Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Egypt Resolves... Stock Market Resilient...

Stock-Markets / Stock Markets 2011 Feb 12, 2011 - 06:35 AM GMT

By: Jack_Steiman


Democracy. The people of Egypt were fighting to remove autocratic leadership and create democracy for themselves. The market had been somewhat shaken recently over rioting in the streets. It was a reminder of the recent past riots when we also had to deal with the flash crash. The market didn't like all that rioting in the streets not too long ago, and was clearly worried a bit that this could happen again. It should not happen as President Mubarak has stepped down.

That headache is now out of the way and any bad news that gets resolved in a positive way can only be good news for the bulls and bad news for the bears. The market is dealing with bad news in the way that all bull markets do, and that is to put it aside and play spin doctor with it. Such was the case with the old leadership stock in Cisco Systems, Inc. (CSCO). This baby used to move markets in a huge way, but it no longer seems to have any influence whatsoever. A real positive change of character as new leadership has come along and taken over.

That is a necessary part of the evolution of all bull markets. Bad news is now being ignored, with the market clearly focusing on the overall earnings picture, which remains solid for sure. One after the other is coming out with good news. Although there are always the losers in the stock world, the majority is doing quite well, and some are absolutely blowing the cover off the ball. As long as that continues, it will be hard to kill this beast of a bull.

Of course, the other main factor that goes in to a bull market is having the fed on your side. No one will deny that the fed is on the side of this stock market. It wants Wall Street to thrive which, in turn, will help Main Street thrive as well. If Main Street is thriving it keeps the economy humming. It seems almost a guarantee that fed Bernanke will keep rates where they are for a long time to come. It's also quite likely that printing press Ben will keep those machines on 24/7 by 365 days. That money has to go somewhere, and it's likely that money will go in to the stock market over time, especially if things hold up as more and more folks will get nervous about missing the good times.

To me, it seems as though there's nothing printing press Ben won't do to keep this bull moving along. Thus, you have to remember to never fight him and go along with everything even if you think morally what he's doing is wrong for the bigger picture. I hate what he's doing bigger picture, but my job is to recognize market direction. That direction is still higher, although there will always be pullback's along the way, of course.

We closed approximately 2% below the 2007 highs at 2060 on the Nasdaq. It seems to want to go up and test there now, but no guarantees, of course. If we do get there, I believe that's where this market will start to struggle. Long-term resistance areas are tough to get through when you're extremely overbought, which we would be if we get that high. Always computer related selling at major areas of long-term resistance, thus, it would be best to lighten up as we get closer to that level.

2755 is now solid support or the back test of the trend line breakout. The further away we get from it the more secure that area will be for the bulls. It's already acting as good support, so if we can get up near 2860 it will become stronger support still. It would be best to test back near there at some point so we can unwind and get far more aggressive. However, we have plenty of scratch in the game now, so let's hope we can work our way towards Nasdaq 2860.

For months, all we heard about was how bad the financials were and how they wouldn't be recovering any time soon. Quietly, it seems as if things aren't talked about much any more for this group of stocks. They continue to move higher on a two-steps-up, one-step-back pattern. The fact that they're doing well no longer seems to surprise anyone. A lot of very prominent people in the world of fundamentals have been telling us how these stocks would be dead for a long time and go much lower.

They are now strangely quiet about those dire forecasts. Clearly, the masses got too bearish on this group, and the trade was apparently full. Once it stopped working to the down side the bears seemed to have given up and covered their positions. Lots of fuel available for upside action. As long as the financials continue bullish so will this market and now, to bolster the look of things, there are many gap ups in the patterns there to keep the bears at bay.

Stay with the long side trade, folks, until we get a true sell signal. For now, that's nowhere in sight. With bad news being ignored for the most part, stick with the reality that earnings are good and that printing press Ben is still printing daily. This combination bodes well for a while, knowing that to come along will be the usual set of pullback's along the way.

Do something nice for someone just because you can, and play with a child if you get the chance this weekend. True life perspective will certainly come your way.



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 21-Day Trial to!

© 2011

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 constitutinginvestment 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

6 Critical Money Making Rules