By InTheMoneyStocks.com on February 1st, 2010 1:55pm Eastern Time
Commodity stocks have been in a downward spiral for the last two weeks. The dollar has rallied higher dropping commodities like gold, oil, copper and steel. With this massive drop comes bargains. The key is to look at the charts and find the best plays are ready for a bounce. Anything that is influenced by the dollar is a possible play. Get your notebooks ready, here they come.
10. Steel Dynamics, Inc. (NASDAQ:STLD)
Hit and crossed the 200 moving average on the daily chart on Friday, no confirmation of move down below the 200MA. In addition, filled gap on daily at $15.00. Stock up a dollar off these technical levels. The stock is currently up 5.20% today.
09. Southern Copper Corporation (NYSE:PCU)
Hit and crossed the 200 moving average on the daily chart on Friday, no confirmation of move below the 200MA. 25% drop in two weeks. Extreme near term oversold technically. The stock is currently up 6.08% today.
08. Potash Corp. Saskatchewan (NYSE:POT)
Hit and crossed the 200 moving average on the daily chart on Friday. Broke the master even number of $100 plus no confirmation of a break of the 200ma. Down from $126+ in two weeks. Extreme oversold signal. The stock is currently up 3.87% today.
07. The Mosaic Company (NYSE:MOS)
Sharp sell off like Potash Corp. Major support range on daily chart $53.00 - $54.00. Double bottom broken per Friday close but not confirmed. Signals whip of amateurs out of the swing trade. The stock is currently up 4.25% today.
06. United States Steel Corporation (NYSE:X)
Two week collapse from $65 to $44 per share signals major oversold. Matched with that there is a pivot support range on the daily chart from early December telling traders that this area is a great level for a bounce. The stock is currently up 5.67% today.
05. Newmont Mining Corporation (NYSE:NEM)
A major value play down from December highs of $56.45, this miner is was a sure bet as of the close on Friday at a price of $43.48. A technical support range of $44 - $42 stood out as the level to watch. The stock is currently up 5.55% today.
04. Yamana Gold Inc. (NYSE:AUY)
This gold stock has fallen almost every day for the past two weeks. That signals a major oversold condition and the high probability of a bounce. In addition to being down from the $13 range to $10 in the last two weeks, the stock nailed a major double/triple bottom at $10.00 - $10.15.
03. United States Oil Fund LP (ETF) (NYSE:USO)
Oil has been crushed over the past two weeks on the back of a stronger dollar. As the dollar comes into major resistance, the likelihood of a pullback in the dollar increases. If the dollar drops, oil will pop. In addition to the dollar being into major resistance, oil has come into major double bottom and 200 moving average support. The area of $35.00 - $35.25 was the spot for this big bouncer today. The USO is trading higher by 2.13%.
02. Claymore/MAC Global Solar Index (ETF) (NYSE:TAN)
This solar ETF has dropped since its peak of $11.67 in early January to a low on Friday of $8.67. The solar stocks have been pounded along with commodities. At this point, a drop of 26% is far too much in far too short a time. In addition, the TAN has come into a major support level at $8.75 - $9.00. This should spell continued success in the short term for other solar stocks like First Solar, Inc. (NASDAQ:FSLR) and Canadian Solar Inc. (NASDAQ:CSIQ) among others. The TAN is higher by 2.06%.
01. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)
This stock is the best of the group it appears. The technical chart is the prettiest while the price and fundamentals are super attractive. The stock fell from a 52 week high on January 11th, 2010 at $90.55 to a low on Friday at $66.20. In addition, the chart on the daily kissed the 200 moving average at the lows on Friday setting it up for a move higher today. Sure enough, that move has come. FCX is higher today by 5.75%.
Note: This top 10 list is expected to have further upside in the near term. All plays are short term swings and will most likely be off of the top 10 list by Friday.
