Why isn't the market selling off anymore?

We had some pretty bad news for the last couple days and the market doesn't seem want to go down at all..

is this an indicator we have already met the bottom back in march?

First of all... putting cash in a safe is probably the worst thing you could do because as the fed keeps cutting interest rates to try and save us from this subprime mortgage mess it will send the dollar falling, which we have been seeing since the first rate cut of the summer, as well as sending commodity prices such as precious metals and oil skyrocketing, also seen over the past 8 months or so.

If you're investing for the long haul right now, you're being pretty naieve. Maybe in a bull market that works but these days even solid companies with good earnings/products/management have been getting hit hard, illustrating a very important point:

Stocks do not rise and fall based on how good or bad the company is, stocks go up and down based on supply and demand, what the next guy is willing to pay for shares of that stock. Nothing more, nothing less. News, earnings and the like are just tools of manipulation by big money to dupe you into throwing your money into the market so that they have more money to play with. The talking heads on CBNC and the like tell you what their bosses (who are the poeple who sit at the boards of a lot of these publically traded companies) tell them to say.

In terms of picking market tops and bottoms it is not that difficult. Stock charts, unlike Anal - ists, brokers, and the talking heads on TV that tell you that "everything is fine, keep buying and take a long term perspective" - don't lie. They will tell you where the action is and if you know how to interpret you can make good money in any market trading long and short.

To answer your question about a bottoming signal in March, yes it came in the form of a double bottom price pattern on the Dow Jones and S & P indexes in March, with stoochastics and volume confirming the bounce. We have since confirmed the move with higher highs, higher lows and follow through on a number of strong moves afterwards. I personally still think that we're in a bear market and that this has been a bear market bounce, albeit a big one.

In terms of resistance, here are the major points of resistance for the Dow, Nasdaq and S & P:

* DJ-30: 12,750-12,825
* Nasdaq Composite: 2425-2430
* S & P 500: 1400-1415

If we can break through these points we might be changing character in this market, so look for what the indexes do at those resistance points.

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Hope this helps, happy trading!

Market bottoms are like certain other bottoms - they only become visible in the rear-view mirror.

Because most of the suckers are out of the game now, and the real savvy investors, who bought really cheap shares from the suckers, are back in waiting for the suckers to buy back their shares for a much higher price.

Remember, it should be buy low, sell high. The suckers buy high and sell low. Seriously.

Have fun

A lot of the bad news is already priced into the market.
I'm not sure the bottom has been reached for the market as a whole, but certain stocks were definitely oversold and are starting to come back.
Besides, we don't invest in the market, we invest in companies for the long haul. BTW, I'm an investor, not a trader... I cannot "time" the tops or bottoms...

A lot of people are saying that we are going to have a short slow down or a quick recession and then recover with flying colors in the second half of this year.

That's why a lot of stock traders aren't that concerned about the bad news.

They'll get concerned and start selling off only if the slow down begins to look worse and more protracted than they've been expecting.

If the expectation of a short slow down followed by a quick recovery turns out to be true. Then the market may be at its bottom now. But if this prediction turns out to be too optimistic. Then the bottom for stock prices will end up being a lot lower than the present level.

I think its because the Bears are buying to cover their positions.

Also Friday seems to be a somewhat slower day.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

With the absolutely terrible jobs report and the market trading up 34 on the DOW and 8 on the SP .... we are probably leveling.

I never try tops or bottoms... well in the market anyway.

I do know that as a trader this is a terrible market. Flat markets are my worst fear. There are buys to be made but finding them is difficult.

Sir, you've only seen the beginning of the trip to the bottom. You just wait till we actually get there ... sure, the market will rise and fall between now and then but our days of true prosperity are about over. When gold starts dropping with all its actual weight: liquidate and put your cash in a safe.

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