Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Holiday Grind...

Stock-Markets / Stock Markets 2010 Dec 18, 2010 - 08:49 AM GMT

By: Jack_Steiman

Stock-Markets

market down off of overbought daily charts. We are overbought on the oscillators and on pure sentiment readings. The market wants to sell but it still can't find a reason to do so in this holiday season. Timing the pullback, whatever it may look like, is very difficult here as the bigger picture remains solidly bullish. Where will the catalyst come from is the real question we're all asking. It didn't come from a bad employment report some weeks back. I thought that would do it.


There were some earnings reports that had a chance to do the trick. They didn't do it. Good economic reports from the Philly fed sure didn't help the bears nor did a good CPI and retail sales report. It seems even bad news wasn't getting the job done. So what will? Maybe nothing in the end. Maybe it just snaps because it can, but again, there is no exact science. You can only see how the market is struggling for big up days. They really aren't happening any more, but it is still grinding, splitting days of out performance between the Dow/S&P 500 and the Nasdaq.

Lots of back and forth there, which is exactly the action of the market. Back and forth. For now, you should keep some mild exposure on the long side overall. If you want to short, be careful. Nothing big either way is the real point here. Move through this market day by day unfortunately. Nothing is easy here for longer time period plays. It is what it is, folks, with no end in sight.

The really good news continues to be rotation. The market refuses to just spit the bit. If one sector drops there's another one moving higher. A revolving door if you will. As one gets overbought it gets sold. If one gets oversold it gets bought. Different sectors getting love at different times in order to hold things up as the deep froth stocks continue their overall pullback phase. As long as folks don't want their money earnings next to nothing in the bond world, it seems to me there should be nothing more than a normal pullback over time, and that the overall direction of this market should continue upward.

It's important that all of you understand that markets are always changing and evolving. Some periods are easier than others. Once we made our measurements in this market it has become increasingly more difficult to find lots of strong set-ups. Solid bases are forming and they often need more time than we'd like to believe possible, and this can cause frustration if you let it get to you. There are periods where it's clear. We can be either in a real continuous up trend, or down trend, and then there's this market where it's a grind at best with little tiny candle sticks.

Those phases can last many months. After a while it seems like it'll never end. You have to learn to adjust mentally to what's out there at any given moment in time. If you have the same mind set all the time you are in for trouble and will simply under perform if not get outright hurt financially. Realize where we are and accept it, and you'll be fine from all perspectives. Financially you'll hang on to what you've made, and mentally you'll play more appropriately, meaning less trades and be more patient with them.

Just expect the market to continue to chop around in a range with different sectors performing better at different times for a while longer. There is no way to know exactly how long this process takes, but patience is the key along with not playing too aggressively. Three positions are about all you should be in for now. The more you do the more it is likely you will take unnecessary losses. Slow and easy for now is absolutely the only way to survive. Lots of stocks have taken huge hits few would expect as the froth is being taken out of some of those high flyers. Be more than careful with these types of plays.

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 21-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 constitutinginvestment advice. Trades mentioned on the site are hypothetical, not actual, positions.


© 2005-2019 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