Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Gap To Gap And Intel Earnings.....

Stock-Markets / Stock Markets 2011 Jul 21, 2011 - 01:59 AM GMT

By: Jack_Steiman

Stock-Markets

Gaps above and gaps below. Both sides have set up camp by putting in gap ups and gap downs. Two on each side. Why not. Make things more difficult than they already were. The market seems to be trying to unwind overbought conditions that lasted a bit too long for its own good. It needs time to consolidate that move, and that period of consolidation can be very frustrating for both sides as neither one is able to gain full control of things. You think, here we go to the up side, but no dice. The move gets abruptly halted by either bad earnings news or bad news on the debt ceiling. Then the bears feel they have control.


Things look ready to break lower, but not to be as there is suddenly good news on the earnings front, or good news potentially on the debt ceiling not only getting done, but getting done in a way that will satisfy the rating agencies thus keeping the United States from defaulting. Back and forth and forth and back we go. The news in the future will be the determining factor on which gaps get taken out. The news again being earnings, and the resolution or not, of the debt ceiling.

We saw the market open up fairly flat today. Nothing wrong with that. After yesterday's huge move higher of 61 Nasdaq points and 204 Dow points, it was great to see the market hold the major portion of those gains the next morning. The market tried numerous times during the day to actually sell some, but the buyers were always there to keep the market from falling hard. The buyers are more interested now that the majority of stocks, the important leaders, are saying good things about future earnings. There are definitely some disasters, but those are happening mostly from grossly over valued stocks with astronomic PE's. Fair valued stocks are being overall treated well on their reports, and this is giving the market some real hope. The market is in good shape after today's action, and just needs another catalyst to get another move higher.

Intel Corporation (INTC) tonight will tell us a lot about the very near future. The world will be watching to see whether they show growth in the months ahead, or if they see things pulling in. The report for the past three months should be just fine, but that's not what the market will be focused on. It'll be about the months to come and really nothing else. Will they up guidance or lower it. Will they report improving margins. These are the focuses for Wall Street. The market hung in there very well today. Now let's see if Intel can give the market another boost.

The banks finally had a good day today led by a comeback from recently broken stocks such as Goldman Sachs (GS) and Bank of America Corporation (BAC). These stocks are in confirmed bear markets, but they reversed course today. It doesn't mean they're out of the woods because they're not. They often rally when they get very oversold, and then they fall right back down again, making new lows just about each and every time. They need to reverse the patterns in place but have yet to do, even though they showed some real promise today.

They have been the big laggards of this stock market for years and one good day of out performance does not make a trend change. We want to have hope, and there is some after today's move, but not anything suggesting it's time to be buying any of these stocks. We need to keep a close eye on these stocks and see if the trend can reverse, but that would only happen if we can get another leg higher in this market that would come from continued good earning's and the passing of the appropriate debt ceiling. Patience is the safest for now with regards to these stocks.

Whipsaw is the best word I can use because that's exactly what's taking place. Many see this as bullish. Many see this as bearish. Both sides have valid cases. Fundamentally you can respect the bearish case. It's not as if the economy is rocking. However, it hasn't fallen off a cliff. Yet! It's about fear after fear showing up all over the world in just about every topic you can imagine. The market seems to hang in there. It doesn't go anywhere overall, but that's not really so bad. It fights off one crisis after another.

Some selling takes place as each new problem surfaces, but then the market seemingly finds a way to prevent disaster. Up to now that's been the case. No way to know how the market will react to the worst possible news. We don't want to find out either. So now we're in earning's season and dealing with the debt ceiling, and those are the two big concerns right now. The upcoming weeks will have those issues in the rear view mirror. We're going to find out how the market dealt with it all.

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 21-Day Trial to SwingTradeOnline.com!

© 2011 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