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
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
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Refuses To Die....

Stock-Markets / Stock Markets 2011 Mar 29, 2011 - 02:32 AM GMT

By: Jack_Steiman

Stock-Markets

Day after day we seem to hang in there better than most would expect when you looks at things fundamentally. We have global problems. Japan has to deal with nuclear fallout after dealing with a major earthquake and tsunami. We know about the headaches in Libya. Portugal has default problems. Some of our own states here at home are dealing with bankruptcy with help from our Government. There certainly is enough out there to keep us wondering just how the stock market hangs so tough to the up side of the equation. Add in unemployment and a dead housing market and you sit there shaking your head each day you wake up and see the futures aren't bad at all.


I often wake up and think today's the day. Lock limit down. It just never happens. There were the usual problems overseas this weekend, yet we didn't fall pre-market. So up we went at the open, although it wasn't anything earth shattering. From there we got overbought again on the short-term 60-minute charts, thus, the usual pullback came along, but nothing bad at all. The Nasdaq under performed a drop most of the day but nothing earth shattering. Just a few heavier weighted stocks pulling things down a bit more than the Dow or S&P 500. In the end it wasn't an exciting day, but you have to feel good about the way it's fighting through the classic wall of worry. A day the bulls can feel good about. Some unwinding took place. Deeper would be a bit better, but at least some took place. The daily charts remain far from overbought.

Oh, those nasty financials. A led weight on the back of this market. Can you just imagine how far this market would blast higher if those poor acting bank and financial stocks ever caught a real bid? The over hang from years gone by is still with this sector. The market understands, I gather, that the only reason they aren't collapsing further is because of Government Intervention. If they can't stand on their own two feel, then no one wants to really take a major risk getting too involved with them. They'd rather throw their dollars on technology growth companies. For now, it would be best if we held off from taking any new plays in this area of the market for a while longer at least.

Friday of this week we will get more insight on how this country is doing with regards to employment. Is it getting better? How fast are things improving? In other words, how well is QE2 working. If the growth is slow the fed will want to try and keep printing in order to keep things status quo. If things are starting to genuinely improve you might start to hear for the first time in quite some time that they will be raising rates soon to curtail inflation woes that are really cranking up. Food, health care, and gasoline are out of control and only likely to get worse if those commodity prices keep rising. Bernanke like to raise, but is clearly waiting on some reports that employment is rocking higher. Once he thinks this area is better he will take the foot off the gas and slow things down a bit. The market will probably respond negatively at first, but quickly bounce back once it seems that raising rates are not bad because the economy is improving. The report Friday will have some weight to where the market goes short-term. It would be nice to see some real growth.

This is a very busy week for the stock market. We have lots of other economic reports to keep a close eye on. Wednesday we get the pre-jobs report with the ADP jobs report, which hasn't been accurate with regards to how well Friday's big number will come in, but you have to pay attention to it anyway. I know the market will be. Thursday it's more about the jobs world as we get news on jobless claims. It's key to understanding how things may, or may not, be getting better for the average person looking for work. We also have the Chicago PMI, or purchasing managers report. A key area of the country to focus on how the growth in the economy is coming along. Back to Wednesday where we will also pay attention to the bull-bear spread and whether more fear is coming into the market. It got as high as 38%+ many weeks back. Now it's down to 28%. 10% more bears is good, and thus, it's no longer an issue. However, in my eyes, the lower the spread the better it is for the bulls. By week's end we will have much more insight on how the QE2 is doing and what to expect from Mr. Bernanke going forward.

Support on the S&P 500 is near 1300. Massive resistance is at 1344, or the past highs last seen. I think there's a decent chance we'll get back up there over time. No guarantee, of course, but for now weakness can continue to be bought such as when the short-term 60-minute charts get oversold, or at least go back to decently neutral. If we do get back to 1344, or close, we will have some negative divergences to deal with. But no worries about that now. For now, we continue to believe that some exposure on the long side is the way to be playing.

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!

© 2011 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.


© 2005-2019 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