Gold and Silver Love The U.S. Dollar Decline

April 29, 2011

Gold and silver are directly benefiting from the decline in the U.S. Dollar Index. In fact, the entire stock market is rising as the U.S. Dollar Index declines intra-day. Gold and silver are both making new highs this morning. The SPDR Gold Shares is trading higher by 0.68 cents a share to $150.49 a share. The next important intra-day resistance level for the GLD should be around the $151.00 area.

The iShares Silver Trust(NYSE:SLV) is off to the races this morning. The SLV is trading higher by 0.59 cents to $47.95 a share. Traders must watch for intra-day resistance around the $48.00 and $48.50 levels. If the U.S. Dollar Index somehow bounces higher throughout the day this will put selling pressure on gold, silver and most everything else in the stock market.

Nicholas Santiago
InTehMoneyStocks


Mining Equipment Stocks Leading The Charge

April 29, 2011

This morning the leading mining equipment stocks are surging higher. The catalyst for the move higher in the sector is the strong market reaction to the Caterpillar Inc.(NYSE:CAT) earnings release. This morning CAT is trading higher by $3.19 to $115.83 a share. This is a new 52 week high for the stock as it gaps above the old April 4, 2011 high which was $113.93 a share. Should Caterpillar stock close up here the stock could have the $120.00 level in it’s sights. This would be the next important daily chart resistance area. The stock should have intra-day resistance around the $116.75 level.

Other leading mining equipment stocks that are trading higher this morning are Deere & Co.(NYSE:DE), and Joy Global Inc.(NYSE:JOYG). Both of these leaders are acting very strong this morning. These stocks will come into daily chart double top resistance soon, therefore, traders must watch for these resistance areas very soon. Deere stock will have some intra-day resistance around the $97.50 level. The intra-day resistance level for JOYG will be around the $102.50 and $103.00 levels.

Nicholas Santiago
InTheMoneyStocks.com


Transports Lead Markets, Are They Tired Here?

April 28, 2011

The Dow Jones Transportation Index(DJT) is one of the most highly followed indexes by traders and investors. This afternoon the Dow Jones Transport Index is trading at a new 52 week high on the charts. This index can be easily followed or traded by using the iShares Dow Jones Transportation ETF(NYSE:IYT). The IYT is trading higher by $1.18 to $99.63 a share. Traders must now watch the psychological $100.00 level as the next important resistance point. When the transports trade higher it is often viewed as a sign of economic strength and expansion.

Some leading transportation stocks that are climbing higher today include CSX Corp.(NYSE:CSX), United Parcel Service Inc.(NYSE:UPS), and Union Pacific Corp.(NYSE:UNP). Many of these leading transportation stocks are looking extended at these current levels and may be due to pullback or consolidate soon. The index and many of the leading stocks continue to look strong, however, nothing goes up in a straight line and this may be a spot where the institutions decide to take some profits.

Nicholas Santiago
InTheMoneyStocks


Goldman Sachs: Master Level To Watch

April 28, 2011

Goldman Sachs Group, Inc. (NYSE:GS) has major support just below the $150.00 level today at $149.60. There may be a solid bounce off this point and can be utilized as an intra day scalping level to the long side. The financial stocks have been very weak in an otherwise strong market. The daily chart of Goldman Sachs is probably one of the weaker charts in the large cap arena.

Gareth Soloway
InTheMoneyStocks.com


The Debacle That Is The Dollar

April 28, 2011

The Federal Reserve released their FOMC Policy Statement yesterday and for the first time ever, Ben Bernanke held a conference call. To show the lack of faith in him and the Federal Reserve, the Dollar crumbled. Investors ran into gold and silver in record numbers. Today, the Dollar is falling again with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $20.97, -0.05 (-0.24%). In response to the weaker Dollar, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $135.86, +0.19 (+0.14%). Always remember, the markets go the opposite way of the Dollar. Yesterday, the Dollar fell on the Federal Reserve’s comments and the markets surged. Today the Dollar is slightly weaker and the markets are slightly stronger.

Silver and Gold continue to surge higher. The iShares Silver Trust (NYSE:SLV) is trading at $47.26, +0.26 (+0.55%) and the SPDR Gold Trust (NYSE:GLD) is trading at $149.36, +0.16 (+0.11%).

This morning economic reports were somewhat poor as Jobless Claims were reported at 429,000. A month ago, Jobless Claims were hovering in the 380,000 range and were at multi-year lows. Since then, they have steadily crept higher. In addition to a poor jobless claims number, GDP came in at 1.8%. While somewhat in line with expectations, this number is concerning. The reason for concern focuses on the massive amount of money the Federal Reserve is pushing into the markets through QE2. With the massive stimulus, the growth should be higher. These economic numbers are definitely concerning but have little effect on the markets as long as the U.S. Dollar falls.

Gareth Soloway
InTheMoneyStocks.com


Silver and Gold Soar After The FOMC

April 27, 2011

Gold and silver are soaring higher this afternoon as the FOMC keeps the Fed funds rate at zero percent. The iShares Silver Trust(NYSE:SLV) is trading higher by $2.58 cents to $46.63. The all time high for SLV was made two days ago at $47.00 a share. That level could get breached today as the U.S. Dollar Index continues to get pummeled.

The SPDR Gold Shares(NYSE:GLD) is trading at a new all time high  today. The GLD is trading higher by $2.50 to $148.90 a share. It is still rather amazing that the Federal Reserve Chairman, Ben Bernanke did not address gold and silver.

Nicholas Santiago
InTheMoneyStocks.com


The Only Chart That Matters

April 27, 2011

This afternoon the major stock indexes are trading higher as the Federal Reserve Bank Charmian, Ben Bernanke, gives a live press conference. As Ben Bernanke takes questions from reporters all that seems to matter is the action in the U.S. Dollar Index. As long as the dollar declines the major stock indexes seem to inflate higher. Traders should keep one eye on the dollar at all times as this is the only inverse relationship in the stock market that really matters. Should the U.S. Dollar Index catch a bid higher these markets could turn south quickly. So far, Chairman Bernanke, has not said anything that indicates he wants a stronger U.S. Dollar. There have not been any questions  regarding gold and silver which are telling the world that the U.S. Dollar is in freefall.

Nicholas Santiago
InTheMoneyStocks.com