Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

IBM, INTC Disappoint... Stock Market Hangs Tough......

Stock-Markets / Stock Markets 2012 Oct 18, 2012 - 02:53 AM GMT

By: Jack_Steiman

Stock-Markets

I have spoken often about looking for signs about what type of market we're in. One clue is to watch how the market handles bad news that comes from just about anywhere, especially earnings. We had a disaster last night in two key places from the world of technology. International Business Machines Corp. (IBM) and Intel Corporation (INTC), two major market leaders and economic indicators, both said things were eroding. Not good news to be sure.


The market fell initially on the news, which made sense from a short-term, overbought posture anyway. However, once the market was no longer overbought on those short-term 60-minute charts, it rebounded strongly allowing all the indexes to finish near the flat line. Slight gains to be exact. Who can complain about that if you're bullish in nature here. If the market was in a bad place overall this type of news from two key stocks would have killed the market. It didn't, and this, again, is the proof that the market has been, and still is, in a bull market, like it or not.

Think it shouldn't be? Who can argue with that logic. However, it doesn't matter what we think it should be. All that matters is that it is what it is and what it is, is bullish. Argue all you want. Can we pull back? Of course. Lots of them around the corner. It can occur at any time. Bottom line is things are more bullish in nature without question.

Leaders. The market is always looking for leaders. These days we're seeing leadership in transports, housing and real estate, biotech's, materials and more. Some looked terrible lately, but have turned the corner and are turning up. This all in conjunction with the biggest leader of them all these days, the financial stocks. Hard to believe it, since they were the worst performing sector for years. Forget months. Years! They are now leading thanks to the world bank's efforts along with Mr. Bernanke. There's just too much protection for the time being. It's still about rotation. And there are leaders everywhere still hanging very tough. Technology is struggling the most simply because those stocks are reporting the worst earnings thus far. I wouldn't be very aggressive in that area until things turn for those stocks.

No indication that's happening yet as eBay Inc. (EBAY) is poor after hours. It was poor, but now I see it has recovered some. We'll see where it is in the morning. That said, it's best to look at the areas of strength I just mentioned above. All in all the leaders in the strongest areas are doing very well and allowing the market to hold up when we're seeing weakness in technology.

One major leader to watch that has been weak, but is trying to strengthen up the past few days even though it was lower today, is Apple Inc. (AAPL). It has all kinds of resistance just above between 650 and 654. 20- and 50-day exponential moving averages to deal with along with gap resistance. Add in a strong trend line and you have massive resistance and a real headache in terms of breaking out. However, if it were to be able to break out above 654 it would be extremely bullish for the stock, and thus, extremely bullish for the biggest laggards around, the technology stocks.

Apple has major weighting and if it can break out the bears will surrender in their efforts to bring the technology stocks down further. Other stocks in that area of the market that are trying to firm up are Priceline.com Inc. (PCLN) and Google Inc. (GOOG). We shall see but, while that sector is lagging, there are some hopes if these stocks can start to firm from here. There are signs that it's beginning to take place but it's far too early to say they will start to move higher with force.

So here we are with fundamentals going against market action and the technicals. So what's a player to do? You play the trend with a cautious tone. You don't have to be overly aggressive, but you also shouldn't be all cash. Play what sets up. Be diversified to some degree, but also stay away from the weakest sectors, and spend more time involved in that which is leading with strong price action. Be patient as the market is still whipsawing around, and thus, anything you own will have swings, and thus, some days won't be all that good.

If you own too much it'll be tough to hold on the down days. Be appropriate. Be involved. Don't over do it.

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 15-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