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
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

Hot Jobs...Fear Of Rate Hikes... Hits Stock Market Hard.....

Stock-Markets / Stock Markets 2015 Mar 07, 2015 - 05:23 PM GMT

By: Jack_Steiman


It was a very interesting day for the stock, market because it received the type of great news no one wanted to hear. Sometimes good news is not good for your bottom line. It's nice to see a lot of jobs added, well above what was expected. While it is true that many of the jobs added were of the lower paying type, it was still good to see anything on the positive side of job creation. Now the problem. Too many new jobs equates to a few raising rates. The market doesn't want any part of that. It doesn't want folks to have alternative places to go with their dollars. Then real question ultimately will be whether this is the beginning of a rate hike cycle. A full cycle or will it be a onetime situation with the Fed needing a lot more information before making hikes more of a regularity. She is a dove and won't shock the market, but in the end it's not about her.

It's about the economy. If the job reports remain hot and then if we see improvements with other economic reports she'll have no choice but to begin more of a cycle. We are not seeing good numbers on GDP nor are we seeing good numbers from the Ism manufacturing report. We'd have to see that take place for multiple months before she'd start rocking with a repeated hike cycle. We're a long ways away from that, but it possible and that possibility is what spooked traders today. They know it's not bad to have a hike or two since rates are so low. Their fear is that we will soon see repeated hikes month after month, with some possible more than .25. So today was very nasty. It is likely to continue for a while unless the fed says something unexpected from here. A bearish day today for sure.

Gold was not happy today nor were many other sectors. There are areas we know that won't like rate hikes or at least the fear of them. Utilities and real estate stand out. What should do well are the banks and that's where today's real disappointment comes from. They exploded early on and even as the market sold off most of them refused to sell. Well, for a while anyway. We saw leaders such as Goldman Sachs Group, Inc. (GS) and JPMorgan Chase & Co. (JPM) give it up in a big way as the day came to a close. Both closed with very nasty candles. Strange and bearish to see the best group with regards to rates give it up.

Nothing to get bullish about with that type of behavior. Some banks did hold up well, mostly in the regional end of that sector but the big cap leaders did not hold up at all and that's just not good. Shows you the intensity of the selling. It was across the board. No rotation today. That too stopped. A change of trend. Hikes or the perception of them was a change of trend and the lack of rotation also a change. They match up. Not good for the bulls short term. Nothing spared today. The selling was real as evidenced by a horrific advance decline line. Please respect this and be very careful out there.

The S&P 500 closed at 2071 and is now only three points above the critically important 50 day exponential moving average. Over time I don't think it has a chance to hold but for the moment it is still above. If it closes below along with the Nasdaq which has its 50 day exponential moving average at 4815 which is a long way from here would be very bearish. Since the Nasdaq is so far above the 50's we focus on its 20 day exponential moving average currently a hair away at 4910. Nasdaq below 20's and S&P 500 below 50's would not be pretty. Technically the market has some real problems. There are now three open gap downs for the indexes to deal with. One filled but not closed above so still three open gaps.

That's real technical damage. Expecting a market to just recover that type of damage makes little to no sense. This alone tells you to be respectful of the market and that you shouldn't get too involved. If that's not enough, keep in mind the ridiculous levels of froth along with the indexes starting to lose key moving averages. Nothing is good for the bulls right now. Nothing terrible but nothing good for sure. Play accordingly.

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!

© 2015

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 - 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