Inthemoneystocks Blog

RESEARCH CENTER UPDATE ALERT !! (Daily Analysis Video & Daily Market Report)

Wall Street Elite, Membership Has Its Privileges

When I first started looking for a job in the financial industry I had no idea what I wanted to do, all I knew was that I wanted to be part of the action. Everyone knew Wall Street was where the big money was made, and the big players played. At a young age, I was determined to become part of this exciting world. Never could I have imagined how far this industry would exceed my expectations.

My first job on Wall Street about 20 years ago was as a cold caller, or more specifically, stock broker trainee. I would literally make hundreds of calls a day trying to get sales leads for the broker I was working for. I hated it, we worked like dogs for about $300 a week while also studying to take our Series 7 test, which was an exam everybody in the industry had to pass in order to officially sell/pitch stock. We would work from 8 in the morning till 9 at night; none stop dialing the phone, all day and night. The worst thing about it was the sales leads we as cold callers generated went right to the brokers, where they reaped the benefits by making the sales and getting the commissions. Like I said I hated it, but at the time I knew it was a way to break into the industry.

One day the broker I was working for asked me to take an order to the trading room. Upon walking into the trading room I knew instantly that this is where I wanted to be working. It felt like everything I had imagined the room was buzzing with excitement, guys yelling out orders and quotes, phones ringing off the hook, people hurrying back and forth. The pulse of the market was palpable, I was hooked, I knew this is where I wanted to be. The first thought I had was how do I get a job working in a trading room? With my invigorated fire I started looking for jobs on the trading side of the industry, going on interviews, reading, learning anything I could, calling anyone who I thought might have a connection. All while I was still cold calling from 8am to 9pm, and hating it.

After a few job interviews and a continued relentless pursuit, I received a phone call that changed my life; I was hired as a trader's assistant! The salary to start was not very much but this didn't concern me. I was where I wanted to be, in a trading room. At first I was a gopher, whatever the senior trader needed, I did. What mattered to me was that I was in that environment. I was learning and gaining every bit of insight I could from the senior traders. I saw on a daily basis how trades were executed, how thing really work, the big money they brought in. I was finally in the pulse of the market and I was in heaven. As time progressed and I continued to learn, I began to recognize how the system really functioned. Enter the all mighty Market Maker; most clear to me was how this so-called membership had it privileges, and they were abundant.

Being a Market Maker back then was one of the most sought after jobs on Wall Street. Market Makers would essentially set the market for a stock. If they want to buy, they set a price that they want to buy. If they want to sell, they set the price in which they want to sell. It was incredible times; Market Makers were treated like famous people on Wall Street those days. Everyone wanted to be friends with the Market Makers. We were constantly being invited out to dinners, taken to sporting events; everyone wanted to have good relationships with traders because traders had the pulse of the market. Anything that happened on Wall Street, the trading desks are the first to know, therefore it was in the best interest of many people to have good relationships with traders.

Over the years I learned everything there was to know about being a Market Maker. Then one-day things changed, I walked into the trading room at 8:00am just like every other day but this was the day that changed my life. On my desk that morning was a list of stocks that I was able to trade on my own. It was official, I was a Market Maker for my firm, and so the story goes. Life is funny sometimes, I often think what if the broker that I was working for never asked me to take an order to the trading room, what if I let the road blocks slow me down? I run into that broker from time to time and every time I see him I thank him for helping me realize my dream.

Lou Cardinali,
InTheMoneyStocks.com

H-P To Acquire 3Com For $2.7 Billion

Hewlett-Packard Co.(HPQ ) on Thursday said it would acquire 3Com Corp. (COMS ) for $2.7 billion, or $7.90 a share.

DXY UPDATE: DXY HIGHER ON THE DAY, HOWEVER, OFF THE HIGHS INTO THE CLOSE

The dollar finsihed the session slightly higher on the day. However, it did pullback in the final hour of the day giving the market a last hour uptick.

Economic News Due Out Tomorrow

The first economic news for the week is due out tomorrow morning. Initial claims and continuing claims are due out at 8:30am, crude inventories due out at 11:00am. Maybe this will bring some volume back into the market.

SNDK moving toward low of the day, watch this support.

SNDK is a leading semiconductor stock. it is weak on the day. There will be support at 21.20. Small bounce is likely from that level.

NEM LOSING SOME SHINE

NEM is pulling back this afternoon. NEM will have minnor support at 51.15 and major intraday support at 50.78.

Crude Ends Up

Crude oil futures ended up 0.3% at $79.28 a barrel.

