Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
How to Trade Binance Vanilla Options for the First Time on Bitcoin Crypto's - 2nd Aug 21
From vaccine inequality to economic apartheid - 2nd Aug 21
Stock Market Intermediate Top Reached - 2nd Aug 21
Gold at a Crossroads of Hawkish Fed and High Inflation - 2nd Aug 21
Bitcoin, Crypto Market Black Swans from Google to Obsolescence - 1st Aug 21
Gold Stocks Autumn Rally - 1st Aug 21
Earn Upto 6% Interest Rate on USD Cash Deposits with Binance Crypto Exchange USDC amd BUSD - 1st Aug 21
Vuze XR VR 3D Camera Takes Near 2 Minutes to Turn On, Buggy Firmware - 1st Aug 21
Sun EXPLODES! Goes SuperNova! Will Any planets Survive? Jupiter? Pluto? - 1st Aug 21
USDT is 9-11 for Central Banks the Bitcoin Black Swan - Tether Un-Stable Coin Ponzi Schemes! - 30th Jul 21
Behavior of Inflation and US Treasury Bond Yields Seems… Contradictory - 30th Jul 21
Gold and Silver Precious Metals Technical Analysis - 30th Jul 21
The Inadvertent Debt/Inflation Trap – Is It Time for the Stock Market To Face The Music? - 30th Jul 21
Fed Stocks Nothingburger, Dollar Lower, Focus on GDP, PCE - 30th Jul 21
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
WEALTH INEQUALITY WASN'T BY HAPPENSTANCE! - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Back To No Control........

Stock-Markets / Stock Markets 2011 Dec 29, 2011 - 01:31 AM GMT

By: Jack_Steiman

Stock-Markets

The market getting back up to the breakout area of 1267 on the S&P 500 looked so promising if you're a bull. We headed into the holiday weekend with breakouts that were the talk of the stock market world. The bulls were talking the talk as it seemed Europe was under control for the moment. The reports in the United States, currently, aren't at all bad. The reasons for a breakout seemed real. That is, until today when the bears, not so fast, stopped us cold when we tried to break things down. But now, we're stopping the bears as well. No one in control. Volume is light, thus, both sides need not apply too much pressure to hold the other side off from making the bigger move. Holiday time of year when volume is basically light.


It would take a huge volume surge to be able to break one way or the other convincingly. A move that could not be stopped. Apparently, the bulls just didn't have what it took today. So here we are in the land of nowhere, yet again, after today's down move. Not a move lower than necessarily kills the chances for the bulls to ultimately get things moving upward and out clearly for the moment anyway. Both sides are squaring off, and neither side can land just the right punch to get things going dynamically in their favor. How much longer this can go on is anyone's guess, but for the moment, stalemate is the way.

To begin with, this is abundantly clear here. The sectors in favor, and the sectors out of favor, are shining in our faces. The defensive end of the market is doing best. Utilities, high dividend, lower P/E Dow stocks. Some are neutral, such as transports and retail. Then there's the usual lousy sectors, such as financials, and especially anything related to commodities, as the world is fearful of deflation as things slow down globally. The overhang in Europe is especially troubling to the world of commodities as it suggests that demand should be slowing over time. That's never good for any sector. Recessions around the globe are putting a strain on all commodities. Gold and silver continue in their bear markets. Everything in that world, basically, is in a bear as well. Nowhere to run... nowhere to hide... in that sector of the stock market. The technology world is loaded up with bear market set-ups. Froth is unwanted for now.

Stock after stock with high P/E's is getting slaughtered without mercy. Amazon.com Inc. (AMZN) can't find a bid. In a deep bear for now. The list is quite long. Leaders are just not leading in that world. The Nasdaq, and small caps, the worlds where froth is rampant, are massively under-performing the Dow. It seems that's the bigger picture message in this longer-term, lateral move going on throughout the stock market world. If you need to play this haphazard market, just know where shorting is easiest, and what stocks continue to hold up and perform relatively well.

The grand lesson for everyone in markets such as these is to try and grasp how one can out perform a market over a longer period of time. To fully accept the fact that playing the stock market isn't always the best thing to do, and that there are times when not playing this game makes the most sense. Most folks don't have the ability to sit in front of their computers and do nothing. The lure is always there to play. If you're sitting by the computer all day you're bound to play, even if you know it's not the right, or best, thing to be doing at that moment.

This is where most people get into the most trouble. They lose too much money in these times, and then feel bad about themselves for playing when they know they shouldn't have done so. The stock market is not about getting wealthy. It's about acquiring some dollars over time and to always out perform the S&P 500. Getting rich in markets such as these are nice fantasies, but nowhere near a reality. You need to learn to accept that the market isn't always playable. The more you can adapt to this simple truth of the market, the better your outcomes will be bigger picture. Something to ponder over.

So the bears tried to crush the market below 1225 S&P 500, and although they started to succeed, they ultimately failed in a very big way. The bulls tried quite a few times, now, to take out S&P 500 1267, or the old highs, and that, too, has proved to be too difficult. Both sides ever so close, but both sides failing. I believe that some time in January we will see the market make a major breakout, or breakdown, move that causes a directional play for several weeks, or even months, but we need to be open to both sides having a reasonable chance to accomplish their mission.

Anything that takes place now between S&P 500 1202 and S&P 500 1270 is just noise. Sad to say so, but it's true. That's nearly 6% worth of nothing. Accept what is, and what isn't, in this market for the moment, if you decide to play anything at all. Maybe keep your plays lower in size. Maybe keep your stops tighter. Take proactive steps to ensure you don't take any unnecessary, large hits to your portfolio.

And most importantly, be patient. Patience is the only thing that will pay off in the long run.

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.


© 2005-2019 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