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
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
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

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market From Hollow To Green.....

Stock-Markets / Stock Markets 2013 Apr 09, 2013 - 10:58 AM GMT

By: Jack_Steiman


Friday was the big opportunity the bears had been waiting for, really nasty employment data to go along with a huge gap down. There it was. All for the taking. Seize the day you bears! No dice. They seized nothing. They let it get away. They had their knee on the throats of those bulls but let them up again. Give the bears credit though. They tried again today. The futures were up nice early but gave way as the morning wore on pre market. We opened a drop higher but it took only moments for the market to sell across the board. It started to look as if the bears were about to laugh their way to head fake from Friday, but, once again, it didn't last in terms of the selling.

As the day wore on the market found some buyers. Nothing huge but buyers nonetheless which allowed the averages to all close in the green. The Nasdaq led higher, which is important as it needs to lead if the market wants to rock higher over time. While today does nothing to alleviate the risk that exists in the market, it's likely the market will try a bit higher before trying lower once again in the near term. The hollow red from Friday did eventually follow through today so it would be normal to try higher tomorrow, at least early on but we shall see. A good day for the bulls even though things are grinding and whipping about. Nothing is safe, but the bulls will accept the gift handed to them all the same.

The question everyone was asking me today was why the bears gave it up on Friday after getting the perfect news for a bad day. A really bad day at that. The answer, as far as I can guess, is that the market is hoping the sequester will be a two-quarter event and, thus, it's not the beginning of a declining economy that has legs and momentum. It may. We don't know for sure but in a bull market the bulls always have the last say on things.

If they feel it's not the real deal in terms of weakening with real force, they are going to buy things up when they sell off. Only if the bulls thought this weakening was real for the long-term would they stop buying weakness. That, of course, would finally allow the bears to take over with confidence but for now, the bears are acting fearfully. They just won't attack. It seems they want to cover lost, short positions on any selling rather than getting aggressive. Until they do, the market will try and grind higher, although with difficulties.

There is more potential trouble brewing for the bulls on any move up. The oscillators are lagging again. No strong push with price action for now thus the likelihood is another negative divergence if we move up to old highs. Never a guarantee that the divergence will take effect immediately, thus, you'll once again, as usual, need to see a reversal stick. The fact that we'll see negative divergences seems to be a slam dunk. When that's clear to everyone sometimes it takes time to kick in but they will kick in over time, although potentially from decently higher prices as the divergence isn't official unless we can get back to the recent highs which for now is still a bit away. With negative divergences at new highs if we get there plus the sentiment issues and overbought headaches, it makes the market a dangerous place to be with any aggression to the long side.

Recognize that and if you desire to play, keep it light so you don't get shaken out very easily. That's the real danger. Too much exposure and, thus, bad exits. If you're in lightly, you can better handle the whipsaw we're seeing now.



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