Bryan Leighton's Blog – October 2011 Archive (80)

Financial Stocks Look Like Zombies Today

Last week, every talking head in the financial media was falling in love with the leading financial stocks again, however, today these institutions look more like a zombie institution.



Morgan Stanley (NYSE:MS) was last week's big winner. Today MS stock is declining lower by $1.34 to $17.98 a share. This is a 7.0 percent decline for the financial giant. Many traders and investors believe that MS has a decent amount of exposure to the European debt market. MS…

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Added by Bryan Leighton on October 31, 2011 at 3:41pm — No Comments

Selling Unlikely To Escalate Until Wednesday

The markets are lower across the board. Japanese intervention in the currency market, coupled with worries over Italy have sparked some profit taking. The SPDR Dow Jones Industrial Average ETF (AMEX:DIA)  is trading at $120.54, -1.50 (-1.23%)  while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)  is trading at $58.37, -0.57 (-0.97%).



While the markets are nicely lower, it is unlikely the sell off will continue in the coming days. A neutral market is much more probable from…

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Added by Bryan Leighton on October 31, 2011 at 12:33pm — No Comments

Sohu.com Drags Down The Chinese ADR's

This morning, Sohu.com Inc (NASDAQ:SOHU) is trading sharply lower by $7.09 to $61.92 a share after reporting earnings. Many investors believe that China is beginning to slowdown, therefore, traders are watching this earnings season very closely to see if there are any clues of a weaker Chinese economy.



Other leading Chinese ADR's that are trading lower in sympathy to SOHU stock are Baidu Inc (NASDAQ:BIDU), Sina Corp (NASDAQ:SINA), Youku.com Inc (NYSE:YOKU), and…

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Added by Bryan Leighton on October 31, 2011 at 10:39am — No Comments

Investors Put On Their Bear Costume For The Day

This morning, all of the major stock indexes are trading sharply lower. The problems in the European Union and the possible bankruptcy of MF Global Holdings Ltd (NYSE:MF) seems to be too much for investors. The real catalyst for today's decline is the strength in the U.S. Dollar Index futures (DX Z1), which are trading higher by 0.94 cents to $76.15 per contract. When the U.S. Dollar Index rallies the major stock indexes deflate and trade lower. Since October 4, 2011 the U.S. Dollar…

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Added by Bryan Leighton on October 31, 2011 at 10:17am — No Comments

Cloud Stocks Report: Profits In The Sky

Since October 4, 2011 the major stock market indexes have soared sharply higher. This October rally has been one for the record books. Obviously, short covering from the European bailout news has helped this stock market trade higher over the past four weeks. The leading technology stocks have benefited greatly from this stock market surge. This week we shall look at three leading stocks in the cloud computing sector that have soared to overbought levels. As we all know, overbought…

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Added by Bryan Leighton on October 31, 2011 at 9:35am — No Comments

Can The U.S. Consumer Handle High Oil Prices?

While the cheerleaders on the cable financial news networks are shaking their pom-poms and jumping out of their seats about the recent stock market rally oil prices have surged higher over the past month. The price of WTI crude futures (CL) has soared higher by nearly $20.00 since the October 4, 2011 low when oil was trading at $74.95 a barrel. Can the U.S. consumer afford high energy prices ahead of the winter heating season?



It is important to note that the…

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Added by Bryan Leighton on October 28, 2011 at 10:43am — No Comments

Discover: Master Stock Market Level

The markets are partying today. The SPDR S&P 500 ETF (AMEX:SPY) hit a high of $127.80, a gain of 3% at the open. Word hit late last night that the European leaders agreed on a major deal to relieve Greece of 50% of its debt burden. This buys it more time to get its house in order. This was largely expected but still a positive for the markets.



While most amateurs are bullish, the charts speak differently. There are three major signals that have me going short at the…

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Added by Bryan Leighton on October 27, 2011 at 11:59am — No Comments

Flip This Chart Upside Down And There Is The Rally

It is still amazing at how people get so excited about a stock market rally that occurs when the value of the U.S. Dollar declines. Are people crazy or what? When the U.S. Dollar Index declines the cost of goods that people need to live becomes more expensive, Just look at the price increase in oil since October 4, 2011, on that day oil was trading below $76.00 a barrel. Today the price of WTI oil reached $93.74 a barrel. Heating oil will be needed very soon as winter comes upon us…

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Added by Bryan Leighton on October 27, 2011 at 11:24am — No Comments

Gold Is Not Participating In The Market Pop

This morning, the popular and highly traded SPDR Gold Shares (NYSE:GLD) is not trading higher with the major stock indexes. The GLD is trading lower by 0.34 cents to $167.07 a share. Over the past five trading days the GLD has soared sharply higher, therefore, today could just be a pause day or a breather from a quick move. Since early September, gold has signaled that the economy is facing deflationary pressures. The GLD bottomed on September 26, 2011 at $154.19 a share which was…

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Added by Bryan Leighton on October 27, 2011 at 10:27am — No Comments

Profit Windfall For Ethanol Producers

Ethanol producers are in for sweet profits the next few quarters. Losses will swing to profits and profits will grow. The reasoning for this is simple. The price of the commodity corn has collapsed while the price of ethanol have remained relatively unchanged. Companies like Potash Corp./Saskatchewan (USA) (NYSE:POT), Monsanto Company (Public, NYSE:MON) and The Mosaic Company (NYSE:MOS)  have commented on this drop in corn prices recently.



