Inthemoneystocks Blog

Can The Small Investor Surive In This Market?

Let's face some basic facts when it comes to investing or trading. The markets are an avenue to transfer wealth. Small weak money gets bullied by smart advanced money. In essence, institutions using technology and expert traders take money from weak, individual traders and investors. This has been how things have been throughout history but in the markets of today, it seems to be much more rampant. We must analyze why and discover the true ways to avoid these pitfalls if you are a retail investor or trader without the resources of a monster hedge fund or institution.

Years ago, the markets were a great place to put money for the long term. Investing for retirement was the name of the game and this is how many baby boomers built their nest eggs. However, over the last ten to fifteen years, the markets have gone sharply higher, fell hard, gone sharply higher and fallen again. If you had invested money in 2000 or 2001, ten years later you would be lucky if you had made a dime. Look at the chart below showing the SPDR S&P 500 ETF (NYSE:SPY) monthly. Notice where the markets were ten years ago. In addition, note the M-A pattern which is scary and will be discussed at a future point in time.

In recent months, the markets have started to become even more volatile and choppy. Six to ten percent swings in the market are occurring every few weeks. Swing traders and day traders are getting whipped in a market and the average investor believes the markets are fully rigged. Are they mistaken? Not necessarily! In all fairness, the way they are run are not that much different from how they were in the early 1900's. Institutions and big money still control the markets like they did back then. However, there is one major difference. The speed at which the markets moved was slower due to lack of technology.

In the market of today, the swings are violent and wild as computer programs have taken over. Black box trading programs run by institutions are ruling the markets as well as mega money hedge funds. The media is often utilized to also transfer wealth by blasting the overly bullish or bearish sentiment to the average trader and investor.

If you have not figured it out yet, the markets are being whipped to maximize profits to the big players through psychology. Get the common investor and trader to be overly bearish and smack the market higher, taking their money. Just as things seem perfect once again, the economy ready to recover and the average investor has invested on the long side once again, slam the markets down, taking their money. Technology has created a perfect environment for this to occur almost weekly. Black box trading programs, mega money flow from institutions and the media pushing the rhetoric causes the small investor to get lost in a sea of whipsaw. The average investor and trader has no shot. If you have no help, it is wise to not even risk your hard earned money and step aside.

Will the small investor vanish forever? Much like those from the Great Depression who would keep money under their mattress, many retail investors will be very gun shy for years and decades to come. However, greed will prevail, they will be back and trying again at the first sign of stability. Unfortunately, the stability will not last long as this game will be repeated again and again. In addition, with the emergence of new markets like China and India, there will be new money flowing all the time to keep the hungry institutions fat.

Do I swing trade and trade? Yes, of course. I spent years studying the markets, learning methods and creating proprietary methods that I teach to my members. Through these methods we can avoid many of the pitfalls most retail investors and traders fall into. Learn and profit.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Weekend Technical Analysis - Markets To Rock As Volume And Trading Returns, Massive Levels Emerge

InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just $49.99/month.

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China's Consumer Price Index Grows 3.5%

China's consumer price index in August jumped its largest rate increase in almost two years. China gained 3.5% from a year earlier and 0.2% from July, likely from China's worst flooding in years and inflation. China's National Bureau of Statistics reported two days ahead of schedule.

Fixed-asset investment in China's cities surged 24.8% so far this year, down slightly from the 24.9% increase in July. Textiles jumped 11.6%, raw chemicals gained 12.9% and general machinery rose 20.1%. Retail sales of consumer goods added 18.4%, up 0.5% from the prior month.Industrial growth in August increased to 13.9%, up from 13.4% in July.

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Saturday, the 11th of September we will be conducting our world renowned webinar "Methodology Revealed." This "Methodology Revealed Webinar" will open your eyes to the market in a way you never thought possible. In the webinar you will learn InTheMoneyStocks proprietary time counts and cycle techniques, how to read and chart anything in a truly scientific yet simple way, identify tops/bottoms in any market, calculate pattern like the Pro's, live chart analysis and much, much more! Most importantly, learn the key tools that no one else is teaching. Learn the exact key trading tools and techniques our Pro Traders use everyday to profit from the markets and NAIL the big moves -- apply it the very next trading day!

