Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Rally Won't Quit...Yet...

Stock-Markets / Stock Markets 2014 Apr 22, 2014 - 10:42 AM GMT

By: Jack_Steiman

Stock-Markets

And why should it? Just because sentiment is poor, and the weekly and monthly charts look awful, doesn't mean we should fall, now does it? I mean, don't we need a real reason to fall? Poor charts just isn't enough it seems. Ms. Yellen, and those low rates into perpetuity, just won't allow a real correction. Not yet, anyway. Sure, we have a bear market in froth, but we don't have even a real correction in the overall market. Market continues to find rotation as the name of the game. As long as that exists we won't fall very hard. Lower P/E stocks with solid earnings are holding this market up. Folks don't want to leave the market, they just want to place their money in the land of safety.


The Fed is protecting this very long-term market with low rates. She has made it very clear that low rates near zero will be with us through 2015. At the very least. There's no accident in that reminder she seems to send out every other week. So, with the Fed keeping rates this low, we are finding rotation, until, I gather, those froth stocks can find some type of real bottom. They are impossible to call right now, but again, the onus is on the bears to create the technical damage needed to move this market appreciably lower.

We started out quietly higher this morning with the Nasdaq leading early on. After the Nasdaq reached up about twenty points it fell hard, moving down thirty points in a hurry to a minus reading for the day. Things looked bad, but once again buyers came, and slowly, but surely, we crept back up for the rest of the day, gaining back to the levels we saw early on. When studying those daily charts, especially the Nasdaq chart, we see a deeply compressed at the bottom MACD that suggests we can back test the 50-day exponential moving average at 4172. We closed at 4121.

There's no guarantee we get there, by any means, but the MACD suggests the possibility to be sure. With the weekly and monthly charts as they are, and with sentiment still a bit of a headache, falling from any level at any point can't be said to be inappropriate. Things are set up to fall, thus, you must respect that as a reality. With the S&P 500 and Dow already well back above their 50's we can possibly hit new highs on those indexes if the Nasdaq does, indeed, make it up to its 50's. Today was yet another quiet, choppy day that makes it tough on all traders, but in the end, another small day up. Nothing bearish yet.

There's not much more to add folks. It is what it is. I don't know, at this point, what the catalyst could be for the correction to get under way, except for additional very bad news overseas, or terrible earnings news. The news on the earnings front hasn't been wonderful, but it has been far from terrible as well. Netflix, Inc. (NFLX) was up nicely tonight. There just isn't much for the bears here at this moment in time. Avoid froth and pick your spots is all you can do in this very tough environment.

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!

© 2014 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