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Bernanke Bounce Today. What About Tomorrow? (NYSE:GS), (NYSE:JPM), (NYSE:XOM), (NYSE:USO)

Posted by Aadil on February 24, 2010 at 11:43pm
By Nicholas Santiago on February 24th, 2010 3:28pm Eastern Time Today was a very interesting day as the Federal Reserve Bank Chairman Ben Bernanke testified before Congress. The usual grilling came from Congressman Ron Paul(Texas-R) who is trying to get the Fed to audit their books and monitor their loan activity. The rest of the U.S. Congress seemed very soft and mild mannered with the questions asked to the Chairman. The markets seemed to rally as the Bernanke testimony began and remains higher as of 3:00 pm EST. This rally today comes even as the U.S. Dollar is trading near the flat line on the day after an initial decline at the start of the session. Generally, when the dollar is higher on the day the market is usually lower. This is not the case today as financial stocks such as Goldman Sachs (NYSE:GS), and J.P. Morgan Chase (NYSE:JPM) are strong today leading the markets higher. There are also many strong energy stocks that are trading higher on the session. Stocks such as Exxon Mobile Corp (NYSE:XOM), and the U.S. Oil Fund (NYSE:USO) have traded higher despite the strong intra day dollar bounce. It is important to remember that the catalyst for the 2009 rally was the falling U.S. Dollar. Often when the trading volume is very light the dollar does not have the same inverse negative effects effect intra day on the stock indexes. However, should the dollar decline the market is likely to trade higher as most commodity stocks will rally. The dollar can be traded by using the Powershares DB Dollar Index (NYSE:UUP) for long trades, and the Powershares DB US Dollar Index (NYSE:UDN) for short trades. Where does today action leave us? This type of action is much like the month of February. It rallies higher on light volume and sells off on heavy volume. One can only expect choppy, sideways action into the end of the week, however, the month of March could see fireworks. Nicholas Santiago 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 24, 2010 at 6:57pm
2010.02.24 10:29: Dollar regains ground after brief losses following the release of Bernankes speech, which sounded a bit more dovish than expected, reiterating the Fed Funds rate to remain exceptionally lowfor an extended period. The 11% decline in Jan new home sales failed to move the market. Traders must await the Q&A session where more detail may be shed regarding the exit strategy. GBPJPY among the biggest losers as JPY rallies across the board, dragging USDJPY to 89.78. EURUSD 4-hr faces prolonged gains towards $1.3640, while cable remains limited at $1.5485-90. Gold seen capped at 1110 before renewed downside emerges.
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Can Research In Motion Limited (NASDAQ:RIMM) Break Through The Gap Window?

Posted by Aadil on February 24, 2010 at 6:29pm

By Gareth Soloway on February 24th, 2010 12:32pm Eastern Time
Research In Motion Limited (NASDAQ:RIMM) has been hammering on the gap window of the daily chart shown below for some time. Will it finally break out? This gap window stretches back to their earnings release which dissapointed Wall Street on September 24th, 2009. The stock gapped lower the next day, going from $83.06 to a close that day of $68.47. The high for the day which gives us our gap window resistance point is at $71.42. This is the master level that must be watched. We have hit it many times in the last couple weeks but never closed above it.

Should Research In Motion close over that area, expect a strong move higher in the coming days to weeks. Gap fill would take it all the way back to $83.00. Getting there in a straight shot is unlikely but in the long term it is extremely likely.

Keep an eye out for this break of gap window. It could be a very solid swing trade.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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The Big Bad Double Dip Is Coming. JPMorgan Chase & Co. (NYSE:JPM), Lennar Corporation (NYSE:LEN)

