Best of the Week
Most Popular
1.Spain Ignores Scotland Lesson as Catalan Independence Referendum Could Spark Civil War - Nadeem_Walayat
2.Used Car Buying From UK Dealer Top Tips, CarMotion.co.uk Real Customer Experience - N_Walayat
3.Spanish New Civil War Begins as Madrid Regime Storm Troopers Quell Catalan Independence Rebellion - Nadeem_Walayat
4.Virgin Media Broadband Down, Catastrophic UK Wide Failure! - Nadeem_Walayat
5.Are the US Markets setting up for an Early October Surprise? - Chris_Vermeulen
6.The Pension Storm Is Coming To Europe—It May Be The End Of Europe As We Know It -John_Mauldin
7.Stock Market Crash 2018; Will it Prove to be Another Buying Opportunity - Sol_Palha
8.The Profoundly Personal Impact Of The National Debt On Our Retirements - Dan_Amerman
9.Stock Market as Good as it Gets; Like 2000 With a Twist -Gary_Tanashian
10.1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - Nadeem_Walayat
Last 7 days
Stock Investors Ignore What May Be The Biggest Policy Error In History - 20th Oct 17
Gold Up 74% Since Last Stock Market Peak 10 Years Ago - 20th Oct 17
Labour Sheffield City Council Employs Army of Spy's to Track Down Tree Campaigners / Felling's Watchers - 20th Oct 17
Stock Market Calm Before The Storm - 20th Oct 17
GOLD Price Creates Bullish Higher Low - 20th Oct 17
Here’s the US’s Biggest Vulnerability in NAFTA Negotiations - 20th Oct 17
The Greatest Investing Lesson Learned from the 1987 Stock Market Crash - 20th Oct 17
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Our Leaders Disappoint...As Usual....Market Takes It Mostly In Stride......

Stock-Markets / Stock Markets 2012 Dec 23, 2012 - 10:18 AM GMT

By: Jack_Steiman

Stock-Markets

You can never be disappointed too much or surprised all that much when our political leaders drop the ball and allow for things to deteriorate due to their enormous, pathetic egos. It's always about them and not the good of the people they serve. They don't have much to worry about financially or politically, thus, it's business as usual, even when there's a fiscal cliff hanging over our heads. It really doesn't mean all that much to them. Their safe, wrapped up in their little shell of protection. When it comes to the big decisions, ones where they have to put power and ego aside, they fail. It's really that simple. They just fail. It's been in going for what seems like our entire lives but we've learned to accept it as politics as usual. There comes a time, every now and then, however, when they have to come through big for the people they serve, and that's when their lack of soul shines through. This time, sadly, is no different.


They dropped the ball big time, and thus, the futures eroded all night with the lows at around -250 on the Dow. They improved a bit as the night went along but nothing spectacular. We opened lower and eventually went to approximately -200 before rebounding. Not a great day, but when you think about it, nothing to be upset about. The market could have been much worse, but it wasn't in the end. It doesn't mean all is well here but it does show the inner strength of this market. If we were down four or five hundred today, no one should have been surprised. I'm more surprised at how decently we held up, considering the consequences of going over the fiscal cliff, the market still feeling some hope is out there. Never argue with the market. We held where we had to for now, but we shall see what's in store for the rest of this month as the leaders, or so they call themselves, try once again to get something done. The clock is ticking.

There's something very interesting going on for quite some time that is worth noting. Foreign markets across the world are in really good, bullish shape. It's everywhere you turn for the most part. Asia to Europe, and everywhere in between, has seen their stock market rocking higher over the past few months. The laggard is our market, and that sure is a change of trend. Even though our affairs will affect the rest of the financial world, the foreign markets have been ignoring our situation and advancing on their own as better economic news keeps coming in.

Markets generally move on earnings and economic reports, so it's easy to understand why these countries have seen their market advance quite nicely lately. If we go over the cliff there's going to be some fallout, for sure, but the foreign markets don't seem intimidated by what's taking place right here at home. Maybe they see a way to keep growing even without our help. We're out sourcing so much that maybe that's a big part of it. If we go over the cliff, that'll only increase. The key point here is that if we can solve this massive headache, there's plenty of catching up to do. It wouldn't take much of the right news to get us rocking.

So what levels break for the bigger picture stock market to turn bearish. The answer is seen on those long term, three and a half years, up-trend lines off the March 2009 lows. The Dow has that level at approximately 12,700. The Nasdaq is at 2,900, and the S&P 500 is at 1,350. We can lose 3030 down to 3000, and although that would not be good news for the bulls, it takes a loss of 2,900 to get the bears to be back in full control of the price action. It wouldn't feel good to lose 3030 with force, and possibly even 3000, but you have to remember that a multi-year up trend line is truly the line that separates bull from bear. If we went down to 2,900 and held, it would feel awful, but it still is not bad action for the bulls.

Bottom line is bottom line, so let's just see how the next few days go with our political leaders. A day, if not a moment, at a 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.


© 2005-2017 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

Catching a Falling Financial Knife