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

Stock Market Sorry Folks, Still Nothing from Nothing......

Stock-Markets / Stock Markets 2012 Aug 07, 2012 - 02:12 AM GMT

By: Jack_Steiman

Stock-Markets

And who knows how long it'll keep on keeping on. Day after day, week after week, and month after month, now in month number eight, the market plays see-saw and whipsaw with our emotions. So many times you'd bet hard that we're about to break down, only to see those 200-day exponential moving averages catch us, when it looks like they can't. Other times, like the past few days, breakout seems inevitable. Inevitably it doesn't. We hit Nasdaq 100 3000, the bottom of the massive gap down with the top at 3025, only to see the bulls fail as we pulled back late in the day. No energy available for the bulls to make the breakout which mirrored the bears at those 200's. Simply no energy, and thus, failure.



So here we are, with the markets near massive resistance, wondering if we'll get the breakout through 3025 in time. If we clear 3025, we are off to the races. You all realize by now how hard 3025 will be for the bulls, let alone 3000. So we got to the bottom and held. Four separate tests of those 200-day exponential moving averages. Four failures by the bears. We are now at the top. Failure number one occurred today at NDX 3000. How many more tests are coming? Whether we'll actually get through is something we'll find out soon enough. With the market still in its big-picture wedge, we have to say that more failures by both sides are likely, although you always remain open to a potential breakout, since we are now near the top. For now, it's nothing from nothing for everyone.

Germany's leader, Angela Merkel, has agreed to get involved with bond sales. That boosted the overseas markets last night, and allowed our futures to creep higher, although not as strongly as one might have thought likely based on such news. We opened higher and kept going until we hit NDX 3000. There was little volume to help the situation for the bulls. When you get to important levels, such as NDX 3000 is, you will need to see volume come in from the bulls, or it'll be too easy for any selling to put a stop to the advance. Volume is over rated overall, except when it comes to critical levels of breakouts and breakdowns.

This NDX 3000 level is extremely critical, thus, I guess, no shock that 3000 failed so easily today. No power, or thrust, came in at breakout time. It wasn't a bad day, however, as at least froth led again. Stocks that are weirdly over valued held up the way you'd like to see them do so, if you have a longer-term bullish outlook. They sold the risk off stocks, mostly, as the day wore on as the froth held a decent amount of its gains. Good to see, for sure. So, although today did fail, at least the Nasdaq 100 led higher. That's a real positive for the bulls, for sure. It gives hope.

I get questioned often about how long I honestly believe these markets can get whipsawed around. I can answer by telling you it's unclear, because of the two opposing forces in place. Europe's problems are not going away any time soon, although we'd like to fantasize about it. The problems are just too deep across the entire Eurozone. No one has been able to come up with a solution, so the market can't break itself out. With the Feds around the globe protecting by adding cash daily, the markets don't seem to want to break down. Interesting, because the previous cash pumping did nothing for anyone, yet hope springs eternal when it's mentioned that more free cash is on the way.

Let's face it folks, people want the markets to go higher, because interest rates are so low the market is the only place where anyone can possibly get a return on their dollars. Money keeps finding its way into the market, because rates are near zero, and no one wants to tie up too much cash for the longer-term in those instruments that offer such ridiculously low rates. An intentional act by the Fed, by the way, as I'm sure, you have realized by now. We are also better off economically than Europe ,so we are the lesser of two evils, and thus, in the end, our market holds up decently. And so it goes. On and on....!

In the end, the winner is the side that breaks critical resistance, or critical support first. 3000 up to 3025 is the big breakout for the bulls, while Nasdaq 100 2851 is the 200-day exponential moving average. If we clear with force and volume, above or below, then we get a real directional move. It'll be the first in a very long time, and, I think, all of us want that at this point. I think people don't care too much if it's a bearish break. Just give us something directional.

For now, you play lightly and watch to see how the bulls fare at Nasdaq 100 3000/3025. All we can do day-to-day is watch and learn as we're governed daily by the news du jour.

Slow and easy is still the only way to play unfortunately.

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 15-Day Trial to SwingTradeOnline.com!

© 2012 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.


© 2005-2019 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

6 Critical Money Making Rules