Guys, I just submitted a question to be voted of for world leaders to be asked at the Davos conference.Questions as follows:"Why is it that in the face of the most severe financial crisis the world has ever witnessed, Economists who were unable to fore see this crisis are now being entrusted with overcoming it? Have you heard of the "Austrian School" of Economics?"Please vote for it to get it noticed!!So far there are only 280 questions being voted on, and mine is already in the top 40!! (Please do this)STEP 1Go Here:https://www.youtube.com/davosSTEP 2Search the terms "Austrian Economics" in the QUESTION SEARCH bar (not youtube video search bar)STEP 3vote to SUPPORT it and let your friends know to do the same!
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DOUBLE WARNING & IF THEN SCENARIOS: Subscribers of these IMTs and followers of alaidi on twitter were warned about not only a possible GDP explosion that was a full percentage point above consensus, but also about the INTERMARKET IMPLICATIONS of such a move. As US GDP blew up expectations (5.7% instead of 4.5%), USD immediately rallied along with stocks and commodities, only for the USD to maintain its strength while gold, oil and stocks all headed lower. This was the same scenario we saw on Dec 4th when those strong jobs figures were released. Yesterday, we broke out the S&P UK news on twitter 5 seconds after it broke on newswirs and gave you the $1.6070 target. Please do tell us of another FREE service that warns, predicts & ties in the various markets as is done on this website.
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By Nicholas Santiago on January 29th, 2010 3:33pm Eastern Time
Many traders and investors believe that the month of January is the most important month of the year. The old market adage states that "the market year will behave the same as the month of January." Therefore, if January is a down month many expect the year to be down. While this has been true for many years it is not always the case.
Let's take a look at last year for instance. The SPDR Trust (NYSE:SPY) topped out on January 6th, 2009 from it's short term bottom in November 2008. It then declined into early March before making the low for the year. As we all know the market in 2009 staged one of it's sharpest rallies in market history.
What can we expect for 2010 with January being a down month? Certainly no one person can say for sure what 2010 will bring. However, what one can say is that a zero year in a decade is certainly different from a nine year in a decade. Historically, the nineth year of a decade is one of the most bullish years of a decade. We can also say with a fair amount of certainty that the zero year (2010) of a decade is notoriously a bearish year of the decade.
Will this year be different? Perhaps, it will be. There isn't anyone that knows for sure. There are no guarantees in the markets. However, if there is one rule that I have learned over the years it is to stick with history.
Nicholas Santiago,
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By InTheMoneyStocks.com on January 29th, 2010 1:58pm Eastern Time
The markets have been all over the place today, from a gap and go to the upside, a sharp rollover and then a nice bounce to the markets which have now dropped, hovering at the minor support at the lows of the day. With this retest comes the solid chance that the markets will move down to the double bottom from yesterday at $108.00. This is a major support level and should be eyed as a bounce play intra day. Keep a close eye on the markets here as a master level may get tested once again.
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By Nicholas Santiago on January 29th, 2010 1:01pm Eastern Time
This morning the market soared higher after the Gross Domestic Product(GDP) report by the U.S. government. Reportedly the GDP increased 5.7 percent in the final quarter of the year. This news was much better than economists had expected and a rally was underway to start the day. This was another day when the good news just kept pouring in and the media headlines looked great. Then why did the market reverse after making a 10:30 am high? Please realize that the NASDAQ was trading at 2202.00 during the morning peak and is now below 2175.00 and negative on the day.
Often when a 'buy the rumor, sell the news' type event takes place it is usually because price is already built into the market. However, today many leading technology stocks have rolled over intra day even as they are at major daily chart support levels. Leading stocks such as Apple Computer(NASDAQ:AAPL) have reversed to the negative side by selling off more than eight points intra day from today's early session highs to the recent intra day low. Sandisk Corp(NASDAQ:SNDK) is another leading stock that is getting punished today by traders and investors. However, this stock gapped lower and has continued to sell off into it's daily 50 moving average at 25.80 which should be some short term support. Microsoft Corp(NASDAQ:MSFT) is another stock that supposedly had very good earnings and was trading higher to start the day. This stock gapped up higher at the open by trading at 29.90. Since that opening print the stock has sold off and reversed to the negative side.
What is this telling us when good stocks can't hold their gains after good news? Often it tells us that conditions have changed. The market has obviously priced in the good expectations from earnings and even the economic data. It is prudent to remember that the market is similar to a pendulum. Often the markets swing to one side to far and then to the other side to far and rarely finds that common middle ground or equilibrium point.
With that being sad one should always realize that you can't fight the tape and the market is always right. Therefore, price action is king and thinking or trying to impose one's will will always get in the way.
