InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Retailers Rocked As Demand Drops, Fears In Greece Continue

The negative news just continues to pour out around the world. Greece continues to be in panic mode as riots and unrest signal more problems. Questions remain on whether or not the bailout will even be enough to stop Greece from defaulting. In addition, the social unrest could spread to other countries like Spain and Portugal. It is highly likely at this point that the same problems in Greece will soon hit many more countries. The Euro continues to drop sharply against the Dollar as endless bailouts mean more printing of Euros and debt.

In the United States, same store sales from many retailers were poor. This is a quick change of events since last month, when same store sales were monstrous. It is looking more and more likely that the consumer was spending because of two years of pent up demand, not because they are back to their normal habits of 2007 and before.

Target Corporation (NYSE:TGT) sales were a big disappointment as they came in with a drop of 5.9%. Analysts had projected a drop of 2.3.%. The stock initially fell sharply but recovered some of those losses. It is now just down .40%. Aeropostale, Inc. (NYSE:ARO) also dissapointed with lackluster sales of a drop of 6%.

Retailers are sliding today, the retailer index, Retail HOLDRs (ETF) (NYSE:RTH) is down 1.50%. Other leading retailer declines are coming from The Gap Inc. (NYSE:GPS) and Bed Bath & Beyond Inc. (NASDAQ:BBBY).

In previous articles in the last month or so, I discussed how there was a likely surge in consumer spending due to pent up demand. I theorized that once that pent up demand was let out, retail sales and consumer spending would decline sharply again. This appears to be the case.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Markets Slam Into Master Level, Short Term Bounce Possible As These Plays Look Promis

The markets sold sharply in morning trading on the back of a continued sell off in the Euro and pop in the Dollar. The reasons continue to be Greece and Europe. Fears of the Greek contagion spreading continue to be at the forefront of the global fears. While this caused the market to sell sharply, a major level of $115.00 - $115.50 was tagged on the daily chart of the SPDR S&P 500 ETF (NYSE:SPY). The SPY low of the day was right in the middle at $115.22.

As soon as this hit, I started to get short term bullish. Note, this is very short term. This level should work as a solid support level in the next few days. I put out an alert on the Hot Charts & Alerts which is part of the Research Center to my subscribers. There are many stocks that can be played at these levels. BlackRock, Inc. (NYSE:BLK) looks extremely attractive at the $173.75 level. It is into daily support as well as major moving average support on the weekly and monthly charts.

Other stocks that seem like they are due for a bounce are Chinese stocks. While the measures China is taking to slow their economy has pounded Chinese stocks, certain solar stocks have dropped sharply and may be ready for a short term bounce, especially if the dollar gets a pull back. China Sunergy Co., Ltd. (NASDAQ:CSUN) is catching my eye as it reported great earnings just a week ago. The stock spiked higher on those earnings and is now trading well below those levels near solid support. It is trading at $3.97 down 6% on the day. In addition, Suntech Power Holdings Co., Ltd. (NYSE:STP) just hit a major double bottom level on the daily chart and seems like it could bounce. It is currently trading down at $11.31 on the day. These plays are risky because the stocks have fallen sharply, however, good support should give a possible bounce.

Keep an eye on China ADR's as they have been pounded excessively. Let's keep us in mind, China is trying to slow their economy from growing at inane levels near 10%. Even growing at 5%, they are far ahead of the rest of the world. Chinese plays at 52 week lows could be very interesting at these levels.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

The Strongest Stocks In An Ugly Market

While the markets have been pounded of late, there are always some hidden gems that somehow find a way to have minimal downside in an otherwise ugly bloody mess. BlackRock, Inc. (NYSE:BLK) is as strong as a stock can be today, considering the market. I wrote an article on it yesterday, mentioning the massive support level on the weekly and monthly charts. Even with the massive sell off yesterday, BLK was barely down by the close. Today, the stock is higher by $3.09 (+1.75%). This stock continues to be a jewel among rocks as the monthly and weekly charts signaled.

Another jewel continues to be one of my favorite plays for the last few days, AK Steel Holding Corporation (NYSE:AKS). I sent an alert yesterday to my Research Center subscribers yesterday morning when AKS was trading at $15.75. This was before the DOW plunged 1000 points. The stock held up well considering the mini crash and closed lower at $15.46. Today, just like suspected, AKS is surging to the upside, trading at $15.85 (+2.50%). It continues to look attractive in the short term at these levels.

