Best of the Week
Most Popular
1.Will UK Interest Rate Rises Crash House Prices? - Nadeem_Walayat
2.Full on Crash Alert for Major World Stock Markets... - Clive_Maund
3.Gold And Silver Market Bottoming? Big Rally Imminent? Reality Check Says NO - Michael_Noonan
4.The Coming Silver Price Rally Will Outperform All Previous Ones - Hubert_Moolman
5.The Trigger For The Upcoming Stock Crash - Harry_Dent
6.Imploding Department Store Results - James_Quinn
7.Dr. Copper is Speaking, are you Listening? ... - Rambus_Chartology
8.Pandemonium in the Stock Market, Dow falls 1,000 points in a week - EWI
9.Asia's Whirling Dervish of Devaluations Has Encircled China's Exports - Keith_Hilden
10.China Weakens the Yuan; Rattles Global Stock and Financial Markets - Gary_Dorsch
Last 5 days
EU Migration Crisis and Population Density, Why Cameron is Right, England Really is Full - 3rd Sept 15
Stock Market Return to Crisis: Things Keep Getting Worse - 3rd Sept 15
Dow Theory Stock Market Sell Signal Examined - 3rd Sept 15
How OPEC’s Attempt to Save Face Affects the Crude Oil Market - 3rd Sept 15
Crude Oil Price Forecast 2015 and 2016 - Video - 3rd Sept 15
The Real Threat from China’s Stock Market Crash - 2nd Sept 15
How Our “Mixed Economy” Created These Mixed-Up Markets - 2nd Sept 15
'Gravity' Is Returning to Stocks and Bond Markets - 2nd Sept 15
OPEC Divorce And Self-Destruction Thanks To Saudi Crude Oil Strategy? - 1st Sept 15
The Beginning Of A New Financial / Stock Market Cycle - 1st Sept 15
Three Things Every Master Trader Knows About Trading Options - 1st Sept 15
Chinese Yuan Revolution? - 1st Sept 15
Take Advantage of Record-High Auto Sales… Before This Bubble Bursts - 1st Sept 15
Pondering Hitler's Legacy - 1st Sept 15
Mainstream Media Goes Berserk - 1st Sept 15
Your Decisive Stock Market Plan to Follow Whilst Most Investors Shiver With Fear - 1st Sept 15
Are There Stock and Financial Markets Investing Opportunities For The Remainder Of 2015 - 1st Sept 15
Crude Oil Price Forecast 2015 and 2016 - 1st Sept 15
REPO Window Hidden $Trillion QE Monthly Volume - 31st Aug 15
Silver and Warnings From Exponential Markets - 31st Aug 15
Stock Market Calls Fed’s Bluff - 31st Aug 15
Why Some ETFs Led the Stock Markets Down Last Week - 31st Aug 15
Stock Market Collapse - Take The Opportunity To Bail Before It’s Too Late! - 31st Aug 15
The Most Important Market Chart on The Planet - 31st Aug 15
Stock Market 50% Retracement - 31st Aug 15
Stock Market Crash Red Alert for 2nd Downwave... - 31st Aug 15
Independant Scotland 1 Year on, UK Civil War If the SNP Fanatics Had Succeeded - 30th Aug 15
Gold’s 7 Point Broadening Top - 30th Aug 15
The Day the Stock Market Shook the Earth: Takeaways From the Dow’s 1,000-Point Drop - 30th Aug 15
Gold Price Rally Marked by Short Covering - 30th Aug 15
Aging Stocks Bull Market - 29th Aug 15
Economic Destabilization, Financial Meltdown and the Rigging of the Shanghai Stock Market? - 29th Aug 15
The Stocks You Should Be Buying After the Market Drop - 29th Aug 15
How I Learned to Stop Worrying and Love Market Fluctuations - 28th Aug 15
China's Yuan Devaluation: Why It Was "Expected" - 28th Aug 15
Stocks Go Nuts But the Question Remains – Will the Rally Stick? - 28th Aug 15
Fed’s Stock Market Levitation is Failing - 28th Aug 15
The Eight Energy Systems Driving The Stock Market Rout - 28th Aug 15
Silver Sold, then Squeezed - 28th Aug 15
U.S. Economic Fundamentals 'Look Good' - Bullard of St. Louis Fed - 28th Aug 15
Stock Market Margin Calls Mount - 28th Aug 15
Einstein, Physics, Gold and The Formula To End Economic Decay - 28th Aug 15
The 10 Best Stocks for Options Trading Plays in This Market - 28th Aug 15
Economics of a Stock Market Crash - 28th Aug 15
Currency Wars Detonate; Gold Refuses to Budge - 28th Aug 15
UK Immigration Crisis Hits New Record, Trending Towards Becoming a Catastrophe - 28th Aug 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Global Stocks Slide

