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
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
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Grinding Further.....

Stock-Markets / Stock Markets 2010 Mar 30, 2010 - 01:17 AM GMT

By: Jack_Steiman

Stock-Markets

So much of the move lately has been a grind. Makes sense as an overbought market on the daily charts just can't keep exploding higher. Now you have a few small negative divergences showing up making the job of the bulls tougher, but definitely not stopping them from a nail to the chalkboard move higher. Day by day we inch upward in to the teeth of these problems for the bulls and it makes you wonder when this market will finally take a right to the chin it just doesn't see coming.


From my perspective the problem is, I know folks want plays and thus you search high and low for plays that are appropriate, but folks, I am going to get caught somewhere. I have to stay with the trend, but man, this market just doesn't correct. It will! This is why no long-term port or too many plays but again, you have to have some scratch in the game.

Today was no different from the recent trend in place. A gap up and then a day of nowhere after the first thirty minutes have passed. If you're in the right stocks you're lucky and you do fine. It is arbitrary though. The market refused to sell much at any one time today and held the gains throughout. More grind. More overbought. More wondering when it snaps but staying long for now because it keeps on working and the bears can't follow through, even when they get their reversal candle. At least not yet.

The key to this game in a market such as we have here is to make sure, as best as humanly possible, that you're in both the right sector and the right set-ups within that sector, either in those handles, or if stocks are making appropriate 50-day exponential moving average tests. You have to be very stock specific. This is NOT a market of throwing a dart. If you do you're in trouble. You need to do a tremendous amount of homework and hope that things work out even if you do everything right. Markets such as these cause problems when you over play them, so please keep that in mind. Please do not get too aggressive. It feels like you want more and more but when the correction hits, you won't be happy if you're in too many new plays.

Today we saw rotation which has been the name of the game. The financials reversed off the top some, although not much while the oversold commodity world made a nice strong move higher. When the music stops for this bull market the rotation will start to subside so we always need to keep an eye out for that but for now, the merry go round continues unabated.

Looking at the technicals within the market we see nothing has really changed all that dramatically. The advance-decline line continues favorable overall while new highs are holding well with new lows almost non-existent. There have been literally no days of distribution from a conventional point of view meaning no 10/1 volume down days that shows a red flag beginning to appear. As long as the selling days show little in the way of distribution and the buying days show favorable advance-decline lines we have to keep on the bullish track.

Bottom line is, I exhale hard every day we keep going higher without a pullback to unwind. I come from a more safety first approach. I know the majority will get hurt at some point and I don't want all of you to be part of that majority. Some small hits for sure we can deal with. You can't keep doing as well as we have been without taking a blow here and there. I keep wishing for some sustained selling but then I think about being long, so I don't want too much, if you get my drift. Let's just keep doing what we're doing as the S&P 500 protects 1151.

Peace,

Jack

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!

© 2010 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