Best of the Week
Most Popular
1.UK General Election 2015 - Forecasting Seats for SNP, LIb-Dems, UKIP and Others - Nadeem_Walayat
2.UK General Election 2015 Seats Forecast - Who Will Win? - - Nadeem_Walayat
3.Gold Price Downtrend Looks Set to Continue - Clive_Maund
4.Commodity Prices Set To Plunge Below 2008 Lows - Austin_Galt
5.New Greece Drachma Revealed Amid Bank Runs - Greeks Buy Gold Sovereigns - GoldCore
6.Gold and Silver Stocks or General Stock Market Indices? - Rambus_Chartology
7.“Forgive Us Our Debts” – Only Way To Prevent Economic Meltdown - GoldCore
8.UK House Prices Trend 2015 and the May General Election - Nadeem_Walayat
9.12 Reasons Why Barry Ritholtz and Many UK Experts Are Mistaken On Gold - GoldCore
10.Recession is On The Way; Beat The Stock Market Crowd, Panic Now! - Mike_Shedlock
Last 5 days
Cameron Fears Debates Would Cost Tories the Election - Potential 12 Seat Swing to Labour - 6th Mar 15
Apple Major New Gold Buyer - Propel Gold Price Higher? - 6th Mar 15
Stock Market Dow Theory Divergence - 6th Mar 15
Ukraine, Neocons and Neonazis - 6th Mar 15
UK Election 2015 - Cameron Housing Bribe - 200,000 Discounted Homes for 400,000 Voters - 6th Mar 15
The Anthropology of Finance - 6th Mar 15
Portfolios, Insurance, and Gold - 6th Mar 15
Gold and Silver Justice For Some - Currency Wars - ECB Deposit Rates To -3% - 5th Mar 15
How to Play the Big Broker Stocks When Interest Rates Rise - 5th Mar 15
Here's What Stock Market Bulls Might Be Overlooking - 5th Mar 15
U.S. Soaring Crude Oil Stocks - Cushing and Gulf Coast Storage Filling Up Fast - 5th Mar 15
Japan's Intelligence Reform Inches Forward - 5th Mar 15
Gold Miner Index Breadth Oscillator, Forward Reckoning® - 5th Mar 15
Gold Price Set To Plunge Below $600 - 5th Mar 15
UK General Election Forecast 2015 - Immigration Crisis, SNP Insurgency and Housing Mini-Boom - 5th Mar 15
Spock, Debt and the Kingdom of Denmark - 5th Mar 15
The Psychology of a Sideways Stock Market Trend - 5th Mar 15
Freedom from America - Getting Out Of Dodge - 5th Mar 15
What Top Hedge Fund Managers Really Think About Gold - 4th Mar 15
U.S. Dollar Strategic Backfire On U.S. Government Policy - 4th Mar 15
Canada’s Central Banks Orders End to ‘Spocking’ Of Canadian Dollar - Defacing Debasing Currencies - 4th Mar 15
Chicago's Only Possible Salvation: A Detroit-Like Bankruptcy - 4th Mar 15
Gold Price and Mining Stocks Decline Together - 3rd Mar 15
Financial Slaughter - The Silence of the Lambs - 3rd Mar 15
Bondholders “Bailed In” In Austria – New Banking Crisis? - 3rd Mar 15
How to Profit from the Coming Oil Price Crunch - 3rd Mar 15
Is Japan Zimbabwe? Could Japan go Hyperinflation? - 3rd Mar 15
Bill Gross Says Fed May Raise Rates 25 Basis Points in June - 3rd Mar 15
The Secret Behind My Hedge Fund Trade on U.S. Housing Market - 3rd Mar 15
BLS CPI Lie - How's That Dsflation Working Out for You? - 3rd Mar 15
Tesla Bonfire of the Money Printers’ Vanities - 3rd Mar 15
Gold Demand in UK, Europe and U.S. – Reuters Interview GoldCore - 2nd Mar 15
Watch the Skies... for Investor Profits - 2nd Mar 15
How Investors Can Identify the Best Small-Cap Stocks - 2nd Mar 15
Gold and Silver - What If the Precious Metal Stocks Bulls are Back - 2nd Mar 15
Students Getting a PhD in Subprime Debt - U.S. Debt Breaking Bad Part 3 - 2nd Mar 15
The Stock Market is in The Process of Major Top! - 2nd Mar 15
Stock Market Weakening Trend - 2nd Mar 15
Gold Price Glimmer of Hope - 1st Mar 15
Stock Markets Are Riding High on Thin Air - 1st Mar 15
Varoufakis vs. the Troika - Showdown in Athens - 1st Mar 15
Subprime Rising - U.S. Debt Breaking Bad Part 2 - 1st Mar 15
Gold CoT Improving, But ... - 1st Mar 15
UK General Election 2015 Seats Forecast - Who Will Win? - 28th Feb 15
UK General Election 2015 - Forecasting Seats for SNP, LIb-Dems, UKIP and Others - 28th Feb 15
Stocks Bull Market Continues - 28th Feb 15
U.S. Debt Breaking Bad - 28th Feb 15
NATO Frankenstein - When Centralization Scales Beyond Our Control - 28th Feb 15
Gold And Silver Insanity Prevails; Precious Metals Without Direction - 28th Feb 15
Fed Raising U.S. Interest Rates - Shovelin’ Schmitt Against the Tide - 28th Feb 15
Don't Let This Stock Market Myth Cost You Your Gains - 28th Feb 15
Recession is On The Way; Beat The Stock Market Crowd, Panic Now! - 28th Feb 15
Stock Market Indexes Creeping Towards the Edge - 28th Feb 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The State of the Global Markets 2015