I have been moving to a short term bullish angle on the metal stocks as a whole and am being rewarded as are the members at InTheMoneyStocks. United States Steel Corporation (NYSE:X), Cliffs Natural Resources Inc (NYSE:CLF) and Southern Copper Corporation (USA) (NYSE:SCCO) are all higher on the day.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Markets Surge As Global Printing Of Money Continues

If you can't fix it, print some more money. That is the policy of the world leaders today as Europe has in place an almost one-trillion bailout package of sorts. After last weeks market decline, this is not surprising. Bottom line is, if you can't fix it, print it.

Stocks continue to hold most of their gains today. The DOW, S&P 500 and NASDAQ all up 4%. Key moves from stocks like Apple Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG), Exxon Mobil Corporation (NYSE:XOM) and JPMorgan Chase & Co. (NYSE:JPM) all keeping the markets up in a major way. Oil is surging today, after key technical levels were hit on Friday and gold is pulling back with the fear trade subsiding.

As every country prints money, the markets get a solid bounce in the short term. However, the problems down the line get even more scary and ominous. It puts the world on a course that most of us shudder to think about and makes me as a Chief Market Strategist believe the huge M-A pattern on the monthly chart of the S&P 500, will play out.

On Friday, I talked to my subscribers about the likely possibility of European leaders doing something drastic to try and stabilize and prop up the markets. In tune with that, I had a short term positive bias on oil, negative on the U.S. Dollar. In addition, while I told them it was an extremely risky bet based on the current volatility, the markets were likely to see a bounce early in the week. Every call I made was correct. How did I understand this? Simply put, technical levels on the charts. Hundreds of charts were at master technical support levels. In addition, understanding the nature of the beast was key. There was no way Europe or the United States would stand by and allow the markets to continue to collapse. Doing so would have gone right in the face of what Ben Bernanke and President Obama have done for the last year and a half. Understand it, learn it and profit by it!

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Fannie Mae and Freddie Mac Continue to Bleed The System

Countless amounts of times we have stated that Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) have no business being public companies. These stocks continue to cost tax payers billions of dollars as they continue to lose money quarter after quarter.

Today Fannie Mae and Freddie Mac requested another $20 billion dollars combined in order to continue to function. This large financial request comes after Fannie Mae reported a huge loss this morning. How much money will these companies need to lose before the taxpayer becomes outraged.

Originally Fannie Mae and Freddie Mac were supposed to have a debt ceiling cap at $400 billion dollars between the two companies. However, on Christmas Eve 2009 the Congress lifted that debt cap while the jolly taxpayer was sipping eggnog.

What ever happened to the old market adage "cut the losers and keep the winners?" Someone should tell this to the American government as money continues to fly out of the window.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

The Bottom Line: Stock Market Looks Lost

The markets continue to hover slightly lower today. The wild swings seem to be on pause as the S&P 500 (INDEXSP:.INX) is trading at 1,167.17 -4.50 (-0.38%). The The Dow Jones Industrial Average (INDEXDJX:.DJI) hovers at 10,869.25 -27.66 (-0.25%) and the NASDAQ Composite (INDEXNASDAQ:.IXIC) drops to 2,411.68 -13.34 (-0.55%).

The markets seem to be unable to make a decision on which way to go in the short term. The bulls are still lurking while the bears are still enjoying the 1000 point flush on the Dow Jones Industrials just a week ago. Jobless Claims were somewhat disappointing today as they continue to hover around the 450,00 - 440,00 level each week. There is no job creation going on and that seems to be keeping any possible continued rally at bay. In addition, the dollar PowerShares DB US Dollar Index Bullish (NYSE:UUP) is slightly stronger again against the Euro CurrencyShares Euro Trust (NYSE:FXE) and Pound CurrencyShares British Pound Ster. Trst (NYSE:FXB). This continues to keep the markets from continuing the rally we saw yesterday.