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GM CEO Takes $9 Mil Pay-Package

General Motors Co. Chief Executive Daniel Akerson will receive an annual pay package totaling $9 million, In a statement said Friday with the Securities and Exchange Commission. Akerson will get a base salary of $1.7 million, $5.3 million under GM's salary stock plan, and $2 million in restricted stock under the company's long-term incentive plan. Edward Whitacre, the former CEO as of last month who will remain as the chairman until the end of the year, will receive $300,000 in director and chairman fees.

Oil Rallies Higher

October crude ends higher by $2.20 to close at $76.45 per barrel.

Gold Ends The Week Lower

December gold closed lower by $4.40 to end the week at $1246.50 an ounce.

Austan Goolsbee To Head Council of Economic Advisers

President Barack Obama promoted Austan Goolsbee,an economist from the University of Chicago, to the role of chairman of the White House Council of Economic Advisers, filling a key vacancy on his economic team. Goolsbee, is already a member of the council and does not need congressional approval to become the chairman. He is replacing Christina Romer, who left the council.

CVB Can't Cover Payments

CVB Financial Corp. states that the bank's largest borrower can't make payments, increasing bad loans up by about $48 million. CVB states "Recently, our single largest borrower informed us that they were not able to make principal and interest payments on their loans as scheduled and wanted to negotiate an alternative repayment schedule." CVB's largest borrower has seven loans totaling roughly $82 million.

CVB is being investigated by the SEC troubled loans.

Major Stocks That Cannot Catch A Bid, Flag Caution

Since the recent rally took the markets up six percent in less than two weeks, most stocks have jumped substantially in all sectors. This wide spread rally has been impressive after most analysts, economists and investors were expecting a collapse in the markets. Note, we called the up move perfectly. While stocks have had a beautiful move higher, some very important stocks have been left behind. This does need to be watched and is concerning.

The stocks that have been left behind are Intel Corporation ( NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Hewlett-Packard Company (NYSE:HPQ) and Cisco Systems, Inc. (NASDAQ:CSCO). Overall, for this rally to last, these very important market moving stocks must rally and move off their lows. The charts of all four of these technology stocks are extremely poor. Intel itself has a very bearish head and shoulder pattern already in play with a downside target of $14.00. What could it mean? Bottom line is this, while analysts think a double dip recession is now 100% off the table, these stocks tell a different story. Be aware of these key players and be careful in the coming months. To gain more insight, analysis, guidance, swing trades and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Philip Morris Raises dividend

Philip Morris International Inc. states its board has raised the quarterly dividend by 10.3% to 64 cents a share from 58 cents a share. The dividend will be payable Octocber 8th to shareholders on record as of September 24th.

Markets Higher As Oil Rebounds, China Data Next Week

The markets are floating higher today after a holiday shortened week. Volume is on pace to be among the lightest of the year. The SPDR S&P 500 ETF (NYSE:SPY) is hovering a half percent higher and just below the highs from yesterday. The markets seem to be floating not only on light volume but also on a solid move in oil. Crude oil is higher by $1.92 on the day. The United States Oil Fund LP (NYSE:USO), its ETF counterpart is up $0.72 (+2.19%). This move in oil is giving a bullish push to stocks like Chevron Corporation (NYSE:CVX), a key component of the DOW. It is up $0.95 to $78.31 (+1.25%).

This week has been extremely quiet but next week the volatility should pick up substantially as options expiration takes hold. The latest rally began with economic data from China. Next week more major economic news will be released from China as well. This will be a major market moving influence again.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Friday Market Update

Corporate Bond Sales Hit Weekly Record For 2010

U.S. corporate bonds reached a weekly record for 2010, with $34.4 billion in bonds sold this week, more than the entire month of may. Sales follow one of the busiest Augusts on record, with nearly $70 billion sold last month as falling Treasury yields pushed corporate bond yields to all-time lows of 3.73 percent.

HPQ Is Weak Again. Watch This Intra-day Level.

