Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Stock Market Quiet Day....

Stock-Markets / Stock Markets 2016 Apr 05, 2016 - 10:28 AM GMT

By: Jack_Steiman


Theoretically, I could end the newsletter right here. Not much to say about today's action other than it was quiet with the job being to try and unwind things a bit on those overbought charts. The market has been hanging out at overbought for quite some time, but it's now dealing with another headache other than those overbought daily charts. Most of the indexes are at major trend line resistance so a pause in the action does make some sense. If the indexes hang in tough for the next few days that would be a very positive sign for the bulls as it would mean they're able to hold off the bears and their attempt to push things back down. Unwinding without too much price erosion while staying close to the breakout area is a good thing for the bulls. The bears desperately need a major gap down that runs lower all day. They are getting plenty of overseas bad news to snack on, but it seems the market doesn't care.

The excuse being that we're better over here, so pour more money from both here and abroad into our market. It is working. We just don't fall with any force. Even when overseas markets are falling and reporting bad news, we simply don't fall. What it will take to fall hard is now beyond my understanding. Ms Yellen has the market locked and loaded. In a way she must be happy about the worsening news overseas, since we're not getting that type of bad news. She knows this means more good tidings for our markets. That's the way she can get that elusive inflation she's looking to see take place. It's not coming in any other form other than froth from our stock market. But trust me folks, she'll take it however she can get it. So Yellen is rocking in delight as the overseas world struggles, and we move ever so slowly, but surely higher. Good times for now for our fed leader. Bad time for now for the bears. We still haven't broken through those trend lines yet, and that's the last line in the sand for the bears.

With the fed in control, and, thus, technical's not working, we have to be on alert for a breakout, even though it makes absolutely no sense but technically and fundamentally. The technical side says no due to massive overhead negative divergences that would form on any move to S&P 500 2134. Fundamentally, I don't think I even need to talk about it, because it's so obvious. The market still has an amazing number of stocks trading at P/E's that are off the charts not to mention stocks trading without even having a P/E to its name. The level they trade at versus their numbers is Disneyland, even for Disneyland. Hard to wrap my head around anything in this market. It's so out of control, but who cares, right! No one, it seems.

But there are still enough bears around to keep this moving higher if it wants it badly enough, and, for now, it seems like it wants it pretty badly. Or should I really say it's clear the fed wants it badly enough. The market, I believe, would rather puke and work off those nasty negative divergences, but good old Yellen won't let it happen. For now, we obey price and not reality, but do know that one piece of the wrong news will send things reeling lower. Never let your guard down. Never get complacent. All we really need to focus on is whether all of the indexes can eventually break through the trend lines just above current price. It is going to be a very interesting week, for sure.

Let me spend a few moments going over why you need to make sure you don't get carried away with playing too aggressively. There are problems out there, even though for the moment they're having no effect on the markets. They can, however, play out at any time without warning. Overbought, daily index charts just barely unwound off 70 RSI readings. Negative divergences are small time on the daily index charts, and big time on the monthly index charts. We still have an overall weakening global economy, and we also have froth at ridiculous levels. Stocks selling at levels that are just not appropriate in real world.

Maybe we blast out and ignore all the negative divergences. Makes no sense, but maybe in this new market we do just that. I wouldn't bet heavily on it though. Buy when things get away from overbought, Be smart and level headed. Greed will be better served some other day down the road.


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 15-Day Trial to!

© 2016

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 - 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