Many of the top stocks today were slightly higher earlier but have fallen to the negative side by lunch. Apple Inc. (NASDAQ:AAPL) was higher by $3.00 but is now trading flat while key stocks like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co. (NYSE:JPM) are all lower on the day. These three stocks are part of the Dow Jones Industrials and are keeping the index under some minor pressure.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

 

[InTheMoneyStocks]

Expect A Euro Bounce And Bank It

Have you tried to find someone bullish on the Euro CurrencyShares Euro Trust (NYSE:FXE)? I have had no success in finding anyone out there that is bullish. What does that mean? It means I am moving to the bullish side on the Euro and slightly bearish on dollar. Why would I do this? The short Euro trade has been done to death in the short term. Over the weekend, every financial media outlet was talking about the Euro crashing, coming to par with the Dollar. Every analyst was saying the same thing as well. The trade is far too crowded to the short side on the Euro and in my opinion, expect a sharp bounce later this week. It may not be a long bounce, but it will be steep.

Stocks and ETF's to play if this happens are all in the commodity arena. Look at an ETF like United States Oil Fund LP (NYSE:USO) or stocks like Southern Copper Corporation (NYSE:SCCO), AK Steel Holding Corporation (NYSE:AKS) or Chevron Corporation (NYSE:CVX). These will most likely have a sharp snap back rally on any weakness in the Dollar which would come from strength in the Euro.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[forker]

Re: Expect A Euro Bounce And Bank It

bullish! maybe some profit taking but assessing it as bullish while there is no evidence supporting the fact is brave. analysts merely speculate.

 

[InTheMoneyStocks]

Next Weeks Key Set-Ups!

This past week the S&P 500 Index lost another 48.00 points making this correction four weeks in length. Even though this was a sharp weekly decline the broad based index did stage a sharp reversal day into the close of options expiration on Friday May 21, 2010. At this time the weekly 50 moving average has held as support for the index. This important moving average was tested during flash crash on May 6th, 2010 and then again tested last week as the index declined. There is a fair chance of a short term bounce in the market as the weekly 50 moving average and the February lows are still strong support. However, the weekly chart is now pointing down and any close below that level could signal further declines. The weekly support levels for the S&P 500 are $1050.00 and $1025.00. Traders who would like to trade the S&P can utilize the SPDR S&P 500 ETF (NYSE:SPY).

The SPDR Gold Trust (ETF) (NYSE:GLD) declined sharply this past week as everything including gold was dragged down into a deflationary tailspin. The GLD lost 5.15 points for the week closing at $115.22. Last week we mentioned that the high volume spike in gold could lead to a pullback and that turned out to exactly be the case. While gold remains in a technical uptrend it is not uncommon for the precious metal to correct and consolidate before trading higher. Gold is usually owned by many investors during times of fear and during times of inflation. It is also viewed by many as the worlds reserve currency since the beginning of recorded history. Should the major market indexes all fall apart and decline due to massive deflation it is likely that gold will decline as well. Should this scenario ever happen it is still likely that gold will hold up better than everything else. The weekly GLD support levels are $113.00 and $110.00.

The United States Oil Fund (NYSE:USO) finished the week lower by $2.54 to close at $32.27. Last week we mentioned that if the $34.00 level failed to hold as support the $31.60 area would be the next important support level. The low last week was $31.64 and a small bounce came into the USO at the close of the week. The short term weekly trend for the USO is now down and price is trading below the weekly 20 and 50 moving averages. While it is possible for bounce to occur here until the USO recaptures the weekly 20 and 50 moving averages it remains in a weak and vulnerable technical position. The next weekly support levels for the USO are $30.00 and $27.00.

What a week for the U.S. Dollar Index! The dollar made a new high for the year before reversing sharply after hitting weekly resistance at the $87.00 - $87.50 level. Note the chart of the PowerShares DB US Dollar Index Bullish (NYSE:UUP). The pattern on the weekly U.S. Dollar chart is now a nice reversal topping tail which could lead to further declines in the dollar. Recently the U.S. Dollar and the Euro have traded in an inverse lockstep relationship to each other. At this time when the Euro currency bounces many traders believe it is a sign that the European Union is stabilizing. While this may be true in the short term the dollar could still trade higher after a pullback or correction. The weekly support levels for the U.S. Dollar index are $84.00 and $82.00. The weekly resistance levels for the dollar are $88.00, $89.00, and $90.00. If you followed us through either the Research Center or Intra Day Stock Chat then you know how accurately we nailed the moves in both the Euro utilizing the FXE and Dollar last week, along with many other big moves such as JPMorgan Chase & Co. (NYSE:JPM), Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP), and Trina Solar Limited (ADR) (NYSE:TSL) all earning huge profits.