Over the last year, due to the soaring…

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Added by Bryan Leighton on October 26, 2011 at 1:01pm — No Comments

The Trade: Stocks Eye European Summit

The markets opened sharply higher on optimism that European leaders would reach an agreement on a rescue deal. The Euro was up and the Dollar was taking a beating. No sooner had the markets opened, the Dollar  caught a huge bid as fears crept back into the mix. This whipsaw is continuing throughout the day with all eyes on the European summit. Should a deal be reached, the initial reaction will be a sharp rally higher. However, very quickly that may fade as details emerge. The details will…

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Added by Bryan Leighton on October 26, 2011 at 12:20pm — No Comments

The Only Chart That Holds Water

Traders can easily see how quickly this rally ended as soon as the U.S. Dollar Index(DXY) took off to the upside. The news out of Europe is being released fast and furious, however, traders should simply keep their eye on the U.S. Dollar Index chart. The leading financial stocks are still positive on the trading session, while J.P. Morgan Chase & Co (NYSE:JPM) has declined sharply from the morning highs. If the financial stocks fail to hold up these markets could see a much sharper…

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Added by Bryan Leighton on October 26, 2011 at 11:46am — No Comments

Oil Services Stocks Nearing Extended Levels

This morning, the highly followed and traded Oil Services Holders Trust (NYSE:OIH) is trading higher by $1.46 to $124.32 a share. The OIH has rallied sharply higher by $29.00 since the October 4, 2011 pivot low. Traders must watch for important daily chart resistance for the OIH around the $129.00 area. Short term traders must watch for intra-day resistance around the $125.50 level. Should the OIH pullback intra-day there will be some short term support around the $122.75 level.…

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Added by Bryan Leighton on October 26, 2011 at 10:29am — No Comments

Forget Europe, Watch This Chart

The U.S. Dollar Index futures (DX Z1) just fell off a cliff before the opening bell. When the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. You see, nobody really cares about the poor earnings reaction to Amazon.com Inc (NASDAQ:AMZN), and Broadcom Corp (NASDAQ:BRCM) earnings. The markets are simply reacting to the action in the U.S. Dollar Index. When the U.S. Dollar Index declines the major stock indexes inflate higher, however, if the U.S. Dollar…

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Added by Bryan Leighton on October 26, 2011 at 10:05am — No Comments

The Three E's Hit The Stock Market

The three E's are hurting the market today. Earnings, Economic Data and Europe. A compilation of negative earnings, economic news and worries from Europe sent markets lower today. The S&P 500 is trading at 1,236.93, -17.26 (-1.38%). In the last three weeks, the markets have seen a meteoric rise of 15% across the board. It is due for a pull back.



Earnings reports from companies disappointed Wall Street. Cummins Inc. (NYSE:CMI) is trading at $93.02, -5.80 (-5.87%), 3M Company…

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Added by Bryan Leighton on October 25, 2011 at 12:24pm — No Comments

Schizophrenic Market

This stock market seems to have an illness called schizophrenia. In late September, the major stock indexes declined lower, the Dow Jones Industrial Average dropped by over 1000.0 points only to recapture all of those declines in 15 trading days in the month of October. Ten percent rallies and declines are becoming normal trading ranges these days. In the past, the stock markets would rally higher or lower by ten percent in a year. These are certainly not normal times.…



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Added by Bryan Leighton on October 25, 2011 at 10:39am — No Comments

Solar Stocks Rip Higher From Call Alert

There is a broad based squeeze going on in the Solar sector today. First Solar, Inc. (NASDAQ:FSLR)  is jumping to $60.26, +6.49 (+12.07%). All other solar stocks are also seeing massive gains. Even Chinese players like Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP), LDK Solar Co., Ltd (ADR) (NYSE:LDK) and Trina Solar Limited (ADR) (NYSE:TSL) are all popping.



Last week I wrote an article discussing the likelihood of a solar bottom. This was on the basis of major levels hit and an…

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Added by Bryan Leighton on October 24, 2011 at 12:33pm — No Comments

Mega Rally Continues Until This Point

The markets are continuing to surge higher today. The SPDR S&P 500 ETF (AMEX:SPY) is trading at $125.39, +1.42 (+1.15%). Optimism continues to grow stronger for a major bailout plan in Europe. In addition, extra positives today included a solid China PMI number, showing expansion and good earnings from stocks like Caterpillar Inc. (NYSE:CAT).



In the last three weeks, the S&P 500 has surged 16%. This massive move may continue just a little while longer. When analyzing the…

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Added by Bryan Leighton on October 24, 2011 at 12:06pm — No Comments

Markets Rally Again, Here Is One Reason Why

This morning, the major stock indexes are trading higher continuing the gains from last week. The catalyst for the move higher in the stock market is once again the declining U.S. Dollar Index futures (DX Z1). Since the opening bell the DXY has sold off sharply. Traders should know by now, once the U.S. Dollar Index (DXY) declines the major stock indexes will inflate and trade higher and vice versa.



It seems that everything will inflate and trade higher with a…

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Added by Bryan Leighton on October 24, 2011 at 11:17am — No Comments

How To Locate And Trade An Extended Move

Sometimes stocks will break out or break down in a very sharp and steep angle on the charts. These type of patterns are often referred to as a parabolic move when they surge to the upside. When these patterns occur to the downside they will often be referred to as a falling knife or waterfall decline. The actual name is irrelevant, however, understanding the chart pattern is very important. As a general rule, if you ever put a protractor up to your screen…

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Added by Bryan Leighton on October 24, 2011 at 10:46am — No Comments

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