Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market Rescued by the Fed Again? - 24th Sep 21
Are Amazon Best Cheap Memory Foam Mattresses Any good? Bedzonline £69 4ft Small Double ECO Example - 24th Sep 21
Evergrande not a Minsky Moment - 24th Sep 21
UK Energy Firms Scamming Customers Out of Their Best Fixed Rate Gas Tariffs - 23rd Sep 21
Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Should School Children be Jabbed with Pfizer Covid-19 Vaccine To Foster Herd Immunity? - UK - 23rd Sep 21
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Little Selling.... Commodities Crushed.....Again....

Stock-Markets / Stock Markets 2013 Apr 13, 2013 - 06:34 PM GMT

By: Jack_Steiman


If you want to try to understand on a deeper level what it means to have a disconnect just look at the behavior of the commodity stocks. If the world was really in good shape, and we had real growth everywhere, then these stocks would be on fire to the upside. They are acting as if there's major deflation going on. And in the real world we do have deflation. Mr. Bernanke's liquidity supply is keeping the market up, but that's not the real world folks. It's so hard to wrap your head around the bigger-picture market action when you consider that things really are in bad shape globally, especially throughout Europe. We have had a plethora of terrible reports over the past two weeks. Again, let's go over all of them.

Today was saw very bad numbers in the world of retail sales. Make all the excuses you want about the weather, but bad is bad. The numbers were in the red when expectations were for very green. The weather was taken into account before that positive figure was thought about. Reality says it wasn't the weather, but people reigning it in. Things aren't good enough, economically, for folks to be throwing about their dollars in the retail world. Haphazard spending is just not part of the picture. We know this is true when we look at other reports from the economy. Jobs were not there. Jobless claims are rising. Manufacturing is nearing recessionary levels again, barely over 50.0, the level that defines growth versus contraction.

The Michigan survey today dropped hard. Folks just aren't feeling good because their dollars are eroding. Health care is higher. Food is higher. Salaries are lower. Jobs are declining. So yes, commodity stocks are dropping because global forecasts are eroding as well. That's not reflected in Disneyland, I mean the stock market, but it's the real deal. Things are deflating in terms of demand. The only thing on the rise is what we need most, food and health care. So today we didn't see much selling as the dollars rotated as usual, but quietly you saw the real world take hold as commodity stocks got rocked down yet again.

They run to places where they can hopefully get some better returns. That place is our country where things are bad, but where we have a Fed who won't stop pumping. Our circumstances stink, but they're still much better than just about any other country on the planet. And folks, that's a very sad statement. That said, it is what it is. The money will pour in to where the risk is least and right now, with things such as they are, our country has the best to offer, although it isn't anything to be proud about.

The bears still haven't done a thing in terms of getting the bulls to shake a bit in their boots. Sure, the occasional gap down has occurred, but nothing that has lasted in terms of gap and run lower throughout the entire day. It's been more of a gap and recovery, or gap and sideways type of candle sticks. Nothing to suggest a much deeper selling period is upon us for a while to come. It can happen at any time due to the overbought nature of the weekly and monthly charts, but they can stay overbought as we know all too well by now. Everyone is waiting for the big sell for many months now that just hasn't happened. Many folks are losing their shirts playing the dark side without any evidence it was about to take hold. Only the overbought conditions were in place but no major reversal sticks yet many were jumping because they felt the market should fall.

It just doesn't work that way. With the bigger picture trend firmly to the up side, it's best to use weakness to buy rather than try to nail plays to the down side. With the markets so overbought it's still best not to get overly aggressive in the short-term but that doesn't mean you can't have a little exposure along the way. Just know to keep it light, but also remember that the trend is truly your friend. Don't over analyze as I spoke about earlier in this report. Play what you see. Don't play with your intelligence. Play with what's working. Support on the S&P 500 comes in at 1570/1560. Only a move below that should get the bears excited. Only a move below 3200 Nasdaq should get the bears excited.

Have a nice weekend.



Jack Steiman is author of ( ). Former columnist for, 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!

© 2013

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 - 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