 

[InTheMoneyStocks]

Stock Market Movers, Money Makers

Global drama continues to hurt the markets. Last night the futures were getting crushed as Asia and Europe sold sharply as continued worries about Spain and Portugal killed the Euro. In addition, North Korea and South Korea seem to be one bullet away from a major confrontation. The Dollar soared again but into a major double top from last week. Since the opening highs of the Dollar, a pull back has occurred. The markets in response have inched higher into the gap down low from Friday. On the SPDR S&P 500 ETF (NYSE:SPY), this level is $105.90. The SPY has hit it many times today and has yet to break through. As long as the markets stay below this level, look for a possible retest of the lows of the day. Should the markets inch above this $105.90 level, the markets may continue to advance higher for the rest of the day.

The key for this market remains Europe and the Euro. Europe must find some way to calm the fears of default and get the Euro to inch higher. So far this has not been possible.

Stocks continue to trade off their lows. While commodities are under pressure, AK Steel Holding Corporation (NYSE:AKS) is surging higher. Citigroup upgraded the stock from neutral to outperform citing valuation. They gave it a $19.00 price target. The stock is trading at $14.20 +$0.68 (5.03%). This happens to be one of the few long plays Chief Market Strategists have given out in recent days. Sure enough, regardless of the markets fall, all members who got the entry on AKS are in the money nicely. Other steel players are not doing quite as well. United States Steel Corporation (NYSE:X) is down about 2.40% on the day.

While most financial stocks continue to be under pressure, Goldman Sachs Group, Inc. (NYSE:GS) is trading nicely higher. The stock is at $138.53 +$1.84 (1.35%). This is in a sharp contrasts to stocks like Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS) which are all solidly lower on the day. One has to wonder if Goldman Sachs is making a killing on the crazy volatility in this market. Earnings may be insanely huge when they report for the current quarter.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[pssonice]

what s your point ? talk talk talk ... What r your news about ...

"Global drama continues to hurt the markets
The key for this market remains Europe and the Euro"
This is something new 4 u and the world :
"20100525.1904 ES -1053 ... top " lser!

 

[InTheMoneyStocks]

Markets Fade As Euro Falls

The SPDR S&P 500 ETF (NYSE:SPY) gapped higher today and continued to push until 10:30am ET. At this point, the SPY ran into major resistance around $109.35-$109.50. After trying multiple times to take this level out, the SPY started to fall. It fell all the way down to the 200 moving average and the 20 moving average. This area was and is obviously big support. While a small bounce is likely, should that level fail to hold, the SPY could head to gap fill at $107.85.

The reason for the markets drop was a sudden move lower in the Euro. You can follow the Euro by looking at the CurrencyShares Euro Trust (NYSE:FXE). As the Euro dropped, the Dollar spiked higher. You can also follow the Dollar by looking at the PowerShares DB US Dollar Index Bullish (NYSE:UUP). The markets have been held hostage by a dropping Euro and a jumping Dollar. As long as the Euro drops, the markets will only have small bounces a long the way at best. Should the Euro bounce for a week, expect the markets to bounce for a full week as well.

 

[InTheMoneyStocks]

Positives For Oil Stocks

Oil jumped higher for the second straight day today. A major pivot low on the oil chart from July 2009 was hit on Tuesday around $68 dollars a barrel. From that level, oil closed at the highs of the day on Tuesday. This created a bullish double bottom and pivot low. The last two days, solid gains followed. While oil is seeing these big gains, oil stocks are also rocketing higher. Exxon Mobil Corporation (NYSE:XOM) is jumping more than 2.5% while Chevron Corporation (NYSE:CVX) is up more than 3% on the day. In recent weeks, spot crude has dropped approximately 25% from the highs. This size drop killed oil stocks like Exxon Mobil and Chevron. Today, with oil up for the second straight day, these stocks are soaring.

