Best of the Week
Most Popular
1.Gold And Silver Voodoo Analysis Price Forecasts - Austin_Galt
2.UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - Nadeem_Walayat
3.Silver Price At or Very Close to an Important Low - Clive_Maund
4.Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - Michael_Noonan
5.Gold and Silver Bear Phase III Dead Ahead - Rambus_Chartology
6.Stock Market Major Selloff Looms - Zeal_LLC
7.Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - Ty_Andros
8.Gold Price Very Close to an Important Low - Clive_Maund
9.Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - EWI
10.U.S. Aggression - Will Russia and China Hold Their Fire? - Paul_Craig_Roberts
Last 5 days
Europe Is Crumbling Into Economic Collapse - 2nd Oct 14 - Raul_I_Meijer
Gold Stocks Stealth Rally - 2nd Oct 14 - Gary_Tanashian
U.S. 30 Year US T-Bonds Voodoo Analysis - 2nd Oct 14 - Austin_Galt
Top Approaching in Berkshire Hathaway Stock? - 2nd Oct 14 - EWI
Stocks Interesting, Junk Bonds at Fair Value, Bill Gross Who Cares? - 2nd Oct 14 - David Tepper
Gold Will Surprise In More Ways Than One - 2nd Oct 14 - Bob Loukas
“Back Door” Method For The Government To Pay Down The Federal Debt Using Private Savings? - 1st Oct 14
Dow Stocks Index And The No Mercy Cycle - 1st Oct 14
Why China Thinks Gold is the Buy of the Century - 1st Oct 14
Forex Volatility Predicts Bottom in Gold and Silver? - 1st Oct 14
Stock Market Wil-e-Coyote Moment May Have Arrived - 1st Oct 14
Europe Teetering the Ddge of a "Japan-style" Deflation - 30th Sept 14
Economists Economic Atonement - 30th Sept 14
Everything You Need to Know About the Stock Market S&P Index Until Christmas - 30th Sept 14
Singapore Becoming Global Gold Hub - Launches Kilo Bar Contract And Gold ATMs - 30th Sept 14
Germany Fights on Two Fronts to Preserve the Eurozone - 30th Sept 14
Turn the Tables on the Gold and Silver Market Manipulators - 30th Sept 14
U.S. 2014 Election Business as Usual - 30th Sept 14
Gold - Time to Buy the Dip? - 30th Sept 14
Urging Investors to Stay Liquid for the Coming Gold Stocks Boom - 30th Sept 14
The Japanese Deflation Myth and the Yen’s Slump - 29th Sept 14
Epic Investor Optimism that Can Be Reversed Only by a Huge Stocks Bear Market - 29th Sept 14
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 - 29th Sept 14
The End of Monetary Policy - 29th Sept 14
Here's What Rising Interest Rates Really Do to Your Shares - 29th Sept 14
Is a Credible Stock Market Top Forming? - 29th Sept 14
Silver Price At or Very Close to an Important Low - 29th Sept 14
Gold Price Very Close to an Important Low - 29th Sept 14
Nihilism And The Unknown Future - 29th Sept 14
Stock Market S&P, NAS Change In Trend? None Apparent, But A Caveat - 29th Sept 14
UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - 29th Sept 14
U.S. Aggression - Will Russia and China Hold Their Fire? - 28th Sept 14
Currency Wars and the Death of the Euro - Audio - 28th Sept 14
Obscure Maritime Law Practically “Guarantees” Profits for These Energy Companies - 28th Sept 14
Stock Market Primary IV Underway? - 27th Sept 14
Darwin And The Climate Apocalypse - 27th Sept 14
The Global Middle Class and Copper Consumption, A Stop Spike Event - 27th Sept 14
Can Money Save The Climate? - 27th Sept 14
Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - 27th Sept 14
Debt and Inflation Consquences of American Fear - 27th Sept 14
U.S. and Global Confidence are in Divergence - So Are Stock Markets - 27th Sept 14
Are U.S. Cars About to Crash? - 27th Sept 14
Why the U.S. Created and Armed ISIS From Libya to Syria - 27th Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Most Exciting Event in the History of Technical Analysis

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.


© 2005-2014 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