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
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
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
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 Trend Lateral Into Jobs Report

Stock-Markets / Stock Markets 2010 Mar 31, 2010 - 02:57 AM GMT

By: Jack_Steiman


Best Financial Markets Analysis ArticleThe market that just won't fall didn't again today even though it should. Should is a tough word in this bull market because what it should be doing and what it is actually doing are quite different. It should be pulling back to unwind some negative divergences on the daily chart and because the oscillators from MACD to RSI to stochastics all need to rest. It's not happening. The market is holding up now, in all likelihood, due to end of quarter buying and because few shorts want to step in front on Friday's jobs report.

Fear of a blowout report that will spark another rally higher to make the oscillators that much more ridiculous. All that can be said with certainty is that for the moment the market won't sell and no one knows when this market will finally take it on the chin to cool things off. It'll happen but it seems as if it's going to wait until after the jobs report.

We started the day with a small move up and then followed a very familiar script for the rest of the day. The bears made token efforts to bring it down, but as usual, their efforts failed miserably. On occasion they were able to bring the market in to the red across the board but that lasted all of about five to ten minutes. As usual there was late buying as the shorts gave up and stepped aside. As usual we closed higher and near or at the highs. You have to feel for those who have continually been on the wrong side of this bull market run. The fact that markets go up far more then they go down is tough enough on the bears, but when a real bull takes hold, it has to be infuriating to be a bear. Just never get satisfaction. This market continues to ignore overbought and some negative divergences day after day and today was no different.

All of what I just talked about will have a price to pay and you don't want to be overly invested when that day hits because the masses will be waiting for the usual reversal that won't come. It won't mean the end of the bull as it will simply be the selling the market needs. However, if you're overly invested the selling will scare you and force you to make emotional decisions you'll probably regret in the long run. If you're not overly invested you're more likely to do the right thing and buy the weakness. Something you wouldn't do in all probability if you're under water too many plays. Again, we see emotion taking hold if the selling gets more intense than you think possible. If you are decently long you need to be sure you're in the best set-ups and in plays not overbought. They'll hold up the best and take away some of the angst that goes along with all selling episodes.

Today we saw the same old game played in the land of rotation. The banks and financials were particularly weak but many other areas of the market held up extremely well. This has been the story as we know from day one of this bull. No matter how hard the bears attack a particular area there is money flowing in somewhere else to more than make up for whatever the bears can dish out. As one sector gets very overbought and sells, the cycle of another area that got oversold gets bought up. Oversold never stays that way very long thus if a sector gets hit hard, before you know it, the buyers come back in. Wash, rinse and repeat over and over and over again.

The story is old and somewhat boring and I get that. You need to have exposure. No one would argue with that for sure. If we didn't play at overbought we would have missed at least the last ten winning plays. Set-ups can be bought. It's amazing to watch these handles take shape and ultimately move up, even if it's not the best day in the market. Only when these handles finally fail can we safely say the correction we need is upon us. Until then we stay with what's working but we do so with great care to be sure we're in the best possible set-ups.



Jack Steiman is author of ( ). Former columnist for, 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 21-Day Trial to!

© 2010

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 - 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