HPQ is trading lower again this morning by 0.51 cents to $38.31. This stock has been beaten down and continues to remain weak. However, HPQ will have short term intra-day support around the $38.00 level. This is a possible scalp bounce area for the stock.

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National Semi Gets It's Clock Cleaned. Watch This Level.

National Semiconductor Corp. is trading sharply lower this morning by 0.85 cents to $12.04 after the market reacted poorly to its earnings. This stock should be coming into some short term intra-day support around the $11.78 area. This could be a spot where the stock could see a short term bounce.

Shanghai Data Moves The Markets

The commodity stocks have been on the weak side over the past two trading days. The pullback in the leading commodity stocks comes as the Shanghai Index (China) sold off by 1.45 percent the other night. There has also been a lot of talk from the leading politicians and the U.S. Treasury Secretary Tim Geithner for China to let there currency float and trade in the open market. Currently the Chinese Yuan is basically fixed and pegged to the U.S. Dollar. Many other politicians in the U.S. will argue that a free floating Chinese Yuan would hurt many of the retail companies such as Walmart Stores Inc.(NYSE:WMT), and Target Corp.(NYSE:TGT. Most of the goods that retailers sell comes from China and higher prices at the retail chains would hurt the U.S. consumer further.

The leading commodity stocks are trading slightly lower this morning as the U.S. Dollar Index trades slightly higher on the trading session. Stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) reversed lower yesterday after the declining Shanghai stock index and are trading down again this morning. Please remember that these leading commodity stocks will usually trade higher if the U.S. Dollar Index starts to decline and trade lower. The action in the U.S. Dollar Index and now the Shanghai Index (Chinese stock market) is the driving force behind this stock market in the Unites States and the rest of the world.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

July's Wholesale Inventories

Merchant wholesale inventories increased 1.3% in July, up from 0.1% growth in June.

BP Delays Q3 Results

BP Plc claims it will delay the release of its third quarter results by a week because due to added complexities in its accounts and costs associated with the Gulf oil spill. BP normally reported on the last Tuesday of the month after the end of a calendar quarter, results will now be released on November 2, rather than October 26.

Friday Morning Earnings

Brady (BRC)
Reported a Q4 EPS of $0.49.
Analysts expected $0.48.
Last years Q4 EPS was $0.43.

lululemon athletica (LULU)
Reported a Q2 EPS of $0.30.
Analysts expected $0.24.
Last years Q2 EPS was $0.13.
Net revenue for the quarter increased to $152.2 million.

Afternoon Earnings

National Semi (NSM)
Reports an EPS of $0.36.
Analyst expected $0.34.
Last years EPS was $0.13.

Smith & Wesson (SWHC)
Reports a Q1 EPS of $0.06.
Analyst expected $0.05.
Last years Q1 EPS was $0.21.

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Leading Stock Reversals

This week the volume in the market has been very light as it is a holiday shortened trading week and the start of the Rosh Hashana holiday. Therefore, it is important to not make a big deal out of any small move higher or lower in the indexes. However, many stock market leading stocks have reversed today after a strong gap higher and this must be respected.

The first market leader that reversed after making a new 52 week high was Citrix Systems Inc(NASDAQ:CTSX). This stock has surged higher since early July when it was trading as low as $43.00 a share. Today the stock traded as high as $63.83 at the open. The stock still looks fine on the charts and today's small reversal day may not mean all that much. However, this stock will have strong resistance at the $65.00 level and very strong resistance at the $69.50 area. However, when a stock makes a new 52 week high and reverses it is always worth noting.

Simon Property Group Inc.(NYSE:SPG) is another leading stock that traded higher at the open only to stage a sharp reversal today. At 2:45 pm EST the stock has made a sharp outside day on the charts. Now lets remember that the volume is very light today, therefore, there may not be a lot of conviction behind the decline. However, this is a market leading stock and the king of the commercial property sector, therefore, it is also worth noting.

