Stocks Close Sharply Higher, At Best Levels Of The Day Stocks

Posted on by The INO.com Team

After moving sharply higher at the start of trading on Wednesday, stocks continued to perform well throughout the session. The markets benefited from a positive reaction to news of a last-minute fiscal cliff agreement in Washington.

Most of the major sectors moved notably higher on the day, reflecting broad based buying interest on the heels of the fiscal cliff deal.

Semiconductor stocks posted particularly strong gains, driving the Philadelphia Semiconductor Index up by 4.1 percent. Standout gains by MEMC Electronic Materials (WFR) and Lam Research (LRCX) helped lift the index to its best closing level in over three months.

Considerable strength was also visible among steel stocks, which benefited from the elimination of some of the uncertainty about the outlook for the economy. The NYSE Arca Steel Index jumped 3.5 percent to an eight-month closing high. Continue reading "Stocks Close Sharply Higher, At Best Levels Of The Day Stocks" →

New Video: Fiscal Boom?

Posted on by The INO.com Team

Hello traders everywhere! Jeremy Lutz here with your mid-day market update for Wednesday, the 2nd of January.

Stocks continue to see considerable strength after moving sharply higher at the open. The markets continue to benefit from a positive reaction to news of the last-minute fiscal cliff deal in Washington, but will it last?

The news about the fiscal cliff agreement has largely overshadowed a report from the Institute for Supply Management showing a rebound by manufacturing activity in the month of December.

The ISM said its purchasing managers index climbed to 50.7 in December from 49.5 in November, with a reading above 50 indicating an expansion by the manufacturing sector. Economists had expected the index to climb to 50.5.

A separate report from the Commerce Department showed an unexpected drop in construction spending in the month of November.

Let's see what the Trade Triangles say about the markets today.

Every Success,
Jeremy Lutz

Click Here to view today's video

Learn to Label Elliott Waves More Accurately

Posted on by The INO.com Team

Are you looking for an easy way to improve your confidence as you analyze the charts you trade? Take a quick look at this chart (adapted from Jeffrey Kennedy's December 26 Elliott Wave Junctures lesson) to see how divergence relationships help clarify your analysis.

According to Jeffrey, divergence relationships are easy to identify. Whenever prices make a new extreme, look for underlying indicators to move in the opposite direction. Specifically,

The momentum relationship most often seen in waves 3 and 5 is divergence. Bullish divergence forms when prices make a new low while an accompanying indicator does not. Conversely, bearish divergence occurs when prices register a new high while an accompanying indicator does not. Bullish and bearish divergences are common to waves A and C, just as they are waves 3 and 5.

Notice the bearish divergence between waves 3 and 5 in the daily price chart of Halliburton Company (HAL) -- Prices reach a new high, yet the MACD indicator moves in the opposite direction: Continue reading "Learn to Label Elliott Waves More Accurately" →

House passes fiscal cliff bill

Posted on by The INO.com Team

Legislation to block the "fiscal cliff" is headed to the White House for President Barack Obama's signature. The bill will avoid, for now, the major tax increases and government spending cuts that had been scheduled to take effect with the new year.

Final approval came in the House on New Year's Night. The vote was 257 to 167.

The Senate passed the bill less than 24 hours earlier.

The measure raises tax rates on incomes over $400,000 for individuals and $450,000 for couples, a victory for Obama.

It also extends expiring unemployment benefits for the long-term jobless, prevents a cut in fees for doctors who treat Medicare patients and cancels a $900 pay increase due to lawmakers in March.

Silver is in a Bear Flag

Posted on by The INO.com Team

Seeking Alpha has only 3 entries under the ‘Gold & Precious Metals’ section of its most recent ‘Macro View’ email notice:

  1. Silver: Another Decade of 500% Returns is Possible
  2. Silver: Are We Ready Yet for the Rally to $60+?
  3. Silver is Set to Explode in 2013

To be fair, the second article highlights lower near-term targets prior to a rally to $60+ and this brings me to my point; silver is in a bear flag.  I too am bullish on Ag and Au in 2013, but the charts are the charts and silver’s daily chart targets 27-28 first, which we have been noting in the newsletter despite a recent change to a bullish risk vs. reward stance on the precious metals complex. Continue reading "Silver is in a Bear Flag" →