Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Greece Elections Puts Fed On Deck.....

Stock-Markets / Financial Markets 2012 Jun 17, 2012 - 02:31 AM GMT

By: Jack_Steiman

Stock-Markets

Those are two nice little events we can all go through together over the next several days. We will start, with the Greece elections over the weekend that will have a real impact on the markets. The market is clearly telling us it thinks, and believes, the party that wins will be the one that has promised to stay in the Euro-zone and not create chaos. If the party that gets in is the one that creates market uncertainty, the market will be very unhappy come Monday morning, but the opposite is true if the right party gets elected. Monday morning will have fireworks for sure.



Then, immediately after that, the attention gets turned to the Mr. Bernanke, and what he has to say about our economy on Wednesday. In addition, folks will want to hear more on what he plans to do, or not do, about another quantitative easing program that he hinted at on Thursday. He will need to elaborate further on what, and when he plans to implement it. It's quite obvious to the masses by now that he will do another program. The market seems to be thirsting for it now instead of later on. If he hints at deep delays on it, I think the market won't be very happy come Wednesday afternoon. So much is going to happen between this evening and Wednesday afternoon, it will make your head spin, and probably the market will spin as well. The risk is high for both sides, so be aware of that. I get the feeling the news out of Greece this weekend will be more market favorable than not, although there's no way to know that for sure.

So we go to sleep tonight with great uncertainty about the state of things abroad. We know the market will respond hard to the news. If the news is good we will get a strong gap up that will allow all of the indexes to clear huge resistance at the 50-day exponential moving averages. More on that later. Big news is coming this weekend. If nothing else, at least there's something to be excited about in terms of moving this market through resistance, or below support. Let's get a real move going, for once, hopefully.

Fed Bernanke is getting very active here as he clearly doesn't like what he's seeing taking place abroad over in Europe. He's scared that the wrong party will be put in place, which would cause extreme chaos in the world financial system. This is why he promised the world, in an effort along with the central banks, to supply as much liquidity as would be needed if indeed the shock hits hard. He knows the ramifications of the worst case scenario, and seems unwilling to let the ship go down without a fight. No need arguing about whether it's the right thing to do. The market wants its back covered, and seems happiest when the Fed promises protection. He gave it just when he knew the market needed it.

Now the markets are addicted, once again, and nothing short of actual delivery will be acceptable. He won't let the world down, in my opinion. As I've said many times before, the Fed depends solely on Wall Street to keep the economy rolling happily along. He knows pulling back on his words of help would cause massive panic, so we should be ready for the next form of easing coming to a market near you quite soon.

There was more alarming news that came out this morning, which may also hint as to why the Fed came out yesterday talking about more easing to come. The New York State Manufacturing Report came out well below expectations showing the state of New York is in a rapid decline economically. That's the fifth straight decline in that number and ten full points below expectations. 2.3% versus 12.6% expected.

That's a big ouch for those of you who think the economy is fine in this country. When the number one state economically takes a plunge such as that, you better open your eyes to what's really taking place. Things are slowing rapidly to be sure. The Fed is nervous and readying everyone for more stimulus. If New York is plunging lower, it's highly probable that the rest of the country is suffering along as well. The steep decline is what's so troubling. A small blip is nothing to get worried about, but when you are dealing with a miss of that size, it tells you the European mess is taking its toll on the United States more quickly now. The Fed is, thus, responding to the message. Not a good one.

So here we are as we try to blow through those nasty 50-day exponential moving averages with some force. A good piece of news over the weekend from Greece will get the job done in all likelihood. Bad news will start us on the road to taking out that strong gap up at 1300 on the S&P 500. The second gap up, and hold in the patterns on all the major index charts today gives the market hope for the short-term. Watching 1300 and 1338 closely. Being above 1338 isn't enough. It has to clear with force to feel as if it's really made the move and with volume behind it as well. Stocks like Apple Inc. (AAPL) will need to get rolling to help the market out.

Have a fun weekend and I'll see you all Monday morning with Greece being the number one story.

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