Today's Market Movers

Gainers

SMI +60.30%
MSN +41.26%
CHLN +27.90%
DRL +25.54%
REGN +19.94%
TOL +17.46%

Decliners

TONE -36.75%
HLCS -17.61%
CLWR -14.76%
STV -13.19%

V CHOPPING AROUND INTRADAY LOWS

V is chopping around the lows of the day. The 80.40 level is currently an intraday support level. Bounce off this level is likely.

Gold Finishes At Record High

Gold futures finished at a new record on Wednesday. Gold for December delivery finished up $12.10 at $1,114.60 an ounce. It had traded as high as $1,119.20.

Market Technical Analysis & Setups - Market Hits Great Wall Top Levele And Reverses Down..ALERT!

POSSIBLE HEAD AND SHOULDERS TOP ON SPY

SPY has dropped down to it's intraday low. There may be a small head and shoulders top in place. However, until the SPY closes below the 109.50 level it is nothing to get excited about. The target is 108.60 if it plays out. A close above the blue neckline invalidates the play.

Charts by Tradient

Crude Slips Down

Crude oil futures gave back earlier gains. Crude for December delivery fell to $78.62 a barrel. It had been as high as $80.10 before selling off.

Applied Materials Reports After The Close

Applied Materials (AMAT) is due to report earnings after the close today. They are expected to report an 85% drop in revenue of 3 cents a share. Revenue is likely to fall 35%.

Goldman Sees Gold At $1,200

Goldman Sachs said gold prices could rise to $1,200 an ounce if real interest rates remain weak which will provide support for gold prices.

5% Of Americans Plan To Buy A Home Next Year

5% of Americans say they are planning on buying a home next year. The main reason for their purchase is that they think that prices have bottomed.

AOL Laysoff 100 People

AOL laid off about 100 people in an effort to cut costs. The layoffs spread to all areas of the company.

Video-Game Sales Expected To Fall

The video-game industry is expected to post another weak month when sales data for October are released Thursday. The NPD Group will release sales data for October Thursday. They are expecting a decline of 11%.

Motorola May Sell Cable Equipment Unit

Motorola (MOT) is considering a $4.5 billion sale of a unit that makes cable boxes and other equipment.

S&P May Downgrade Sprint Nextel

Standard & Poor's Ratings Services said Wednesday it may downgrade the ratings of Sprint Nextel (S) because of weak operating performance.

BLK PULLING BACK, WATCH THESE LEVELS

BLK the leading investment firm or the under the radar Goldman Sachs is pulling back intraday. It will have support at the 232 level and then at 231.00.

Toll Brothers Home Orders Beats Estimate

Toll Brothers (TOL) said Wednesday that its quarterly orders rose more than expected from a year ago.

JPM HAVING A GOOD INTRADAY SELLOFF, WATCH THIS LEVEL

JPM is having a good sell off after trading higher on the session inthe first hour. JPM will have support at the 43.85 level.

Today's Market Movers

Gainers

SMI +54.96%
CHLN +29.78%
REGN +16.52%
TOL +15.39%
DRL +14.54%

Decliners

TONE -36.80%
RHIE -12.90%
MHR -9.53%
SNV -8.25%
CLWR -9.10%

XOM LEADING THE FALL INTRA-DAY

XOM has sold off from it's intraday high. This is a leading stock especially in the energy sector. The 72.53 level is gap fill support and a bounce is likely there.

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Volkswagen Predicts Higher Sales

Volkswagen is predicting annual sales of 130,000 of their new mid sized sedan that will start to be made in 2011.

Applied Materials May Cut 15% Of Jobs

Applied Materials (AMAT) may be cutting more jobs. Analysts at Pacific Crest Securities, RBC Capital and Auriga USA LLC are predicting job cuts of as much as 15 percent.

Higher Crude Prices Could Cut 2010 Demand

OPEC warned that higher oil prices could cut demand next year. OPEC revised its estimate for 2010 global demand to 750,000 barrels a day from 700,000 barrels.

COULD THE MARKET BE TALKING TO US

The VIX (CBOE VOLATILITY INDEX) has put in a very nice bottoming tail on the 60 minute chart. This tail was on heavy volume and could be signaling further upside to the VIX. Often the VIX rises when there is fear in th emarket or when traders want to hedge their long positions. In any case keep an eye on the VIX.

RESEARCH CENTER UPDATE ALERT !! (HOT CHARTS & ALERTS)

Dollar Hits 15-Month Low

The dollar fell Wednesday hitting 15 month lows. The dollar index (DXY ) , the benchmark used to track the U.S. unit against a basket of major currencies, fell to 74.910, down from 75.050.

USO IS TRADING HIGHER ON THE BACK OF THE WEAK DOLLAR

The USO is rallying on the back of the weak U.S. Dollar. There is resistance at 40.82 and 41.16. However, as long as the dollar remains weak oil could climb.

