InTheMoneyStocks Market Analysis

Re: Trade Alert: Markets Rally As Fear Fades

InTheMoneyStocks said:
LiquidV, we are traders and we trade whatever presents the highest probability trade, be it long/short/scalp or swing - no bias.

As for previously mentioned levels: Please remember, the content you read here may present some very accurate levels as you see by the original post. However, the exact manner in which our Pros trade them is not 100% detailed here for free - they may have been in and out 5 times.

Further, the BAC entry we had was 9.45, we sold half for a nice profit then the remainder today for a 7.5% gain in two days. Any way you slice that, its a great trade.
Click to expand...

To be fair that trade is good in terms of PnL.
Its the overnight risk I didn't like, pure and simple.
Counter trend - open gap risk.
Especially bearing in mind current currency fluctuations...

Its gone your way, so fair enough no more from me :)
 
Pros Weekly Play Book

At this time, many investors are focused on the problems in the European Union, and the U.S. political debate over the debt ceiling being raised. As a trader, the focus should simply be on the charts and the patterns that stocks and commodities are making. In the last report which was posted on July 10th, 2011, the focus was on the Dow Jones Transports. The charts at that time told us that transportation index was extended and due for a pullback - and that is exactly what happened. Readers can easily go back to that last report and see how those charts played out in the iShares Dow Jones Transportation ETF (NYSE:IYT), FedEx Corp. (NYSE:FDX), and Union Pacific Corp. (NYSE:UNP). Learn to read the charts properly and profit.

This week, the extended stocks are coming out of two different sectors. The first sector that is extended is the oil services stocks. Therefore, we shall examine the Oil Services Holders Trust (NYSE:OIH). The second group of stocks that appear extended at this time come from large capitalization technology stocks such as Google Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and International Business Machines (NYSE:IBM). Lets find levels when each of these stocks will have good daily chart resistance and present the best trading opportunities.

The Oil Services Holders Trust (NYSE:OIH) is a basket of the leading oil services stocks. The OIH gained $7.87 last week, closing at $161.53 a share. Price has surged higher by $22.37 a share since its June 27, 2011 pivot low when the stock traded at $139.16 a share. The recent surge higher in the OIH indicates strength by trading above 20, 50, and 200 moving averages. The only problem with the OIH is that price is now extended and overbought on the daily chart. These types of patterns will usually need to pullback or consolidate before moving higher. The next important resistance levels for the OIH will be around the $163.25 area. Should the OIH continue to climb higher the $169.00 level would be the next important weekly resistance level. It is possible to see pullbacks from these resistance areas. Should the OIH pullback traders can watch for short term support around the $156.25, and $153.25 levels.
oih%207_24_11%20w.jpg


Apple Inc. (NASDAQ:AAPL) is the leading technology stock in the world at this time. This company designs, manufactures, and markets personal computers, mobile communication media devices, and portable digital music players. As well as sells related software, services, peripherals, networking solutions, and applications around the world. In other words, this stock is the technology market. Recently, Apple stock has surged higher by 85.0 points since June 20, 2011 when the stock traded as low as $310.50 a share. Traders must now realize that the stock is overbought and extended at this time. This does not mean that the stock cannot trade higher, it simply means that it will need to pullback or consolidate very soon. Traders should watch for near term resistance around the $405.00 level. It is possible that the stock could begin to pullback before reaching that resistance area. Should Apple stock pullback, there should be short term support around the $375.00, and $363.00 levels.
aapl%207_24_11%20w.jpg


Google Inc. (NASDAQ:GOOG) is another leading technology stock that has exploded higher since June 27, 2011 when the stock traded as low as $473.00 a share. Last week, the stock closed at $618.23 share, that is an increase of $145.00 in just four weeks. What a move! The stock is now short term overbought and extended on the daily chart. This is when the stock needs to pullback or consolidate before moving higher. The next important resistance area for Google stock will be around the $623.00, and $637.00 levels. The stock will also come into a very important double top resistance level at $643.00 from its January 2011 high. Google stock will have short term daily chart support around the $598.00, and $585.00 levels.
goog%207_24_11%20w.jpg


