Gasoline Flirts With New 52 Week High

January 31, 2011

The United States Gasoline Fund(NYSE:UGA) made a new high for the year today by 0.25 cents to $43.50 a share before pulling back below to $42.95. The oil crisis in Egypt is having a direct impact on the price of gasoline. As we all know by now high gasoline prices are a direct tax on the users which is practically every consumer. The chart on the UGA remains strong at this time by trading above of all the major moving averages. There is still some minor daily chart resistance around the high of the session. Should the UGA rally higher the next important daily chart resistance level for UGA will be around the $45.00 level.

Nicholas Santiago
InTheMoneyStocks.com


USO Rockets Higher

January 31, 2011

Spot crude closed the day higher by nearly 3.00 points as the Suez Canal waterway in Egypt remains closed. This closed waterway causes the major oil ships to have to take a different route in order to deliver crude. The popular United States Oil Fund(NYSE:USO) is trading higher by $1.13 to 38.71. This is a 3.00 percent rally in the popular oil ETF. The USO will have intra-day support around the $39.00 level and a bit more around $39.25. Remember spot crude is closed for the day on the New York Mercantile Exchange and the USO will usually not trade as actively as it does when spot crude is open.

Nicholas Santiago
InTheMoneyStocks.com


Stock Market Video: Markets Resume Float As Key Signals Watched, Profit Setups

January 31, 2011

 

 

InTheMoneyStocks.com 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. InTheMoneyStocks.com 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 videosdaily market reportspro trader watch listhidden gems and technical tactics.


Alert: Walmart Approaching Buy Level

January 31, 2011

Wal-Mart Stores, Inc. (NYSE:WMT) has fallen sharply over the last two trading days. The stock had been on a recent spike for two straight weeks. This pull back offers a solid short term swing trading long opportunity.  This level is the 20 moving average on the daily chart.  WMT should see a 1-2 day bounce off this level and be good for some gains. The 20 moving average can been seen in the chart below and is an approximate level of $55.40.

Gareth Soloway
InTheMoneyStocks.com


Alert: Steel Plays To Watch

January 31, 2011

U.S. steel companies have been on fire over the last week, soaring on optimism and other key factors. Today, United States Steel Corporation (NYSE:X) is jumping higher again, trading at $57.21, +1.41 (+2.53%). As long as large cap steel companies stay strong, eyes must be leveled on small cap steel plays. This is a standard sympathy play which is used my many smart traders and investors. The key here is to put these small caps on watch and not pull the trigger until the large cap plays break recent highs.

The three small cap plays are all Chinese. With growth in China continuing, their valuations are very interesting at current levels. The first is China Precision Steel, Inc. (NASDAQ:CPSL) which is trading at $1.67. The second is General Steel Holdings, Inc. (NYSE:GSI) trading at $2.55 an the last is Sutor Technology Group Ltd. (NASDAQ:SUTR), trading at $2.05. All are trading at attractive valuations with intense possible growth ahead.  The key again is to watch for the right signals. At this time these are just on watch.

Gareth Soloway
InTheMoneyStocks.com


Sucking : Life Pulled Out Of The Markets

January 31, 2011

After a wild, huge volume day on Friday, the markets returned to “normal”.  The volatility of Friday has been sucked out, volume dry and the drama ancient history. The Middle East and Northern Africa continues to be caught up in riots and protests but the U.S. markets seem to be shrugging it off as key stocks lead the market higher and the Dollar drops.  Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.25, +0.53 (+0.41%).

It continues to be amazing to watch this market be controlled. So quickly the sellers vanish and the light volume allows for the market to float higher. Earnings from Exxon Mobil Corporation (NYSE:XOM) helped as they beat on revenue and earnings per share. The one small hiccup was their tax rate, which came in much lower than expected, increasing earnings per share. However, the stock is trading nicely higher today at $79.77, +0.78 (+0.99%).

After a strong Dollar move on Friday, it has fallen back sharply. The Dollar was up on Friday as scared investors ran to it because of the problems in Egypt. As said earlier, that is a distant memory and as the Dollar drops, the markets float higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.36, -0.13 (-0.58%).

The markets await major news later this week on jobs.  The Unemployment Rate and Non Farm Payrolls will be reported on Friday, February 4th, 2011 at 8:30am ET.  This will be something the markets will look to for direction.

While things are quiet today, smart investors and traders must be constantly watching Egypt and the whole region.  Egypt is key because they control the Suez Canal.  This is a major shipping route for the whole region and much of the world. Should things get dramatically worse, fear would boil over again and cause the Dollar to spike, sending the markets down again. Longs or shorts are available in this market. However, to do this right, each trader or investor must truly understand the chart dynamics.

Gareth Soloway
InTheMoneyStocks.com


China Pop Lifts Commodity Stocks

January 31, 2011

Last night, the important Shanghai Index(Chinese market) rallied higher by 1.38 percent. This type of rally in the Chinese markets will often help lift the popular commodity stocks. This morning many leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF), are all trading sharply higher.

It is also very important to note that the U.S. Dollar Index is trading sharply lower today and this will usually help to inflate most of the leading commodity stocks higher. Should the U.S. Dollar Index find support and rally the leading commodity stocks could pullback or deflate lower.

Short term traders can watch for short term intra-day resistance on FCX around the $109.35 level intra-day. Should the U.S. Dollar Index decline further FCX stock could trade higher. The opposite would be likely occur if the U.S. Dollar index rallies as traders should look for a decline in FCX.

