InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Economic News Shocks But Gives Forth Opportunity.

The markets are significantly lower on a strong dollar (NYSE:UUP) and shockingly poor economic news.

Jobless Claims were released at 8:30am and showed a sharp increase to 496,000. This is now approaching the 500,000 number again, from December 2009, when the market cheered numbers near 400,000. This was a surprise to Wall Street and has caused an increase sell. Durable Goods ex-transportation was -0.6% from +2.00% in December.

After the last few days, the bad news keeps coming. On Tuesday, it was reported that the Consumer Confidence was 46.5 after expectations were for a 55 number. Then yesterday, on Wednesday, New Home Sales were reported at -11.2% shocking the markets again. It looks like a double dip is in line.

Top Plays To Watch

First Solar, Inc. (NASDAQ:FSLR) is coming into some major support on the charts at $99.00 to $99.50. Their quarterly earnings report just over a week ago did not meet Wall Street expectations, Margin pressure in the whole solar sector has put a cloud over these stocks. The stock has been crushed from a high of $127.00. A short term bounce is possible at a break of the $100.00 even number. If that does not hold, look for extreme support at $92.00 and then $85.00.

QUALCOMM, Inc. (NASDAQ:QCOM) shocked Wall Street when it reported an extremely poor quarterly earnings report on January 27th, 2010. Since then, the stock fell to master support at $37.00 and saw a solid bounce. The stock is now retracing back to what could be a double bottom. $36.50 to $37.00 could give another short term bounce. However, it is ultimately expected to go lower with a possible move to $32.75.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Top 3 Setups For Legendary Swings. (NYSE:XOM), (NYSE:VZ), (NASDAQ:CNLG), (NYSE:T)

The markets continue to get hammered today with the DOW lower by 1.65%, Nasdaq down 1.40% and the S&P 500 dropping 1.50%. This is all on the back of economic data released over the last three days that has stunned Wall Street. Consumer Confidence shocked, New Home Sales jolted and today, Jobless Claims slammed. Double dip? Quite possible!

While the markets are dropping for the second day in the last three, solid risk to reward swing trades are emerging at key technical levels. I will discuss my Top 3.

Exxon Mobil Corporation (NYSE:XOM) reported fantastic earnings February 1st, 2010. The stock jumped higher in dramatic fashion. Technically, the support from the low it made prior to earnings is still intact and likely to be a bounce area. That level is $63.50 to $64.00. If that level fails to hold, the stock may be destined to fall to $61.75 to $62.00. While a bounce is likely off the $63.50 to $64.00 level, it is highly likely that in the next month or two, XOM tags the $61.75 - $62.00. This is the ideal level for a longer term bounce in my humble opinion.

Verizon Communications Inc. (NYSE:VZ) has been crushed since the start of the year. On the first trading day of 2010, it made a high of $33.45. Since then, it has been straight down. The pattern right now on the daily chart screens in-spirit of bull flag. In addition, if we see more selling on VZ to the low on February 5th, 2010 at $28.31, it would be a perfect double bottom. Both signal a possible up move coming in the not to distant future. Not only is the chart attractive on VZ, but the dividend yield of 6.60% is not shabby. Seeing a dividend yield like this makes this technical chart have a nice fundamental cushion. Look for VZ to be a decent short to mid term swing in my opinion. In addition, AT&T Inc. (NYSE:T) is also on my radar if it gets to $23.50 area

Last but not least I wanted to feature a small cap. This small cap on the chart is extremely attractive because of the dramatic rise and fall it has seen in the last month. Since late January, Conolog Corporation (NASDAQ:CNLG) made a meteoric jump from the $1.20 level to a high on February 1st, 2010 of $4.72. Since that top, it has slowly fallen all the way back to a low today of $1.87. Technically speaking, it has filled the major gaps and is now sitting just on top of the 50 moving average on the daily chart. The run was due to recent announcements of orders. This is a micro cap play with an insane amount of risk but the reward at this level is looking somewhat attractive and is on my radar.

*As of this article, I am neither long or short any of these positions.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Deja vu from February 2007 (NYSE:SPY), (NYSE😀IA)

Many traders and investors will remember the crash on February 27th, 2007. Back then at that time the market declined as the sub prime crisis began to surface and many countries including Iceland had huge exposure to these toxic assets. On that day the SPDR Trust (NYSE:SPY) declined about 5 points, which is equal to about a 50 point decline on the S&P 500. The Diamonds Trust (NYSE😀IA) which tracks the Dow Jones Industrial Average declined about 4 points, which is nearly 400 points on the DJIA. This was the warning signal that problems were going to begin. Please remember this event occurred before 400 point down days became common in the markets like they did in late 2008.