F5 Networks Inc.(NASDAQ:FFIV) is a leading technology stock in the networking sector that made a new 52 week high this morning. This stock could still be poised to reached the psychological $100.00 level, however, it has reversed from it's gap high open today to actually trade negative on the trading session. Again, this is a very light volume trading session and this reversal may mean very little, however, leading stocks must be watched very closely.

Tomorrow should be another very light trading day. As many of you may already know the light volume usually favors the upside. Therefore, when leading stocks decline all traders and investors should take note as this is often a sign of institutional distribution. Please understand when an institution sells stock they feed it out into the market and don't just sell their entire accumulated position all at once causing a panic or fear in the market. These stock should be watched very closely over the next few weeks.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

Oil Closes Lower

October crude closed lower by 0.42 cents $74.25 per barrel.

Market Technical Analysis - Market Gets Tired As Jobless Claims Surprise. Technical Methods Work $$$

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Gold Closes Lower

December gold closed lower by $6.60 to $1250.90 per ounce.

Netflix Reverses Off Early Gains After New 52 Week High

Netflix, Inc. (NASDAQ:NFLX) reversed from a gap higher today after making a new all time high at $149.74. A reversal at the high end of a chart can often signal a short term reversal in trend and sometimes something bigger. NFLX is up 200% from its early 2010 low of $48.52. It has had a tremendous run and at these levels is most likely slightly over priced short term. Shorts have continued to be squeezed in this play which has helped it remain at its lofty levels. NFLX will find support at $140.00 and then $125.00. Resistance remains firm at $150.00.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

South Africa's Central Bank Cuts Rates

South Africa's central bank lowered the repurchase rate by 50 basis points to 6%. The South African Reserve Bank states "the assessment of the Monetary Policy Committee is that the improved inflation outlook creates sufficient room for monetary policy to provide additional stimulus to the somewhat fragile recovery of the domestic economy which remains vulnerable to the uncertain global environment."

Treasury Sells $13 Bil on 30 Yr Debt

Bidders offer $2.73 for each $1 on 36% of 30 year debt totaling $13 Billion.

Priceline.com Reverses From Gap Higher

Priceline.com Incorporated (NASDAQ:PCLN) gapped higher today and quickly reversed to the negative side. The stock had been on a rampage lately, making new all time highs and topping out today at $333.74. This reversal may be significant as it could signal a short term pullback on the stock. The stock has moved from $173.75 on July 1st, 2010 to $333.74 today. Truly an amazing move in such a short time. If a pullback does come, look for support around $305.00.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Midday Currency Review

Markets Hold Slightly Higher On Financials And Jobless Claims

The positive economic data continues to help the market hold up as light volume continues. This holiday shortened week saw Jobless Claims reported at 451,000, better than economists had expected. The futures took off pre market and the markets opened the trading day on the SPDR S&P 500 ETF (NYSE:SPY) at $111.65, over a 1% gap higher. Since then, them markets have floated sideways. Financial stocks like JPMorgan Chase & Co. (NYSE:JPM) are helping hold the market higher along with extremely light volume.

Apple Surges Into Key Resistance Range

Apple Inc. (NASDAQ:AAPL) continues to remain strong as rumors of a possible stock split float. While this rumor seems to be keeping the stock higher, it is important to look at the technical levels of the chart. The stock has risen from just over $230.00 to a high today of $266.52. This move has occurred in just over one week. In addition, the stock has now hit a double top level and gap fill resistance point. The double top level is from the gap up on July 21st, 2010, after earnings were released the night before. This price was approximately $265.15. In addition, just above this area is a key gap fill from June 28th, 2010 at $268.30. This $3.15 range will act as a major resistance level on Apple. Look for a possible short term pullback. To get more insight, analysis, guidance, swing trades and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Crude Inventories Decline

Distillate crude fall by about 400,000 barrels.

Goldman Sachs Fined $27.1 mil

The U.K.'s Financial Services Authority states Thursday morning that Goldman Sachs Group Inc. agreed to pay a fine of £17.5 million ($27.1 million) for failing to disclose about trader Fabrice Tourre, A London based trader at Goldman. Mr. Tourre was accused of fraud in an April lawsuit by the Securities and Exchange Commission. Goldman agreed in July to pay $550 million to settle SEC civil charges against the company, but Mr. Tourre is still fighting the allegations.

