Markets Surge To New Highs In Late Friday Trading

July 30, 2010

The SPDR S&P 500 ETF (NYSE:SPY) hit a new high of the day, coming into the 200 moving average and the double top resistance from yesterday afternoon.  Note the chart below.  It is pulling off those levels just before the close with the markets in the green.  The dollar has moved lower throughout the day, helping the markets regain their composure.  Oil turned a big drop into a nice move higher along with natural gas.  Natural gas continues to look like a breakout on the daily United States Natural Gas Fund, LP (NYSE:UNG) chart.  Gold is substantially higher as well.

After an ugly gap lower today, the markets have given an impressive showing.  The Dow Jones Industrial Average was down over 100 points this morning.  It is now up 15.

Gareth Soloway
Chief Market Strategist
http://www.InTheMoneyStocks.com

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TXN Forming Bullish Pattern

July 30, 2010

TXN is a leading semiconductor stock that has made a series of higher highs today. The stock is poised to move higher as long as the market holds steady or advances. TXN will have short term intra-day resistance around the $24.91 – $25.00 level.


Market Technical Analysis – Markets Gap Lower On GDP, Recover As Friday Effect Takes Place. Profits!

July 30, 2010

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Two Small Biotechs With Hot Charts To Watch

July 30, 2010

ARCA biopharma, Inc. (NASDAQ:ABIO) and Somaxon Pharmaceuticals, Inc. (NASDAQ:SOMX) are on high alert based on their relative price and technical patterns.  Both traded substantially higher not long ago and both have solid bull flag patterns developing on their daily charts.  ARCA biopharma traded as high as $9.23 in late March on great news.  It currently sits at $3.68.  Somaxon Pharmaceuticals traded as high as $10.60 in mid March and now sits at $3.78.  Recent biotech and pharma news has been solid and many have started to wake up and push higher.  These are two that have fantastic charts and are on high alert.

Gareth Soloway
Chief Market Strategist
http://www.InTheMoneyStocks.com


Key Support And Resistance Levels On The SPY

July 30, 2010

The SPDR S&P 500 ETF (NYSE:SPY) is hovering flat to slightly negative on the day. When the markets opened, they gapped substantially lower.  This was quickly negative by a massive squeeze on some positive economic news and Friday manipulation action.  The below chart shows the key support the SPY is currently hammering against.  Note that level was the last confirmed break point on the move up.  That is exactly why it is holding up so well.  Having said that, the more it hammers on the $110.10 level, the more likely it breaks.  Light volume is taking over on this Friday.  I expect a general flat day on the markets

Gareth Soloway
Chief Market Strategist
http://www.InTheMoneyStocks.com


Economic Data Sends Market On A Wild Ride

July 30, 2010

The big earnings announcements have subsided over the last week, but the economic reports continue to flow.  Today, GDP was reported for the second quarter, 2010.  It came in around the estimates at 2.4%.  The futures sold sharply.  Why did the futures sell sharply on a GPD number that came in line with what Wall Street had expected? Because GDP for the first quarter of 2010 was revised upward to 3.7% from 2.7%. What? How does that make sense?  GPD being revised upwards is good news right?  Not so fast.  GDP of 3.7% in the first quarter, compared to GDP of 2.4% in the second quarter means now there is a significant slowdown in progress again.  This leads many to think that double dip recession is in play.

The markets gapped lower with the SPDR S&P 500 ETF (NYSE:SPY) hitting $108.98 within the first few minutes of trading. This was a drop of $1.31 for the day.  The Dow Jones Industrial Average was down more than 100 points.

Then came more economic data.  At 9:45am ET, Chicago PMI was reported to be 62.3.  Analysts had expected a much lower number.  That markets surged higher.  In addition, word came out that BP plc (ADR) (NYSE:BP) would set aside $100 million unemployed rig workers.  That helped fuel a short squeeze.  At 9:55am ET, University of Michigan Sentiment was reported to be 67.8, also higher than economists had expected.  The markets continued to squeeze.

By 11:00am ET, the markets had erased a 100+ point drop on the DOW and were in positive territory.  Truly an amazing move as shorts were caught off guard once again.  In the last hour, the markets had stalled and are now beginning their sideways trek around the flat line.  This is now looking like a typical Friday mid day session with many traders starting to head out for the weekend.  Volume should continue to decline and a flat day is expected on the markets.

Gareth Soloway
Chief Market Strategist
http://www.InTheMoneyStocks.com


‘Friday Effect’ Engaged

July 30, 2010

Many traders and investors may have realized by now that the major stock market indexes often get supported or defended into the weekend. We call this phenomenon the ‘Friday effect’. If you have looked at a chart over the last two years most Friday’s before a weekend are basically a flat to slightly positive trading day. There have been a few rare times when the major indexes have sold off sharply on a Friday, however, the key word is rare. Today the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), and the Powershares QQQ Trust (NASDAQ:QQQQ) both started the session sharply lower and are now trading slightly positive on the session.

Today the stock market started the session sharply lower after a weaker than expected GDP report was released by the Commerce Department. However, after the morning gap lower open the market has surged higher. It is also important to note that the U.S. Dollar Index has also declines sharply from the opening bell at the New York Stock Exchange. When the dollar declines the major stock indexes will usually inflate higher.

Please remember that the volume is usually very light on a Friday. Therefore, after the first couple hours the volume will usually get very light and the market often goes into a sideways float throughout the rest of the day. Many professional traders and investors will generally leave early on a Friday to get a head start on the weekend in the summertime. Therefore, it is prudent to expect less volatility throughout the rest of the session. In any case it looks as if the ‘Friday effect’ has played out again as the market are now flat to slightly higher on the session.

Nicholas Santiago
Chief Market Strategist
http://www.InTheMoneyStocks.com

http://www.inthemoneystocks.com/userfiles/image/dia%207_30_10.bmpMany traders and investors may have realized by now that the major stock market indexes often get supported or defended into the weekend. We call this phenomenon the ‘Friday effect’. If you have looked at a chart over the last two years most Friday’s before a weekend are basically a flat to slightly positive trading day. There have been a few rare times when the major indexes have sold off sharply on a Friday, however, the key word is rare. Today the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), and the Powershares QQQ Trust (NASDAQ:QQQQ) both started the session sharply lower and are now trading slightly positive on the session.

Today the stock market started the session sharply lower after a weaker than expected GDP report was released by the Commerce Department. However, after the morning gap lower open the market has surged higher. It is also important to note that the U.S. Dollar Index has also declines sharply from the opening bell at the New York Stock Exchange. When the dollar declines the major stock indexes will usually inflate higher.

Please remember that the volume is usually very light on a Friday. Therefore, after the first couple hours the volume will usually get very light and the market often goes into a sideways float throughout the rest of the day. Many professional traders and investors will generally leave early on a Friday to get a head start on the weekend in the summertime. Therefore, it is prudent to expect less volatility throughout the rest of the session. In any case it looks as if the ‘Friday effect’ has played out again as the market are now flat to slightly higher on the session.

Nicholas Santiago
Chief Market Strategist
http://www.InTheMoneyStocks.com