It’s A Tick For Tick Battle Today

September 30, 2010

The S&P 500 e-mini is trading virtually inverse to the U.S. Dollar Index tick for tick. So far the major institutions in the know have just bludgeoned the U.S. Dollar during the month of September. However, today the dollar is putting up a little fight and guess what happens? The major stock market indexes are trading lower on heavier volume. There is still another 40 minutes in the trading day and if September holds true to form the U.S. Dollar Index could just plummet by the close at 4:00 pm EST. What else could one expect?

Stock Market Technical Analysis – Markets Have Major Reversal After Massive Gap Higher

September 30, 2010 breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics.

Reversal Flushes Market After Good Economic News

September 30, 2010

A major reversal flushed the markets to the negative side today after a massive gap and go early in the day.  Solid economic news at 8:30am ET on Jobless Claims and the third revision on GDP and even better news at 9:45am ET on Chicago PMI were the key catalysts to the surge early.  However, that was wiped away quickly.  The markets are now sharply off their highs.

There were many signals today that a reversal could take place. First, the markets were hitting a pivot top going back to the highs of 2007, connected to the highs from 2010. This line can be seen on the weekly chart below. Truly an amazing trend line of resistance. Second, major stocks that have lead the market higher were hovering flat to lower even when the Dow Jones Industrial Average was up 100 points on the day.  The weakness was noted in Caterpillar Inc. (NYSE:CAT),, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL),, Inc. (ADR) (NASDAQ:BIDU) and Google Inc. (NASDAQ:GOOG).  These stocks have been the strongest in the last month and were signaling a problem with the initial gap higher and surge.  Sure enough, their weakness was a leading indicator for the reversal in the markets.

This reversal may be key, though must be taken carefully until the markets close. At that time, hardcore analysis will be done in the Research Center to see if this sell off is more than just a one day event.  Join the Research Center to get more swing trades, analysis, guidance and education.

Gareth Soloway
Chief Market Strategist

S&P 500 Level To Keep On The Radar

September 30, 2010

Everyday the major market indexes gets saved when it looks close to a major breakdown. Mysteriously the U.S. Dollar Index will just suddenly decline and the markets will inflate right back up. Whoever is doing this is still open for a small debate. Watch the SPY to find support around the $114.40 area intra-day.

September To Remember

September 30, 2010

All the talk in the media is about how good the month of September has been. Since the start of the month of September the S&P 500 Index has rallied higher by about 11.0 percent. As we all know by now, historically September has been one of the worst month’s for the major stock indexes. However, in the past seven years only 2008 was a negative September.

The cause for the meteoric rise in the market indexes this month is very simple. It was simply the decline in the U.S. Dollar Index. The U.S. Dollar Index is a measure of the value of the U.S. Dollar against a basket of six foreign currencies. They are the Euro (57.6%), Japanese Yen (17.8%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.3%), and the Swiss Franc (3.6%). Therefore, should the U.S. Dollar Index decline then the major stock indexes around the world will inflate higher. Please remember the U.S. Dollar Index is the world’s reserve currency. Since June 7th, 2010 the U.S. Dollar Index has traded lower by 11.0 percent. In the month of September the U.S. Dollar Index has declined by just over 5.0 percent. In the currency world this is certainly a major move lower.

The leading stocks this month have certainly been the NASDAQ 100 stocks. Apple Inc. (NASDAQ:AAPL), Inc. (NASDAQ:AMZN), Inc. (NASDAQ:BIDU), and Google Inc. (NASDAQ:GOOG), have all soared higher throughout the month of September. Often it is the commodity stocks that will lead the advance on the back of the falling U.S. Dollar Index. However, in September technology took the lead.

Gold, silver and gold mining stocks lead the advance in commodities. The popular SPDR Gold Shares (NYSE:GLD) has been making new all time highs nearly every trading day in September. Gold seems to rally when investors fear the stock market and when the U.S. Dollar Index declines sharply. The Market Vectors Gold Miners ETF(NYSE:GDX) has traded very similar to the precious metal by making new highs for the year and reaching its 2008 high levels. This should be a short term resistance level for the GDX at this time.

There are a couple of negative facts for the September rally that must be pointed out. The first is the weak volume. Historically, healthy markets rise on heavy volume and decline or pullback on light volume. That has certainly not been the case in this rally. The second negative fact that can be easily seen in this rally is that the financial stocks have lagged the major market indexes. Since the March 2009 low the financial stocks have been leaders. That is not the case in the month of September. So there you have it, the month of September has been wrapped up in a few paragraphs. 2010 has certainly been a traders year so far and it is likely to remain a traders year into the New Year.

Nicholas Santiago
Chief Market Strategist

This Chart Says It All

September 30, 2010

If you want the major stock market indexes to trade higher you must have the U.S. Dollar Index decline. That has certainly happened in the month of September. The ironic part is that most stocks are denominated in U.S. Dollars. Therefore, even though stocks are rising the purchasing power in the U.S. Dollar has dropped by about 11.0 percent offsetting any real stock gains. The U.S. Dollar Index is the stock market right now. Hats off to Bernanke and friends for pulling the wool over our eyes.

Exxon Mobil Corp Has Been Weak All Day

September 29, 2010

As many of our loyal readers know Exxon Mobil Corp.(NYSE:XOM) is a market barometer stock. Therefore, when Exxon trades lower the stock market is usually trading lower. Today Exxon Mobil Corp. really struggled to catch a bid higher throughout the session. Then late this afternoon the stock market has broken lower to the downside. Exxon Mobil Corp. will have intra-day support around the $61.26 area and more around $61.00.