Action Markets: Another Earthquake Strikes Japan

The markets opened quietly today on the back of an expected interest rate hike by the ECB and Jobless Claims that came in at 382,000. These were no shock to the markets which opened slightly lower on a stronger Dollar. No sooner had the markets opened, a flurry of buying came in as the Dollar fell down in its normal daily spiral. The markets advanced towards the high from yesterday with the SPDR S&P 500 ETF (NYSE:SPY) hitting $133.98. All of a sudden, the markets turned down, collapsing with ferocity and massive volume. News had hit that Japan was struck with a massive earthquake, measuring 7.2. Worries about more damage, another Tsunami and of course those nuclear plants surged. The SPY went from a high of $133.98 to $132.66 before having a gigantic bounce. It is currently trading in the middle range at $132.84, -0.72 (-0.54%).

Chevron Corporation (NYSE:CVX) is seeing its second down day in a row, somewhat of a rarety. The stock is trading at $107.81, -0.85 (-0.78%). A second down day may actually signal a short term top in the stock as long as it closes below $108.44 today. This would be known as confirmation of a reversal. Chevron would have first major support at $106.00 while resistance would be the 52 week high at $110.00.

As the markets continue to sell, Goldman Sachs Group, Inc. (NYSE:GS) is bucking the trend. The stock is trading at $163.30, +1.41 (+0.87%). Goldman has surged in the last three trading days and continues to show abnormal strength, relative to the markets. The daily chart shows massive resistance at $165.60 while support is at $159.00. Yesterday, banks and financial firms saw massive buying interest.

Looking forward, the markets will be analyzing the new earthquake in Japan. Is there additional damage, what is the economic impact? In addition, all eyes are now on the U.S. government and a possible shutdown tomorrow at midnight. As of now, the markets have felt it will not occur. However, should it occur there may be an economic impact as checks are not sent out and various programs shut down. Follow this closely in the next couple days.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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