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
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

Another Day in Stocks Bull-Land

Stock-Markets / Stock Index Trading Feb 20, 2010 - 03:43 PM GMT

By: J_Derek_Blain

Stock-Markets

Best Financial Markets Analysis ArticleBear Market Charts.

STD:


 Dow Jones:

FAS

Markets across the board are losing steam as sentiment continues to grow more optimistic, but participation backs off.

Interestingly, many readers emailed expecting major declines in the US markets today as a result of the Fed's decision to raise its emergency loan rate a quarter point to .75% - despite that supposedly market-making/market-breaking decision, the markets are actually up  today thus far.

This is yet another indicator of what I have been saying here at Investophoria.com - it's not news that drives markets but the sentiment of existing players - people use news as a justification for decisions already made, which were made with little information and under a highly emotional circumstance.  Of course they will want justification!

However, the market is its own creature, and since everyone and their mother probably expected this to be bad for the markets, guess what - they magically decide to tack a few more points on to the upside!  It will most likely take a sustained drop down for a week or two before this becomes something of "concern" to the average investor, who will by then be looking for a reason to say he sold his stocks.

While there is still some upside potential in most assets the momentum is waning, volume is waning, all measurements of true strength are waning, indicating a top is near.

Anybody feeling particularly bearish right now, watching these markets?  Good - that's when you know you should be...

Derek.


AFTERMARKET UPDATE

So today was a fairly consolidated day, especially within the context of the rising wedge formation in the broad indices.

The S&P500 has an even more compelling rising wedge formation as well as a double gap, the second of which has been unfilled and should offer some downward magnetism for stock prices next week.

 The two highest probability scenarios for Monday are that a good sized spike occurs through the top of the wedge to complete the corrective pattern, and price turn down from there.  The second is that negative sentiment already develops over the weekend, resulting in a large gap-down on Monday.  The two minor support levels noted on the chart are good indicators of a resumption of the bear market trend if violated.

At most we expect only 1-2 more days of this correction before a resumption (and a larger one) of the downtrend to take stocks broadly lower.  This will be bad for gold and silver as well, as they have been in tight sync with stock prices, especially since this correction started (a bit of a kick in the shins for those still saying that gold is currently being treated as real money, and not as a speculative asset).

The dollar rally should also resume next week in full force, and the delayed effect on the price of gold should return in full force.

Have a great weekend folks!  I will be spending some time in my office tomorrow sorting through several mountains of paperwork, so if anyone has any questions in the interim I might fire back some replies on Saturday afternoon.  The official website is coming along well and we are excited to be developing products that will cater to precious metals enthusiasts, long-term investors, and traders as well.  Any other ideas (we've had some excellent suggestions from readers already) are always welcome, and can be sent to my personal email at J_Derek_Blain@hotmail.com

See you Monday!

Derek.

By J. Derek Blain

http://www.investophoria.com

© 2010 Copyright J. Derek Blain - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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