This morning the second quarter Gross Domestic Product(GDP) results were released by the Commerce Department. The second quarter Gross Domestic Product reported was 2.4%. This is sharply lower from the revised first quarter number of 3.7%. Economists had expected the second quarter number to be 2.5%. Therefore, today’s number was not a big surprise. What does this all mean for the market?

Well, today the market is starting out under pressure with the SPDR S&P 500 ETF (NYSE:SPY) trading lower by 1.06 to $109.20. Most commodity stocks are under pressure this morning and this is a sign of deflation. Leading commodity stocks such as Cliffs Natural Resources Inc (NYSE:CLF), and Southern Copper Corp (NYSE:SCCO) are trading lower and remain under pressure. Remember when the U.S. Dollar Index is trading higher on the trading session this will often push the commodity stocks lower. Therefore, always keep a dollar chart open as most professional traders will key off this chart. Remember when the dollar is higher the stock market indexes will deflate. Should the dollar decline or sell off the market will inflate higher.

Since the July lows the markets have surged higher climbing about 10.0 percent from that level. However, since July 16th, the major indexes have been very choppy and volatile. This type of volatile action could be expected going forward. Please remember to keep an eye on the U.S. Dollar Index as that chart will generally give traders a good indication of where the stock indexes are trading. This morning the U.S. Dollar Index is trading higher by 0.15 cents to $81.79 and the market is obviously trading lower.

- About the Author: Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets. Article Source

Since the early July stock market low the sentiment has completely changed. In late June and early July every business talk show in the media was mentioning a stock market death cross (50 moving average crossing over to the downside the 200 moving average) and a massive head and shoulders top pattern (symmetrical bearish pattern that can often predict the target) in the S&P 500 Index and the Dow Jones Industrial Average. It seemed that Armageddon was upon us. However, as we all know when everyone is looking at the same thing the market rarely does the market allows that to happen. As you all know by now the market has only rallied from early July and has now traded higher by over 10.0 percent.

Now the business shows in the media are feeling good again. Investors are once again getting bullish looking for new highs. It still amazes me that people hated the market around 1011.00 on the S&P 500, however, they love it at 1118.00 when it is higher by more than 10.0 percent. Traders and investors in the media are now telling traders to buy stocks when we are nearing major important resistance levels. Are you telling me you want to buy Freeport McMoRan Copper & Gold Inc (NYSE:FCX) now at $71.50 when you could have owned it in early July at $57.00? What about Cliffs Natural Resources Inc (NYSE:CLF)? These people want you to own it now at $56.00 when they could have owned it at $45.00 in early July. People, this is when the professional trader is selling it to the public. Remember the public is always late to the party.

When everyone loves the market, that is the time to get out. When everyone hates the market that is the time to get in. The talking heads in the media always tell people to chase stock moves higher. It is the same as when a major brokerage firm upgrades a stock at a high. Just look at what happened to Jetblue Airways Corp (NASDAQ:JBLU) on June 14th when it was upgraded $6.80. Ironically, there were not any upgrades to mention on July 2nd when the stock was trading down to $5.25 a share. Simply put just learn to read the charts and forget the news.

Nicholas SantiagoChief Market Strategistwww.InTheMoneyStocks.com

- About the Author: Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets. Article Source