Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Short-Term Not Bad... Mid- to Long-Term Not Great... Goldman Settles... Gulf Capped... Google Smoked....

Stock-Markets / Stock Markets 2010 Jul 16, 2010 - 03:14 AM GMT

By: Jack_Steiman

Stock-Markets

There is no denying that this market, and more importantly, this economy, is in some very big trouble. The fundamentals are in terrible shape. Two reports on manufacturing (NY State and Philadelphia) this morning were worse than expected. Actually, not just worse, unbelievably worse. Just fell off a cliff is the best way to put it. No matter how anyone wants to spin things, they are in terrible shape.


So why, you ask, didn't the stock market fall apart? Simple. Sentiment! Just too many bears. We have an inverted bull-bear ratio, and this reality is holding the market up for the short-term. However, one has to wonder how long even sentiment can hold things up if this type of economic reporting continues showing the future not looking very bright. I'm wondering what the final report will be that tips the market back lower. I'm hoping sentiment holds things up no matter what gets reported, but you really do have to wonder.

So, sentiment tells me the short-term has some possibilities. I wouldn't get too excited. The S&P 500 needs to convincingly clear 1094. Then it has a shot at 1131, the most recent high. However, getting back to 1220, S&P 500 seems remote at best. I just don't think that has much of a chance of taking place this year if these reports on the economy continue to flow in. I would lose those high expectations for this market. We're not going anywhere near that high if things don't turn around soon. Another month of this type of manufacturing reports and we'll be looking at a double dip recession with negative figures.

The mid-term and long-term look bad, to be blunt. It seems that earnings for this quarter are decent, but no one believes the next cycle looks promising. If that opinion holds up, and then becomes reality, look out. Don't get in the way. The market really is at cross roads as is the economy's future. If Bernanke is tipping his hand, he's quietly warning us something bad is coming or he wouldn't have talked about recovery in five to six years. He clearly saw the contraction reports coming that we heard from today, and thus his warning. Unfortunately, if things don't turn soon, we're headed for a rough few years ahead in the market, so be prepared for that possibility.

After hours, Goldman Sachs (GS) did their usual get-away-with-murder routine by settling with the SEC. Nothing bad happened to anyone, and their reward for being bad guys is to have their stock go from 139 to 152. Ah yes, nothing like being above it all and walking on water. Nothing out of the ordinary here. Be crooks. Get caught. Nothing happens. Business as usual at Goldman. This is good news, somehow, for the market, but bad news from Google Inc. (GOOG) on their earnings, and has the future washing out to flat.

Goldman had been under pressure recently, but now all is well. This can only be good for the financials, one would think, for the short-term. I think we've all had it with these guys and girls, but the market caters to their every need and desire. They just can't do enough bad things to have anything bad happen to them. Disgusting, but the way it is, and likely always will be. After all, if they're hurt, the market is hurt. If the market is hurt, so are political careers. Goldman can do no wrong. Not in the past. Not now. Not ever. Get used to it folks.

Google reported lower than expected earnings, and although the stock is down well over two hundred points off their highs, they are down another 20 after hours. Things have hit the wall there. They are hitting the futures a bit on the tech side, but nothing too bad. It would have been worse if not for the Goldman debacle.

As I warned, many nights will be filled with bad earnings, and tomorrow morning things get very interesting as General Electric Co. (GE), Bank of America Corporation (BAC), and Citigroup, Inc. (C) report earnings before the market opens for business. Those reports will have a huge effect on the financials, and the market in general. So far the earnings season hasn't been very good with respect to guidance. In addition, we have news from BP Exploration plc (BP) telling us the gulf spill has finally been capped. Shameful, but let's just be thankful that the bleeding has stopped, and now we get to clean it all up.

Nothing is going to be easy here folks. Cash is a wonderful position, like it or not. Nothing aggressive as the two big forces collide. Sentiment versus poor economic news. Please go slow and easy with your trading.

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!

© 2010 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