Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Stable.....

Stock-Markets / Stock Markets 2013 May 16, 2013 - 04:24 AM GMT

By: Jack_Steiman

Stock-Markets

Stable is the best word I can find to use for today's action. The bulls tried a few times to run away with things while the bears made a few attempts of their own. Back and forth they went. In the end, the bulls held their own when you consider how overbought we are. We seem to be staying overbought, and thus, the bears have yet to take advantage. You have to wonder when they will, but for now, they have been unable to get any sustainable down side action going. It seems almost as if they're fearful to even try, getting tired of shorting. It hasn't worked as shortly thereafter they're forced to cover. If you get pounded on your head over and over you would think you'd give it up after a while.


Why put yourself through it! It seems as if that's where we are. Even with stocks like Apple Inc. (AAPL) entering back in to bear market territory, the bears can't make much headway. Not what we would normally expect, but with this market continuing to rotate, that's the way it has been with no sign of that changing any time soon. Today yet another day in the bull market with S&P 500 1597 holding extremely well for yet another day and every day that goes by adds strength to the bullish case that's currently out there.

Let's talk about overbought a bit. The market is overbought and when it's overbought, under normal conditions, you'd expect a decent pullback to unwind things. Makes sense and most would naturally welcome it so as to get better buying opportunities. It's also healthy to let things cool down so as to not create too much froth. However, things are a bit different here. It's a lot harder to predict when some stronger selling will ensue simply because we're on breakouts. When you break out over key resistance you get the bears on the run, and as I stated before, they are more fearful to short as they've had one bad experience after another. Breakouts can allow overbought to stay that way a lot longer than most would think possible so yes, we will get selling but hard to know when it'll kick in hard. Breakouts fool the masses. That's just the way the big money likes it.

Some very bad news today from economic leader Deere & Company (DE). Stock hit hard on a bad warning for the next quarter. The stock got smoked yet the market didn't. What used to happen was the entire system would get hit when a leader got hit on bad news. Anyone associated with DE would get creamed such as that stock did. Not the case again here and that's really amazing. You'd figure if there's trouble at the top, how can the little guys survive. The answer is the Fed. The market wants higher, and thus, knows it can't hit the whole chain and amazingly ignores what would normally be a real problem for the whole system.

Bad news is treated bad only for the one and not the many. Unusual but that's the new game in town. In time you can bet DE will heal up very well. It'll take some time but it'll get its footing probably not too far down the road. Probably long before the next earnings report comes in three months from now. Just the way it is these days. Only when the Fed says it's ok to hit everyone will everyone actually get hit. That's the game. Accept it. It's been that way for far too long not to recognize it. That said stay long but with caution when at overbought. As long as we're trading above S&P 500 1597 all is fine longer-term.

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!

© 2013 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.


© 2005-2022 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