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ConocoPhillips Bucks The Morning Trend (0)

Conocophillips (NYSE:COP) is one of the world’s leading integrated energy stocks. This morning, the stock is trading higher by 0.50 cents to $72.05 a share. COP stock is trading higher despite the sharp early morning sell off in most other energy stocks. This early move in COP tells us that the stock has intra-day relative strength. If the major stock indexes do bounce higher at some point today this stock could lead the markets higher. Short term traders must watch for intra-day resistance around the $72.50 and $73.00 levels.

Other leading energy stocks that are declining lower this morning include Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), and BP plc (NYSE:BP). Traders should watch the U.S. Dollar Index very closely today as these stocks will often bounce when the U.S. Dollar declines.

Nicholas Santiago

Groundhod Day Again And Again (0)

Yesterday, we wrote about the major stock indexes declining in the first half of the trading session only to bounce higher throughout the afternoon. Well, it happened again today. The same exact pattern repeats nearly every trading day since mid-December.

The trading volume in the SPDR S&P 500 Trust (NYSEARCA:SPY), and the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) remains extremely light. The light volume will generally favor the upside as there are simply no institutional sellers to take the market lower. Traders must enjoy this inflation rally while it lasts.

Nicholas Santiago

Attempted Market Break Down Is Foiled Again (0)

There is a key trend line on the SPDR S&P 500 ETF (NYSEARCA:SPY) stretching from January 31st, to the low of yesterday. This line has been hit multiple times between these two points and has bounced each and every time. Again, the market hammered this line twice in the morning session of trading today. Each time the 10 minute candle on the SPY closed below. As traders were set to pounce, the market spiked higher, negative the close. Each time the markets got below this major trend line, a buy program of epic proportions hit the market. Simply put, computer programs have been set up by institutions in league with the Federal Reserve to keep the markets from breaking this line. It is scary to think of the stock market as being so heavily manipulated. However, watching it trade over the last six weeks leaves little doubt.

As the markets are back in the green, Apple Inc. (NASDAQ:AAPL) is heading towards the major $500 level. It is currently trading at $495.73, +19.05 (+4.00%).

On the opposite side, banks are weak with JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc.(NYSE:GS) both negative. The financial stocks lagging does usually send up a caution signal but with the powers that be backing this market, shorting is not smart.

Gareth Soloway

Base Metal Stocks Struggle Early (0)

Many of the leading base metal producing stocks are struggling to catch a bid this morning. Rio Tinto Plc (NYSE:RIO) is a leading stock in the base metals and materials sector that is coming under some early selling pressure. This market leader is declining by $1.31 to $60.22 a share. The decline in this market leader comes despite a strong copper, gold, and silver market today. RIO will have short term intra-day support around the $60.00 and $58.75 levels.

Some other leading base metal stocks that are declining lower this morning include BHP Billiton Ltd (NYSE:BHP), Vale S A (NYSE:VALE), and Southern Copper Corp (NYSE:SCCO). Traders should watch the U.S. Dollar Index closely as these stock will usually catch a bid when the U.S. Dollar declines.

Nicholas Santiago

Cloud Stocks Reaching A Short Term Ceiling (0)

All of the cloud computing stocks are trading higher again this morning. Earlier today, Oracle Corp (NASDAQ:ORCL) purchased Taleo Corp (NASDAQ:TLEO) for $1.9 billion. This deal is certainly helping many of the leading cloud computing stocks to trade higher today.

Leading cloud stocks such as Rackspace Hosting Inc (NYSE:RAX), Citrix Systems Inc (NASDAQ:CTXS), and Aruba Networks Inc (NASDAQ:ARUN) are all approaching daily chart resistance levels. All of these stocks remain very strong on the charts by trading above the major daily chart moving averages. This tells technical traders that a pullback or some consolidation is likely to occur soon before these stocks can trade higher. Short term traders can watch for intra-day support on RAX around the $48.95, and $48.00 levels.

Nicholas Santiago

Everyday Is Groundhog Day (0)

Once again, the major stock indexes have found a low by the noon hour and then floated higher into the afternoon. Nearly everyday we see the same pattern repeat over and over. The trading volume remains extremely light which generally favors the upside in the stock market. Traders must remember the old market adage that states, never short a dull market. The words light volume can be substituted for dull. Since December 19, 2011 the average volume in the SPDR S&P 500 Trust (NYSEARCA:SPY) is around 120 million shares a day. The three month average volume in the SPY is around 210 million shares. It is easy to see what a dull market this really is at this time.