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By Chief Market Strategist Gareth Soloway on January 29th, 2010 12:02pm Eastern Time
The preliminary GDP numbers came in at a monstrous 5.7%. This kick started a rally on Wall Street that lasted until 10:30am ET. At that point the markets started to fall as the strong dollar (which has now tagged the 200ma on the UUP) stayed near the highs. A strong dollar is putting pressure on commodities. That in turn is putting pressure on commodity stocks like XOM and CVX which have a major weighting in the S&P 500 and the DOW. The markets have come down and gone negative. Watch the dollar. It is everything.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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By IntheMoneyStocks on January 29th, 2010 9:22am Eastern Time
The stock index futures and the U.S. Dollar index jumped higher after the U.S. GDP report was released around 8:30 am EST. The GDP report did come in better than expected by expanding 5.7 percent in the fourth quarter. Since the March 2009 lows the weak U.S. Dollar has been the main catalyst for stock market rally. As the dollar declined a rally in commodities and agriculture has helped inflated the market higher. Since the dollar began to rise most commodities have declined.
It will be interesting to see if the dollar and the market can both hold their pre-market gains as the actual trading day gets underway. Usually the market will advance if the dollar declines intraday . Rarely will the stock market remain strong if the dollar continues to trade higher. We shall see.
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By TRADER X on January 29th, 2010 10:40am Eastern Time
This morning we mentioned that both the U.S. Dollar and the stock index futures were both higher to start the trading session. Rarely do we see both the dollar and the market tarding higher together. Well, it looks as if the dollar began to pullback first giving the major indexes a further advance. Continue to watch the dollar intraday as a move back up in the dollar will put pressure on this market.
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The FTSE is expected to decline into the early February time frame. However, it is short term oversold and could see some bounces before that time. As long as the FTSE trades below the 5159 level it remains weak technically. Each of the following support level could see a bounce as these are short term master levels. the master levels are 5088, 5016, 4946, 4876, and 4806.
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By Chief Market Strategist Gareth Soloway on January 29th, 2010 12:06am Eastern Time
The markets have tumbled over the last two weeks giving a sour start to 2010. Many point to the fall as being a result of President Obama's tough talk on bank regulation, not allowing them to take risks that have been the key driver of profits. The Financial Select Sector SPDR (ETF) (NYSE:XLF) has tumbled in the last two weeks over 7%. Stocks like Goldman Sachs Group, Inc. (NYSE:GS) has tumbled from its the highs on January 7th, 2010 of $179.75 to recent lows of $148.27. While many blame earnings and the Presidents tough talk against Wall Street there is another culprit.
It seems that the real key to the drop on Wall Street is none other than the U.S. Dollar. The dollar has spiked higher over the last few months killing commodity prices. Price of oil had dropped dramatically along with gold. Stocks like Southern Copper Corporation (USA) (NYSE:PCU), Steel Dynamics, Inc. (NASDAQ:STLD) had crashed in the last three weeks. These two stocks have fallen 27% and 25% respectively. In addition, the biggest players in the commodity realm have also seen a major price correction. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), each a major component of the DOW have collapsed almost 10%. Being a major part of the DOW, this type of drop has a dramatic effect on the index itself and could be looked as a major portion of the losses in the last two weeks in the markets. The root of the issue all comes back to the dollar.
As the dollar has ripped higher, commodities have fallen. iPath S&P GSCI Crude Oil Total Return (NYSE:OIL) has fallen from $27.22 to $23.44. That is a 14% drop in a mere two weeks. The impact on the markets of this type of fall in commodities is earth shattering.
To find the bottom in this market, the point where this market will get a significant bounce, one must turn to the charts of not oil, not gold, not XOM, CVX, GS or the XLF but to the U.S. Dollar. Everything comes back simply to the dollar. PowerShares DB US Dollar Index Bullish (NYSE:UUP) is closing in on a major resistance area and should spell a pullback. As we know, if the dollar pulls back, commodities will bounce. If commodities bounce, commodity stocks like XOM and CVX will bounce. If those stocks bounce, they will have a direct and major impact on the DOW. The markets will surge.
This level on the dollar is the 200 moving average. It is close to hitting. In fact, the UUP (dollar ETF) is only a dime ($0.10) away. With this resistance point looming, expect the dollar to fall back and a bounce to come into the markets any day. This will most likely only be a short term bounce but a solid one. Enjoy the chart below of the dollar ETF, the UUP and the 200 moving average.
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Standard & Poor’s announced that “We no longer classify the United Kingdom (AAA/Negative/A-1+) among the most stable and low-risk banking systems globally” which is extremely bearish for the pound. S&P had already lowered the U.K.’s place in its Banking Industry Country Risk Assessment gauge to Group 3 from Group 2 on Dec. 21. The risk of investing in the U.K. is now on par with the risk of investing in countries like Portugal, Saudi Arabia, Ireland, Chile and Austria.
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By Paul Carrel and Krista Hughes
BERLIN/DAVOS (Reuters) - Greece has asked no country for a bailout and is the victim of speculators intent on attacking a "weak link" in the euro zone, its leader said on Thursday as the premium on its debt hit a new high.
http://uk.reuters.com/article/idUKTRE60R3BX20100128Read more…
By ITMS News on January 28th, 2010 4:39pm Eastern Time
Microsoft (MSFT) reported fiscal second quarter net income of $6.66 billion, or 74 cents a share up from $4.17 billion a year ago. Revenue rose 14% to $19.02 billion.
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