Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Finally .25... Bullish Statement.... Gradual.... Bull-Bear At 8%....

Stock-Markets / Stock Markets 2015 Dec 17, 2015 - 11:53 AM GMT

By: Jack_Steiman


The world has waited for years it seems for that first rate hike, since the economy was supposedly improving. Month after month, and report after report, for well over a year the market couldn't decide whether Fed Yellen would finally raise rates that quarter of a percent. You would think it would be slam dunk if things were rosy, but we all knew they really weren't, so she refused to raise. ISM Manufacturing Report is in decline. Services going the wrong way as well. It's hard to raise rates when the economy can't get out of its own way. The pressure kept mounting, however, as the Yellen knew the street wanted to see some confidence, since she kept saying that things were getting better. She finally did the dirty deed this afternoon. I'm sure she feels mixed, since we are contracting on manufacturing. It's truly unheard of to raise rates, even though they were at zero, in a declining economy. The key to the whole thing was the statement after the raise.

She said that the Fed would be very careful about raising any further, until she saw that the economy could get the job done in a more powerful fashion. That was what the market wanted to hear and they got it. It didn't mean that the market would blast out, but it's definitely what the market wanted to hear. A rate hike, but no longer-term rate-hike cycle in this economy. The deed is done Now the market can trade as it needs to. It's intentions over the coming weeks no longer affected by outside forces. She'll go away quietly now. The market will do what it needs to. Simple as that. No more rate hike nonsense. No more will she or won't she. No more uncertainty. That's always the markets biggest headache. Uncertainty is no longer a headache. Now we get the truth. Finally! Now we can break out or break down. Whatever happens we know the market isn't waiting on any further news. The market got its rate hike it wanted so badly. Now what!! We'll know for sure soon enough.

Bigger picture the Fed has other problems. A rate hike of .25 is nothing to really even talk about. What she has to deal with big picture is the contraction that's going on here at home in manufacturing. Services is slowing as well, but the move below 50 on the ISM Manufacturing Report is her biggest problem since it indicates things really aren't improving despite her efforts on two different fronts. Zero rates and QE just haven't gotten the economy to turn up. In fact, it is turning lower with no end on the horizon for now. Since her real job is 401K manager she has to figure out ways to get the market higher by improving economic conditions. Since her two best weapons haven't worked she must try to figure out yet another way to get the dirty deed done.

She has been unsuccessful since she came in to office, so what's a Fed Governor to do who seems to have run out of bullets? More QE? Please say nay. She can't be that vapid. She needs a plan to get folks to spend. The Jack Steiman plan would be to send checks to the public instead of feeding the banks where no one uses it. People will spend because that's what people do, but they need a catalyst. A check of significance in the mail to everyone would be better than cash sitting in the banks. That's what I would suggest. It won't happen, but that would be the best solution in my humblest of opinions. The real question becomes what can she do if she refuses to take that approach. I'm afraid she doesn't know. We shall see won't we!

Last week saw the markets take a nearly 4.5% move lower. The S&P 500 was near 2100 down to 2008. The bull-bear spread took a nice hit low going from 17% to 8.2% this week. We are definitely not concerned about froth being a problem here for a very long time to come. Possibly years. The nine percent move lower comes as a surprise but if you think about it more intensely you can understand it. The market has gone nowhere this entire calendar year and as market fail to rise we slowly, but very surely see the bulls give up hope. They were used to getting instant gratification for many years, but now have run in to a twelve month plus brick wall. The longer it goes on the harder it is on their collective psyche. Last week saw the bulls really give it up as the biggest part of the drop was 7% on the bulls to agnostic side or the bulls to outright bearish side. Bears only rose 2% total, but the bulls really gave it up!!! Interesting for sure as we're seeing the tipping point. Any deeper move lower will take us in to the negative column very quickly, since the bulls are already hurting psychologically.

The S&P 500 broke out above all its exponential moving averages today. That's good news for the market, since the cluster of all three key averages made it difficult for sure. The 20, 50 and 200 exponential moving averages were within nine points of each other. That is very tough for the bulls to penetrate, but that's what they did, so the news is good short-term, at least for the bulls, unless we get a real surprise reversal that sticks. There's always pullback's, but a reversal that sticks would be a surprise. 2104 is next up followed by 2116 and finally 2134. Who knows how high this goes, but simply follow the resistance and support levels for guidance. 1993 is long term support. 2043 is first big support. The lowest exponential moving average or the 200-day. Enjoy this for what it is. Above 2043 and we're fine. Below it a worry. Above 2104 we rock to 2116. Day to day.



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.

© 2005-2019 - 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

6 Critical Money Making Rules