GLD CLIMBING AGAIN AS THE DOLLAR IS WEAK

GLD is climbing to a new all-time high on the back of the weak U.S. Dollar. GLD will have minor resistance at the 110.00 level. However, it is simply all about the dollar.

ADBE selling this morning, watch this support level.

ADBE is under pressure this morning. Watch the 34.75-34.60 level for a possible bounce area. This is gap fill and gap fills are usually solid support levels.

BOND MARKET IS CLOSED FOR U.S. VETERANS HOLIDAY

The bond market is closed for the U.S. Veterans day holiday. We shall see if the stock market moves higher as the bond market is not open to keep the stock market traders in check. When the cats away the mice will play.

World Bank Warns Unemployment Threatens US Economy

World Bank President Robert Zoellick said Wednesday, that the U.S. unemployment rate, which jumped to a 26-year high of 10.2 percent in October, will likely remain elevated in 2010. He also warned that high unemployment will drag on consumption hurting the chance of an economic rebound.

U.S. DOLLAR WEAKER TO START THE DAY

The U.S. Dollar index is lower to start the day. Today is the U.S. Veterans Day holiday therefore volume could be light today. light volume does favor market upside.

Gold Futures Hit New Highs

Gold futures made record highs on Wednesday. Gold for December delivery was up $14.30 to $1,116.80 an ounce.

Dollar Takes A Hit Again + Light Holiday Volume = Markets Higher Pre Open

The dollar is lower ahead of the bell. The markets look to gap higher on the back of the light holiday volume. Per the Research Center, our premium members expected an flat to up day based off the light holiday volume. No brainer. Join now. Get the info that will make you rich.

Moody's Cuts Icelands's Credit Rating

Iceland on Wednesday had its credit rating cut further by Moody's Investors Service. Moody's cut Iceland's foreign and local currency bond ratings by two notches, to Baa3 from Baa1. The outlook is now stable after a previous negative rating.

J.P.Morgan Downgrades Tyson Foods

J.P. Morgan cut its rating on Tyson Foods Inc.(TSN) to neutral from overweight Wednesday.

RESEARCH CENTER UPDATE ALERT !! Hot Charts And Alerts + Pro Trader Watch List + More!

FedEx Projects Busier Busiest Day

FedEx is expecting to be a little busy on Dec.14, which will be its heaviest day of the year. The company says it will ship 13 million packages on that day.

SPY MOVING HIGH ON THE DAY, WATCH THIS LEVEL

The SPY has moved higher this afternoon on another ultra light trading session. The 110.00 level looks to be good intra-day resistance.

TRADE LESSON: HOW TO TRADE THE BEST DOUBLE BOTTOM PATTERNS

One of the most common and best patterns is the double bottom pattern. This is simply when the market seems to retest a low and then bounces higher off the low level. It is important to watch for the double bottom low to pierce the prior low before reversing back higher. This is because market makers are looking to bait in momentum short traders and then come in and rip it against them. Once they are forced to cover their short trade by buying back the stock it creates extra momentum to the upside and therefore pushes the stock even higher. The best double bottoms usually have prior support levels on the chart. In the example below you can see the prior support on CAT at the 54.25 area on October13th-15th. This is signaling that CAT should have good support at this level. Remember as traders we are always looking to increase the odds and make the trade more favorable. Please understand it is always prudent to use stops and good money management in any trade.

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Today's Market Movers

Advancers

UPG +27.39%
PCLN +19.53%
IO +14.32%
CHLN +13.79%
ACAD +10.79%

Decliners

RHIE -61.75%
ABK -30.37%
OPXT -29.97%
PRKR -24.31%
MBI -23.96%

Gold Still Shines

Gold futures finished higher on Tuesday. Gold for December delivery gained $1.10, or 0.1%, to finish at $1,102.50 an ounce.

INTHEMONEYSTOCKS.COM TRADER CALLS ANOTHER WINNING TRADE!!! $$$$

Over the lunch period the lead IntheMoneyStocks.com trader identified a key support area to the penny. Traders were instructed that this was a long scalp opportunity. Traders continue to see profits even in a slow intra-day trading environment.

CHK CATCHING A BID, COMING INTO INTRADAY RESISTANCE

CHK has caught a bid here in the afternoon. It looks to be into good resistance at 25.25- 25.32. Pullback is likely from this level.

Market Technical Analysis & Setups - Master Level Nailed...Market Pulls Back Slightly. Light Volume

Will Ambac File For Bankruptcy ?

Ambac Financial Group (ABK) said it may file for bankruptcy protection. The company said in a regulatory filing late Monday that it should have enough liquidity to satisfy its needs through the second quarter of 2011. They also warned that Ambac Assurance may not be able to pay dividends to the holding company.

