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 Refuses To Die....

Stock-Markets / Stock Markets 2011 Mar 29, 2011 - 02:32 AM GMT

By: Jack_Steiman

Stock-Markets

Day after day we seem to hang in there better than most would expect when you looks at things fundamentally. We have global problems. Japan has to deal with nuclear fallout after dealing with a major earthquake and tsunami. We know about the headaches in Libya. Portugal has default problems. Some of our own states here at home are dealing with bankruptcy with help from our Government. There certainly is enough out there to keep us wondering just how the stock market hangs so tough to the up side of the equation. Add in unemployment and a dead housing market and you sit there shaking your head each day you wake up and see the futures aren't bad at all.


I often wake up and think today's the day. Lock limit down. It just never happens. There were the usual problems overseas this weekend, yet we didn't fall pre-market. So up we went at the open, although it wasn't anything earth shattering. From there we got overbought again on the short-term 60-minute charts, thus, the usual pullback came along, but nothing bad at all. The Nasdaq under performed a drop most of the day but nothing earth shattering. Just a few heavier weighted stocks pulling things down a bit more than the Dow or S&P 500. In the end it wasn't an exciting day, but you have to feel good about the way it's fighting through the classic wall of worry. A day the bulls can feel good about. Some unwinding took place. Deeper would be a bit better, but at least some took place. The daily charts remain far from overbought.

Oh, those nasty financials. A led weight on the back of this market. Can you just imagine how far this market would blast higher if those poor acting bank and financial stocks ever caught a real bid? The over hang from years gone by is still with this sector. The market understands, I gather, that the only reason they aren't collapsing further is because of Government Intervention. If they can't stand on their own two feel, then no one wants to really take a major risk getting too involved with them. They'd rather throw their dollars on technology growth companies. For now, it would be best if we held off from taking any new plays in this area of the market for a while longer at least.

Friday of this week we will get more insight on how this country is doing with regards to employment. Is it getting better? How fast are things improving? In other words, how well is QE2 working. If the growth is slow the fed will want to try and keep printing in order to keep things status quo. If things are starting to genuinely improve you might start to hear for the first time in quite some time that they will be raising rates soon to curtail inflation woes that are really cranking up. Food, health care, and gasoline are out of control and only likely to get worse if those commodity prices keep rising. Bernanke like to raise, but is clearly waiting on some reports that employment is rocking higher. Once he thinks this area is better he will take the foot off the gas and slow things down a bit. The market will probably respond negatively at first, but quickly bounce back once it seems that raising rates are not bad because the economy is improving. The report Friday will have some weight to where the market goes short-term. It would be nice to see some real growth.

This is a very busy week for the stock market. We have lots of other economic reports to keep a close eye on. Wednesday we get the pre-jobs report with the ADP jobs report, which hasn't been accurate with regards to how well Friday's big number will come in, but you have to pay attention to it anyway. I know the market will be. Thursday it's more about the jobs world as we get news on jobless claims. It's key to understanding how things may, or may not, be getting better for the average person looking for work. We also have the Chicago PMI, or purchasing managers report. A key area of the country to focus on how the growth in the economy is coming along. Back to Wednesday where we will also pay attention to the bull-bear spread and whether more fear is coming into the market. It got as high as 38%+ many weeks back. Now it's down to 28%. 10% more bears is good, and thus, it's no longer an issue. However, in my eyes, the lower the spread the better it is for the bulls. By week's end we will have much more insight on how the QE2 is doing and what to expect from Mr. Bernanke going forward.

Support on the S&P 500 is near 1300. Massive resistance is at 1344, or the past highs last seen. I think there's a decent chance we'll get back up there over time. No guarantee, of course, but for now weakness can continue to be bought such as when the short-term 60-minute charts get oversold, or at least go back to decently neutral. If we do get back to 1344, or close, we will have some negative divergences to deal with. But no worries about that now. For now, we continue to believe that some exposure on the long side is the way to be playing.

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!

© 2011 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