By InTheMoneyStocks.com on March 9th, 2010 9:28pm Eastern Time

To truly understand the markets, one must think the opposite of the average investor or trader.  When it comes to the total volume in the market, more than 90% is generally from institutions.  When it comes to the total number of market participants, 95% of them are the average investors or traders.  This is a peculiar disparity but totally understandable.  This is also how many of the institutions make their money.  In other words, by moving the markets in ways pull money from the average investor or trader or going the opposite of what the masses believe.

There was a fantastic example of this in the markets on Tuesday, March 9th, 2010.  The SPDR S&P 500 ETF (NYSE:SPY) was slowly inching higher all morning and early afternoon towards the master double top level from mid January.  This exact price on the SPY was $115.14.  The average investor and trader, all 95% or more of them were looking at that level as being major resistance and looking to sell their positions there and even possibly go short the market at that price.

As I have discussed earlier in the article, if everyone expects it to happen, it will not happen as institutions attempt to take money not give it to the smaller trader/investor.  Sure enough, the SPY tagged $114.99 and reversed, selling hard as institutions dumped.  This could be seen by as volume surged.  Why was this significant?  Because it did not allow the amateur trader or investor to sell their longs and take profits and did not let them short the market.  Truly masterful!  Every average trader expected the $115.14 to be tagged and because of that, it was destined to not hit.

Whether it hits tomorrow or in the next week, we will have to see. I have expressed my expert views to my premium members of the Research Center and Intra Day Stock Chat but one thing remains certain, if the markets do move up into $115.14, and all the amateurs short, you can be sure institutions will push the market higher to stop them out.

This is pure and simple market psychology or essentially big money controlling little money.  Learn the game and never again be caught on the wrong side of the trade.

A few other significant notes on the market.  The iPath S&P 500 VIX Short Term F (NYSE:VXX) which tracks the S&P 500 VIX Short-Term Futures, saw a huge block trade of 3 million on March 8th, 2010 at approximately 3:30pm ET.  This appeared to be a large buy.  The VXX shot up into the close, jumping well off the lows.  Someone big obviously betting the market was coming into a wild ride period.  The VXX was higher today.

In addition, Goldman Sachs Group, Inc. (NYSE:GS) on Tuesday, March 9th, 2010 saw a huge block trade go off for 1.5 million shares on what appeared to be the sell side.  Just a little while after this institutional monstrous order went through, the markets dropped sharply and Goldman Sachs was slammed to the negative side.  Another key signal? Quite likely.

Where does that leave us in the coming days? What other interesting things does this tell us about the markets and stocks?  Where is the place to put your money?  Join the Research Center to find out!

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

By ITMS News on March 9th, 2010 4:14pm Eastern Time

By ITMS News on March 9th, 2010 4:07pm Eastern Time

By TRADER X on March 9th, 2010 3:35pm Eastern Time

The major market indexes have reversed earlier gains bringing the Dow Jones Industrial Average back to unchanged on the day. This reversal move lower was on heavy volume and could be signaling a further pullback.

By ITMS News on March 9th, 2010 3:25pm Eastern Time

Gainers

EDAP +34.00%
MPG +17.13%
CIGX +10.52%
FRPT +13.69%
AIG +12.99%


Decliners

TEAR -29.02%
HTM -13.22%
HDY -15.57%
MLNK -10.26%
CPSL -8.81%

By ITMS News on March 9th, 2010 3:14pm Eastern Time

By ITMS News on March 9th, 2010 3:00pm Eastern Time

Crude futures for April delivery ended the session down 0.5% at $81.49 a barrel.

By InTheMoneyStocks on March 9th, 2010 2:56pm Eastern Time

The government owned stocks are leading the markets higher today. Stocks such as Citigroup, AIG, FRE, and FNM have all climbed today on stronger volume. 

By InTheMoneyStocks.com on March 9th, 2010 2:33pm Eastern Time

By ITMS News on March 9th, 2010 2:20pm Eastern Time

Gold futures ended the session down for a second day in a row. Gold for April delivery was down $1.70 at $1,121.30 an ounce.

By InTheMoneyStocks.com on March 9th, 2010 1:53pm Eastern Time

Apple Computer continues to show impressive strength today.  The second time in 3 trading days it has had significant gains. Can it continue to hold the market up?

By InTheMoneyStocks.com on March 9th, 2010 1:30pm Eastern Time

Note GS has fallen well off the highs of the day.  Also, note the block order of about 1.5 million shares that went through. The $172.00 resistance level has held up so far.  The markets are still near the highs of the day as the dollar has fallen, giving commodities and commodity stocks a jump.

By ITMS News on March 9th, 2010 1:19pm Eastern Time

The Treasury Department sold $40 billion in 3-year notes at a yield of 1.437%.

By ITMS News on March 9th, 2010 1:08pm Eastern Time

By Nicholas Santiago on March 9th, 2010 12:51pm Eastern Time

Since the February 5th pivot, the stock market has rallied higher. The S&P 500 is now approaching its January 2010 high at 1150.00. This recent rally has been lead by the small capitalization stocks in the Russell 2000 index and also the technology heavy NASDAQ Composite. These two indexes have made new highs for 2010.

The laggard in the market has really been last years leaders such as copper, gold, and silver. While these stocks have bounced from the February 5th correction low, they have not come close to reaching the January highs. Leaders in the copper stocks such as Freeport McMoRan Copper and Gold Inc. (NYSE:FCX), and Southern Copper Corp (NYSE:SCCO) are higher, however, they are not leading the markets as they did back in January.

The legendary trader Jesse Livermore used to say that the markets could be followed by watching copper. If copper lead the markets, then the rally was strong. If copper lags the markets than something was wrong. At this time copper stocks are holding up well, however, they are not leading this rally since February 5th, 2010.

Could this be signaling trouble for the major stock indexes in the near future? It is certainly possible. Therefore, copper stocks should be watched closely at all times.




Nicholas Santiago
Chief Market Strategist
InTheMoneyStocks.com