Broadcom Under Pressure

May 31, 2011

Broadcom Corp.(NASDAQ:BRCM) is one of the leading semiconductor stocks that has come under selling pressure this afternoon. BRCM stock is trading lower today by $1.14 to $35.38 a share. This stock is selling off sharply lower today after staging a three day rally into important daily chart resistance. Short term day traders should watch the $34.60 area as intra-day support.

Most other leading semiconductor stocks are trading higher on the trading session. The Semiconductor Holders Trust(NYSE:SMH) is trading higher by 0.38 cents to $35.71 a share, therefore, the decline in Broadcom stock is very specific to this company.

Nicholas Santiago
InTheMoneyStocks.com

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Small Cap Chinese Stocks Back In Favor

May 31, 2011

This morning, it was announced that Morgan Stanley (NYSE:MS) in Asia invested $50 million in Yongye International, Inc. (NASDAQ:YONG). This is a significant investment for a company only valued at approximately $250 million. In addition, it is catching Wall Streets eye because of the recent problems in many Chinese stocks. Over the past few months, stocks like China MediaExpress Holdings Inc. and China Agritech Inc. along with countless others have been halted and delisted due to shady, fraudulent accounting practices. This has caused almost all Chinese stocks to be punished and trade at tiny multiples. Investors have stayed away from small Chinese stocks as they fear more shady companies are lurking. However, today may be the turning point. Investors may start to flood back into Chinese small caps, following Morgan Stanley. Hedge funds may also follow suit and jump in.

Gareth Soloway
InTheMoneyStocks.com


Solar On Fire Off Germany

May 31, 2011

Germany, already an avid fan of solar energy, announced they would have all nuclear power plants shut down by the year 2022.  This was in response to the horrific catastrophe in Japan just a couple months ago.  The meltdown at the Fukushima Daiichi nuclear plant caused radiation to spread throughout much of the region and faint amounts around the world. It has been called one of the greatest man made disasters in history.

Germany, has always been on the leading edge of alternate energy and has now proclaimed an end to nuclear energy in their country. This announcement was very bullish for solar stocks. LDK Solar Co., Ltd (NYSE:LDK) surged close to 10% before pulling back and First Solar, Inc. (NASDAQ:FSLR) is currently trading at $123.76, +2.39 (+1.97%). In addition, Suntech Power Holdings Co., Ltd. (NYSE:STP) is up +0.44 (+5.47%) to $8.48 while Canadian Solar Inc. (NASDAQ:CSIQ) is trading at $9.69, +0.41 (+4.42%).

Solar stocks have been hammered of late because of lower margins and an end to subsidies in many countries. This was the first small bit of good news for the sector in months. Many solar stocks were near 52 week lows.

Gareth Soloway
InTheMoneyStocks.com


What A Fade!

May 31, 2011

This morning, the major stock market indexes have faded from the sharp gap higher open. This fade from the open can only mean that the U.S. Dollar Index is trading off the morning lows. The S&P 500 Trust(NYSE:SPY) is short term oversold intra-day, however, the next major support level for the SPY will be around the $133.50 level. This is certainly a short term intra-day bounce area.

Nicholas Santiago
InTheMoneyStocks.com


Keep This Chart On The Radar

May 31, 2011

This morning, the major stock market indexes are soaring higher on the back of the weaker U.S. Dollar Index. As we should all know by now, when the U.S. Dollar Index declines the major stock market indexes climb higher. Traders must keep an eye on the U.S. Dollar Index at all times. If the U.S. Dollar Index rallies higher intra-day it can easily take a lot of steam out of this early morning rally.

Generally, leading commodity stocks are the first to inflate and trade higher on the back of the weaker U.S. Dollar, therefore, these leading stocks are usually the first to decline and deflate on the back of the stronger U.S. Dollar Index. Traders should watch and follow leading commodity stocks such as iShares Silver Trust(NYSE:SLV), AK Steel Holdings Corp.(NYSE:AKS), and Southern Copper Corp.(NYSE:SCCO) for inverse reactions to the U.S. Dollar Index.

Nicholas Santiago
InTheMoneyStocks.com


Pre-Market News and Views for May 31st 2011

May 31, 2011

This morning, the S&P 500 e-mini futures(ES M1) are trading higher by 11.25 points to 1341.25 per contract. This sharp move higher comes as the U.S. Dollar Index(DX) declines lower. Germany announced that they are willing to make a new aid package for Greece. This news has lifted the markets across the Euro-zone. We can only wonder who is the next country in the European Union to need a bail out, and who will be the next country to want a new restructured bailout package? These problems in the European Union are not going away anytime soon.

 


Holiday Float Begins: How To Profit

May 26, 2011

The markets are heading slowly north as predicted in my article yesterday. This is classic pre-holiday action caused by the Federal Reserve and their POMO, along with light volume and an overbought Dollar short term. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.88, +0.49 (+0.37%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) has fallen to $21.63, -0.08 (-0.37%).

The Federal Reserve and the powers trying to help a recovery have a vested interest in having the markets move higher into a holiday weekend. Remember, consumer spending is still the major driving force behind any recovery. Should the market tank into a three day holiday weekend like this, would anyone really be spending that extra money? More likely than not, a large drop into a holiday weekend would make the average American think twice about rushing out to those stores in search of great Memorial Day sales.

In addition, as Wall Street traders head out today and tomorrow for the holiday weekend, the markets remain open. This means that the volume remaining will be exceptionally light. Based on human psychology, the markets will naturally float neutral to higher. The psychological aspects of this delve into human nature and the way the we naturally have a positive outlook on life. With institutions gone, the retail investor is the main participant in the markets. Their outlook is to buy. In fact, most retail investors have never shorted the market.

Lastly, the Dollar has surged in recent weeks, heading into a resistance area. The odds based on the extension move in the Dollar, favor a pull back. It is very important to recognize that the markets trade in the opposite direction of the Dollar. Therefore, a fall in the Dollar should help the markets trade to the upside.

The leaders today are clearly technology related with the Nasdaq pushing higher. Microsoft Corporation (NASDAQ:MSFT) is having a fantastic day, trading at $24.80, +0.61 (+2.52%). The weakest stocks continue to be the financial firms, barely squeaking out a gain today. This is one of the only sectors to be near or at their 52 week lows. Continued worry about regulation, lawsuits and more have hampered these stocks for months.

Gareth Soloway
InTheMoneyStocks.com