NTAP Looks Tired, Here Is Why

NetApp Inc. (NASDAQ:NTAP) has surged higher since August 12th when the stock was trading as low as $37.04 a share. Yesterday NTAP made a new high for the year as everyone on the street is talking about this stock being a major takeover candidate. Whether or not this is true NTAP is now a very crowded trade. When the crowd is involved rarely will the stock continue to advance and it will often go into correction mode. These days most traders and investors are looking for the next 3PAR Inc. (NYSE:PAR) which was bought out by Hewlett Packard for $33.00 a share. Our motto is to trade the chart and not follow the dreams by the sheep.

Saturday, the 11th of September we will be conducting our world renowned webinar "Methodology Revealed." This "Methodology Revealed Webinar" will open your eyes to the market in a way you never thought possible. In the webinar you will learn InTheMoneyStocks proprietary time counts and cycle techniques, how to read and chart anything in a truly scientific yet simple way, identify tops/bottoms in any market, calculate pattern like the Pro's, live chart analysis and much, much more! Most importantly, learn the key tools that no one else is teaching. Learn the exact key trading tools and techniques our Pro Traders use everyday to profit from the markets and NAIL the big moves -- apply it the very next trading day! Reserve Your Space NOW click here.

Bank Of England's Rates Remain at Record Lows

The Bank of England reports Thursday, its holding key lending rates at a record low of 0.5% and maintaining its bond buying program at 200 billion pounds ($309 billion). Both moves were as expected by economists.

CLF Is Weak In A Strong Tape

CLF is a major iron ore pellet producer that usually does very when when the U.S. Dollar declines. Today CLF is trading flat on the day trading at $67.35. CLF will have short term intra-day support around the $67.00 level and more around $66.00 should the stock continue to decline. Last night the Shanghai Index sold of by 1.45 percent and often any signs of a slowdown in China will often adversely effect most commodity stocks.

Morning Wrap

This morning the major stock index futures have all surged higher after the initial claims for unemployment benefits declined by 27,000 to 451,000. Analysts had expected the number to be reported around 470,000. While the weekly unemployment number is better than expected the fact remains that there are still 451,000 new claims and that is certainly very high for this stage of a recovery. In any case the stock market has bought into the number and the markets are trading sharply higher before the opening bell.

Today is the start of the Rosh Hashanah holiday and the volume is again expected to be very light. Often when the volume is light in the market it will favor the upside price action. Hence the old market adage, “never short a dull market." Tomorrow is a Friday and this is also a day when the trading volume is usually very light. Therefore, it looks as if the major stock market indexes could remain sideways to higher into the end of the week.

At the open this morning just about everything in the stock market is catching a bid higher. The one area that is showing some intra-day weakness is gold. The SPDR Gold Shares(NYSE:GLD) are trading lower by 0.30 cents to $122.41. This slight decline in the GLD comes as the fear trade wears off. It is also important to realize that gold is short term overbought on the daily chart and could be due for a pullback. Please realize that as long as central banks around the world continue to print money gold will be held by the institutions. The U.S. Dollar Index is also trading lower this morning by 0.16 cents to $82.43. When the dollar declines it will usually help to inflate the markets higher. However, should the dollar rally or catch a bid higher it is important to note that this will often deflate the markets and cause a sell off or decline. That is today's morning wrap.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

3M Acquires Arizant For $810 Mil

3M Co. states it will pay $810 million in cash to buy Arizant Inc., maker of patient warming equipment. 3M claims the purchase will decrease its earnings by 3 cents per share for the first 12 months after the completed transaction takes place.

July's Trade Balance

The U.S. trade deficit decreased to -$42.8 billion in July from -$49.9 bln in June. Analyst forecast called for the deficit to decrease to only -$47.3 bln.

Unemployment Claims

Initial unemployment claims for the Week Ending September 4th fell 27,000 to 451,000.

The continuing claims level remained on a slightly downward trend as claims fell by 2,000 to 4.48 million in the week ending August 28th.