Nicholas Santiago
InTheMoneyStocks.com


Major Market Mover Report

January 31, 2011

As we all have been seeing in the nightly news there has been a lot of turmoil erupting around the world as of late. Food riots began occurring about a month ago in Tunisia, and Algeria. This week massive riots and protests in Egypt erupted as the government in that country is in complete disarray. Many investors and traders are now pointing to the extremely high inflation levels in the world as the cause for all this turmoil. Many of the emerging stock markets have already rolled over and began selling off sharply as these growth nations now try and fight inflation by raising interest rates. Everyone knows that when a country is forced to raise rates in order to fight inflation growth will slow as the easy money and credit come to a halt. This week we shall focus on the top three emerging markets that must increase interest rates in order to curb the out of control inflation that is effecting the world.

First let us take a look at iShares MSCI Brazil Index (ETF) (NYSE:EWZ). This leading emerging market ETF topped out on November 4th, 2010 at $79.21 a share. The popular emerging market ETF closed at $72.55 on January 28, 2011. That is a 9.0 percent correction since the November 2010 highs. On January 19th, 2011 the Brazilian central bank raised its key interest rate to 11.25 percent from 10.75 percent in order to fight inflation. Imagine the United States raised its benchmark Fed funds rate by three quarters of a point, or 0.75 percent from its current zero percent rate, the U.S. stock market might crumble. Inflation in Brazil is being reported at 5.91 percent and is expected to remain above 5.00 percent for the remainder of 2011. The EWZ will have some daily chart support around the $71.00 level. However, the stronger weekly support levels are around the $68.00 area and ultimately the $64.00 level.  Make clear note of these levels on your charts, trade accordingly as the stock will react.

India is the second largest populated emerging market around the world. Many traders and investors will follow or trade The India Fund, Inc. (NYSE:IFN). This leading emerging market fund has declined sharply since topping out on November 8th, 2010 at $40.94 a share. As of January 28th, 2010 the IFN closed at $29.40 a share. The decline from the November 2010 high is nearly 29.0 percent. A decline of 20.0 percent or more in an index is considered bear market territory. Leading Indian stocks such as Tata Motors Limited (ADR) (NYSE:TTM) have been under pressure since late November 2010. The IFN will have some daily chart support around the $28.50 level. The weekly chart support will be around the $26.00 area.

China is the most populated country in the world with over 1.3 billion people. This country is now the second largest manufacturer and economy behind the United States. China also owns the largest amount of U.S. debt of any single nation at 7.5 percent or nearly $1 trillion. The iShares FTSE/Xinhua China 25 Index ETF(NYSE:FXI) topped out on November 8th, 2010 right along with the other emerging market funds at $47.99 a share. On January 18th, 2010 the FXI closed down by $1.11 to $42.03 a share. This is a 12.0 percent decline from the November 2010 highs. China has recently raised its benchmark interest rate in late December 2010 by 25 basis points to 5.81%. The People’s Bank Of China (central bank) also increased bank reserve requirements to try and curb its hot real estate market. The central bank has even gone so far as to now require a 60 percent deposit or down payment for buyers in order to purchase a second home in China. The popular FXI will have some daily chart support around the $42.00 level. The weekly support levels are $39.50 and ultimately $36.00.  Again, take special note of these levels. These are key levels in that money making opportunities will be presented if/when price should reach them. At that point you will need to know which side of the market the higher probability presents itself.

Inthemoneystocks.com


Qualcomm Under Some Pressure. Watch These Levels.

January 31, 2011

Qualcomm Inc.(NASDAQ:QCOM) is a leading tech stock in the communication equipment space. The stock is trading slightly lower this morning by 0.36 cents to $53.38 a share. The Nasdaq 100 is also under some slight pressure and this could force QCOM stock lower. The stock will have some short term intra-day support levels around the $52.45 area and more support around the $51.90 level. Both support levels could see small intra-day bounces.

Nicholas Santiago
InTheMoneyStocks.com


Is The Friday Sell Off A Thing Of The Past?

January 31, 2011

This morning the major stock market indexes are all starting the session higher to begin the day. The talking heads in the media are now saying how everything is fine once again in the world with the exception of Egypt. The Asian markets traded mostly lower last night with the lone exception of the Shanghai Index which was higher by 1.38 percent. We all know the market loves to see the Chinese market higher because many economists believe the Chinese economy is the growth engine of the world. All in all it looks as if the media has forgot the bloodbath market that took place before the weekend on January 28th, 2011.

Rarely will the major stock market indexes such as the S&P 500 Index, the NASDAQ Composite, and the Dow Jones Industrial Average decline sharply ahead of the weekend. However, the market declined sharply on higher volume last Friday. Traders and investors should not write that type of decline off so fast. This is a market that is being inflated every single day by massive cash reserves from the Fed’s quantitative easing program. Traders have been buying almost every dip on a daily basis. Eventually, stock markets need to have pullbacks. If stock markets do not pullback at some point they will simply be on a collision coarse when the manipulation stocks. Look what happened in 2007 and later in 2008 to all the major indexes.

This morning Alpha Natural Resources Inc.(NYSE:ANR) has bought out Massey Energy Co.(NYSE:MEE). This news should be bullish short term for the coal sector in the market. Traders should keep an eye on stocks such as Peabody Energy Corp.(NYSE:BTU), James River Coal Co.(NASDAQ:JRCC), and Patriot Coal Corp.(NYSE:PCX). These stocks could trade higher in sympathy to the Massey Energy takeover. The Market vectors Coal ETF(NYSE:KOL) can also see a positive reaction to the news and may very well trade higher today.

As for the overall market indexes it is prudent to allow this market to prove itself. Anytime markets sell off from highs on volume traders should expect that the selling may not end so quickly. Therefore, despite this mornings sharp gap higher the early rally may not last very long. There is usually a bigger reason for declines in the market when they occur on heavy volume.

Nicholas Santiago
InTheMoneyStocks.com