Stock Market Videos: If You Were Not Long, Shame!

November 30, 2011

The markets blasted higher today again. The Dow Jones Industrial Average is up over 700 points in three days. While most average investors and traders missed this rally, members had their biggest profit day ever. While news outlets and the media spew doom and gloom, InTheMoneyStocks reads the charts and uses them to go long and short.


Analysis: Solar Stocks Have Reached A Bottom

November 30, 2011

The solar sector is finally participating in a rally. Throughout 2011, the solar stocks have fallen, even during great market moves to the upside. The obvious issue has been margin pressure and the problems in Europe. Europe has long been one of the biggest buyers of solar energy. Austerity measures have meant major cutbacks in solar installations. In addition, overproduction of solar cells from China have caused major price cuts. Prices of solar panels have fallen off a cliff in 2011 and amazing earnings growth has turned into major losses for many players. While the fundamentals look gloomy, it appears a bottom is in.

Solar stocks are running higher today headed by First Solar, Inc. (NASDAQ:FSLR) . First Solar is trading at $46.98, +3.17 ($7.24%). Other smaller solar companies have seen major moves in the last few days. One of the highlights would be Canadian Solar Inc. (NASDAQ:CSIQ). Just last week the stock traded as low as $2.07. Today it hit a high of $2.93

Another factor that should help solar stocks rebound is oil. Crude oil is trading above $100 per barrel. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $38.86, +0.31 (+0.80%). As oil holds over $100, at current prices, solar is an amazing alternative energy. Demand will increase. The increase in demand should shoot solar prices slightly higher which in turn will bring profits back to the sector.  Other solar stocks to watch are SUNPOWER CORP CL A (NASDAQ:SPWR) and Trina Solar Limited (ADR) (NYSE:TSL).

Gareth Soloway

Trade Lesson: Stock Market News Is Garbage

November 30, 2011

For the average person who invests or trades, saying the news is garbage is a sin. However, it is proven over and over again to be the case. The news is nothing more than a way to take money from the bottom 99% and distribute it to the top 1%. Those at the top control the news and release it to cause certain reactions. Those reactions are carefully calculated to achieve certain goals. Those controlling these avenues and directing the markets are the Federal Reserve banks around the world and the top institutions.  Today, the markets are surging once again, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.64, +4.08 (+3.53%).

Last week, the media was pushing doom and gloom. TV stations like CNBC were bullying the average investor to sell or short the market. This past Monday, the markets ripped higher on a “mention” of a possible Euro bond from Angela Merkel, the head of Germany. Tuesday, the markets paused and many traders started to wonder if the move up was a one hit wonder. After the bell, news hit the markets that many banks like Bank of America Corp (NYSE:BAC) had their credit rating downgraded. This sent more shorts into the market and investors running for cover. Today was destined to be a bloodbath, or so the average investor though. Yet, here the markets sit, the Dow Jones Industrial Average up over 400 points.

Investors and traders are lost because they listen to the news. One day the markets collapse, the next day they rally, one hour there are credit rating downgrades and a near collapse in Europe, the next the Federal Reserve and other Central Banks are saving the day. It is virtually impossible to trade off of news. The news is garbage and cannot be used to make money consistantly these days.

So what is the answer?

The answer is the charts. The charts never lie and always dictate the future. To give examples, lets talk about last week. Just last week, as the doom and gloom hit its highs, average traders were selling and shorting the market. The market was clearly going to bounce. This allowed for long alerts on the Semiconductor HOLDRs (ETF) (NYSEARCA:SMH) and JPMorgan Chase & Co. (NYSE:JPM). In addition, a long was given and triggered on the SPDR S&P 500 ETF (NYSEARCA:SPY) at a price of $117.65. Today, the SPY hit a high of $124.50. That is a monster gain of $6.85 in less than five trading days.

The S&P 500 had a pause day yesterday. After a huge move on Monday, a pause day is known as a bullish signal. If you looked closely at the 60 minute S&P 500 chart, an amazing bull flag had formed as well. All signals were pointing to another monster up day. After the bank credit rating downgrades, the average traders once again thought the downside was obvious. However, if you just followed the charts, you would have been on the right side of the markets and made money.

Never be a bull or bear, be an neutral investor and trader who trades based off the charts.

