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About inthemoneystocks

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  1. Markets are being driven by the USD/YEN as well as 'buy the dippers' aka small investors who continue to buy into the market. Today, Putin said he had no intentions of invading the rest of Ukraine. Like he would really tell everyone if he planned to do it ahead of time. The bottom line is, the markets continue to push higher into the FOMC Policy Statement tomorrow. The market has priced in another $10 billion taper. The comments from the fed (dovish/hawkish) will be the key to the market move. Whether or not the big drop from last Thursday can be negated with this rally is at the heart of whether or not the stock market is headed higher or lower in the short term. Watch for a closing S&P 500 price above 1,874.40. If it closes above, the markets will likely test the all-time highs on the S&P 500 and very possibly move higher. If the markets cannot close above the highs by tomorrow, look for a flush and Thursday's lows to be wiped out quickly. Copper is an important long term indicator but short term means nothing. The recent collapse after extremely poor Chinese economic news confirms the lack of demand for the building materials metal. Down the line this spells huge trouble for the global economy and should be taken as a warning signal. There is a limited amount of time prior to the copper signal coming into play. Facebook (NASDAQ:FB) continues to look weak. The hype is fast fading and the charts show significant downside in the coming months. Look for a test of the $59.00 and then $53.50 level. Gareth Soloway InTheMoneyStocks
  2. Last week, yields on the 10-year U.S. Treasury Note reached the 2.98 percent level. As we all know, yields have soared higher by 137 basis points since April 2013, when the yield on the 10-year U.S. Treasury Note was as low as 1.61 percent. The recent surge in bond yields have certainly caused stock corrections in the home-builders, mortgage/real estate REITs, and the highly leveraged utility sectors. The Federal Reserve is buying $85 billion dollars a month worth of U.S. Treasuries and mortgage backed securities (MBS) at this time. So far, the case can be made that yields are artificially being held down. Now that everyone knows a Federal Reserve tapering of its current QE-3 program (central bank bond buying) is coming, how much can bond yields on the 10-year U.S. Treasury Note actually fall? Currently, the daily chart of the 10-year U.S. bond yield ($TNX) is showing very good support around the 2.63 percent level. There is also more chart support around the 2.45 percent level. So either way, bond yields are not going to decline all that much unless there a major economic disaster takes place. The odds of an economic disaster occurring in 2013 is very unlikely, however 2014 is another story. Higher bond yields are telling us two things: First, higher bond yields are telling us that the Federal Reserve must begin to cut back on their current $85 billion a month QE-3 program. If they do not, there could be major problems or repercussions in the future. The bond market is smarter than the stock market since the world is built on debt. So when the bond market talks, traders and investors better listen. Second, easy money has almost always led to an economic boom; but higher rates or a tapering could certainly cause the economy to slow down. Many economists will argue that currently this economic recovery has been one of the weakest on record considering the central bank has pumped about $4 trillion into the system. The one obvious positive effect from all of the easy central bank money has been the new all time highs in the stock market. Either way, the chart of the bond yields is starting to certainly paint a different picture for the future. The next FOMC meeting will take place next week, this is when QE-3 tapering could be announced. Nicholas Santiago InTheMoneyStocks
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