, the stock price has fallen to a low today of $6.07. This is just slightly off the 52 week low of $5.85. The 5 week dramatic fall in Palm, Inc. culminated with a warning yesterday from the company that fiscal third-quarter and full-year revenues would be far below Wall Street estimates. From the stock action in the previous 5 weeks, it seems Wall Street already knew this. The question remains, when is it a buy? At these current levels, the stock looks extremely attractive for a few reasons. First, the volume yesterday on the massive warning and price flush could and most likely signals capitulation. This would signal a possible price reversal in the short term. In addition, the price today came just above massive support at $5.85. The key on the stock would be to watch the close of today. If the stock closes above the low from yesterday, the short term bottom is most likely in and a bounce could be seen. This is just a short term bounce expected. With the stock having fallen from $14.17 to a low today of $6.07 in just five weeks, Palm, Inc. is extremely oversold near term. The stock has been punished and volume and price does indicate a bottom. Gareth Soloway Chief Market Strategist InTheMoneyStocks.com Disclosure: Gareth Soloway does own Palm, Inc. stock at the time this article was written. He may sell at any time.
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Markets Fade Off Highs In Light Volume, Wall Street Winter Wonderland

Posted by Aadil on February 26, 2010 at 6:19pm

By InTheMoneyStocks.com on February 26th, 2010 12:26pm Eastern Time The markets moved lower early on in the morning session only to spike higher as the dollar was pushed down. Since the double top of $111.00 was hit, the markets have faded slowly back to the flat line. Expect a flat day today as NYC and Wall Street are buried under lots of snow.
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The Skinny On Gold And Silver (NYSE:GLD), (NYSE:SLV)

Posted by Aadil on February 26, 2010 at 6:18pm
By Nicholas Santiago on February 26th, 2010 12:59pm Eastern Time Gold has been the trade of the decade. Since 2001 gold has not only outperformed the Dow Jones Industrial Average, it has made new all time highs every year from that time. As we all know the Dow Jones Industrial average is below it's 2007 and 2000 highs making this the so called lost decade for this index. Gold is a double edge sword in this environment. Many central banks around the world have diluted their nations currencies during the panic of 2008 making gold a true world currency play. Since the March 2009 low in the stock market our own central bank called the Federal Reserve Bank has kept rates at an unprecedented low at zero percent. That means money has continually been created out of thin air. The only reason that gold has pulled back or stalled from moving higher is because the U.S. Dollar has rallied since December 2009. Had the dollar kept declining gold may have been at $1500 an ounce by now. In any case gold is not behaving too poorly considering the dollar has been strong. Throughout 2010 gold may not be as stellar of a performer as it has been in the past. This is due to investors running into the U.S. Dollar as the European crisis is just heating up. Please don't think for one minute that this current European crisis ends with Greece. There are another ½ dozen countries and possibly more that are lining up with debt problems. Gold and silver are also safe havens should a global panic ever occur. Who in their right mind would want to have fiat money in their pockets should a huge crisis ever occur globally. Gold continues to look like a good long term investment, however, it probably should be traded throughout 2010. There are a couple of ways to play gold. The first way to trade gold is to use the SPDR Gold Shares (NYSE:GLD). This ETF is very liquid and tracks gold very well. Another way to play gold is to trade silver. Silver is much cheaper than gold and usually trades in tandem with gold movements. If traders and investors want to trade silver using and ETF they can trade the IShares Silver Trust (NYSE:SLV).
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on February 26, 2010 at 2:24pm
GBP tumbles across the board, further breaking away from its previous positive correlations with equities as the likelihood of further quantitative easing from the Bank of England haunts the currency. Readers of this website will recall our Dec 18 article http://bit.ly/5Meew3 laying out the case for why Sterling to Regain Whipping Boy Status in 2010. GBPUSD looks for preliminary target at $1.5130 after the $1.53 retarcement had been shattered. Any rebound remains capped at $1.5270 and $1.5330. GBPJPY probes the 135.70 support (61.8% retracement of the rise from the 118.90 low to the 162.91 high. Subsequent target at 135.30, followed by 133.80. US prelim Q2 GDP expected to be revised to 5.6% from 5.7%. CANADA Q4 Current Acct exp C$ -8.7 bln from C$ -13.bln. USDCAD supported at 1.0540, a break of which to call up 1.0480. But upside remains intact, for renewed test of 1.0590 and 1.0630.
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on February 25, 2010 at 11:12pm
Today's RUMOURS about CHINA BUYING buying the remaining 200 bln tonne of gold have yet to confirmed, but they were reportedly effective in supporting the metal against USD considering the sharp rally in USD and JPY. A Chinese website (China Daily) denied the news while a Russian publication (Pravda) confirmed it. Why would a buyer of something announce its actions before the purchase? Either the purchase had already been done or the news was let out inadvertently. It is the same concept with those reports of Arab Gulf central banks diversifying into EUR away from USD back in 2006-07; or PBOC buying EUR and less USD. Theres no reason for a central bank to pre-announce a purchase of a currency (unless it was intervening). Going back to this weeks article on Gold & EUR http://bit.ly/989mRs, note the chart on the Gold Net Longs/Shorts indicates the decline in net longs has some way to go. And in each of the preceding peaks attained, net longs fell 70% off each peak before starting to recover. Net longs are currently down 30% from their Dec peak, which helps suggest will reach towards the 145K contracts territory from the current 188K. We maintain our 1025 target in gold for next month.
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on February 25, 2010 at 7:46pm
Todays equity sell-off is accompanied by the biggest daily decline in oil since Feb 4, pushing the fuel below its 55-day MA, Gold, however, recovers after 3-consecutive daily losses on reports that China will buy the IMFs remaining 200 tonnes on sale by the IMF. A close above 1109 in gold could extend upside towards 1117. NEW HOT CHART UPDATED ON AUDNZD. http://bit.ly/b9DCb9
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