On February 4th, I wrote: “Of course, we have the big jobs report tomorrow morning, which often establishes swing highs and lows on the daily chart.” And we got a swing low, right? Now let’s look at an example of the jobs report causing a swing high.
On March 4, 2005, the BLS reported that the economy had created 262,000 new non-farm payroll jobs. Seems like a miracle, right? But look what the market did (click chart to enlarge):
The SPX rallied on the news, closed up another 3 points the next day, and then went off the cliff. That swing high lasted for four months.
I don’t know if the market printed another swing high today, but if it did so, it certainly wouldn’t be out of character.
I agree. Most of them are faded it seems. This move may be a delayed fade because the high isn’t too far away. The bulls hear its chant.
I have some friends who are getting ready to withdraw their funds out of stocks and indexes with this new move up. The little dip has shaken these investors and they’re getting out. I suppose they realize there isn’t any other instrument where they can make decent returns. Hearing ads of 1.4% for interest as a ‘deal’ is pitiful.
K,
I’m not going to tell you how he did because I’m
not sure it’s legal. But Grandfather hated corruption
and he came up with a system to track communications
and money to members of Congress. He gave the
system to us when he left.
The big banks are making members of Congress millionaires…trying to get them to do nothing about the
unregulated crap. I’m probably wrong, but I think
the unregulated market will take the market down
again at some point in time.
When you run across an article about the unregulated
market, I would apprecicate you giving me the
link.
THANKS!
BLS confirms big Ben’s snow job. Big Ben
tries to get traders to go short; so, BLS
can make them cover.
Julie, yep. The unregulated one is so fragile – please tell us when “some point” arrives. I don’t think it is here yet, Greece is blown out of proportion and the US financial market view of it does capture only a part of the European context.
On time-frames higher than George is primarily looking at fwiw this is set to go higher, an occasional bump non-withstanding. Confusing thing was the bias shifted after half of the move up happened – so the big buyers came in late but I doubt they were coming in to get thrown under the bus they partially missed. Last time the market-maker in chief killed the bulls and got a message – I’m not convinced he is going to do it again. We are too close to the resistance zone of 1140-50 to go long now, usually these major zones take time to push through, support is at 1125 or 1100-05. We’ll see. And no, this is not about fundamentals. It is about money looking for some return.
Yerk, RE: “And no, this is not about fundamentals. It is about money looking for some return.”
YEP!
i had to post this! HAH
http://graphjam.files.wordpress.com/2010/02/funny-graphs-climate-change.jpg
K,
That should be called the “Gore Graph”.
K,
There were 4 bank failures. Looks like 2 were not bought:
http://www.fdic.gov/BANK/HISTORICAL/BANK/index.html