Trade Lesson: Patience Is a Position

March 31, 2011

The major stock indexes are trading basically unchanged today after some early morning volatility. Investors and traders alike seem to be waiting on the highly anticipated government job report that will be out tomorrow morning at 8:30 am EST. Today the SPDR Dow Jones Industrial Average ETF(NYSE:DIA) is trading in a 0.40 cent range for most of the session. This makes the markets very dull after the first two hours of the day. Short term day traders must be especially careful in this type of trading environment as computer algorithms take over and try to stop out the small amateur scalp trader. Traders must take advantage when the market is active and the volume is at its peak. After that trader’s must be very selective and try to trade in active markets. Remember the oil market adage, “don’t be a cowboy as cowboys get shot.” Therefore, once the pro traders see this type of light volume, range bound action, they will take a step back and wait for the markets to tell them what to do. Be patient in this environment.

Nicholas Santiago
InTheMoneyStocks.com


Ford Daily Bull Flag Signals Possible Profits

March 31, 2011

Ford Motor Company (NYSE:F) continues to consolidate off the lows hit weeks ago. After hammering into the 200 moving average on the daily chart multiple times, Ford jumped higher on March 24th, 2011. That move took the stock well off the 200 moving average and started a bullish consolidation pattern known as a bull flag. This pattern has a solid probability of profit on the long side if played correctly.

Gareth Soloway
InTheMoneyStocks.com


SanDisk Corp. Scalping Level On Watch

March 31, 2011

SanDisk Corporation (NASDAQ:SNDK) ran sharply higher early in the morning, spiking to a high at $46.43. After hitting that level, the stock has slowly declined, falling almost back to gap fill. At gap fill there is also the major support of the 50 moving average. This price level is $45.40. This price represents a solid level for a scalp to the long side.

Gareth Soloway
InTheMoneyStocks.com


Markets Consolidate Ahead Of Jobs Number

March 31, 2011

The SPDR S&P 500 ETF (NYSE:SPY) is trading slightly lower today at $132.67, -0.10 (-0.08%).  After two consecutive days of higher markets, it appears all eyes are now turned to the Non Farm Payrolls Number and Unemployment Report. Expectations are extremely high, with the market pricing in a gain in jobs in the range of 250,000. While the markets need a number of 250,000 to move higher tomorrow, it is unlikely a number lower would cause significant selling. If gains in jobs were significantly limited, talk of QE-3 would be possible. Quantitative easing is a drug into the vein of the markets. Any chance of further printing of money by the Federal Reserve would help stem any major losses in the markets.

Silver, gold and oil are all higher today. A run for commodities continues as they all move higher. The iShares Silver Trust (NYSE:SLV) is trading at $36.72, +0.19 (+0.53%), the SPDR Gold Trust (NYSE:GLD) is at $140.08, +1.41 (+1.02%) and the United States Oil Fund LP (NYSE:USO)  is trading at $42.33, +0.67 (+1.61%).

Gareth Soloway
InTheMoneyStocks.com


Chevron Fades From Open. Watch This Level

March 31, 2011

Chevron Corp.(NYSE:CVX) started the morning around the $109.60 area at the open of the day. The stock has faded a bit from the opening high print and is trading around the $108.80 area now. Short term scalp traders must watch the $108.00 level as important intra-day support. Should the stock decline down to that area this would be a likely bounce level.

Nicholas Santiago
InTheMoneyStocks.com


Something Wrong In Apple City

March 30, 2011

Apple Inc. (NASDAQ:AAPL) is weak for the second day in a row. Not only is the lack of strength significant, but add to it a market rally both days and the weakness in Apple is even more glaring. With the markets spiking higher, Apple is trading at $348.89, -2.07 (-0.59%). This is significant for many reasons but mostly because Apple Inc. has been a leader in the market. With the markets now surging back towards the 52 week highs, Apple can barely catch a bid. I wrote about this a week ago and it continues to be dead on. Steve Jobs has left, competitors are closing in and Apple has gotten too big to sustain its amazing growth.

Gareth Soloway
InTheMoneyStocks.com


Transports Test Major Level

March 30, 2011

The iShares Dow Jones Transport ETF(NYSE:IYT) has rallied sharply higher from its March 15, 2011 pivot low at $88.90 a share. This morning the IYT is trading higher by 0.59 cents to $95.72 a share. The IYT has rallied higher by nearly $7.00 in just 12 trading sessions. At this time the IYT is trading around its recent double top area from February 18, 2010 which was $96.30. Therefore, this area should be of some resistance in the near term. The IYT is also getting a bit extended on the daily chart at this time. Recently, the transports have climbed higher with the major stock indexes and this is a sign of economic strength in the near term. However, until the IYT clears the double top area at $96.30 traders must not assume that the transports will break out just yet.

Other leading transport stocks that are trading higher this morning are FedEx Corp.(NYSE:FDX) and United Parcel Service Inc.(NYSE:UPS). Should the IYT begin to pullback it would be prudent to expect these transport leaders to pullback as well.

Nicholas Santiago
InTheMoneyStocks.com