InTheMoneyStocks's Blog

Oil Services Stocks Fuel Higher

InTheMoneyStocks.com — Fri, 27 Jan 2012 16:00:00 +0000

This morning, the Market Vectors Oil Services ETF (NYSEARCA:OIH) is trading higher by $2.17 to $126.16 a share. It seems that there was favorable court ruling for Transocean Ltd (NYSE:RIG) regarding the Deepwater Horizon oil spill. RIG stock is trading higher by $1.53 to $48.76 a share. Leading oil services stocks such as Halliburton Co (NYSE:HAL), Baker Hughes Inc (NYSE:BHI), and Sclumberger Ltd (NYSE:SLB) are all trading higher this morning. It is important to note that all of these stocks are trading near short term resistance levels on the daily charts.

Nicholas Santiago
InTheMoneyStocks.com

Spain, Italy, And GDP, Something Has To Give

InTheMoneyStocks.com — Fri, 27 Jan 2012 13:57:52 +0000

The problems in the European Union have not had much of a negative effect on the global stock markets since December 19, 2011. Earlier today, Italy had successful bond auction, however, the unemployment level in Spain increased again. The problems in Greece and Portugal remain unresolved and the markets do not seem to care. The roller coaster ride called the Euro-zone debt crisis is now having less effect on the major stock indexes. We have seen this complacency before when it comes to the European Union, then when investors least expect it the problems erupt again. Investors should realize that the European debt crisis is not over by a long shot.

Stock Market Video: Master Top Call Nailed, Shorts In Profit Zone

InTheMoneyStocks.com — Thu, 26 Jan 2012 19:45:41 +0000

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Small Biotechnology Stocks Roar, Profit Now

InTheMoneyStocks.com — Thu, 26 Jan 2012 19:10:05 +0000

Talk about large pharmaceutical companies buying small biotechnology firms is all the rage. The idea behind this talk is large companies have almost no pipeline of drugs and a tiny growth rate. They need to buy smaller companies with good drug pipelines to increase shareholder value.

A great example of this would be the hostile bid for Illumina, Inc. (NASDAQ:ILMN) by Roche.

Small biotechnology firms have started to jump over the last two days. Today, stocks like Agenus Inc. (NASDAQ:AGEN), OXiGENE, Inc. (NASDAQ:OXGN), EntreMed, Inc. (NASDAQ:ENMD) are all charging higher.

While these have already made a move, charts of Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) and ADVENTRX Pharmaceuticals, Inc. (NYSEAMEX:ANX) both look attractive. ADVENTRX is trading at one-half cash value.

Gareth Soloway
InTheMoneyStocks.com

Markets Hit Master Level, Correction Coming

InTheMoneyStocks.com — Thu, 26 Jan 2012 17:31:11 +0000

The markets pushed into the master $133.30 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was given to members weeks ago as the probable short term top on the market. Sure enough, this level was hit early in the trading day and the markets reversed immediately. Obviously, shorts were taken and are in the money already. A negative close today would solidify a short term market top.

The crescendo of jubilation in the media and the public coincided perfectly with this top. After Apple Inc. (NASDAQ:AAPL) reported stellar results, the Federal Reserve came out with positive comments on what equates to QE 2.5. These two set in motion a party in the media and amongst retail investors like nothing seen in years. This gives the institutions a chance to sell into the average investor and put in a market top.

Commodities are higher on a weaker Dollar. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.09, -0.08 (-0.36%).

Gareth Soloway
InTheMoneyStocks.com

Don’t Believe The Hype

InTheMoneyStocks.com — Thu, 26 Jan 2012 15:56:09 +0000

Nearly everyday since December the media reports how good things are getting in the economy. This report was better than expected, that report is better than expected and everyone is working again. While the economy might be healing in some way investors must ask themselves why the Federal Reserve is continuing to promote low rates until late 2014. The central bank is clearly dangling the carrot in front of the institutions to buy equities and inflate this market higher. Gold is the ultimate barometer of inflation and yesterday gold soared. The SPDR Gold Shares (NYSEARCA:GLD) rallied by nearly $5.00 after the Federal Reserve announcement yesterday afternoon.

