Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022
Quantum AI Tech Stocks Portfolio Current State - 4th Jan 2022
The Alibaba Stock Market - 4th Jan 2022
Will Gold & Silver Be Investment Outcasts in 2022 Again? - 4th Jan 2022
Stock Market Happy 2022 Entry - 4th Jan 2022
Complete paradigm shift will make Gold the generational trade - 4th Jan 2022
Corsair MP600 NVME2 1tb Drive Sudden DEATH Failures - Back Up NOW! - 4th Jan 2022
AI Tech Stocks Portfolio Updated Buying Levels and Zones Part 2 of 2 - 3rd Jan 2022
Stock Market Sentiment Speaks: 2022 Can Be Your Best Year Ever - 3rd Jan 2022
2020-22 - Soaring costs of the West's Pandemic failure - 3rd Jan 2022
AUTODESK (ADSK) - CAD - Metaverse Stock Analysis Investing for 2022 and Beyond - 2nd Jan 2022
Stock Market Sector Themes In Play For 2022 - 2nd Jan 2022
Excuse Me Mr Gold. What Year Is It? - 2nd Jan 2022
Stock Market Early 2022 Should Continue Melt-Up Trend In January / February - 2nd Jan 2022
UK Energy Crisis WARNING 2022 - How to Avoid Huge Increase in Gas and Electric Fuel Bills Right Now! - 1st Jan 2022
Why You Need A PR Expert For Your Financial Startup - 1st Jan 2022
TENCENT- Chinese High Risk GAMING Metaverse Stock Analysus for Investing 2022 and Beyond - 31st Dec 21
Gold Price Forecast 2022 - The Golden Year - 31st Dec 21
Will 2022 Be Better for Gold Than 2021? - 31st Dec 21
Gold Stocks – Wishing And Hoping (And Losing) - 31st Dec 21
Sheffield Christmas Market 2021 SANTAS GROTTO at Peace Gardens, City Centre Sights and Sounds - 31st Dec 21
Nvidia Leaves planet Earth - AI Tech Stocks Analysis - 30th Dec 21
Google (Alphabet) AI Tech Stocks Analysis - 30th Dec 21
Stock Market Santa Rally Challenge - 30th Dec 21
Sheffield Christmas Market Stalls, Sights and Sounds 2021 - 30th Dec 21
Investment Roadmap for 2022 - 30th Dec 21
2022 – The Year of (Gold) Inflation? - 30th Dec 21
Overvalued Stocks and Housing Perfect Storm for Gold - 30th Dec 21
My Most surprising Crypto call to date - 30th Dec 21
What is a Rehab Clinic and How It Is Beneficial for People? - 30th Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Poor ISM...Poor Advance Decline Line.....

Stock-Markets / Stock Markets 2013 Apr 01, 2013 - 07:44 PM GMT

By: Jack_Steiman


The market, as usual, refused to fall overnight no matter what else was going around the world. Our futures are refusing to follow others down. Ours is the market that just won't fall. The market opened flat and started moving higher as always until it ran into a real road block. The ISM Manufacturing Report came out and the number was just terrible. 51.2. 50.0 is the line between growth and recession for our economy. Think about this folks. Mr. Bernanke has implemented incredible liquidity. There have been basically 3 QE programs. Interest rates are near zero and staying there. The liquidity machine will remain on as well. All because nothing is working to get this economy flying higher. Not even a Disneyland bull market can get this economy rocking.

Fed Bernanke keeps trying, but nothing is happening on a positive level. They report employment is improving, but really, it's not as they don't report those who have given up looking. Our Government just doesn't believe in telling the truth for fear of what would happen in the stock market and how the public would perceive them. So the lies keep getting reported, and in the end, nothing is really getting better even though they're telling you they are. The bad ISM Report this time couldn't keep traders from taking froth down as the Nasdaq was hit much harder to the down side than the Dow or S&P 500. The Dow basically ended flat, but the S&P 500 was down a bit more and then it got worse as the froth areas came in. The small caps and technology stocks are taking the biggest hits. In the end nothing is bad at all as the bears didn't really seize on the bad news, but they were at least able to take some of the froth out of this market for a day.

So when do you take notice of something that is different than what we're used to seeing? When an index is basically flat yet the advance decline line is very poor. We saw nearly two to one negative on the Nasdaq and quite negative on the New York Stock Exchange. Apple Inc. (AAPL) continues to break down with many areas of the market now in bear markets. The commodity sector is one. Leaders such as Joy Global, Inc. (JOY), Agrium Inc. (AGU), CF Industries Holdings, Inc. (CF), Caterpillar Inc. (CAT), Deere & Company (DE), Cummins Inc. (CMI), and boat loads of other leaders just aren't performing well. Even Goldman Sachs Inc. (GS) broke down below the 50-day exponential moving average today. Amazon Inc. (AMZN) joining in. Fewer and fewer stocks are now participating in this move higher and that's a red flag if ever there was one. Forget the overbought conditions, which is enough to take a market down. Add in fewer and fewer stocks performing well and trading over their 50-day exponential moving averages and you have potential trouble in the near future. Hard to say as we know when things could get ugly but you have to recognize trouble when it looks you in the eye and we're seeing more and more red flags appear. So please adjust accordingly.

The one thing that is starting to stand out even more as we grind higher is the MACD's on those daily charts. They are looking worse by the day. The negative divergences in many cases are quite powerful and extending out. We still have mostly overbought weekly and monthly charts to go along with those negative divergences on the daily charts. We have fewer stocks participating. I don't know what to say folks, but the risk reward isn't exactly spectacular for the bulls right now. In a bull run it's truly impossible to know when things start to go south. However, one good hint would be a strong gap down that doesn't reverse as all the others have. That and then a second straight gap down that doesn't come back. When we see this set up take place the up-trend is over for several seeks to several months. It doesn't mean it's over for good because it won't be. As long as we have Disneyland Ben the market will continue to try for higher levels over time. The market would be best served with some deeper selling first and, thus, we can hope that it's around the corner but as of yet we haven't seen it.

Keep it light.



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!

© 2013

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