Special Note: Every play on this list was given out to members of the Research Center and the Intra Day Stock Chat either late last week or over the weekend.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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By Nicholas Santiago on February 1st, 2010 12:59pm Eastern Time
The U.S. Dollar (NYSE:UUP) has really been the catalyst for the major moves in the stock market. In March 2009 when the stock market was crashing the U.S. Dollar rallied to its 2006 high. Since that point the dollar went into a virtual free fall. The high print in March 2009 for the U.S. Dollar was 89.62. At this time the SPX (NYSE:SPY) hit a low of 666.79 as fear was running wild across Wall Street. In November 2009 the U.S. Dollar traded as low as 74.20. This is a over a 15 point decline, or about 17.2 percent.
As we all know the stock market staged one of it's biggest rallies in market history in 2009. All of the major indexes bounced higher by more than 50 percent off the lows and the tech heavy NASDAQ Composite (NASDAQ:QQQQ) even bounced over 80 percent off it's March 2009 lows. The catalyst was obviously the weak U.S. Dollar.
If anyone watches the dollar intra-day they will notice that when the dollar declines the market bounces or rallies. Often on any down tick in the dollar commodities will instantly bounce or trade directly inverse to the dollar. However, when the dollar rises or trades higher commodities usually pause intra-day or slowly decline before dropping sharply. It usually takes a strong move in the dollar to push commodities down sharply.
Lets use today as an example. The U.S. Dollar index was gapped lower to start the day. The futures and most every commodity related stock was gapped higher to begin the trading day. Since that time the dollar has traded higher from it's gap down low open and commodity stocks have pulled back slightly off their intra-day highs. Therefore, it takes constant upside in the dollar to knock or keep these inflationary stocks down. Some of these inflationary and commodity stocks that are trading higher today on the back of the weak dollar are Exxon Mobil (NYSE:XOM), U.S. Oil Fund (NYSE:USO), SPDR Gold Shares (NYSE:GLD), and Ishares Silver Trust (NYSE:SLV) just to name a few.
Remember almost every trade is a dollar trade. When the dollar is falling or declining watch the commodity and inflationary stocks as they are likely to trade higher. When the dollar is strong watch for pressure on the commodity and inflationary stocks.
Nicholas Santiago,
Chief Market Strategist
www.InTheMoneyStocks,com
By InTheMoneyStocks.com on February 1st, 2010 12:18pm Eastern Time
The markets are moving higher with the DOW up just under 100 points today. This move is on the back of some harsh selling the last two weeks after worries over the global recovery surfaced on the back of China tightening its lending policy. In addition, strong comments from President Obama as he knocked banks and discussed halting their ability to take high risk investments. Earnings for the most part have not impressed either creating a triple threat type event in the markets.
The catalyst to the move higher today was earnings from Exxon Mobil Corporation (NYSE:XOM). Their earnings came on the back of Chevron Corporation (NYSE:CVX) Friday morning. Chevron had a poor showing and with the Friday selloff, both Exxon and Chevron ended lower.
As a Chief Market Strategist I love situations like this and I will explain why I was able to call a long play to all the members at InTheMoneyStocks.
1. Exxon Mobil beautiful move into the weekly master support triple bottom at $64.50.
2. Extreme Technical Oversold Signals.
3. Chevron Sympathy Lowers Overall Expectations For Exxon Making It Likely For Exxon To Beat.
4. Market Due For An Oversold Bounce.
These three signals made it a low risk earnings play for an upside move. Sure enough, Exxon Mobil reported a profit of $6.05 billion with earnings per share at $1.27. Expectations had been for earnings at $1.19 per share. The stock jumped higher by 2.75%. Members are enjoying the profits and I am back at work looking for the next big play.
In addition, the dollar is also helping oil prices which in turn help Exxon Mobil. The dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP) is falling slightly today which is pushing crude up. The United States Oil Fund LP (ETF) (NYSE:USO) is up 1.40% on the day. The UUP (dollar index ETF) hit the 200 moving average on Friday and I expected it to fall back. Follow the technicals, it will open a whole new world of profits.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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By ITMS News on February 1st, 2010 8:45am Eastern Time
According to the Commerce Department U.S. consumer spending slowed down in December. Real consumer spending was up slightly to 0.1% in December. Which was much lighter than the 0.4% gain in November.