Investors must think for a minute, if things are really getting so much better why would the central bank signal further stimulus and an extremely low rate policy. After all, many investors can argue that it was the low rate policy that caused the housing and credit bubbles just a few years ago. Come to think of it, many can even argue that low rates caused the dot-com bubble in the late 1990′s. Sure, low rates help to create inflation, however, the federal funds rate has been at zero to a quarter percent since December 2008.

The people that get hurt the worst from this type of monetary policy are the elderly and those on fixed incomes. These people rely on interest income from bonds and their savings account. Neither of these investment vehicles produce any meaningful yield. Have you looked at what the interest is on a savings account lately? It is basically zero. Low interest rates also cause prices in everything that people need to rise. Just look at the food and energy inflation after the Federal Reserve implemented QE-2 in late 2010, prices rocketed higher. Food and energy are the most important goods that anyone can spend their money on. If and when another round of quantitative easing does come inflation will surge through the roof. If things were so rosy in the economy the central bank would not keep these rates so low. Remember, this is the month of January which is usually a bullish month. Don’t believe the hype that this economy is in such good shape just because the stock market is moving higher at this time.

Nicholas Santiago
InTheMoneyStocks.com

Markets Inflate While Portugal & Greece May Implode

InTheMoneyStocks.com — Thu, 26 Jan 2012 14:05:02 +0000

The inflation rally is running wild. Yesterday, the Federal Reserve Bank announced that they will keep interest rates at extremely low levels until late 2014. In other words, the central bank is telling people to buy hard assets. Gold, silver, and just about every other commodity surged higher after the comments from Ben Bernanke. Many investors are now expecting the Federal Reserve to implement another round of quantitative easing or QE-3. We shall see if that is coming in the near term. This morning, the S&P 500 Index e-mini futures (ES H2) are trading higher by 6.00 points to 1326.25 per contract. It seems that the institutions that move the markets are fixed on the inflationary talk coming out of the central banks at this time.

Falling U.S. Dollar Inflates Markets

InTheMoneyStocks.com — Wed, 25 Jan 2012 21:04:24 +0000

This afternoon, the Federal Reserve Bank announced that they will keep the fed funds rate at zero to a quarter percent until the end of 2014. This statement by the central bank has caused the U.S. Dollar Index to plummet intra-day. As we all know by now, when the dollar dips the markets flip. Everything in the market has rallied higher. Gold, silver, copper, oil, and just about every other commodity has soared since the announcement. The SPDR Gold Shares (NYSE:GLD) have jumped higher by $4.19 to $166.21 a share. Gold is the ultimate barometer of inflation and it will usually lead the stock market.

As long as the U.S. Dollar Index continues to decline these markets are likely to inflate. Should the U.S. Dollar Index eventually find a low and rebound that is when the stock and commodity markets will pullback and decline lower. Until that time the inflation rally is alive and well.

Nicholas Santiago
InTheMoneyStocks.com

Stock Market Video: Market Top Analysis, Profit Today

InTheMoneyStocks.com — Wed, 25 Jan 2012 19:32:43 +0000

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Weakness After AAPL Signals Coming Sell Off

InTheMoneyStocks.com — Wed, 25 Jan 2012 17:34:20 +0000

You could hear the cheer from CNBC commentators as Apple Inc. (NASDAQ:AAPL) reported monster earnings. This truly was a great earnings report. The jubilation started in the media and spread to the little investor. Proclamations of 1380 on the S&P 500 were constant along with “tomorrow” will be a monster up day in the markets.

However, here the S&P 500 sits on the negative side. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.28, -0.18 (-0.14%). The NASDAQ is only slightly higher on the day. Most major technology companies are selling off today while Apple is responsible for the gains alone.

One thing to learn is to ignore the Wall Street hype and focus on the charts. By focusing on the charts, it was clear that the markets were overbought and there was little if any upside left. The euphoric state of the media is used to coax the small investor into the markets. As they buy, the institutions sell. This is classic and marks the top of the market in the short term. Remember, when the markets are at their highest point of happiness and the media is pumping the strongest, sell your longs and go short.

Gareth Soloway
InTheMoneyStocks.com