Bryan Leighton's Blog – July 2010 Archive (48)

Economic Data Sends Market On A Wild Ride

The big earnings announcements have subsided over the last week, but the economic reports continue to flow. Today, GDP was reported for the second quarter, 2010. It came in around the estimates at 2.4%. The futures sold sharply. Why did the futures sell sharply on a GPD number that came in line with what Wall Street had expected? Because GDP for the first quarter of 2010 was revised upward to 3.7% from 2.7%. What? How does that make sense? GPD being revised upwards is good news right? Not so… Continue

Added by Bryan Leighton on July 30, 2010 at 12:12pm — No Comments

'Friday Effect' Engaged

Many traders and investors may have realized by now that the major stock market indexes often get supported or defended into the weekend. We call this phenomenon the 'Friday effect'. If you have looked at a chart over the last two years most Friday's before a weekend are basically a flat to slightly positive trading day. There have been a few rare times when the major indexes have sold off sharply on a Friday, however, the key word is rare. Today the SPDR Dow Jones Industrial Average ETF… Continue

Added by Bryan Leighton on July 30, 2010 at 11:07am — No Comments

Markets Drop Sharply As Dollar Bounces Off Support

The markets dropped sharply in the late morning session as the dollar bounced off the 200 moving average and started to move back up. To understand this movement, it is important to grasp the inverse relationship between the markets and the dollar. During market hours, when the dollar falls, the markets move higher. Inversely, when the dollar rises during trading hours, the markets sell off. Just knowing this, helps explain the wild movements in the market today. View the PowerShares DB US… Continue

Added by Bryan Leighton on July 29, 2010 at 12:00pm — No Comments

Trade Lesson: Act Like A Lion When Trading

Many times day traders are very anxious and want to be involved in a

trade all day. The market only gives a few good opportunities a day and

that is when traders should react and take what the market is offering.

During the Chat Room I see many traders wanting

and pulling the trigger when the market is not giving the correct setup

or signal to do so.

Trading is very similar to the lion in the jungle. The lion stalks his

pray in the… Continue

Added by Bryan Leighton on July 28, 2010 at 5:22pm — No Comments

IBM Eyes The Double Bottom And 200 Moving Average Intra Day

International Business Machines Corp. (NYSE:IBM) is moving lower into a
key support level. This key support level coincides with the double
bottom from yesterday as well as the 200 moving average on the intra
day chart. This is a scalping opportunity and should see a bounce if
IBM hits it. Lock and load for profits.

Gareth Soloway
Chief Market Strategist

Added by Bryan Leighton on July 28, 2010 at 1:59pm — No Comments

Homebuilder Stocks are still a Weak Link

The homebuilder stocks have lead the markets lower since August 2005 when they all seemed to peak. Since that time the world has experienced a global housing bubble and still feels the aftershocks from that collapse. Many economists are now saying that the homebuilders have bottomed and now is the time to be involved with these stocks. While this may or may not be true the fact remains that the homebuilder stocks still remain off the low in 2008. However, while many of these leading homebuilder… Continue

Added by Bryan Leighton on July 28, 2010 at 10:33am — No Comments

Market Struggling Around The Daily 200 Moving Average After Gap Up

The SPDR S&P 500 ETF (NYSE:SPY) ran into the key 200 moving average level yesterday as the market closed. We discussed this in depth, talking about how in the short term, it would be solid resistance. This morning, the markets gapped higher above it, but quickly came back and have stalled just below this level. In the short term, this should continue to work as resistance for the market. Look for a market in the short run that make have trouble moving higher. Commodities are sharply lower… Continue

Added by Bryan Leighton on July 27, 2010 at 1:00pm — No Comments

Gold Continues To Turn To Dust For Retail Longs

The collapse of gold continues as the SPDR Gold Trust (NYSE:GLD) is trading at $113.64, down -1.88 (-1.63%). Stocks like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) and Agnico-Eagle Mines Limited (USA) (NYSE:AEM) are all getting hammered. Gold has dropped off a cliff over the last month for many reasons, both technical and psychological. Technically, the simple answer is gold was extended on the daily and weekly charts, pushing to new all time… Continue

Added by Bryan Leighton on July 27, 2010 at 12:00pm — No Comments

Gold Miners Near Attractive Levels

The Market Vectors Gold Miners ETF (NYSE:GDX) have topped out on June 28th around the $54.00 level. Since that time this basket of gold mining stocks has declined sharply and is now trading around the $47.67 area. On July 19th the GDX found support and bounced at $46.99. This area still looks to be an important support area for this highly popular ETF.

Newmont Mining Corp (NYSE:NEM) is a leading mining stock that has sold off sharply over the past few weeks. This stock is now trading… Continue

Added by Bryan Leighton on July 27, 2010 at 10:59am — No Comments

Oh, Now You Want to Buy Stocks

Since the early July stock market low the sentiment has completely changed. In late June and early July every business talk show in the media was mentioning a stock market death cross (50 moving average crossing over to the downside the 200 moving average) and a massive head and shoulders top pattern (symmetrical bearish pattern that can often predict the target) in the S&P 500 Index and the Dow Jones Industrial Average. It seemed that Armageddon was upon us. However, as we all know when… Continue

Added by Bryan Leighton on July 27, 2010 at 10:11am — No Comments

Possible Genzyme Buyout Could Spike Small Cap Bio

Rumors are swirling around a possible buyout of Genzyme Corporation (NASDAQ:GENZ) by Sanofi-Aventis SA (NYSE:SNY). Since Friday, Genzyme has jumped from $54.00 per share to a high today of $67.69. As buyout frenzy hits Wall Street and specifically biotechs, small cap dead bottom biotechs may get some play.