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By ITMS News on February 1st, 2010 8:14am Eastern Time
Exxon Mobil reported fourth quarter earnings of $6.05 billion down from $7.82 billion a year ago. Revenue was up to $89.8 billion from $84.7 billion a year ago.
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By InTheMoneyStocks.com on January 31st, 2010 7:10pm Eastern Time
S&P futures have opened the session flat to slightly higher.
Australia has opened flat, Japan has opened slightly lower.
Watch tomorrow for earnings from Exxon Mobil early in the morning. Estimates are for $1.19.
Be ready for another wild week. Position yourselves properly, join the Research Center and/or the Intra Day Stock Chat NOW!
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GBP selloff deepens in Asia & Europe after Asian equities hit 3-month lows. UK Dec money supply fell 1.1% m/m, biggest monthly decline since records began. GBPUSD eyes interim support at 1.5870, but the major support remains at 1.5750. FSA Chief said carry trades were economically valueless, suggesting a crackdown might be needed. The remarks made JPY second worst performing currency (after GBP) today. USDJPY only vulnerable to break below 89.70 in event of disappointing US data, or else, upside targetting 90.70. CADJPY remain capped at 85.20 and biased towards 84.20 and 83.70. US Dec personal spending and Jan manufacturing ISM both due today See calendar for more detail http://bit.ly/5pdFANRead more…
Posted by dentist 007 on January 31, 2010 at 9:56am
from mac ostwald and john mauldinquoted textOn Monday, the government of Greece offered a "gift" to the markets of 8 billion euros worth of bonds at a rather high 6.25%. The demand was for 25 billion euros, so this offering was rather robust. Today, those same Greek bonds closed on 6.5%, more than offsetting the first year's coupon. Greek bond yields are up more than 150 basis points in the last month!Why such a one-week turnaround? Ambrose Evans Pritchard offers up this thought: "Marc Ostwald, from Monument Securities, said the botched bond issue of €8bn (£6.9bn) of Greek debt earlier this week has made matters worse. Many of the investors were 'hot money' funds that bought on rumors that China was emerging as a buyer, offering them a chance for quick profit. When the China story was denied by Beijing and Athens, these funds rushed for the exit."
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By InTheMoneyStocks.com on January 30th, 2010 9:02pm Eastern Time
"When I began trading I had no clue what I was doing. I paid the price. I had no discipline. I would buy stocks that were at 52 week highs or that had broken out days earlier and then I would wonder why I always took losses. I would sell my winners for a small profit but then hold my losers for weeks if not months and just watch the red on the screen get worse and worse. It was frustrating beyond belief and I contemplated giving up and just walking away. I had nights where I could barely sleep. I then began to learn about technicals. Not only technicals but the keys that InTheMoneyStocks preaches. Price, Pattern and Time. I also began to learn about the psychology of the markets and found that everything I was doing previously was the opposite of what I should have been doing. When I was buying I should have been selling, when I was selling, I should have been buying. I wanted to jump for joy yet at the same time I was upset it took me so long to figure this out. The key to InTheMoneyStocks.com is that their Chief Market Strategists actually care. They give guidance on the markets, calls on stocks, commodities and currencies with unbelievable accuracy. In addition, they care enough about their subscribers/clients like me to teach how they came to their conclusions. This is priceless because it enables me to use their methodology on other stocks I am trading or watching. Most services will not give up their secrets and from my experience their secrets are not worth knowing. Not so with InTheMoneyStocks. I have turned from a losing swing trader, day trader and investor to a profitable market player. When I talk to my friends I hold my head high because I make money and make a great living at what I do. InTheMoneyStocks enabled this and I owe them my livelihood. The Research Center an the Intra Day Stock Chat taught me everything. I would strongly encourage everyone to give it at least a one month try. Change your life for the better."
Johann L.
