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

Stocks Bull Continues....

Stock-Markets / Stock Markets 2012 Mar 28, 2012 - 01:59 AM GMT

By: Jack_Steiman

Stock-Markets

We can try to pull this apart from many different angles, but the reality is the bull market continues, because we have Fed Bernanke, who will do whatever it takes to float the markets. With interest rates low, there's no other place to really put your dollars. Keep it simple. This doesn't mean that at any time we can't go into a prolonged period of going nowhere. The market is showing continued solid action on weakness, and will likely do this type of behavior for a long time to come. If we pulled back 5%, it would feel like death. But in truth, it would do little to the bull market technicals.


With the market trying to hang tough, it's going to take some pretty bad news right here at home to knock this market down appreciably. That could come in the form of a bad ISM Manufacturing Report next Monday. It would be interesting, if the number was bad, to see how well the market would, or would not, hold up. As we know by now, the bull market can do a great job ignoring the worst of news. Not sure that would happen now, since the market has run up. We'll see what that number tells us. In the meantime, we simply play what the market is telling, us. For sure it's a bull market, but please recognize that at some point, the market will need a stronger pullback, or a longer period of basing.

There are areas of the market that aren't doing very well. That includes some of the oils, such as Apache Corporation (APA) and Anadarko Petroleum Corporation (APC). Some stocks are losing support and turning back down after back testing, so the market is not clean. That, however, is normal as what's bearish now will be bullish later on. Some areas go into quick bear markets, and then, somehow, find a way to recover, out of the blue. If you're in them at the wrong time, it can be very painful. Most of the areas of this market are in bull market mode, and that's key. You want to see the majority of stocks, and sectors, remain bullish, even as some smaller areas of the market are in bear mode. For now, this is what's taking place, and as long as we see this hold up, so, too, will this bull market.

The market was strong all day today. The bears wanted the market to move down towards 1370 to create some advantage and momentum. In the end, the bulls made sure 1370 wasn't even thought about from the opening bell as it gapped up, and stayed up, all day as it closed strongly. 1414 is still resistance, but if we can clear, cleanly, then there's the real chance we can visit as high as 1440/1450 before the next significant pullback ensues. The momentum is strong, but here we are again, at overbought on the Nasdaq, across the 60-minute chart, and its daily chart. The S&P 500 is nearing 70 RSI as well on its daily chart. This means we will have to take a breather again, soon, and use that to our advantage. Staying with a long bias is the only way to play. Using strength to think we're too overbought, and thus, must short has really hurt the bears. We stay overbought, causing some strong losses to those who are trying to be too cute in shorting this bull. It's best to stay with the trend in place for sure. Again, we will need a longer basing period, but who knows when that will kick in forcefully. It's day by day, folks.

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!

© 2012 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