Gareth Soloway

Always Beware Of The Bernank

November 30, 2011

This morning, all of the major stock indexes are surging higher at the open. The early rally is sparked by global central bank intervention, The central banks around the world will provide liquidity to the large banks that cannot borrow. We must all believe that the Federal Reserve Chairman Ben Bernanke is behind this move. The action by the central banks around the world is causing a massive short squeeze in the markets. Just think about how many investors went short yesterday as the financial stocks plummeted into the closing bell.

After the close yesterday, 37 banks were downgraded by the credit rating agency Standard and Poors. This major downgrade by Standard and Poors certainly caused many traders to sell short the financial stocks after the close. While the world was getting braced for further downside the Bernank and the central banks were getting ready to announce this coordinated intervention for the banks. This action is causing a major short squeeze this morning as the Dow Jones Industrial Average rallies higher by nearly 400.00 points.

In 2008, when the major stock market indexes were plummeting the Federal Reserve Bank Chairman Ben Bernanke lowered the discount lending rate before the opening bell on an options expiration day. This again caused a massive short squeeze in the markets. The bottom line, the Bernank loves to cause these short squeezes. He has a long history of causing these types of market reactions from time to time. Just think about it, how many times has the Federal Reserve floated the idea of another quantitative easing program since QE-2 ended in late June 2011? They leak the idea of QE-3 nearly everyday. Just yesterday, the San Francisco Federal Reserve President Janet Yellen said, “We are actively considering methods that we could use to provide greater clarity” on the central bank’s pledge to keep rates low through at least mid-2013, and new purchases have the potential to “flatten the yield curve.” These remarks move markets and are used everyday by the central bankers.

This is why traders must learn how to use charts. The charts have a tendency to forecast the market moves before they occur. The charts are not perfect, however, as a trader we simply want the edge or the odds in our favor to take trades that will make money. If you are not looking and understanding the charts then you are doing yourself a great disservice. The charts told us that these markets were ready for a bounce and sure enough the central banks pull this stunt today. Only the charts could have told us this was coming. As for the Bernank, he will continue to cause short squeezes from time to time just the way he always has in the past.

Nicholas Santiago

Central Banks to The Rescue, Markets Blast Off

November 30, 2011

This morning, the S&P 500 Index e-mini futures (ES Z1) are soaring higher by 36.00 points to 1232.50 per contract. This rally comes as most of the leading central banks around the world announce a coordinated effort to lower swap rates for the European banks. This central bank intervention is certainly helping all of the major stock indexes in the United States and Europe to inflate and rally sharply higher. The German DAX, and the French CAC 40 are trading higher by nearly 4.0 percent this morning after this news was announced.


NASDAQ Pause Day Or All Out Weakness?

November 29, 2011

This afternoon, the highly followed NASDAQ Composite is trading slightly lower on the session. This decline in the tech heavy NASDAQ comes as the Dow Jones Industrial Average and the S&P 500 Index are trading higher. It is important for traders to remember that the NASDAQ Composite traded higher by 80.0 points yesterday, therefore, today’s small pullback is very common after such a large price move. Often, the major stock indexes will consolidate or pause before moving higher again.

The problem with the NASDAQ Composite and the other major stock indexes is that price is trading below all of the major daily chart moving averages. When the price of a stock or index trades below the major moving averages it tells traders that the market is in a weak technical position and susceptible to lower prices. Many traders and investors believe that yesterday’s rally was just a technical bounce from an oversold condition. While this might be true the markets were all very strong into the close and that type of action should be respected in the short term.

Some leading NASDAQ stocks that are struggling today include Apple Inc (NASDAQ:AAPL), Inc (NASDAQ:AMZN), Sandisk Corp (NASDAQ:SNDK), and Citrix Systems Inc (NASDAQ:CTXS). All of these stocks had surged higher yesterday, therefore, today’s pullback could be due to some quick profit taking from yesterday’s large point advance. All traders must still be extremely careful in this market as the volatility is likely to remain higher for the foreseeable future.

Nicholas Santiago

Stock Market Videos: Banks Troubled, Be Alert And Profit

November 29, 2011

The S&P 500 and Dow Jones Industrial Average are hovering slightly higher on the day while the Nasdaq is lower. While the markets are holding steady after a huge rally yesterday, bank stocks are sending out a warning signal. Stocks like JPMorgan Chase and Goldman Sachs are taking a pounding. Even yesterday in the massive rally, these stocks were weak. The financial stocks must be leading this market if the rally is to continue.