The Day after…..Is he Happy or Sad? Depends on how you look at him? Actually this is John Boehner’s reaction to the day after the mid-term elections (see story here).
I share this, because it reminds me of the markets…It all depends on how you look at them! With the much awaited Mid-term elections and the QE2 announcements behind us and sizeable rallies in many areas yesterday, where do we stand?
From a price action standpoint, things looked very solid, before the elections and QE2. I did “Where’s the Beef” (see post here) on election day, with a list of assets that were close too or at highs for the year. The last time I checked, all of us invest in price and I remained puzzled why investors seemed to have a “BEEF” with prices going up, in a very broad array of assets.
Yesterdays large rally pushed the markets to some very interesting price points…Odds are low that markets can all line up like this….YET THEY DO!!!
CLICK ON CHART TO ENLARGE
As I shared above and in the “Where’s the Beef” post, quality price action is taking place as many assets are at or close to new highs for the year. Reaching these very important Fibonacci levels is NOT BAD news at all, yet it should raise a level of awareness that ASSET PROTECTION (stops) is something to have in place.
Keep in mind, if this quality price action continues and these markets break Fibonacci, much higher prices should take place, similar to the “NEW LEGS FOR GOLD” when I suggested that if GOLD breaks fibonacci resistance, HOP ON BOARD, no matter how high you think it is at the time!!! (see post here).
LITTLE QUIZ… Been a good month (last 30 days) for stocks….So with this in mind, which position would have made you MORE MONEY (including todays action at 11:30 central)….Owning the S&P 500 or owning TBF (1x inverse bond fund etf)?
Shoot me an email with your thoughts and answer [email protected]
great article
Mike Barker: “Look at what happened today with the good news in jobs.”
—–
Actually, the media’s headline number of 159k sounded good, but looking under the hood today at the October employment report details reveals a different picture.
Household employment in October dropped 330k. The civilian labor force participation rate fell to 64.5%, a new low. The rate of employment relative to population declined to 58.3%; it hasn’t been that low since the early `80s. And if that’s not bad enough, the number of full-time jobs fell by 124k.
Such underlying numbers are troubling.
Perhaps the resulting weak market action yesterday was rational. Apparently, the pros promptly did their homework yesterday. As for the media and their headlines … well, they’re the same media we’ve all come to know and love.
dkyro
2297 is the 38% fib level of the 2000 high and the 2002 low. NDX as you stated, is at the 2007 highs, which is natural resistance, due to how much selling took place then.
No big fib level is at hand for the NDX currently, just a potential double top.
Since the NDX is already back to the 2007 high, do you use new fib levels from the 2000 peak to the 2002 low, or continue with the current correction cycle and just go to the next level (which I think is 268%)? Or is it moot after 100% fib has been obtained.
cK,
Green number in black is the current price of the asset at the time I produce the chart…if the asset is up in price, the number is green, if the asset is down in price, it is in Red.
This is a function of the software, nothing I do and it has no reference to the lines on the chart…other than in this 4 pack, resistance happens to meet where the black boxes are!
cK…a couple of Fridays you have come up with some funny stuff!
Several years ago a bad jobs report made the market go up because companies could pay less for labor costs and they had a larger labor pool to choose from. Did the job report make the dollar go up?
Chris,
Thanks for the update. I should know this by now, but does the green number in black on the right of each chart reflect the last price level on the line graph or the fib (resistance)level? I have been assuming it is the last price on the graph.
cK
P.S. I think he is passing gas ambivalently
I believe all the markets are rising together in an unprecendented manner because the markets no longer are influenced by anything but fiat dollars that are supposed to make the market rise to make us feel rich again. Look at what happened today with the good news in jobs. The market said “who cares” and went down. Our brilliant leaders have now created a market that is addicted to QE and will not move without it’s fix.
Chris, Thanks for the update. Very timely for me. I still have QQQQ and was going to go back to a previous post to see where resistance is because getting a little nervous that there may be a pullback soon due to the consistently rising prices. Gotta be a correction sometime. Don’t want to lose the gains of course.