Proud To Be An InTheMoneyStocks Follower
InTheMoneyStocks Response From Chief Market Strategist Gareth Soloway
"Johann, I am truly honored by your high praise. My partners and I started this company not only to teach our methodology but to help the smaller investor, swing trader and day trader make it in this tough world. We know the odds are stacked against people like you and teaching our unique methods and giving the inside track on avoiding the Wall Street "big boys" traps is not only something we enjoy doing but our obligation to society. We have always been a group that has hated the way Wall Street is stacked to siphon wealth from the smaller traders/investors to the larger firms. If we can just enlighten a few out there to save them from giving away their money and even taking some money back we have done our job. We will continue to fight for the average "joe", be the Robin Hood of the markets for all of you. Thank you again for your kind words and may you spread your knowledge to your friends and family as well. It takes just one person to change the world. Good luck and we continue to enjoy having you with us!
Sincerely,
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
http://www.reuters.com/article/idUSTRE60J3M320100130DAVOS, Switzerland (Reuters) - Leading bankers seeking to quell a political backlash over their role in the financial crisis agreed with regulators on Saturday that new banking rules should be globally consistent.A closed-door meeting of dozens of financial sector heavyweights on the sidelines of the World Economic Forum made some progress on bank capital and liquidity requirements, and legal structures, participants said.But the bankers and regulators skirted the issue of a global insurance levy to make sure that banks -- not taxpayers -- pay for future mistakes, and no firm agreements were reached.Larry Summers, top economic adviser to President Barack Obama, who is under fire from Wall Street over his plans to curb big banks, said the "vigorous, constructive discussion" had raised the level of understanding.
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"The pattern has been to sell into the weekend, wait for sovereign risk and sovereign default news in Europe and if it doesn't happen, the relief rally begins."http://www.reuters.com/article/idAFN2914424220100129?rpc=44GLOBAL MARKETS-Dollar rallies, stocks slips on European concernsFri Jan 29, 2010 4:58pm EST* Dollar rallies to 6 1/2 month high over Europe concerns* Wall St slides as European fiscal worries offset data* Oil falls below $73 a barrel on weak demand outlook* Bonds gain after stocks turn lower; commodities slip (Updates with close of U.S. markets)By Herbert LashNEW YORK, Jan 29 (Reuters) - The dollar rose to a 6-1/2-month high against the euro on Friday and U.S. stocks fell as concerns about the fiscal health of several euro zone countries raised an aversion to risk among investors.News that the U.S. economy grew at the fastest pace in more than six years in the fourth quarter also lifted the dollar, boosting views the United States was recovering faster than other developed countries. For details see: [ID:nN28246399]Data showing the U.S. economy grew at a 5.7 percent annual rate raised expectations the U.S. Federal Reserve could hike interest rates before the European Central BankInvestors also remained concerned about the fiscal health of Greece, Spain and Portugal, helping push the euro below $1.39 for the first time since early July. [ID:nN29141917]"Sovereign debt issues continue to weigh on the market," said Robert Francello, head of equity trading for Apex Capital in San Francisco."The pattern has been to sell into the weekend, wait for sovereign risk and sovereign default news in Europe and if it doesn't happen, the relief rally begins."Commodity markets, especially copper and oil, ended January with their worst losses in more than a year as the surging dollar and weak demand outlook caused prices to stumble after a strong run in 2009. [ID:nN2942102]The Reuters-Jefferies CRB index .CRB, a commodities bellwether that tracks prices across 19 futures markets, ended the month down about 6 percent -- its worst loss since November 2008, when it fell almost 10 percent.Oil prices fell below $73 a barrel, marking a more than 8 percent loss for the month, as lagging energy demand outweighed stronger-than-expected U.S. economic data. [ID:nSGE60S05N]U.S. oil for March delivery CLc1 fell 75 cents to settle at $72.89 a barrel, down $6.47 versus the end-December close.In London, ICE Brent crude for March LCOc1 fell 67 cents to settle at $71.46 a barrel.Copper suffered its worst monthly losses since December 2008. [ID:nLDE60S10J]Gold also fell, marking a third straight week of declines, as the resurgent dollar and uncertainty over a U.S. proposal to limit risk taking by some banks damped sentiment. [ID:nLDE60S0YG]
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