This is a question and answer interview with Chief Market Strategist Gareth Soloway of InTheMoneyStocks.com. He gives his insight and we profit from it during this trading session.
Q: What do you think of the stock market today? The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $127.26, +0.31 (0.24%).
A: The markets are doing their best to hold up. We are at a pivotal point where a down day could yield another major leg lower. Should the markets hold up, a bounce is likely for one week. Things are scary in Europe but the charts tell the truth and we must watch them closely today.
Q: Research In Motion Limited (NYSE:USA) (NASDAQ:RIMM) continues to fall. Is it going out of business?
A: They have made some serious errors in the past, underestimating their competitors. I do not think they go out of business but the stock will go under $10.00 a share. At that level it becomes attractive as a buyout play. They still have some value and I would consider buying in that range.
Q: Gold continues to fall with many analysts talking about further downside. Do you agree?
A: Gold will head lower until the third quarter of 2012. However, in the near term I expect a bounce before the next dump. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) has great support around the $150 level here. Today, their may be a reversal and bottoming tail forming for a quick long swing trade.