Good Jobs...Bad Jobs.... Stock Market Still Lateral.....

Stock-Markets / Stock Markets 2012 Dec 08, 2012 - 07:21 AM GMT

By: Jack_Steiman

Stock-Markets

The Government came out with their bag of tricks this morning pre-market, telling us that jobs increased by 146,000, which was much better than expected. What they failed to tell you was that the jobs market lost 122,000 people when their claims ran out with the Government--the new math, apparently. So in the end the report was actually worse than expected, but they want you to believe that things are actually improving.


I guess they think we're all dopes. It's the same way they choose to look at inflation. They count everything except food and energy. Seriously? Outside of health care costs going through the roof, what else is there really, other than the inflation caused by our most used daily products of food and energy. We seem to accept all this garbage, but in the end, the number today was not nearly as good as that which was reported, and for once the market didn't buy it at all.

The market rose early on with those futures blasting up initially. The S&P 500 was up over a ten handle. Nice action. It opened with a four handle and ultimately went red as the day wore on. It went back and forth from red to green, but in the end, the report wasn't accepted as many thought it might be. Fool me once...! The market simply went back to its usual behavior we've been seeing for far too long now. Whipsaw is the name of the game, which is what I've been warning you about for some time now. There's nothing out there to change this behavior as we tinker on the edge of recession, until we get a resolution from the fiscal cliff. It's really that simple. Today was the same old. You start one way and end another with many head fakes in between. The new normal for now.

Playing this type of market is what has everyone so baffled and unhappy. There really isn't a strong strategy to be honest. The market is whipped about due to the uncertainty it's facing, and due to the words spoken from both political sides on an almost daily basis. It's almost impossible to play this way. Unless you choose to wait for oversold to very oversold conditions, or on the other hand, overbought to very overbought conditions, there really isn't much there.

The problem is waiting and getting those oversold and overbought conditions to take place. They don't that frequently on the daily charts. Far more often on the short-term sixty-minute charts, but unless you're a day trader, it's imperative you wait for the daily set-ups. It ultimately means you're likely doing a lot less trading than you'd like. It's frustrating and disappointing. I get it but, if you don't obey the rules laid out in front of you here, you're likely to have a lot of bad experiences. Less is sadly more for now with there being no sign of that changing the rest of this month as the two political sides play hard ball with each other, and thus, with all of us. Adjust accordingly.

Apple Inc. (AAPL) is in a longer-term down trend that's been completely confirmed technically when it failed on its back test of the 50-day exponential moving average with a black candle. It has been down hard ever since. It has set up shop with clear support and resistance levels. 555.00 is now the first area of tough resistance followed by the wall at 569.00, or the recent gap down. Support is at 518.00 followed by 505.00. Below 505.00 is 460.00. AAPL is the leader and needs the right type of news to break this continuing down trend it has been in for a long time now. If AAPL can find a bottom then the market is likely to find it as well. Remember that AAPL is very heavily weighted and if it's struggling so will the necessary market leader, the Nasdaq markets are healthiest when froth or the Nasdaq leads.

Look folks, in the end it's about the resolution or lack of one regarding the fiscal cliff. The market is anxious, and that's why you get the whipsaw. The reason it doesn't tank to this point is because there's really nowhere else to put your dollars. Interest rates are too low. With this in mind, the market players are looking for safety in lower beta, lower P/E stocks found in the Dow and S&P 500. Always exceptions to that rule, but the overall behavior of the indexes shows this to be the case. The Nasdaq is not that desirable to the masses for now. It will become desirable once again when the fiscal cliff has been resolved. This tells you that cash is basically best with only very tiny exposure from time to time. Nothing wrong with being completely cash if need be.

Be peaceful and wait for resolution. The market should become more directional at that time.

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.


© 2005-2015 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

Free Report - Financial Markets 2014