Bank of America Drops On Wikileak Rumor

November 30, 2010

Bank of America Corp.(NYSE:BAC) is making a new low for the year today. The stock is now rumored to be part of a wiki-leak that is yet to be released. The stock has been one of the weaker financial stocks throughout 2010. Since April 15th, 2010 the stock has declined by $9.00 points. This afternoon Bank of America has pierced it’s recent $11.00 support level making it vulnerable for further declines in the near term.


TXN Resistance Area

November 30, 2010

Texas Instruments Inc.(NYSE:TXN) has rallied higher since 11:00 am EST. The stock is still trading lower by 0.24 cents to $31.96 a share. This leading tech stock will have intra-day resistance around the $32.08 – $32.11 area on the charts. Watch for a small pullback around this level.


Groundhog Day

November 30, 2010

Today’s trading session looks very similar to yesterday. The major stock indexes made a morning low during the first 30 minutes of the trading session just like yesterday. The U.S. Dollar Index pulled back from the morning highs helping the markets to inflate higher just like yesterday. The Federal Reserve Bank pulled off another $6.8 billion POMO operation just like yesterday. I’d say this was a groundhog day or a repeat of yesterday.


A Small Cap To Watch

November 30, 2010

Spherix Incorporated (NASDAQ:SPEX) is a biotech with a very promising diabetes drug. After statistically significant results on October 7th, 2010, the stock spiked as high as $2.10. During the same day the company announced that institutional investors had purchased $5.25 million in convertible preferred stock and warrants. This killed investors as the stock dumped and turned negative on the day. Many investors viewed this action, during the same day as good news was released, to be hurtful to the average investor who had bought the good news. Since then, the stock has tumbled from $2.10 to its current level at $0.54. At this current level, the stock does seem attractive. In addition, it appears to be making a bottom. The company also said it was actively looking for a partner to help develop the diabetes drug.  Any good news could help restore the reputation at SPEX and help investors forget what transpired. Analyzing risk to reward, this stock looks intriguing.

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


Jobs Reports Loom Large, Be Ready

November 30, 2010

As the markets hover slightly lower today on more European fears, Wall Street is preparing for the Jobs Reports. Tomorrow, the ADP Private Sector Employment report will be released. Thursday, Jobless Claims and Friday the market gets the Unemployment Report and Non Farm Payrolls. This will be a wild next few trading days as global fears continue. Join the Research Center to get the play by play as well as swing trades, guidance and education.


Markets Weak As Europe Troubles Spread

November 30, 2010

The markets are lower today as the Dollar gained again. Simply put, the Dollar gains when global fears bubble up. This is happening again today in Europe as the domino effect is in full mode. Greece, Ireland and now on the horizon, Spain, Portugal, Belgium and Italy.  Where do the bailouts stop? Will Germany bail out everyone?  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $23.42, +0.07 (+0.30%). With the Dollar higher, obviously, the markets are lower. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.54, -0.62 (-0.52%).

The Federal Reserve continues to do its best to keep the markets from collapsing.  So far they have done a fantastic job. Yesterday was a prime example of how POMO can work to prop the markets up.  Late in the day, the markets roared back, ending near the flat line. POMO is basically quantitative easing in a micro sense. Almost every day for the next six months, the Federal Reserve will be buying treasuries from banks. The banks then flood the market with the money.  Generally, this will weaken the Dollar or this money will directly be put to work in the stock market pushing it higher. What is the long term effect? Most of the wise investment community shudders at the long term results of this type of policy. On its basic level, it is another bubble in the making that will break at some point.

My projections:
In the short term, the Dollar is getting a little extended. I have the UUP resistance level at $23.50. This was hit today. Should the Dollar pull back, the markets may float higher in the next couple week, especially into Christmas and New Years. While a float higher is possible, I see it as choppy and wild with continued fear with an underlying upside bias as the Federal Reserve continues their propping.

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


Just Follow Exxon Mobil

November 30, 2010

Do you remember that old television commercial for Fruit Loops cereal? “Follow your nose it always knows”. Well, in the trading world it is Exxon Mobil Corp.(NYSE:XOM) that is the Fruit Loops of stocks. When this stock rallies or trades higher there is a very good chance that the stock market will bounce higher. When Exxon Mobil Corp. declines or pulls back it is prudent to expect the major stock indexes to pullback.

Please remember that Exxon Mobil Corp. still has the largest market capitalization in the stock market at around $350 billion. This leading integrated energy stock is also a Dow Jones Industrial Average component. Therefore, it will effect the Dow Jones Industrial Average(NYSE:DIA) and the S&P 500 Index(NYSE:SPY) much more than it will effect the Nasdaq composite or the Nasdaq 100(NASDAQ:QQQQ).