Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19
Silver Price Trend Forecast 2019 - 9th Jan 19
Did Strong December Payrolls Push Gold Prices Up? - 8th Jan 19
How to Spot A Tradable Stock Market Top? - 8th Jan 19
Why 90% of Traders Lose - 8th Jan 19
Breadth is Very Strong While Stocks are Surging. What’s Next for Stocks - 8th Jan 19
Half of Investment-Grade Bonds Are Just One Step from Junk Status - 7th Jan 19
Stocks Rallied Again, Still Just an Upward Correction? - 7th Jan 19
Gold Golden Long-Term Opportunity - 7th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

Stock Market Fiscal Cliff Happy Ending???.......

Stock-Markets / Stock Markets 2012 Dec 18, 2012 - 05:52 AM GMT

By: Jack_Steiman

Stock-Markets

That's what Wall Street is hoping for today or sometime very soon. A happy ending to what we all don't want to see happen regarding the fiscal cliff as the ramifications will be far reaching. Unemployment will increase as will outsourcing along with higher taxes. Fewer and fewer will feel any job security, thus, putting the economy into recession. If there's no resolution to the fiscal cliff, it's basically etched in stone we'll see at least a few quarters of recession, if not longer, potentially much longer. Washington knows what's at stake here. They may be incredibly stubborn, but they're not stupid, at least I don't think they are. We'll find out if they are as playing chicken as it won't be a very wise action on either sides part.



We saw what can happen today with the market on even the slightest sliver of hope between the two sides. There was news that some real progress was being made, which resulted in futures moving higher. That held throughout the morning, with the market building on its gains throughout the day, even though there was the usual midday pullback. It was bought up the way it should in a more positive developing environment. We closed with a rush higher as hope escalated into the close. That's really good to see. Nothing bearish for now. The charts are all positive in nature.

The overseas markets have been leading higher for some weeks to months now. We have been lagging pretty badly. Germany, and many other Euro countries, have seen their stock markets break out, but we just haven't been able to get moving such as they have. I would have thought that our fiscal cliff worries are the worries of all Euro countries, but that hasn't been the case. Some better news out of China has helped their market rock up as well. The United States usually leads both up and down, thus, it seems there's plenty of upside potential should our fiscal cliff headache be put properly to rest. We could run quite a ways if things break just right on that front, but without a resolution we will undoubtedly continue to lag way behind. In reality, our bad news would probably end up being bad news for everyone else.

We're acting better technically and that's not an accident. I have often said the market smells out a result long before it's actually taken place. It's acting as if the fiscal cliff problem has already been resolved. You can never guarantee anything, but the overseas action, and today's late action, may be speaking volumes about a resolution coming sooner than later. We can only hope. It would be a huge win for our economy and for all people. Hopefully, the message from the overseas markets, and now finally ours a bit more, has things working out in the end after all. A happy ending? Very possible.

Apple Inc. (AAPL) is a key stock as we all know. It fell two hundred points for all intents and purposes as it went from 703 down to 505. It had a very nice rally back up, only to see it fall hard back down and test 505 once again today. It actually printed in the 496's pre-market. It gapped lower and then finished very powerfully, a strong bottoming-type candle that, hopefully, has the retest in as the lows today. There has been a strong positive divergence on the daily chart of AAPL, but it's useless until you see the bottoming stick. AAPL has massive resistance everywhere, but this type of day can at least put in a temporary, if not a bit longer-term, bottom.

There are no guarantees at any time in this game, but if technical analysis has any say in things, today should have seen that double-bottom test do the trick for the bulls. Hard to fight what you see. There's reason for hope as this leader has taken it on the chin for quite some time now. Things are hopefully looking up for it, and thus, the market. With all the daily index charts back testing, and holding those key exponential moving averages, things are looking up somewhat for the market for the short-term. The S&P 500 has key support at 1412, or the 50-day exponential moving average. As long as that holds, the market is fine.

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.


© 2005-2018 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

6 Critical Money Making Rules