Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Rally Fading....Nasdaq Leading Lower...

Stock-Markets / Stock Markets 2012 Dec 27, 2012 - 03:55 AM GMT

By: Jack_Steiman

Stock-Markets

Nothing good to say if you're a bull. The fact that the fiscal cliff is hanging perilously over the markets head is pushing the bulls away from getting too involved. Who can really blame them? The market has nothing good fundamentally behind it, so the path of least resistance is lower, unless we get a resolution and fast. The market and many stocks within it are getting close to big breakdowns. Apple Inc. (AAPL) cannot bid and is trying to start a breakdown below 505. It's having lower and lower closes, and this is not good. No bid whatsoever. AAPL and its brothers must start behaving better to lead the Nasdaq higher. Stocks, such as Priceline.com Incorporated (PCLN), Google Inc. (GOOG), Amazon.com Inc. (AMZN), and Intuitive Surgical, Inc. (ISRG). There's no way to know just how bad things will get, but the overall action is negative, and will worsen ahead of the 31st, if the market feels nothing is going to get resolved.


The market wants nothing short of a full resolution, it appears, thus, the big boys and girls need to get rocking with a plan both sides can live with for the longer-term. With the market having a small gap up at the open, it gave the bulls some hope, but one thing was very clear early and that was the Nasdaq was lagging yet again. It didn't take long before it started to fall harder than the rest of the major indexes, which was a clue the day wouldn't end on the upside for anyone. It wasn't terrible for the S&P 500 and Dow, but the underperformance on the Nasdaq was glaring. Same old, I'm afraid. It tells you that if we do go over the cliff, the Nasdaq will take it the hardest. A bad day for the bulls again, but all is not lost until we actually go over the cliff. Let's hope our leaders get it together sooner than later.

The retail sector took it the hardest today. It was across the board from high enders to the cheapest brands. The numbers were bad. It was up only 0.7% with expectations that the holiday season would be much better than that. High-end retailers were really whacked today. It shows that the consumer has already started to pull it in in terms of spending. The fear of the fiscal cliff, and then add in what has already been happening economically, reared its ugly head in terms of consumer spending.
Fear of losing jobs. Fear of inflation. Fear of losing benefits. Fear of all things has made the consumer act more carefully. They're simply doing less. No other way to say it. Can you imagine what will happen to our economy if we do go over the cliff and we lose even more jobs, etc! Recession is basically a guarantee. Retail tells the tale of how the consumer feels about their finances and their future. It wasn't a pretty picture regarding those numbers this morning. Is anyone listening?

When markets aren't trading on pure technical analysis, it makes trading it that much more difficult. Two massive black candles on the VIX the prior two days should have led to a strong rally in equities today. It didn't. The VIX actually gapped up and held. What? That just doesn't happen. The fiscal cliff and its ramifications are so powerful it's just not allowing for normal technical responses. It tells you to be very careful and to play very lightly. Don't be a hero. There will be a much better time to play this game when this nonsense is behind us. If you play aggressively here you are looking for trouble. Be wise and be patient. Stocks like AAPL just aren't painting a good picture, but if you get too bearish you can get smoked by having a resolution blow up in your face. Slow and easy as usual here.

In closing, President Obama is back tomorrow, and hopefully progress will be made. I wouldn't count on it, but l hope something does get done. The market needs some hope here as you can see by the daily action over the past several days. Only time will tell, but keep the faith, I suppose.

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.


© 2005-2019 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