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Note some of today's money making action below:

SPY: Long Entry alerted at $110.23. Subscribers were advised to sell half of the position at $110.34 for profit and hold the rest with InTheMoney stops in place ensuring yet another winning trade! Nice and easy profits made.

XOM: Long scalp entry alerted at $60.70, sold at $60.90. Adding another money maker to the books!
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NTWK: Achieves its ultimate target! Today, the Hidden Gem Play hit $1.16, a 50% return from the alert in July!

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Wednesday's Afternoon Earnings

Mens Wearhouse (MW)
Reported an EPS of $0.83.
Analyst expected $0.77.
Last years EPS was $0.75.

Shanda Games (GAME)
Reported an EPS of $0.16, meeting analyst expectations.

Shuffle Master (SHFL)
Reported an EPS of $0.11.
Analyst expected $0.12.
Last years EPS was $0.10.

UNG Can't Find A Bid

The United States Natural Gas Fund (NYSE:UNG) is trading lower again today. The popular UNG is trading lower by 0.07 cents to $6.39. The short term intra-day support for the UNG will be around the $6.32 level.

Market Rallies After President Speech

President Obama gave a speech in Ohio this afternoon regarding more spending on national infrastructure projects. The major stock indexes had sold off prior to the speech after the Federal Reserve Bank's Biege book was released at 2:00 pm EST. However, the market seemed to embrace the President's speech and rally right back toward the highs of the day. Many traders and investors are calling the President's plan "Stimulus II." However, the administration is calling the spending plan "Project Recovery." Either way it is just more spending and a nice play on words. In any case the market has reacted positive to the news so far. Get in-depth analysis, along with exact entries/exits, swing trades, scalp trades, even our proprietary cycle work, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!

July's Consumer credit report

U.S. consumers credit for July dropped to 1.75% to $2.42 trillion, according to the Federal Reserve. Revolving credit fell to an annual rate of 6.25%, while nonrevolving credit increased at an annual rate of 0.5%.

Oil Closes Higher

October crude finished higher by $0.58 to close at $74.67 per barrel.

Scalp Trading, Money Making

With the relatively slow market action continuing our Pros continue to allocate the best day trades for subscribers of our Intra Day Stock Chat. Use this as your opportunity to learn how the real Pros navigate these markets and make money in the process; Join The Best & Profit With Them NOW!

Below are some of the money making plays from today....

SPY: Long Entry alerted at $110.23. Subscribers were advised to sell half of the position at $110.34 for profit and hold the rest with InTheMoney stops in place ensuring yet another winning trade! Nice and easy profits made.

XOM: Long scalp entry alerted at $60.70, again subscribers were advised to sell half at $60.80, InTheMoney stops in place adding another money maker to the books! Trade with the Pros to profit like them folks!

Market Technical Analysis - Markets Bounce Off Key Double Top, New Trades Prepped In Research Center

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Gold Closes Lower After Yesterdays High

December gold closed lower by $1.80 to $1,257.50 an ounce.

EIA Lowers Oil Demand Forecast

The Energy Information Administration Wednesday reduced its projected oil forecast for global demand, citing lower economic growth. The statistics arm of the U.S. Energy Department expects global oil consumption to rise by 1.4 million barrels a day in 2011, down from last month's forecast of 1.5 million barrels. The consumption growth forecast for this year remains unchanged at 1.6 million barrels per day. Despite weaker than expected demand and the recent drop in world oil prices, a draw down in global oil inventories should support prices.

Treasury Sells $21 Bil in 10 year Debt

Indirect bidders buy 54.7% of 10-year notes for $3.21for each $1, totaling $21 billion.

Financial Stocks Leading Ahead Of Beige Book, Consumer Credit

Stocks like Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are leading the markets higher today ahead of the Beige Book at 2:00pm ET and Consumer Credit at 3:00pm ET. JPMorgan is higher by almost 3% on the day while Goldman Sachs is almost the same. The financial companies were the weakest sector for months, topping out in April 2010 and falling dramatically from those highs. Just one week ago they switched to leaders. Since then, the markets have thrived, surging 6% in one week. A strong financial sector usually means a strong market. Watch to see if the financial stocks continue their party.

