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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/

Posted by Aadil on February 9, 2010 at 7:52am
Unlike EUR net shorts vs. USD which have reached new record high of 43,741 contracts SEE CHART http://chart.ly/8ec4fx GBP net shorts remain well off their October highs of 62,106 contracts, reflecting less GBP pessimism in the currency against USD. But rising expectations that BoE will be forced into fresh asset purchases ahead of an uncertain election year, coupled with outright longs being built in USD, may prompt speculators into expanding their shorts near the October highs. The BoE may not be in a hurry to inject fresh QE, but markets will grow especially vigilant in viewing upcoming data with a QE lens, especially as the impact of the VAT hike and oil recovery recedes into the remaining of the quarter. Technically. Sterling's decline against USD and JPY is prompting traders to probe $1.5350 and 138.20 respectively as early as this week.
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Has Toyota (NYSE:TM) Found A Real Low?

Posted by Aadil on February 8, 2010 at 9:35pm

By Nicholas Santiago on February 8th, 2010 1:00pm Eastern Time
Toyota Motors (NYSE:TM) has been on the hot seat recently. Toyota issued a massive recall due to an accelerator problem. This recall has affected millions of vehicles and the owners of theses vehicles. Politicians and federal investigators have made statements about the recall from Toyota as the company is in the news every single day.

On January 15th, 2010 the stock made a new high for the year at nearly 92.00 a share. Since that time the stock has declined to 71.00 on February 4th, 2010. From peak to trough this is a 21 point decline in just 3 trading weeks. While the stock has fallen sharply from these levels they still maintain a lot of market share globally.

Currently Toyota Motors as a stock is under pressure. Many other car companies are trying to capitalize on the negative news from the market leader Toyota. Ford Motors (NYSE:F) is one stock that has traded higher on the back of a falling Toyota stock. Ford has surged over ten fold and nearly 11.00 points throughout 2009 since it's February 2009 lows. From a traders point of view most of the good news looks baked into the cake for Ford.

So what is a better buy here, Ford or Toyota? Throughout history, it is hard to knock off the king. Toyota Motors is still the king. Companies have had recalls before and they seem to always pull through. Toyota is looking attractive at these levels. Remember the market always overshoots much the same way that a pendulum does. Often it goes to an extreme high and then to an extreme low. The same case can be made for a stock. Therefore, keep an eye on Toyota Motors at these levels.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
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The U.S. Dollar Is Dictating Every Move

Posted by Aadil on February 8, 2010 at 9:12pm

By TRADER X on February 8th, 2010 3:10pm Eastern Time
The U.S. Dollar is still slightly negative today. However, the dollar has rallied from it's morning lows. When the dollar trades higher most commodity and inflationary stocks usually trade lower and vice versa. The DXY chart will have intraday resistance at the 80.38-80.40 level. Remember every trade is a dollar trade.


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Markets Extend Friday Reversal Gains, SPDR S&P 500 ETF (NYSE:SPY),U.S Oil Fund LP (NYSE:USO)

Posted by Aadil on February 8, 2010 at 4:59pm
By InTheMoneyStocks.com on February 8th, 2010 11:40am Eastern Time The markets are slowly inching higher today on the back of Friday's massive late day reversal. After four weeks to the downside, it appears as if the markets put in a short term bottom Friday when the SPDR S&P 500 ETF (NYSE:SPY) hit a low of $104.58. The reversal on the markets coincided with huge volume which also tells of a possible bottom capitulation type move. The dollar hit major resistance and in turn oil flushed out as the United States Oil Fund LP (ETF) (NYSE:USO). With the dollar falling and oil and gold rising, Friday turned out to be a beautiful reversal. A bottoming tail is now visible on the daily chart. Commodity stocks like U.S Steel Corp. (NYSE:X) hit major levels (X hit the 200ma on the daily). While earnings look to be getting thin this week, major companies report still include The Walt Disney Company (NYSE:DIS) and PepsiCo, Inc. (NYSE:PEP). After the jobs report on Friday, economic news may seem lighter. However, watch the Initial Claims and Retail Sales numbers on Thursday. Those will most likely move the markets. Generally, on a technical basis, look for the markets to be choppy to higher short term following the bottoming tail and reversal on Friday. Commodities should lead the way as the dollar falls back slightly off of the key resistance level it nailed on Friday. Keep watch of further worry about sovereign debt and chatter about the global econo
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European Problems Remain

Posted by Aadil on February 8, 2010 at 3:00pm

By TRADER X on February 8th, 2010 9:41am Eastern Time The U.S. Dollar index is trading slightly higher as the problems in Europe remain. Countries such as Iceland, Greece, Ireland, Spain, Lithuania, and Portugal are all having credit problems. It is important to remember when the U.S. Dollar is stronger on the day the commodity and inflationary stocks remain under pressure. The stock rally from the March 2009 lows was on the back of the falling dollar.
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Big Reversal Days Must Be Watched

Posted by Aadil on February 7, 2010 at 10:09pm
By Nicholas Santiago on February 7th, 2010 2:57pm Eastern Time The major indexes such as the SPDR Trust (NYSE:SPY), Diamonds Trust (NYSE:DIA), Powershares QQQQ Trust (Nasdaq:QQQQ), and the IShares Russell 2000 Index (NYSE:IWM) have all had a high volume reversal on Friday February 5th 2010. This reversal took place in the final hour of the trading session and must be respected when looking out into next week. There is something else that is also stands out about last Friday. It was the fourth negative week for the major indexes. The last time the stock market was down four weeks in a row was when the market made a short term top on June 11th and bottomed around July 8th before staging another rally. From this June 2009 high the point decline on the S&P 500 pullback to the low in July 2009 was around 87 points. This time the S&P 500 looks to have made a top in January 2010 and if a short term low was made on February 5th, 2010 which is 4 weeks in time the decline from high to close is about 84 points. While this decline it is not exact the markets remain very symmetrical and often do. The SPDR Gold Shares (NYSE:GLD) is another index that displays symmetry from the recent past. In February 2009 the GLD pulled back 9 weeks into mid April 2009. The decline for this ETF was about 14 points. Before the end of November 2009 the GLD made a recent top at just under 120.00 a share. Since that high the GLD has pulled back 10 weeks now for a decline of 14.86 points as of the close on February 5th, 2010. While the point decline it is not perfect it is important to notice the symmetry in time and price. While there is no evidence yet of these lows in the markets holding up for the long term. However, they often do so at least in the short term. In many ancient text there is saying, 'as above so below'. Perhaps this is some evidence to the wisdom of the past. In any case watch those big reversal days.
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Bruised investors crawl back into the ring Viacom, Disney, retail sales on agenda; China, sovereign debt could dominate

Posted by Aadil on February 6, 2010 at 8:03pm
SAN FRANCISCO (MarketWatch) -- U.S. stock investors, reeling from four straight weekly losses, are entering the coming week's market torn between confidence in the global economic recovery and fear that foreign governments' actions will bring the rebound to a sudden halt. http://www.marketwatch.com/story/bruised-stock-investors-crawl-back-into-ring-2010-02-06
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