Posted by Aadil on February 24, 2010 at 6:06pm
By InTheMoneyStocks.com on February 24th, 2010 12:03pm Eastern Time After the Consumer Confidence numbers came out at a pathetic 46 from 56.5 last month, many began to wonder where the disconnect was? The President and his economic team have said the economy is on the road to recovery while many firms on Wall Street have reported stellar earnings. Yet the consumer apparently is having a major drop in confidence. This news was released at 10:00am ET yesterday. Fast forward to today. At 10:00am ET New Home Sales were released. The markets once again sold hard as New Home Sales came in down 11.2%. This was a record low. So what is really going on here? Where is this recovery? Sad to say, but the recovery seems to be purely stimulus based and even that is faltering. Could we be heading towards a 20 year period like Japan has had? While people say, "no, this is different!" It is mostly likely the same. Human nature does not change and in general we do not learn from our mistakes. Japan tried many stimulus plans just like we are now. They failed to ultimately have an impact. They can pump as much money into the economy as they want, running our debt sky high, but bottom line is, without jobs, without confidence, this economy will not recover. I hate to say it but sometimes the hard path is the shortest. It is time this country sucks it up and takes the pain. Sharp pain for one or two years then pleasure is much better than dull pain for 20 years in my opinion. My analogy would be this. Think of a boat with just too many holes in it. You can bail out the water as fast as you can, but you are going down either way. Better to let it sink and swim for shore I say! While the bad news has flowed the last few days, the markets are actually up nicely on the back of a collapsing dollar. The dollar is getting hit and that is sending the markets higher. Remember, the dollar is everything in this market. No matter the news! If the dollar is down, the markets will be up. Simple as that! Lennar Corporation (NYSE:LEN) is trading down on the day though well off the lows. It is lower by 1.5%. Toll Brothers, Inc. (NYSE:TOL) is also trading down but far off the lows. It is just down .75%. Technology is rebounding today headed Apple Inc. (NASDAQ:AAPL) up 1.6.%. Financials are also helping the markets move higher with JPMorgan Chase & Co. (NYSE:JPM) up 2%. Gareth Soloway Chief Market Strategist InTheMoneyStocks.com
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February Has Been The Month Of Chop (NYSE:SPY), (NYSE:DIA), (Nasdaq:QQQQ)

Posted by Aadil on February 23, 2010 at 9:46pm
By Nicholas Santiago on February 23rd, 2010 4:32pm Eastern Time The markets have whipped around during the month of February in violent fashion. Since the recent January high in SPDR Trust (NYSE:SPY) at 115.00 the SPDR Trust traded as low as 104.58 on February 5th, 2010. On that day the markets reversed on high volume and all the major stock indexes such as the Diamonds Trust (NYSE:DIA) and Powershares QQQ Trust (Nasdaq:QQQQ) have rallied ever since. Today the market is selling off as the SPDR Trust (NYSE:SPY) is trading down nearly 1.30 cents to 109.85 on the day. What changed on February 5th, 2010 to get the markets bullish again? The same problems in Europe all remain in tact to this very day. The situation with Greece has not been resolved yet and a half dozen more European nations are lining up with their own set of debt problems. The term PIIGS nations(Portugal, Ireland, Italy, Greece, and Spain) have become a household name and are just a few of the nations in trouble. There are a couple more countries in Europe that are in trouble such as Iceland, and Lithuania that can be added to the mix. Then we have the China situation. The Chinese government has raised the bank reserves for Chinese banks by a ½ point. They have also cut their exposure to U.S. debt as Japan has now become the largest holder of U.S. Treasuries. Where do we go from here? One can only suspect that this year will remain a traders market. The so called 'hope rally' of 2009 is over. If a stock wants to trade higher it needs to do more than beat the 2008-2009 comparison. Where is the growth and why does anyone expect it? Just because the Federal Reserve Bank raised the discount rate it has not raised the Fed funds rate. The discount rate only comes into effect when a bank needs to borrow from the emergency window. Therefore, it is prudent to become a trader or else beware going forward. Nicholas Santiago Chief Market Strategist InTheMoneyStocks.com
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MARKET GETS SLAMMED ON CONSUMER CONFIDENCE

Posted by Aadil on February 23, 2010 at 5:04pm
By TRADER X on February 23rd, 2010 10:19am Eastern Time
The SPY dropped sharply after the consumer confidence number was released at 10:00 am EST. The SPY will have some minor intraday support at 110.00 and better intraday support at 109.70. Both levels could possibly see small bounces.
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No Hype Approach: Markets Slaughtered By Consumer Confidence. (NASDAQ:QQQQ), (NYSE:HD), (NYSE:GS)