Today there are many problems that remain in the markets. The housing crisis still lingers as toxic assets are still everywhere. Just because the accounting rules have been changed for banks and the Fed funds rate is at zero percent nothing has really changed. Currently the European Union is in disarray as the PIIGS nations are all in trouble and the list of new countries facing major debt problems continue to rise.

Who will bail out Greece? Recently word has spread that the European countries such as Germany and France do not want to bail them out. Now there are rumors that the International Monetary Fund(IMF) will bail them out. The only problem is that once the Greece situation gets resolved in the short term there are a half dozen other European nations that are looking to be bailed out or forgiven their debt.

Is the U.S. in any better shape than Europe? In the U.S. many states are flirting with bankruptcy. The state of California continues to remain in trouble and this is the 8th largest economy in the world. The debt in the U.S. might be unsustainable as it is now in the trillions. The term 'bailout' has now become a household name. Who is going to bail out the United States? These problems are not easily solved and I personally doubt they can be fixed by spending more money that the nation does not have. The last time I checked a bankrupt family or household usually has a hard time borrowing money. Perhaps it's the same with a nation.

Nicholas Santiago
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

The Dollar Holds All The Cards

Since the U.S. Dollar has fallen lower by more than 0.40 cents off the highs to go negative on the session the major indexes have traded higher. Many commodity stocks such as Freeport McMoRan Inc (NYSE:FCX), U.S. Steel (NYSE:X), and the SPDR Gold Shares (NYSE:GLD) have moved higher on this dollar decline.

There is also a rumor on the street that China is buying gold from the International Monetary Fund. This has given all gold mining stocks such as Newmont Mining (NYSE:NEM), and the Market Vectors Gold Miners ETF (NYSE:GDX) a strong rally especially from the intraday lows.

As we say, every trade is a dollar trade. Continue to look for the market indexes to trade invese to the dollar especially when we have volume in the market indexes.

Nicholas Santiago
Chief Market Strategist
InTheMoneyStocks.com

 

[Mr Flibble]

Re: Deja vu from February 2007 (NYSE:SPY), (NYSE😀IA)

Agreed the market is way too optimistic at the moment these current levels are crazy. Was December the high before the second crash...who knows?

 

[InTheMoneyStocks]

The Money Play Is Palm. (NASDAQ😛ALM)

Palm, Inc. (NASDAQ😛ALM) 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.

Disclosure:Gareth Soloway does own Palm, Inc. stock

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.

RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd

 

[ukdaytrader]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Gareth looks to be pretty stupid and the graph wont tell s**t. Palm - Market Capitalization $1,000m.

2007 - Profit $57m
2008 - Loss $110m
2009 - Loss $710m
2010 - to date loss $248m (2 quarters)

Current Debt $394m

Unless this company is going to be injected with some stimulus cash or come up with something that is going to beat the iphone - this company is dead. You may get some day trading movements going on, but failing that a short is the best thing to do.

Hopefully your not paying for these tips.

Try looking at a long on Perfect World. (PWD) or PETM may be better of.

 

[InTheMoneyStocks]

Market Technical Strategies And A Look Ahead.

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😛ALM). 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!
http://inthemoneystocks.com/n_rant_and_rave_blog_single.php?id=5913

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Breaking Through Gap Window...The Ultimate Challenge For Research In Motion Limited (

Research In Motion Limited (NASDAQ:RIMM) is stuck still trying to break through the gap windown created by a poor earnings report back on September 24th, 2009. This gap window was formed when after the markets closed, Research In Motion released a less than stellar earnings report according to Wall Street. The stock had closed that day at $83.06.

The next day the volume was massive and the price dropped sharply. This created the current gap window that Research In Motion is still trying to break through. The high for the day was $71.42. Since then, the stock price of Research In Motion has hit that level many times. Even intra day, it has crossed that level but by the time the markets closed, it was back below.

The latest attempt was made today. In this mornings session, Research In Motion went as high as $71.79, above the gap window resistance point. However, since then, the stock has fallen back down below $71.00. Could this be another failed attempt? Very possible.

Bottom line is this. If Research In Motion is able to close above the $71.42 level, it has a high probability of continuing higher near term. However, should it fail to move above this level in the next few days, the stock may be destined for a drop back into the mid $60.00 level. Time is of the essence here. Technically it does need to break soon or a pullback lower is likely. Watch and wait. Enjoy

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Looks like the "graph" told everything, PALM up almost 10% from the alert given to subscribers which nailed the low by .02 cents! it should continue to $7 now, but we secured profits.

