Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Silver Price Trend Analysis and Forecast for 2019 - 19th Dec 18
2018 Chaos, 2019 Mayhem - 19th Dec 18
UK House Prices Momentum Forecast 2019 - 18th Dec 18
Will US Government Shutdown Cause The Stock Market To Crash? - 18th Dec 18
The Coming Financial Storm - 18th Dec 18
Jeff Gundlach thinks that a Stocks Bear Market has started. Is he Right? - 18th Dec 18
Gold’s Not An Investment – You Won’t Get Rich - 17th Dec 18
Stock Market At Medium-Term Lows, Which Direction is Next? - 17th Dec 18
This Stock Will Drive America’s 5G Buildout - 17th Dec 18
Stock Market Turn In The Tide - Have a Happy Bear Market! - 17th Dec 18
How A NASA Scientist Could Trigger The Next Cannabis Boom - 17th Dec 18
iShares Russell 2000 IWM Leading Stock Market Decline - 17th Dec 18
Where is the Dow Stock Market Santa Rally? - 17th Dec 18
With Weaker Climate Consensus, Expect Elevated Climate Change - 16th Dec 18
SMIGGLE Advent Calendar 2018 UK Contents - What You Get Look Inside Review - 16th Dec 18
Is there a Lump of Coal in Santa's Stock Market Bag? - 16th Dec 18
This Market Will Drive Gold in 2019… - 16th Dec 18
Gerald Celente:Central Banks Can’t Stop a 2019 Debt Disaster - 16th Dec 18
Gold Stocks Triple Breakout - 15th Dec 18
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

YAWN......VIX Lower...Beta Lower.... Stock Market To Nowhere...

Stock-Markets / Stock Markets 2016 Mar 29, 2016 - 09:27 AM GMT

By: Jack_Steiman

Stock-Markets

The emotions run high as it seems something special is about to happen, only to see it disappear in a puff of sadness. It looks like the market is about to rock, but it doesn't. You say to me, but it has run up already. I say, but to where? It goes nowhere in the end. Nothing sustainable. We rise. We get overbought. We pull back. We rise, and then see negative divergences, and then fall again. It goes nowhere in the big picture. Today was incredibly boring simply because beta, volatility, if you will, is leaving the ball park. Taking a vacation as the lower VIX readings are taking over, even though the VIX was up today. Oh how many long for the days of VIX readings in the upper 20's or lower 30's. Then we'd see 100-point moves on the Nasdaq as routine.


Now it's a third of that. And with the market being mindless and going nowhere it's a real turn off for the masses. I get it, but it's no fun, and that's just the way it is, so today was a boring day with almost no volume. They may start piling up in the weeks ahead, so be prepared. If you're in plays long you don't want to sell unless the S&P 500 loses strong support at 2000. If you're short, you don't want to cover unless the S&P 500 takes out 2044 with force. A close over 2056 preferably, or the last high. Whipsaw is likely to remain the game we play and see on a daily basis, but in smaller chunks. Still nowhere as the market decides whether it wants to play on truth, or remain in the land of fantasy. Sadly, one day at a time as the market is giving no clues about its ultimate next bigger move one way or the other. It's keeping us all guessing by doing nothing. How much fun is that!

This morning we got more bad news on the economic front as we saw consumer spending slow down yet again. No worries. Market doesn't care. It also saw wages fall. No worries. Market doesn't care. Inflation lower. Market doesn't care. GDP could be hit to the down side. Market doesn't care. All any of this means is say goodbye to the possibility of rates moving higher. Oh, ok. That means all is fine. Disneyland back in form. Bad news is good news. No matter what supposed good news goes right for the bears they can't seem to get any satisfaction. The Rolling Stones would be proud. Just no satisfaction, although they try.

The bears are stuck as all the market bulls are focused on is whether fed Yellen will be there to protect and comfort. Poor babies need comforting. No worries. They'll get it in spades. As much as they could ever need. So yes, the bulls dodged another bullet today. They should have gotten smoked based on truth. In a bear market we would have seen some large losses across the board today. Not to be. Maybe we can get a day or two of selling in here. Only when the bears can remove S&P 500 2000 should the bulls have any concerns that may last for more than five minutes. It's a different game now, folks. The market is no longer the market we used to know. Those days are dead and gone. What we have now is a market run by the few for the masses.

Fed Yellen speaks tomorrow at 11:30 A.M. Eastern Time, and, of course, every single nauseating word will be picked apart by all the market participants. I am most certain that the one thing she won't do is hint towards rising rates. She wouldn't want the market to go down based on words out of her mouth. She'll remain dovish until the election is over and then maybe hit the market over the head with rate hike cycle, but that remains to be seen. It'll be yet another interesting day tomorrow to see how much control she has over everything. More than we'd like I'm sure. For now, just use S&P 500 2080 and 2000 as your key levels to watch in the weeks ahead.

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!

© 2016 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.


© 2005-2018 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

6 Critical Money Making Rules