stocks

The GLD which is the popular gold tracking ETF is trading slightly higher by 0.15 cents to $119.88 on the session. There will be minor intra-day resistance around the 120.00 level and much more resistance around the $120.50 level. Please realize that the GLD is slightly overbought on the daily chart and this could be the reason why the GLD is not participating in today's rally.

This morning the major stock market indexes in the United States all opened very poorly. However, since the open we have seen most of these important indexes recover most of the early losses and actually trade around the unchanged level on the trading session. There a few reasons for this type of early recovery in the Dow Jones Industrial Average, S&P 500 Index, and the technology heavy NASDAQ. The first reason is the weaker U.S. Dollar Index, and the second major factor is the strong Shanghai Index(China) last night.

When the U.S. Dollar Index trades lower most stocks and indexes will inflate higher. Leading commodity stocks such as United States Steel Corp (NYSE:X), and Cliffs Natural Resources Inc (NYSE:CLF) are both leading the markets higher today. Whenever the U.S. Dollar Index retreats these names can be played for possible bounces.

The futures are dropping sharply as the dollar is ripping higher this morning. The overall U.S. indexes are set to open sharply lower after the Federal Reserve saved the day yesterday by announcing they would start buying U.S debt.  Yes, the thought of flooding the market with more liquidity caused an intra day massive drop in the dollar which helped the markets survive yet again.  However, today seems to be reckoning day number two!  Pre-market, the SPDR S&P 500 ETF (NYSE:SPY) is at $110.75.  That is after a close at $112.38 yesterday.  The dollar is also up sharply with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $23.75, after closing at $23.52 yesterday. Always remember, there is an inverse relationship between the dollar and the markets. Dollar up big, markets down big.

International Business Machines Corp. (NYSE:IBM) is knocking on a key resistance and possible breakout level on the intra day chart at $132.00. This level matches the high pivot from last Thursday.  IBM has roared back after getting hit on earnings a few weeks ago that did not quite match Wall Streets lofty expectations.  The stock is now just sitting slightly below the 52 week high of $134.25.  Note the chart below. For more in depth analysis, guidance and swing trades, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

The markets received the Jobless Claims report this morning at 8:30am ET.  This number was poor, showing an increase in filings for unemployment to 479,000 last week.  Economists had expected a number in the range of 450,000 - 460,000.  Jobless Claims continue to be stuck just under 500,000 and show little adjustment down.  This tells Wall Street that job growth will continue at an extremely slow pace, if at all. While this data was ugly, the markets are only down slightly as light volume takes over ahead of the next big report.  The SPDR S&P 500 ETF (NYSE:SPY) is lower on the day, trading at $112.46, -0.51 (-.45%).