Hopefully no one took the short trade based on your analysis UKtrader. lol 🙂

 

[InTheMoneyStocks]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

here is the actual post given to subscribers today after taking this trade on friday, the exact entry was given to subscribers of InTheMoneyStocks through the Hot Charts & Alerts in the Research Center (time stamped for subscribers) and Intra Day Stock Chat before the above article was released. Not a bad trade:

By Inthemoneystocks on March 3rd, 2010 10:17am Eastern Time
"Chief Market Strategist Sells PALM At $6.43 For Over A 10% Profit! Entry Was As Alerted $5.83.Great profits folks. Enjoy! PALM could still head higher to $7.00 but 10% in a market that ******* ******* its great!"

 

[ukdaytrader]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Thanks for that InTheMoneyStocks. Ive got a pet monkey sitting right next to me that I could train to trade on the direction of a email as well. Perhaps then I could just loaf around and wouldn't really need to do anything. The monkey would be earning me money.

If you want to I could lend you the pet monkey (trained or untrained) and then you wouldn't even need to spend time posting on the board as he could read your emails and trade accordingly.

I have wondered all these years whether there is an easy way of making money, and thanks to you IntheMoney Stocks I seem to have found it. A trained pet monkey.

I suppose InTheMonkeyStocks could give away a free monkey with each subscription so the users wouldn't even need to press a button.

Do they underwrite the losses as well ? In which case where do I sign up ?

 

[InTheMoneyStocks]

United States Steel Corporation & Steel Dynamics Signal Possible Top

United States Steel Corporation (NYSE:X) is running higher today on the back of a solid drop in the dollar. X is up $2.00 (3.57%). The dollar is getting hammered today as global optimism is chasing money away from the safety of the U.S Dollar. The PowerShares DB US Dollar Index Bullish
(Public, NYSE:UUP) is trading higher by lower by $0.19 (0.80%).

While X has had a great move higher since its 200ma daily low almost a month ago, it is coming into significant resistance. The key level here is $57.50. On the chart this shows directly as a possible drop level.

Another stock that looks to be nearing massive resistance is Steel Dynamics, Inc. (NASDAQ:STLD). Just like U.S. Steel, this stock has jumped significantly into massive daily resistance at $17.50. From this level, I am looking for a pullback of sizable proportions.

Both stocks are in the same sector and are extremely over extended. I will release my exact entries should the swing trade meet my criteria in the Research Center at InTheMoneyStocks.com. My bias is now on the bearish side. Let's see how these play out!

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2010 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd

 

[InTheMoneyStocks]

Markets Hover Flat As Scary Pattern Looms.

The markets initially rallied today on the back of great retail sales numbers and an announcement that Wal-Mart Stores, Inc. (NYSE:WMT) raised its dividend. Stocks like Abercrombie & Fitch Co. (NYSE:ANF), Family Dollar Stores, Inc. (NYSE:FDO) are soaring today as sales numbers, expected to be poor because of all the snow and weather problems, were actually amazingly good. Family Dollar Stores has jumped today almost 9.00% while Abercrombie & Fitch Co. has also rocketed up 10.50%.

In addition, Jobless Claims showed a solid reduction this week, dropping to 469,000, down 29,000 from last week. The markets had been worried as each of the last two weeks, jobless claims had risen close to the scary 500,000 number. This number today was definitely a relief to the markets.

With these two pieces of data helping give the market a bid, the dollar was also on the rise. This somewhat took the steam out of the markets. After gapping higher, the U.S. Dollar started to jump. Pending Home Sales also were announced at a disappointing drop of 7.60%. Considering this is closing in on the last chance to get the first time home buyer tax credit, numbers like this tell us the housing problems are far from over and another leg lower is likely.

After the gap higher, the 10:00am ET data, along with the rise in the dollar sent the markets lower. The SPDR S&P 500 ETF (NYSE:SPY) hit the double bottom from yesterday which signaled support. Sure enough, the markets bounced off of that level. The key to the chart on the intra day SPY is the head and shoulders pattern that has formed. Watch for a break of the neck line. Should this break, the SPY could sell all the way to a target of $111.00. Possibly as soon as tomorrow. If that neck line does not break, then the markets could hold up into early next week.

Join the amazing Research Center at InTheMoneyStocks. Get 40 minute videos daily, guidance on the markets, stocks, commodities and currencies from the pros and get an education, the likes of which people only dream of. Enjoy the profits at InTheMoneyStocks.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2010 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd

 

[InTheMoneyStocks]

Don't Think Jobs Report, Think U.S. Dollar

The market gapped higher this morning after the government employment report was released. The job report that was released was better than expected and this did cause the U.S. Dolllar to spike initially. We know when the dollar declines it usually benefits the stock markets indexes. Therefore, keep an eye on the dollar today as it is often the lead dance partner when it comes to market movements. The only time the dollar does not seem to be effective is when there is very light trading volume in the stock market.