Nicholas Santiago
InTheMoneyStocks.com
 
Rare Earth Plays Will Make You Rich

Rare earth stocks are soaring today, lead by Molycorp, Inc. (NYSE:MCP), trading at $64.47, +4.62 (+7.72%). This monster move higher is due to three factors. The first is the continued fear over a Chinese monopoly on rare earth, the second is due to future demand of rare metals used to create things the world will need and the final is the fact that rare earth can be looked at as a safety net like gold in a time when Europe is a mess and the U.S cannot get a budget passed. Other stocks like Avalon Rare Metals (AMEX:AVL) and Rare Element Res Ltd Ordinary Shares (AMEX:REE) are also having significant pops.

The two small cap plays that could be the biggest gainers if this run in rare earth plays continues is China Shen Zhou Mining & Resources Inc. (AMEX:SHZ) and China GengSheng Minerals, Inc. (AMEX:CHGS). Both stocks are trading near their recent lows with SHZ currently trading at $3.30, down from a 52 week high of $10.84. CHGS is trading at $1.74, down from a 52 week high of $6.74. What makes these small Chinese rare earth plays so attractive is mainly their current pricing with rare earth prices soaring, and bullish consolidation on the daily charts. Keep these on high alert as they may make a move in the near term as MCP soars.

Gareth Soloway
InTheMoneyStocks

CHGS07_26_11.jpg
 
Re: Rare Earth Plays Will Make You Rich

BeginnerJoe said:
Impotence ? Often this is caused by stress and anxiety. I suggest change of trading strategy..
Click to expand...

Of course it gives me a sense of importance. Do you think you could handle this beast when it's off the leash? Hard as steel, throbbing like a racing engine and dripping like a busted pipe?

Come on Joe, let's have it. Get your pecker out and let's measure, mano a mano.
 
The Markets Control The Government...Just Watch

The government is a puppet that the markets will ultimately control. This is the truth and the markets are starting to get angry today. As the debt ceiling talks continue to drag, the markets are starting to hit back. Early in the week, no agreement was a non event as there was a full week to maneuver. The markets had two small down days, dropping half a percent on the SPDR S&P 500 ETF (NYSE:SPY). Now Wednesday has arrived and there is less than a week to a possible default and downgrade of the United States debt rating. As the markets start to collapse, the government will come together. Wall Street always wins. This should have been evident back in 2008 and 2009. When big money starts losing, the big boys come out and call the President and representatives.

For those of you that may doubt the control the stock market has over the government, just remember in late 2008 when TARP was originally voted on by the politicians. It failed to pass and the markets collapsed. The politicians, feeling the heat from their massive blunder, voted again and passed TARP. This is the same thing that is going on now. The government is playing chicken with the markets and ultimately the stock market will win. A deal will be done.

The markets continue to trade lower, however, off their lows. Amazon.com, Inc. (NASDAQ:AMZN) reported great earnings last night but that good news was not nearly enough to keep the Nasdaq from falling close to 2% at the lows. Everything from Chevron Corporation (NYSE:CVX) to Apple Inc. (NASDAQ:AAPL) are getting pounded. The government will act soon. Just watch.

Gareth Soloway
InTheMoneyStocks

SPY07_27_11.jpg
 
Re: The Markets Control The Government...Just Watch

That's where I'm going wrong... the chart points down, I look to buy!
 
Re: The Markets Control The Government...Just Watch

In The Money Stocks, did you get a chance to look at my questions? I can paste the exchange into this thread if you want to jog your memory.

By the way, this is your insight? A deal will be done and the debt ceiling will be raised? You don't need to put "Just watch" at the end, as though admonishing the doubters. There aren't any. If you want to build a straw man to help establish your sagacity, it should at least be one that has a shred of credibility.
 
Re: The Markets Control The Government...Just Watch

BeginnerJoe said:
Doing a head stand is no cure for impotency.
Click to expand...

:LOL::LOL::LOL:(y) Love it!

OK Joe, you know a lot about this subject. A head stand is no cure, so what method eventually worked for you?

And why did you need to anyway? From what I hear Rashid and Jamal were taking care of your wife's needs.
 
Re: The Markets Control The Government...Just Watch

Are they (Rashid and Jamal) long or short?
 
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