In addition to the recent drop in oil, the catastrophic oil spill in the Gulf of Mexico hurt oil companies as well. The driller BP plc (NYSE:BP) has taken the brunt of the hurt in their stock price but other companies like Transocean LTD (NYSE:RIG) have also been severely hit. Even Exxon and Chevron have been hurt slightly over future drilling prospects. Positive news has been leaking out (pun intended) that the oil spill may have stopped. This is great news for the oil companies as a whole as the negative press may start to subside. In addition, BP is jumping almost 7% and Transocean is up 6% on the day. Happy days are here again for the oil stocks, at least for today.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Implications Next Week From A Friday Sell

A sharp sell off rocked Wall Street into the close on Friday in the final minutes. Stocks like Exxon Mobil Corporation (NYSE:XOM) and Microsoft Corporation (NASDAQ:MSFT) sold particularly hard. These two stocks have been some of the weakest in recent weeks. The weakest stocks will always be hardest hit on any sharp sell. The reason for the sharp sell off into the close can be looked at from multiple angles. It is important to understand these angles as it will help us understand the coming week and how to profit

The Memorial Holiday weekend means three days that the U.S. markets are closed. In recent weeks, the weekends have been treacherous with news out of Europe dominating the wires. In recent weeks, the North and South Korea issues have also been hampering the markets. Not only do traders want to be mostly in cash prior to any weekend, but add an extra day in there and it means even more risk and more of an incentive to sell into the close on Friday.

In addition, while bounces have occurred in this brutal market, bounces have not lasted more than a day or so. With Thursday's monster 2.5% gain in the markets, traders do not feel the markets can sustain the rally for a longer period. Profits were taken.

As of Friday afternoon it was pretty apparent the Gulf of Mexico oil spill was not going to be stopped. This "Top Kill" by BP plc (NYSE:BP) had been dragging on all week. It did not take a genius to see it was not working from the live feed available to the public. As of Friday, the markets were beginning to get nervous again over this factor. Overall, the oil spill is more of a driller issue but its impact causes problems for the overall market. The oil spill adds to the overall negativity for the markets. Not only is Europe a mess, the Euro collapsing, Asia a mess, but here in the United States, this oil spill just reminds the markets to be negative. The economic impact to the Gulf coast is also brutal and will have long lasting effects. Not only did BP get hit sharply but other drillers like Transocean LTD (NYSE:RIG) found themselves down almost 5% for the day.

Overall these factors helped cause a sharp sell off in the final minutes of trading. In this market, it must be expected that any extended market closure for any reason will make traders sell positions for the safety of cash. Should things remain calm over the entire holiday weekend, the markets may get a small relief push early on Tuesday. Watch the Euro, that will give us a great idea about the direction of the markets on Tuesday.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Panic In The Drilling Stocks

"Watch out below! It's going to blow!" These are common screams expected to be heard on a rig or oil platform somewhere around the world. However, it seems more and more apparent these are used to describe the drilling stocks themselves. After the Gulf of Mexico oil spill failed to be stopped over the weekend, the drilling stocks as a whole are being pounded. BP plc (NYSE:BP) has taken the brunt of the storm with a massive drop in recent weeks. Even today, the stock is down 12% more. Other drilling stocks taking a major hit are Anadarko Petroleum Corporation (NYSE:APC) down 15%, Transocean LTD (NYSE:RIG) down 8% and Halliburton Company (NYSE:HAL) down 10%.

The problem with these drillers is the same problem we had with nuclear energy. No one wants it in their back yard. Should a spill occur, we now see the results in the Gulf of Mexico. The economic impact is severe and the harm to the wildlife is extremely saddening.

In any case, the fear here is that drilling in many places will now be halted like it is in the Gulf of Mexico. While I agree this may be a short term issue, I believe as soon as gas prices go north of $3.00 per gallon, people will forget the impact and trust that government safety oversight. These companies will find other areas to drill in and rebound strongly.

BP is responsible and will be the fall “guy” as it should be. Lawsuits will come and there will be problems for years. However, stocks like Halliburton and Anadarko Petroleum could be looked at as having a great risk to reward ratio. These stocks are currently trading well off their 2010 highs. Halliburton traded as high as $35.22 just a month ago. It hit $22.27 today. That is a drop of 37%. In addition, Anadarko traded as high as $75.07 a month ago and today hit a low of $43.63. That is a drop of almost 42%. These do seem overdone in the short run and can be looked at as value plays at these levels.

Gareth Soloway
Chief Market Strategist

 

[InTheMoneyStocks]

CF Industries Shows Possible Stock Bottom

CF Industries Holdings, Inc. (NYSE:CF) sold off early in the day to hit a double bottom on the daily chart. Since it tagged the $64.50 level, CF Industries has rallied back to the flat line on the day. This sets up for a possible tail on the daily chart and a signal a move up may be on the horizon short term. The stock has been punished from a high back on March 3rd, 2010 of $110.00. Since then it has dropped 41% to a low today of $64.37. Note the chart below and get more in depth analysis by joining the Research Center.