Treasury Sells $25 Billion Of 10 Year Notes

The Treasury Department sold a record $25 billion in 10-year notes on Tuesday at a yield of 3.470%.

Today's Market Movers

Gainers

UPG +26.09%
PCLN +17.71%
IO +16.08%
CYD +13.22%
ACAD +12.95%

Decliners

RHIE-57.50%
OPXT -29.62%
PRKR -23.73%
CHOP-21.85%
MBI -20.63%

EIA Raises Forecasts For Oil Prices

The Energy Information Administration raised its forecasts for this winter's oil price Tuesday, saying it will average at $77, up $7 a barrel from earlier forecasts.

ADP Hikes Dividend

Automatic Data Processing Inc.(ADP) board approved raising the quarterly dividend to 34 cents a share from 33 cents.

USO PULLING BACK AFTER AN EARLY POP

USO is pulling back after having an early move higher. The 40.30 level looks to be good intraday support for the USO. Bounce is likely from this level.

XOM IS CHOPPING AROUND TODAY. WATCH THIS SUPPORT AREA.

XOM has been all over the place today. it has pulled back nicely after piercing the 73.20 level. Watch the 72.60 level as good intraday support.

J.P. Morgan Chase To Hire 1,200 Loan Officers

J.P. Morgan Chase & Co.(JPM) said Tuesday that it plans to hire 1,200 loan officers by the end of 2010. The 60% sales force increase is intended to help Chase customers buy and refinance homes, the bank said.

Market Breaks Down Through Its Trend Channel...The Selling Begins

Note the trend channel that was so key in holding the market up since yesterday morning has broken. This should signal near term weakness.

Goldman Sachs Nails The 20 Moving Average...Could Signal A PullBack Coming

This hit of the 20ma may signal Goldman Sachs and the market may be due for a pullback shortly.

Oil Rises Above $80

Oil prices rose on Tuesday to above $80 a barrel. U.S. crude for December delivery was up 92 cents to $80.35 a barrel.

U.S. DOLLAR: HOW LOW WILL IT GO?

The dollar has began it's normal decline after trading higher earlier at the open. The falling dollar is giving a lift to gold and the overall market. As we say 'EVERY TRADE IS A DOLLAR TRADE'.

Chart from Bloomberg.com

Home Prices Fall In 3rd Quarter

Home prices fell in the third quarter from year-ago levels in about 80 percent of U.S. metropolitan areas, the National Association of Realtors said Tuesday.

GLD IS CATCHING A BID AS THE DOLLAR BEGINS TO FALL

The GLD(Gold ETF) has caught a bid as the U.S. Dollar begins it daily decline. There is minor resistance at the 108.67 level. Should the dollar fall further gold should continue to rise.

Secret Loan Keeping Lloyds Alive

LLOYDS BANKING GROUP is being kept afloat with £165 billion of loans and guarantees from the Bank of England and other central banks around the world.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6907889.ece

BLK PULLING BACK TODAY. WATCH THIS SUPPORT LEVEL.

BLK is a leading financial stock that gets overlooked as most traders prefer Goldman Sachs. BLK has good intraday support at the 231.75 level.

XHB CATCHING AN EARLY POP. WATCH THIS LEVEL INTRADAY

The XHB is catching an early bid higher. The 15.20 level looks to be goog intraday resistance. A pullback from this level is likely.

DVN is catching a bid, watch this resistance level

DVN is catching a bid early this morning. The 70.00 level looks to be resistance intraday. Pullback is likely from this area.

U.S. DOLLAR INDEX TRADING SLIGHTLY HIGHER TO START THE SESSION

The U.S. Dollar index started the session slightly higher to start the day. When this happens the dollar has a tendency to fade giving the markets a lift. REMEMBER EVERY TRADE IS A DOLLAR TRADE.

Lloyds To Cut Another 5,000 Jobs

Lloyds Banking Group said Tuesday that it will cut another 5,000 jobs across its operations. The company is lookingfor annual cost savings of $2.5 billion.

Beazer Homes Posts Profit

Beazer Homes USA (BZH) said Tuesday it posted a fourth-quarter profit. Net income for the quarter totaled $33.8 million, or 84 cents per share, compared to a loss of $473.9 million, or $12.29 per share, a year ago. Revenue fell 42 percent to $376.3 million from $649.8 million.

U.S. DOLLAR INDEX UPDATE

The U.S. Dollar index has made new lows for 2009 today. The declining dollar has been the catalyst for the rising markets. Currently the dollar is putting in some possible positive divergences on the daily and weekly charts. While we are not stong advocates of indicators we do find them useful when we are able to spot positive or negative divergences. This could be forming on the U.S. Dollar index charts. However, until they turn up the dollar could continue to decline.