Oil And Light Volume Dominate The Market Action

February 28, 2011

As oil declines the major stock market indexes catch a bid and trade higher. Spot crude has now become just like the U.S. Dollar Index was. A weaker U.S. Dollar Index would help inflate the major stock market indexes. Now, since the crisis in the Middle East and North Africa it is the high oil prices that are stalling the stock market rally. The magic number that crude can reach is $100.00 a barrel before panic sets in on the stock market.

Spot crude seems to be consolidating just under the psychological $100.00 level.Should crude at some point rally or surge above that level it would be prudent to expect a declining stock market. Today, oil for April delivery ended the session on the NYMEX at $97.10 a barrel. Every trader and investor has one eye glued on an oil chart as the stock market continues to trade inverse to oil.

The small rally in the stock market today is rather unimpressive for a couple of reasons. The Dow Jones Industrial Average(DJIA) is leading all of the major indexes today trading higher by nearly 70.00 points. However, the S&P 500 Index is just trading higher by 3.50 points, and the NASDAQ Composite is trading lower by over 9.00 points on the session. Therefore, the DJIA is not really painting the entire picture of today’s jittery market. The trading volume is also very light today and that will usually favor the upside for stocks. Should better volume resume tomorrow we shall get a better picture of the overall stock indexes.

Nicholas Santiago
InTheMoneyStocks.com

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Market Analysis Video: Markets Fade As Retrace May Be In Play, Free Trial Alert

February 28, 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.


Classic Retrace In Progress

February 28, 2011

The markets are fading off the highs of the day as lingering global fears persist. In addition, this is a classic retrace back higher after the major drop last week. A retrace states that after a significant two or more day move, the market or stock making the move will jump in the opposite direction but stay inside the original move. After the retrace completes, the market or stock heads back in the original direction.

After putting in a major pivot top last week, the markets fell for two or more consecutive days. After a bounce on Friday and initially today, the markets have started to slowly fall again. Is this a classic retrace over the last two trading days? Is the market going to start to move lower again? It is possible.

There are some major stocks showing weakness today. Amazon.com, Inc. (NASDAQ:AMZN) is dropping sharply, trading at $172.31, -4.93 (-2.78%). In addition, the financial sector has turned to the negative side, leading the markets off their highs. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $164.27, -0.50 (-0.30%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $46.52, -0.16 (-0.34%).

The next few days will be pivotal in terms of seeing if this retrace back up is just a setup for another move lower. Continue to watch the 52 week highs on the S&P 500.

Gareth Soloway
InTheMoneyStocks.com


Will Silver Go Higher Or Collapse Again

February 28, 2011

Last Thursday, silver collapsed. After hitting a high of $33.00 the previous day on the iShares Silver Trust (NYSE:SLV), it dropped to a low of $30.96.  This did some major technical damage to the chart. However, between last Friday and today, silver has roared higher, surging through the $33.00 level. The SLV is currently trading at $33.07, +0.51 (+1.57%).

The big question must be asked, will silver now break higher or collapse back down, utilizing a double top as resistance. The answer will be given based on the closing price of the SLV today. Should the SLV close below $33.00, the bearish case is still on the table. If the SLV closes above $33.00, there is a strong likelihood silver is going higher in the short term.

Silver is extended on most chart time frames but global instability and the perception of a massive global recovery is giving it life. Watch closely in the coming two days to see which direction this goes.  Gold remains strong with the SPDR Gold Trust (NYSE:GLD) trading at $137.82, +0.44 (+0.32%).

Gareth Soloway
InTheMoneyStocks.com


The Keys To The Next Market Move

February 28, 2011

The markets are having their second straight bounce day on the back of light volume and continued semi calm in the Middle East and Northern Africa. Libya continues to be in a civil war but overnight China began putting pressure on Moammar Gadhafi to step down. This helped drop oil back to the flat line which pushed the futures higher. The key to oil and the markets remains, whether or not the unrest spreads to Saudi Arabia.  The United States Oil Fund LP (NYSE:USO) is currently trading at $39.46, -0.22 (-0.55%).

After a major drop early last week, Friday brought a change in direction. The markets bounced sharply. Today, we are seeing further gains, though smaller in the indexes. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.88, +0.55 (+0.42%). While the markets are bouncing for the second consecutive day, they are still below the $134.69 pivot 52 week high. As of now, this is called a classic retrace higher. The next few days will be extremely key to whether or not the markets will break out or turn down again. With confirmation to the downside, intelligent traders are starting to look for a secondary move lower. Traders will continue to look for this starting at today’s highs at $133.32, as long as the SPY does not take out the $134.69, 52 week high.  Should the market take out the highs again, then traders will look for further upside.

This maneuvering is based on technical pivots and the understanding of price pattern and time. By using these methods traders will see exactly when momentum switches and price changes from bullish to bearish or bearish to bullish.

Gareth Soloway
InTheMoneyStocks.com


Oil Services Holders Trust Under Pressure

February 28, 2011

The Oil Services Holders Trust(NYSE:OIH) is a basket of the leading oil services stocks. This morning the OIH has come under some pressure trading lower by 41.90 to $161.35 a share. Short term traders can watch for intra-day support around the $160.75 area. This is where an intra-day  short term bounce is likely to occur.

Nicholas Santiago
InTheMoneyStocks.com


Silver And Gold Remain In Bull Mode This Morning

February 28, 2011

This morning both silver and gold are trading higher and remains near 52 week highs. The iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.54 cents to $33.10 a share which is a new 52 week high. The SLV looks to have some minor intra-day resistance around the $33.25 level. Should the U.S. Dollar Index continue to decline the SLV could see higher prices.

The SPDR Gold Shares(NYSE:GLD) are trading higher by 0.59 cents to $137.99 a share. The all time high for the GLD was made on December 7, 2010 at $139.54 a share. Short term traders can look for the GLD to have intra-day resistance around the $138.50 level. As long as the U.S. Dollar Index continues to decline gold and silver could continue to climb higher.

Nicholas Santiago
InTheMoneyStocks.com