Traders must continue to watch and follow the U.S. Dollar Index Index very closely. When the U.S. Dollar dips the major stock indexes flips higher;. the opposite is also true when the U.S. Dollar Index rallies. This is exactly what we have seen today and nearly everyday since mid-December. Everyday is Groundhog Day in this market.

Nicholas Santiago

Chinese Stocks Heat Up (0)

Chinese stocks are flourishing today after the Shanghai Index jumped to 2347.53, +57.04(+2.43%). This pop set the China solar stocks on fire with Trina Solar Limited (ADR) (NYSE:TSL) trading at $9.00, +0.80 (+9.76%). Others like JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) and Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) are also having a big day.

Some Chinese small caps are still at or near their 52 week lows despite the market rally in January 2012. These are catching fire. Sino Clean Energy Inc. (NASDAQ:SCEI) is surging today, trading at $1.44, +0.09 (+6.67%).

The key is to look for Chinese stocks that are still trading at or near their chart lows. These may be the next explosive movers. There are not many stocks that are still cheap in this market, and speculative money is searching for the next big mover. Any small cap trading near its lows is a candidate, especially Chinese plays.

Gareth Soloway

Key Stock Trading Analysis (0)

The markets are hovering slightly lower on the trading day. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $134.58, -0.21 (-0.16%). While the markets remain overbought, the free money policy of the Federal Reserve and light volume propping has created the best start in 25 years in the market. The scary aspect of this is that the rocket will eventually run out of fuel and fall to earth quickly. The question is simply when?

Bank of America Corp (NYSE:BAC) hit the daily 200 moving average today at $8.09. It now looks like it could pull back. The chart is extended with the market and upside potential is limited short term.

Apple Inc. (NASDAQ:AAPL) continues to plow higher. It is trading at $472.10, +3.27 (+0.70%). This stock continues to be the leader in the technology sector, following amazing earnings. If you are looking for a short, it is wise to look in other places until Apple at least hits $500 a share.

Semiconductors continue their trek higher. However, major resistance on the Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) is coming into play. Look at the $35.25 as a short term top and shorting opportunity if hit. Stocks like Intel Corporation (NASDAQ:INTC)  remain dramatically extended.

As the market continues to float, preparation must be made for the next big move.

Gareth Soloway

Joy Global Could Be Telling Us Something (0)


Joy Global Inc (NYSE:JOY) is a leading manufacturer of mining and farming equipment. The stock has been selling off over the past two trading sessions. This morning, JOY stock is declining lower by $2.00 to $90.70 a share. When a market leader such as JOY stock declines it could be telling us that the mining business is beginning to slow down. BHP Billiton Ltd (NYSE:BHP) is also trading lower today by $1.15 to $80.62 a share. Earlier today. BHP reported earnings and guided slightly lower in 2012. It is important to note that mining and mining equipment related companies have lead the markets higher recently. 

Leading mining and farm equipment manufacturers such as Caterpillar Inc (NYSE:CAT), Deere & Co (NYSE:DE), and Tractor Supply Co (NYSE:TSCO) are all trading lower. If the mining and mining equipment sectors starts to rollover it could tell us that the recent stock market rally is coming to an end.

Nicholas Santiago



Agriculture Stocks Send Mixed Signals (0)

This morning, the leading agriculture stocks are all trading higher to start the day. The Market Vectors Agribusiness ETF (NYSEARCA:MOO) is trading higher by 0.46 cents to $53.34 a share. The MOO is trading above all of the major daily chart moving averages which puts the stock in a strong technical position. Traders must recognize that the MOO is now getting a little extended and overbought. This tells us that a pullback or consolidation could be in the cards soon for the agriculture ETF. Short term traders can watch for intra-day resistance around the $53.50, and $54.00 levels.

Other leading agriculture stocks that are trading higher today include Potash Corp Sask Inc (NYSE:POT), Agrium Inc (NYSE:AGU), and CF Industries Inc (NYSE:CF). All of these stocks remain very strong on the daily charts. These stocks are now getting short term overbought and may need to pullback or consolidate soon.

Nicholas Santiago

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