The Beige Book will be important for the market and should be watched closely. Volume is dead mid day prior to the Beige Book and Consumer Credit. Once these reports are released, the markets should react and volume should come back. Stay tuned for further details. To get more analysis, guidance, swing trades and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Midday Market Update

Steel Stocks Continue To Run

Ever since China announced their PMI data a week ago, steel stocks have been roaring higher. China PMI, reported last Tuesday night, showed growth in China and was better than the markets had feared. Growth in China means commodity demand. In addition, with the U.S. reporting ISM and Non Farm Payrolls at better than expected levels, the markets thinks a double dip recession is now off the table again. Stocks like Cliffs Natural Resources Inc (NYSE:CLF), United States Steel Corporation (NYSE:X) and AK Steel Holding Corporation (NYSE:AKS) have all been on a rampage higher.

While this rally has been tremendous, it may be short lived unless the coming economic data continues to support a recovery. In addition, resistance levels are now looming, note the chart below. To get more analysis, research, guidance, swing trades and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Anglo Irish Bank Split in Two

Ireland's government reports it will split nationalized lender Anglo Irish Bank into a "funding bank" to hold deposits and an "asset recovery bank," which will focus on winding down the banks loan book. Anglo Irish was nationalized early last year. It reported a first-half net loss of 8.21 billion euros ($10.43 billion) due to bad loans and losses on the sale of assets to the government's National Asset Management Agency.

Tyco Int. plans $1 Billion Buyback

Tyco International Ltd. states it has authorized a repurchase plan of up to $1 billion for the company's common shares. Tyco plans to buy back the shares as market conditions permit.

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► Learn exactly how our Pros NAILED the market top on August 10th which alerted subscribers of a market drop of Over 9%.
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AXP Is Now Flat In A Rally

AXP started the trading day very strong, however, the stock has given up it's early gains. AXP will have short term minor intra-day support around the $40.00 level. however, the stronger and more important intra-day support area will be around the $39.50 area should the stock continue to decline.

Bank of Canada Increases Rates

The Bank of Canada reports Wednesday that it has raised its target overnight interest rate to 1% and expects growth in consumption and business investment. Officials also state they expect the economic recovery in Canada to be slightly more gradual than it had projected in its July, largely reflecting weaker U.S. activity.

WMT Levels To Follow

WMT is a leading retail stock that will often set the tone for the sector. Today WMT is trading lower by 0.17 cents to $51.69. The stock will have short term minor intra-day support around the $51.60 level. The next intra-day support area for the stock should it decline further will be around the $51.40 area. Both support areas could see small intra-day bounces.

The Only Chart That Matters

Sometimes my own colleagues get tired of my rant about the U.S. Dollar Index, however, the dollar chart seems to be the most important chart in the market for quite some time now. Nearly every morning I write about the U.S. Dollar Index which measures the performance of the U.S. Dollar against the Euro (57.6%), Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%), and the Swiss Franc (3.6%). Simply put when the U.S. Dollar Index is trading higher the stock markets in the United States and around the world simply decline or deflate. The opposite is true when the U.S. Dollar Index declines the global stock indexes will generally trade higher or inflate. Therefore, the U.S. Dollar Index chart is one of the most important charts in play right now.

The other important factor to remember about the U.S. Dollar is most commodities will trade in dollars. As you may already know commodities are very inflationary for this very reason. Therefore, stocks such as Southern Copper Corp.(NYSE:SCCO), and AK Steel Holdings Corp.(NYSE:AKS), will generally catch a bid when the U.S. Dollar Index declines or sells off. Often oil and energy stocks will trade higher should the U.S. Dollar decline or trade lower. Oil also trades in U.S. Dollars and British Pound.

