Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22
Crypto Investors Stable Coins TERROR as Terra USD COLLAPSEs towards ZERO, Tether Next! - 11th May 22
The Dominant Investing Theme of the Decade - 11th May 22
Is Bitcoin Headed to Zero? - 11th May 22
RECESSION RISKS 2023 - 10th May 22
The Future of the Dollar Seems So Bright It’s Blinding Gold - 10th May 22
Take Advantage When Markets Succumb to Fear - 10th May 22
How to Recognize a Less\ Than Obvious Opportunity (In focus: Corn) - 10th May 22
How to Ensure Financial Stability for Your Family - 10th May 22
The Stocks Stealth BEAR Market - 9th May 22
A Strengthening US Dollar Is A Double-Edged Sword - 9th May 22
Making Wise Investment Decisions - 9th May 22
Ways to legalize a Moving Company - 9th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Keeps On Running.... Leader Warns... Stock Market Ignores....

Stock-Markets / Stock Markets 2013 Jul 13, 2013 - 10:03 AM GMT

By: Jack_Steiman


The market is very due for a pullback. You can even make the argument that it's due for a real-selling episode. We have been very overbought for two days running, which is rare, on the sixty-minute short-term charts. 80 RSI, plus on the Nasdaq on those short-term charts, which is unusual. It looked like it was going to be a nasty selling day, but that was not the case. The market did try to sell once the huge warning hit pre-market from United Parcel Service, Inc. (UPS), a leader in the transportation world. They said things are terrible globally. The stock itself got slaughtered today and took other stocks related to it down.

Yes the market held up. Why? Because for every UPS, we had a Wells Fargo & Company (WFC) and JPMorgan Chase & Co. (JPM). Both had wonderful news on their earnings reports. That has been a staple for this market for quite a long time. When someone important says or does something bearish, someone else comes along to save the day. Classic bull-market action. There just always seems to be good news from somewhere when the market needs it. So today we had bad news from UPS and The Boeing Company (BA), which had airplane troubles, and still the market held well. The Nasdaq led as usual. When all was said and done the market showed true bull-market characteristics, but there are some red flags. More on that shortly.

The red flags I'm a bit concerned about are the AAII Survey, which is showing a very high number of bulls to bears. Now you know I rely on Schaefer for my insight on sentiment, but it's hard to ignore some of the numbers coming out of the AAII. It's showing complacency. No other way to say it. Bulls at a multi-month high with bears at a multi-month low. The spread over 30%. Not great. It will be interesting to see the Schaefer numbers on Wednesday of next week. It's worth keeping a very close eye on.

I'm never in love with the market when it gets too complacent. The other headache is the Nasdaq and how overbought it's starting to get on multiple-time frames. The sixty, daily, weekly and monthly are getting overbought. It can stay overbought in a bull market, but it is getting overbought on many time frames, which bothers me to some degree. There's some complacency and there's overbought to deal with, so I'd stay away from getting too aggressive in the very short-term. It is best to use real weakness to buy.

This is the big week for earnings reports. We have all the big names coming out next week. Everyone from Google Inc. (GOOG) to Goldman Sachs Inc. (GS). How they report their numbers will go a long way to understanding whether the bears can remove the key support level of 1628. That tough resistance level now turned support is all the bears want to focus on and remove over time. If the numbers next week are solid from the biggest reporters, it will be very hard for the bears to get more than overbought pullbacks. The bulls will gobble up weakness, so next week is huge for both sides. We'll know more shortly about whether the red flags are going to be problems or not.

Have a nice weekend.



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