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
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
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Stocks Bull Market That Won't Quit....For Now......

Stock-Markets / Stock Markets 2014 May 01, 2014 - 06:36 AM GMT

By: Jack_Steiman

Stock-Markets

Last night and this morning's pre-market offered up opportunities for the bears to do some real technical damage due to a one-two punch from earnings last night, and a terrible Goodrich Petroleum Corp. (GDP) report this morning before trading began. Express Scripts Holding Company (ESRX), Panera Bread Company (PNRA), eBay Inc. (EBAY) and Twitter, Inc., the most important earnings for the evening, all bombed out on their reports. All fell very hard after those numbers were reported. Four for four on the downside, and not just down a little bit but down between four and thirteen percent.


Add in a GDP that was barely above recession and the one-two punch was there for sure. The result was a small move lower, especially on the Nasdaq, which continues to lag, followed by a slow but steady move higher throughout the day. More on that later on. When the market had closed for trading, all of the indexes had turned green across the board. Nice action for those bulls. Another blown opportunity for the bears. I gather they'll keep on trying, but there can be no arguing that they had their fundamental opportunities, but couldn't seize on them. Another strong day for the bulls. The grind back and forth as things try to unwind continues.

The important event for the day was Ms Yellen, and what she would say regarding tapering and interest rates. They tapered by ten billion as expected with a statement that talked about continued economic growth, but also the need for interest rates to remain at or near zero for a very long time to come. Music to the ears of the bulls and shrills to the ears of the bears. The market started to advance slowly but surely from there. Lots of chop along the way but a staircase climb higher throughout the last two hours after the statement.

The market is totally focused on improving economic conditions accompanied by those low rates. A forced bull. As long as rates are extremely low it appears the bull wants to move higher overall. We can spend endless hours talking about how inappropriate this all is but it's nothing but a complete waste of time. We deal with what is and not what we think is right. The low rates are leading the way. No argument folks. That's the trick. That's the bull market. Yellen keeps driving that point home because her job is to keep the bull alive as long as possible. That's her real job description.

The next two pre-market mornings have two huge reports that will affect the market. The ISM Manufacturing Report tomorrow and the Jobs Report on Friday. We will see just how strong things really are. However, if they're weak, the market knows Yellen will be there to help if need be and that rates will stay low. The bull market ends when the economy TRULY recovers and rates start to explode higher.

For now, we watch to see if the S&P 500 can get over the old highs at 1897. Day to day.

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