In a time when the U.S. Treasury and the Federal Reserve Bank are working very hard to inflate the markets back to health the U.S. Dollar Index holds most of the clues for major market moves. If you look at the stock market rally in 2009 it was really caused by the decline in the U.S. Dollar Index. Please remember, U.S. consumers that are on fixed incomes feel the pain when the U.S. Dollar Index declines. The U.S. Dollar will buy them less goods and the goods that they need to survive will increase in price. Therefore, while a weak dollar looks like a positive for the stock market it a negative for the people. Keep a close eye on the dollar as it seems to be the only chart that matters at this time.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

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Costco & Staples Upgraded To Buy

Costco Wholesale Corp. was raised to buy from neutral by Goldman Sachs Wednesday morning. citing the company is boosting profit through better sales, accelerated unit growth and expense focus. Goldman analyst also upgraded ratings on Staples Inc. to buy from neutral, stating Staples continues to gain share and has managed its back-to-school sales while being more disciplined in its capital allocation.

Wednesday's Pre-Market Earnings

Ciena (CIEN)
Reported a Q3 EPS of -$0.09.
Analyst expected a loss of $0.33.
Last years Q3 EPS was -$0.05.

Jackson Hewitt (JTX)
Reports an EPS of -$0.65.
Analyst expected an EPS of -$0.75.
Last years EPS was -$0.67.

Smithfield Foods (SFD)
Reported a Q1 EPS of $0.46 or $76.3 Mil, meeting analyst expectations.
Last years Q1 EPS was a loss of $0.56.
Sales for the third quarter rose to $2.9 Billion.

The Time To Act Is NOW!

Summer Fun Is Over, Time To Get Back To Business!
The business of Making Money!

► Learn exactly how our Pros NAILED the market top on August 10th which alerted subscribers of a market drop of Over 9%.
► Learn how our Pros NAILED the pre holiday rally which presented many long money making plays and much much more!!
► Do not forget the numerous home run money making plays subscribers earned all year long! click here to see last weeks action

LEARN EXACTLY HOW OUR PROS CALLED THESE MAJOR & MINOR TOPS IN THE MARKETS:

Tuesday Afternoon Earnings

             Pep Boys (PBY)
     Report a Q2 EPS of $0.20.
          Analyst Expected $0.19.
Last Years Q2 EPS was $0.15.

Phillips-Van Heusen (PVH)
Report a Q2 EPS of $0.72.
Analyst Expected $0.54
Last Years Q2 EPS was $0.60.

HP Sues Former CEO

Hewlett Packard Co. filed a lawsuit against former CEO Mark Hurd. HP claims Hurd is breaking a non disclosure agreement. The suit comes one day after Oracle Corp. announced that Hurd has been named as president.

Oil Closes Lower

October crude closes lower by $0.51 to $74.09.

Pegging A Pull Back: Profit In Any Market

After a monstrous three day surge higher late last week, the markets are pulling back today. How does one realize the markets are due for a pullback? How does a swing trader position themselves to profit from it? Simply put, use the technical levels of leading stocks to confirm the oversold market.

First, it was obvious to most on Wall Street that the markets may have needed a small pullback after such a rally into the Labor Day holiday weekend. However, it is prudent to always confirm this thought process by analyzing the charts of leading stocks. These leading stocks are Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).

Choosing two of these leaders, let's isolate if their charts gave us a heads up that a pull back may be in order. When looking at the JPMorgan Chase's chart it is an easy spot. Almost like Waldo without anyone else in the picture. Note the chart below shows a clear and simple gap fill after a three bar surge to the upside. Not only is the chart short term extended, but the gap fill will be a major resistance level.

Next, take a look at the Chevron chart. CVX ran higher into a short term pivot top after a monster move. See the chart below. This pivot top can also be an indicator of a market pullback as Chevron is a market leader. If Chevron pulls back, then the markets should as well.

Overall, the market was extended but that does not always mean a pull back in imminent. The key is to look closely at leading stocks and see if they are into major resistance levels. If they are, then look for a pullback and profit. Get get more amazing insight, swing trades, analysis and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Gold Reaches New High

December gold closed higher by $8.20 to $1259.30 an ounce. This is a new all-time closing high for gold.

Holiday Hangover

The major stock indexes have remained in a sideways range since 10:00 am EST this morning. This poor intra-day trading action is also accompanied by very light volume which is common following a major holiday.