Stock Market Standing Still....

Stock-Markets / Stock Markets 2013 Feb 12, 2013 - 11:04 AM GMT

By: Sy_Harding

Stock-Markets

We're all waiting to some degree for this market to take the big spill lower. It will happen soon. It's only a matter of time before sentiment and the repeated overbought conditions catch up to the market. The problem for everyone, bulls and bears alike, is the reality of not being able to time this eventual plunge to unwind the sentiment issues currently at hand. We're not at extremes yet, so timing it is virtually impossible. If you've tried to do so from a bearish perspective you have had some rough times lately.


The bears have been fooled over and over again as they jumped in a first signs of overbought, especially when it got to extremes on many of those key index charts. And it did get to extremes when you think of how many daily RSI's got to over 80 on indexes such as the small and mid-caps. After some price unwinding, little price unwinding at that, which allowed the overbought conditions to go more neutral, here we are again trying for overbought, but this time also creating what will be negative divergences. At some point soon, as I mentioned above, the market is going to take a powerful hit.

However, knowing that's true, you have to stick with the trend in place until you get the proper reversal stick. If you want, you can sit on cash and wait for it, or you can keep some exposure, but be smart to avoid the super higher beta plays so as to not get hit too hard when the market sells a bit. There are many ways to go about adjusting to the times we're in, but the best way is to keep it light and to avoid the froth and high beta names for now. Whatever works for you is what you should do, but I'd be careful shorting too soon, especially if you want to get aggressive doing so. One up day can make the pain of too much shorting unbearable. Be wise. Go slow and adapt.

Markets find a way to hang in there when they're not ready to give up the trend in place. For instance, it's not able to break out in a given moment but will find an area to be bought in order to keep things moving higher or laterally. On the other hand, it'll also find places to sell so things don't get out of hand on the up side. We see buying in one area and selling in another. Today the buying was more in the world of financial stocks, while the selling took place in the retail space. There's always exceptions to both areas of the market, but most retail stocks struggles today while most financial stocks did just fine.

This is how the market cycle is about to keep the trend in place moving forward. With today's flat open, it didn't really provide the market technically with the type of candle sticks that say the uptrend is clearly over for the short-term at least. It may be, but there was no classic topping sticks. More of the buy one area and sell the other. No across the board selling with topping sticks we normally but not always see. The cycling hung in for yet another day so we have more watching to do so as to try and find a true topping stick that says we'll finally get the deeper selling the market pretty much desperately needs.

None of the classic events are taking place that signify the end of a bull market. Yes, a nasty sell off period is coming, but nothing thus far that suggests the bull market itself is in big trouble. Good news is still treated as good news. There is no massive selling volume at the tops of patterns once they sell off some. No massive negative divergences are in place.
In addition, the Fed is protecting with liquidity. Too many good things, especially the last thing mentioned with the Fed, to get bearish on the bigger picture at this time, so when this market finally snaps from overbought and sentiment, use that weakness over time to accumulate good plays. Find the best bases and patterns and play on weakness. Then use patience to reap the benefits of those set-ups on weakness. S&P 500 1494 is support all the way down to 1470. Moving averages, etc. We'll look for bottoming sticks when the selling kicks in.

For now, resistance up near 1525 is on deck for the bulls. Watch with patience and appropriateness. Keep it safe.

Peace,

Sy Harding is president of Asset Management Research Corp., and editor of the free market blog Street Smart Post.

© 2013 Copyright Sy Harding- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Sy Harding Archive

© 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

Biggest Debt Bomb in History