Posted by Aadil on February 23, 2010 at 4:56pm
By InTheMoneyStocks.com on February 23rd, 2010 11:34am Eastern Time It looks as if the markets are once again ready to growl. Following two weeks of quiet upside trading off the February 5th, 2010 pivot low, and a Monday that saw some of the lightest volume of 2010, the markets got crushed today! The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) is trading down 1.30% while the SPDR S&P 500 ETF (NYSE:SPY) are lower by just under 1.00%. The markets started with a small gap lower on the back of a stronger dollar. Concern overseas again pushing the dollar slightly higher. After the open, the markets made an attempt at going positive as they surged to gap fill, break even. Then all hell broke loose. The Consumer Confidence number was released at 10:00am ET and shocked the markets. Consumer Confidence was reported at 46 in the month of February after last months 56.5. The market had been expecting a number of 55 for February. This was a major shock and the markets dropped like a rock. For those of you following our analysis at InTheMoneyStocks.com, we had alerted that the market was near or at a top here and to be accumulating ETF's on the short side of the market. Some of those accumulated over th last few days were iPath S&P 500 VIX Short Term F (NYSE:VXX), Direxion Daily Emr Mkts Bear 3x Shs(ETF) (NYSE:EDZ), ProShares UltraShort S&P500 (ETF) (NYSE:SDS). All these soared today when the market dropped and we have taken some money off the table. These were all short term swings which is generally our featured style. In other news, Home Depot, Inc. (NYSE:HD) reported solid quarterly earnings. Even with the down move in the markets, the stock is holding up nicely. It is trading higher by 1.5%. Strength today is being shown in Goldman Sachs Group, Inc. (NYSE:GS) which is higher by 1.36% even in the down market. The biggest losers today are in the NASDAQ. Technology stocks like Apple Inc. (NASDAQ:AAPL) are under pressure. Apple is down 1.4% on the day and the NASDAQ is lower by 1.35%. Gareth Soloway Chief Market Strategist InTheMoneyStocks.com
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Caution On Retailers. Perry Ellis Intl. Inc. (NASDAQ:PERY), Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Posted by Aadil on February 22, 2010 at 7:00pm
By InTheMoneyStocks.com on February 22nd, 2010 1:47pm Eastern Time Retailers have had quite a run in the last two weeks. Great earnings and forecasts from the likes of Perry Ellis International, Inc. (NASDAQ:PERY) and others have propelled the whole sector quickly higher since the markets overall bottom on February 5th, 2010. As the economy appears to be back on track after the attempted 10% correction which fell just short, retailers are trying to squeeze every last penny. The Retail HOLDRs (NYSE:RTH) has moved within range of its 52 week high and stocks like Bed Bath & Beyond Inc. (NASDAQ:BBBY) and Tiffany & Co. (NYSE:TIF) have continued to gain momentum from their last fall. While all seems to be going well for retail in the eyes of Wall Street, I would caution Main Street may not be so kind. Many of these retailers are priced to perfection and pricing wars along with a still stingy consumer may keep these from moving higher. There is no debating that the bounce recently has been tremendous, however, once must look at the pattern and technicals along with the fundamentals. All of these signal a near term priced to perfection retail stock scenerio. When something is priced to perfection, generally it must continue to outperform in a greater and greater manner. That is a lose, lose proposition for any company. Any blip in the business can cause a dramatic decline. The problem for retail is that it continues to be on the cliff of not only consumer spending but its own pricing war. I caution on retail stocks and specifically look to possibly take advantage of a fall in the next month on the Retail HOLDRs (NYSE:RTH). I look for a pullback below $90.00 from the current level of $94.50. 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 22, 2010 at 6:43pm
Yen is best performing currency of the day (after NOK). CADJPY falls by more than 60 pips from the last IMT calling for declines in the pair. USDJPY hits 91.10 target, with 90.80 remaining viable, while gold demonstrates another high profile failure at 1123. Subseq target for CADJPY stand at 86.59, followed by 86.00 into the week. German Feb IFO (9:00 GMT) & US Feb consumer confidence (15:00 GMT) see calendar for more detail http://www.ashraflaidi.com/economic-calendar/
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