Market Downtrend Restored as Jobs Vanish
7:38 America/Los_Angeles 02 Jul 2009 
9 Comments
The Market spoke volumes today as it gapped down with the jobs report prior to the 4th of July holiday weekend. The biggest disparity in the Jobs report from what the market expected was the Non Farm Payrolls, which came in at -467,000 … the market was expecting -367,000 … whoops. But don’t worry Dennis Kneale of CNBC said that the great recession is over last week.
Below are a couple charts that show the damage. First is a 3 month daily chart that shows 3 moving averages (25 day, 50 day, 200 day) .. look how the market got rejected by the 25 day and has broke through the 50 day. The second chart shows a 2 year weekly chart with the 50 day moving average… showing the strength of the 50 day moving average on a weekly basis. You will have to click for the Full Post to see the 2nd chart and comments.
Have a good 4th everyone!! And try to think this weekend about our Independence and why we as Americans originally broke free from Great Britain’s grasp… and are we losing our spirit as Big Govt. has empowered itself?
I also wanted to add how this second chart shows the last time that SPY hit its weekly 50 day moving average, which was last May. The stochastics are ripe for a downtrend similar to last year.
Thanks for the post! Also thanks for the Tweet yesterday where you took your profits on your calls and added to your puts… I owe you a steak dinner!
Thanks stockstalker…definitely glad it worked out… but like the terms of use mention please don’t base your decisions on mine or my opinions.
and as far as the steak dinner… just click on some links for me so I can get a carne asada burrito for lunch… ha
Dennis Kneale on CNBC is an idiot… ha. number 2 in google like he himself says. I feel like the mgmt at CNBC had to have a talk with him a few months ago because he was so terrible and now he’s trying to be mr. Tuff guy and taking pointers from Larry kudlow.
CNBC has hit rock bottom!
Agreed Dennis… CNBC has hit rock bottom after looking like a bunch of idiots the past couple years calling a thousand bottoms and manipulating data to look good.
I mean look at the charts that Dennis K. has been touting the last few days… they are ridiculous how short sighted they are. Who shows charts of the last 3 months of durable goods and bases an entire theory on that?
Dennis Kneale is as unprofessional as they come… the guy talks like my youngest brother (16) on national TV
Thanks for the charts. It will be interesting to see if the downtrend does stay intact especially with earnings season starting up again soon.
CNBC is all about manipulating the general public so corporations have more power to run the world. Absolute scum and I love it when the market goes down because they get so freaked out.
50/200 golden cross looks like a broken test. 25 MA broke down. Even more prevalent…take a look at the 10/30 cross (speculative buy/sell signal). The Golden Cross is a great tool, but people have to keep in mind that it is a test…only good if confirmed. The 10/30 MA crossed negatively and technically caused a nice selloff. The 50 has been breached and we will likely test the 200 MA. If we breach, good night! I say to stay patient and not to go long until RSI breaks upward of 50 and the 10/30 MA crosses upward.
Currently short in my trading account (Oil, Russell 1000, and financials). Long term account, hedging with puts and triple shorts (long positions held from March lows).
Only kicker…earnings are coming up and they may try to pump this market again. Next week Alcoa and Chevron. Personally I hope we crash and get Ron Paul into office…
next week will be telling of this downtrend as all the boys from GS and the like will be back from the Hamptons ready to pump.
That 50 day moving average on the weekly is definitely holding strong. I will be very impressed if the market is able to break through it at some point.