Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Stock Market Bear Still in Control

Stock-Markets / Stocks Bear Market Nov 16, 2008 - 12:45 PM GMT

By: Jack_Steiman

Stock-Markets Best Financial Markets Analysis ArticleNothing is a guarantee for sure in life but one thing I do know for sure is that the last 40 minutes of trading told us a lot about where we are in this stock market and the message this market is trying to send to the world that many of us still haven't heard. I now feel for sure that there is something out there that we just don't get at this moment in time because it's not visible. It does, however, have an energy. A vibe. It's saying that we are dealing with something never before seen and it's also saying that it's job isn't over yet. Almost like a punishment for all the improper behavior from the higher ups from just about everywhere.


From the big banks to the big brokers to big insurance companies. For all the inappropriate behavior they all exhibited and we as greedy folks ourselves accepted. To loans that many couldn't afford but the powers that be said we could and on and on. The list of poor behavior is far too long to list. It's pay back time. The froth and lack of concern for the truth of things is coming home to roost. You know what they say about payback. The old guard Nas stocks being annihilated one by one. You know that list all too well I'm sure. The financial stocks unable to bid even though they have been slaughtered. Almost as if the majority of them need to go away before the market will be happy again. The market seems to want the rash of supply out there with no real business model other than froth to go away forever.

Also, it doesn't matter who the Fed makes a deal with. Buffett has been buying and getting slaughtered. From Ge to Gs. No matter who buys. No matter what the Government and the fed do, it's meaningless to this energy out there that seems to have its head down with regards to paying back all of us with this bear market. It's the grand lesson. Maybe its the markets way of saying things must change. How we conduct business. How we treat people. How greed needs to be buried forever. How changes across the board must take place. The big cleansing. Time will tell. Many harsh lessons have already been given. I think more are to come.

The way things are unwinding, you wonder if the 2002 bear market lows at 775 will hold down the road. Heaven help this market if we do lose 775. Any number then becomes possible. We could rally first. We could not but the action in the leaders is screaming here with the way this market closed in the last 20 minutes. Nothing short of leaving one breathless and speechless. It shows the power and force of this bear and what's still possible. We have witnessed the unthinkable. We may witness a whole lot more of that.

This bear is rocking folks and we need to respect it. The best answer to it may be all cash and some shorts as they present themselves and nothing else. It may just be that long side plays just won't be in effect for quite some time. Pure technical analysis is not working. The best divergences I've just about ever seen, including the daily chart divergences, are being ignored in ways I have never witnessed. It is interesting for sure. The most guaranteed patterns are failing. if you study the daily charts here you'd have to be nothing but long. Heavily long. One could make a case of almost being margin long yet look at the market behavior. Folks, those daily's are screaming buy, buy, buy.

The market is laughing. The bears are rolling on the floor watching those buy signals get destroyed. They're saying for years and years all the market ever did was go up. They're saying we know how everyone laughed at us for so long. That all anyone thought was the market could only go higher. It sure did behave that way. I personally remember one colleague telling me in late 1999 that the Nas would never stop going up and that soon it would be higher in price than the Dow. Uh, no!!! The bears are saying forget it folks. We must respect that message, like it or not.

Listen, no need to keep harping on the obvious folks. We may end up being cash for months with some shorts from time to time. Be prepared for that. If that doesn't satisfy you I understand. it won't change what we do. We've done too well throughout this bear to get aggressive and then get crushed just because we're seeing some buy signals that just don't work. You look at Aapl. You break it down below 94 and then shoot up two days straight only to watch it collapse late day today.

The pattern is on complete breakdown now. Aapl is just the tip of that iceberg. We need to be in total defense mode from here on in until things flush out or there's action that suggests things really have changed for the better. The declining 20's stopped every rally today. The key is declining. It looks like the market is heading for a triple bottom breakdown. Nothing is guaranteed but the market looks like it's heading for a major breakdown soon based on the last 20 minutes of action today. Hold on to your hats. Feel good about missing the whole bear and we will guide you through all of this.

Peace

Jack

By Jack Steiman

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 30-Day Trial to SwingTradeOnline.com!

© 2008 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.

Jack Steiman Archive

© 2005-2019 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