One of these dead bottom plays are Poniard Pharmaceuticals, Inc. (NASDAQ:PARD), which is trading near its 52 week lows and below cash. In addition it was voted best of the ASCO… Continue

Added by Bryan Leighton on July 26, 2010 at 12:35pm — No Comments

Markets Higher After Home Data Headed For 200 Moving Average

The SPDR S&P 500 ETF (NYSE:SPY) is trading higher on the back of June Home Sales which jumped 23.6% to a seasonally adjusted annual rate of 330,000, higher than the 316,000 expected by analysts. The market had been trading flat into this number but got a significant bid following its release. The SPY his higher by +0.99 (0.86%) to $111.40. Keep in mind, volume is extremely light and that has a tendency to keep the markets floating higher as well.

The key level to watch would be the… Continue

Added by Bryan Leighton on July 26, 2010 at 11:56am — No Comments

Are the Maritime Shippers Running Out of Steam?

Today the transportation index has soared higher after FedEx Corp raised guidance today. Last week the Dow Jones Transportation Index broke out and is now reaching it's June high level. While the move higher is impressive often these types of patterns will need to pullback or consolidate before moving higher. One group within the transports that looks tired here is the maritime shipping stocks.

Dryships Inc (NASDAQ:DRYS) is a leading dry bulk shipping company. The stock has surged… Continue

Added by Bryan Leighton on July 26, 2010 at 11:10am — No Comments

The Decision Maker

The major market indexes all rallied last week into Friday's close. The SPDR Dow Jones Industrial Average closed just above the July 13th pivot high which was an important short term level resistance level. While many traders and investors are talking about the great earnings reports as being the driving force for the markets, most of our followers believe that it is the declining U.S. Dollar that inflates the major market indexes worldwide. This morning the U.S. Dollar Index is trading lower… Continue

Added by Bryan Leighton on July 26, 2010 at 10:15am — No Comments

Markets Show Possible Breakout On Daily Chart

The markets are surging higher in light volume trading. The SPDR S&P 500 ETF (NYSE:SPY) is trading higher, +0.92, $110.38. There is a possible breakout on the daily chart showing a target of the 200 moving average. This target $111.45.

Gareth Soloway
Chief Market Strategist

Added by Bryan Leighton on July 23, 2010 at 2:46pm — No Comments

Drillers Are No Longer Trading Together

The leading energy drilling stocks have faced major headwinds since the BP plc (NYSE:BP) oil leak in the Gulf of Mexico. It seems that most of the companies in the drilling sector have bounced since early June. However, since that period these stocks are now trading in their own world and no longer in tandem with each other.

Schlumberger LTD (NYSE:SLB) reported earnings this morning and missed on revenue. The stock is trading lower today by 1.62 to $59.72. The stock has made higher… Continue

Added by Bryan Leighton on July 23, 2010 at 11:20am — No Comments

The Whipsaw Could Just Be Getting Started

By all accounts the month of July has been very positive for the major stock market indexes. The SPDR Dow Jones Industrial Average (NYSE:DIA) is now higher by more than 7.0 percent from the early July low pivot. This is a sharp advance higher in less than a thirty day period for the markets. The big question that most traders and investors are now asking is, how much upside is left in the tank?

July is an earnings reporting period for most companies; thus far the results have been… Continue

Added by Bryan Leighton on July 23, 2010 at 10:23am — No Comments

Market Facts In Motion

The SPDR S&P 500 ETF (NYSE:SPY) ran up under the master $110.00 resistance level and pulled back. This $110.00 level was the key level we ran into a week ago and could not break through. Watch this level closely.

Market leader Goldman Sachs Group, Inc. (NYSE:GS) was sharply higher this morning, trading at $149.88. It has now fallen and turned slightly negative on the day, trading at $146.85. This level happens to be the 200 moving average and major support intra… Continue

Added by Bryan Leighton on July 22, 2010 at 12:54pm — No Comments

Psychology And Sentiment Whip Markets

Federal Reserve Chairman Ben Bernanke testified yesterday, scaring the markets with his words. His comments were all bearish in regards to the economy and the recovery. He eluded to keeping rates low for a long time to come as the recovery was going to take far longer than anyone had thought. After saying this, the markets fell off a cliff, selling sharply and closing near their lows. Today, the markets are having a huge rally. It is as if nothing happened yesterday. What is the difference… Continue

Added by Bryan Leighton on July 22, 2010 at 12:11pm — No Comments

The Next Solar Runner

Solar stocks have been ripping higher over the couple months. Subsidies seem to be back in the mix for these companies and after the Gulf oil spill, alternate energy is back in favor regardless of recessions or depressions. Just in the last two months, First Solar, Inc. (NASDAQ:FSLR) has soared from $100.00 a high today of $139.07. China solar companies have been even hotter in the last two months with Trina Solar Limited (NYSE:TSL) jumping from $15.00 to a high today of $24.03. That is a gain… Continue

Added by Bryan Leighton on July 22, 2010 at 11:43am — No Comments

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