 

[ukdaytrader]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Looks like the "graph" told everything, PALM up almost 10% from the alert given to subscribers which nailed the low by .02 cents! it should continue to $7 now, but we secured profits.

Hopefully no one took the short trade based on your analysis UKtrader. lol 🙂

Just had a look at this - what nonsense are you talking about ? Friday Palm went down from 6.50 to 6.00. It has continued down to 5.75 today even though the whole market is up, that is pretty unbelievable nonsense analysis that this Gareth guy has provided. Its been shorted so much that I cant even get hold of any stock to short.

 

[InTheMoneyStocks]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Due Diligence On The Call From Gareth: Palm Long Called At 5.83 and Exited at $6.43. Over 10% profit for the premium members.

As Gareth told his traders and subscribers, best to wait to re-enter PALM for a little while. We just keep taking 10%+ outta stocks long and short. It is a thing of beauty...for those of us that know what we are doing. We are neither bull nor bear, just money makers.

We always find it funny when people get so attached to a stock that they cannot see both sides of the trade. It usually just shows ignorance and an amateurish style which signals the person never really will make money trading for a living. We accept the pikerish nature and actually utilize it to our advantage as a contrarian view. I am sure Gareth would look at ukdaytrader and start to like PALM on the long side again because of the comment above. LOL. Our members will get the notification if we buy again.

 

[ukdaytrader]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Let me get this clear. This Gareth guy who owns a long position, probably bought in at $600 or so dollars a share and how is giving out more advice on when to buy it again now that it is worth around 1% of what he went in at. Sounds like good advice to follow. I think my coin and pet monkey give better advice.

Second to that Gareth guy told you to buy in at 6.27, yet there is a claim after the event that the purchase price was 5.83 and an unbelievable exit at 6.43 right at the top of the peak. Unbelievable, I doubt even God could have exited that efficiently, let alone Gareth.

Basically don't believe a word of this nonsense.

You also claim to know what you are doing, but you follow the advice of this Gareth person. So InTheMonkey you are no different to my trained pet monkey - just trade on someone else's emails ?

 

[InTheMoneyStocks]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Probably, maybe, possibly, shoulda, woulda, coulda. Hard facts are the key my dear ukdaytrader. People respect honesty and hard facts. Not maybe or possibly ..."probably bought in at $600 or so dollars a share".

Of course we give the hard facts and here they are below which can be confirmed by thousands of members.

Here is more Due Diligence with time stamps from the premium members arena of Hot Charts and Alets. The thousands of premium members can confirm of course.

Chief Market Strategist Starts Position In Risky PALM Play At $5.83
By Inthemoneystocks on March 1st, 2010 10:12am Eastern Time
Long

Chief Market Strategist Sells PALM At $6.43 For Over A 10% Profit! Entry Was As Alerted $5.83
By Inthemoneystocks on March 3rd, 2010 10:17am Eastern Time
Great profits folks. Enjoy!

Hard facts! People respect it! Shows character. Not blatant bashing. Anything you post we can back up with hard facts. Come to the table with such and we will talk as traders.

 

[wallstreet1928]

Re: The Money Play Is Palm. (NASDAQ😛ALM)

Probably, maybe, possibly, shoulda, woulda, coulda. Hard facts are the key my dear ukdaytrader. People respect honesty and hard facts. Not maybe or possibly ..."probably bought in at $600 or so dollars a share".

Of course we give the hard facts and here they are below which can be confirmed by thousands of members.

Here is more Due Diligence with time stamps from the premium members arena of Hot Charts and Alets. The thousands of premium members can confirm of course.

Chief Market Strategist Starts Position In Risky PALM Play At $5.83
By Inthemoneystocks on March 1st, 2010 10:12am Eastern Time
Long

Chief Market Strategist Sells PALM At $6.43 For Over A 10% Profit! Entry Was As Alerted $5.83
By Inthemoneystocks on March 3rd, 2010 10:17am Eastern Time
Great profits folks. Enjoy!

Hard facts! People respect it! Shows character. Not blatant bashing. Anything you post we can back up with hard facts. Come to the table with such and we will talk as traders.

I am a member of there subscription service and I have learnt and inculcated several of their strategies to a great amount of success.

I can also testify to the validity of the entry and exit of the trade in PALM.

UK trader please don't waste time criticising the experts, focus on improving your own trading instead my friend.