Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Lateral But Stable...

Stock-Markets / Stock Markets 2010 Jan 07, 2010 - 02:11 AM GMT

By: Jack_Steiman

Stock-Markets

And that's not to be diminished in its importance. You don't have to keep blasting higher all the time to say that things look good. The 60-minute time frame charts got very overbought again and thus it is no surprise that the market didn't rocket up today, but all in all the action was solid for some very important reasons I will discuss later in this report. We started out with a small move down today but it didn't take long for the churning to begin once the initial sellers did their deed. The Nasdaq sold hardest but that didn't stop the other indexes from hanging in there. In fact, the Nasdaq ended up down only 7 points, but when you consider how some of its leaders acted, it has to be considered a victory for the bulls. Bottom line is the market continues its basic lateral consolidation as the oscillators play up and unwind.


Now let’s spend a moment talking about why you have to be thrilled if you're a bull based on the overall action on the Nasdaq today. Leaders such as Google (GOOG) and Apple (AAPL) got smoked hard. Lots of weighting there and with GOOG down almost 17 points and AAPL down over 3 points, that's quite a bit of pressure on the index. These are strongly weighted stocks thus how can you feel badly about the overall Nasdaq action! It could have been much worse without question.

In addition, the weakness in the Nasdaq leaders had no adverse affects on the other indexes and that too is a positive. The action here being quite similar to what took place for some time with regards to the financial stocks. They were acting poorly with just about every leader and every ETF presenting those stocks trading below their 50-day exponential moving averages yet the markets overall held up very well. When AAPL and GOOG are down a combined 20 points, you wouldn't expect the Nasdaq to be down only a drop over three tenths of one percent.

We're heading in to earnings season and one area of the market well worth paying close attention to is the retail sector. Are folks still spending there? Has spending increased from the last year at this time? We got a very important report tonight from Bed Bath & Beyond (BBBY) and the news was fabulous. Much better than expected earnings with the stock acting very well in the after hours. Up nearly 9%. Nothing but good news there. This does not mean this will be normal for the rest of the sector but it is a nice way to begin the earnings season. In addition, construction company Shaw group (SHAW) is also blasting off in the after hours after reporting their earnings this evening.

We have the monthly Retail Sales Report out tomorrow morning and the big Jobs Report out on Friday morning. Two key reports for the market to focus on. Both should be fairly big market movers with the Jobs Report probably meaning more to the market overall but retail sales in the morning tomorrow has strong significance as well. All we can do as players is to play what we're seeing day to day with the charts being our guide first and foremost. Nothing in the world of charts suggests anything too nasty to come on the down side although pullback's are always going to be part of the game. Sticking with what I see as always. That's all I can do. When we get the reversal stick that says we need to go cash or possibly short, I'll adjust to it. Not before.

Peace

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Sign up for a Free 30-Day Trial to SwingTradeOnline.com!

© 2010 SwingTradeOnline.com

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in