 

[InTheMoneyStocks]

Jobs Data Looms, Top Stocks And Technical Patterns

The markets are struggling to hold the flat line today. The huge rally yesterday has put the markets in a better mood. President Obama and Vice President Biden each came out touting the jobs number for Friday morning. In addition, Goldman Sachs Group, Inc. (NYSE:GS) upped their estimate for jobs creation in the month of May from 500,000 to 600,000 today. All this helped the markets rally yesterday and hold flat today. Volume is getting very light as we head into the mid day session.

As a Chief Market Strategist I am eying many stocks for possible plays. The top stock at the moment is AK Steel Holding Corporation (NYSE:AKS) should it drop below $14.00 per share. At this point, it would appear to have significant upside potential. The technical pullback is solid along with the pattern of consolidation.

Overall, the SPDR S&P 500 ETF (NYSE:SPY) remains just slightly positive on the day. There was a beautiful inverse head and shoulders that played out to the $111.00 level. Note the chart below. Once that played out, the markets were due for a small pullback.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Natural Gas Burns Brightly In Stocks

Natural gas and the United States Natural Gas Fund, LP (NYSE:UNG) have been one of the few positives in an overall ugly market that cannot seem to get away from a crashing Euro, global double dip fears and a Gulf of Mexico oil spill that shows no end in sight. Natural gas has been dropping for the better part of two years. The top was hit in mid 2008 and since then it has fallen off a cliff and never recovered. Oil topped out at the same time, but made a bottom in March 2009 and has rallied at times 100% off those lows. Natural gas never saw any significant rally.

This may be the time for natural gas to burn brightly. As the oil spill has filled the news and the Gulf of Mexico, President Obama has endorsed natural gas. A hot summer in the northeast has also kept demand strong as inventories showed yesterday. A depressed natural gas price means it is cheap compared to its counter part in oil. With public sentiment shifting from oil to cleaner fuels, natural gas may be just starting its upward trend.

While natural gas may be a story for the months to come, many key natural gas stocks have already run significantly. As a Chief Market Strategist, I would shy away from paying up for them in this type of market. Let them come back down and settle. Once that happens, they may be a great buying opportunity. Look at Chesapeake Energy Corporation (NYSE:CHK) and Devon Energy Corporation (NYSE😀VN). In addition, I think it is wise to watch Exxon Mobil Corporation (NYSE:XOM) as they bought XTO Energy, a natural gas player not long ago.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Rare Dollar Fall, Euro Pop

The markets are holding on to gains as the SPDR S&P 500 ETF (NYSE:SPY) are trading positive on the day. The markets have recovered from some steep selling after the Euro started to rally sharply and the U.S. Dollar fell off a cliff.

The PowerShares DB US Dollar Index Bullish (NYSE:UUP) has dropped sharply in the last hour, falling to $25.69 -0.14 (-.54%). This is a big drop for a currency that has been on a one way track going higher. The CurrencyShares Euro Trust (NYSE:FXE) has ripped higher as well. These two currencies will go in the opposite direct. As the Euro has soared, the markets have followed.

It looks like the Euro may been in for a short term pop. It is oversold technically and has a lot of negative sentiment which may result in the opposite move. In this case, a move higher. Keep a close eye on the close today and see if it confirms tomorrow with a higher close. A few positive days on the Euro and shorts may get squeezed. This would mean a short term pop in the market as well.

Gareth Soloway
Chief Market Startegist
www.InTheMoneyStocks.com

 

[InTheMoneyStocks]

Markets Signal Bullish Consolidation So Far

The stock market is hovering around the flat line today after the monster rally yesterday. The SPDR S&P 500 ETF (NYSE:SPY) is down just $0.19 (-.17%) on the day. If the markets can hold flat today, that will be a victory for the bulls. The real test on the markets will come in the last hour of trading when traders have to decide whether or not to hold into the weekend.

If the markets sell sharply into the close and end near the lows of the day, worry may continue into next week. If the markets close flat to positive, look for more upside early next week with a target on the SPY of $110.75 - $111.00.

Stocks are mostly flat as well. Key players that should be watched are Goldman Sachs Group, Inc. (NYSE:GS), Apple Inc. ((NASDAQ:AAPL) and Exxon Mobil Corporation (NYSE:XOM). These are all leading stocks and will tell us how the market is fairing.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com