Stocks Trying To Hold On To Thursday’s Surge In Wake Of Disappointing Jobs Report

Stocks Index Futures Slide on the November Employment Situation Report

Elon Musk, S&P 500

12/4/2021 10:30:00 AM

Stocks Index Futures Slide on the November Employment Situation Report

The major stock indices rallied on Thursday, breaking a two-day losing streak. A disappointing jobs report could put the Fed’s plans at risk. The broad rally was led by an odd combination of sectors and industry groups. Support and resistance levels help to identify pockets of supply and demand.

Drawing Battle LinesThe war of the bulls and the bears has a couple of battle lines that may not be ceded easily. The S&P 500 broke below its August high and its 50-day moving average on Wednesday. However, the bulls pushed back hard and drove the S&P 500 back above these resistance levels. As I’ve said before, I’m not much of technical analyst, but these lines are helpful in identifying where buyers and sellers are. In the last week, sellers have pushed stocks lower, but it appears the sellers have met a broader level of buyers. Now, it depends on how many investors are on each side. If more sellers appear, they could overwhelm the number of buyers and push prices lower. If more buyers appear, they could overtake the sellers and push prices higher.

Because there are so many things that can influence a stock’s price, we sometimes forget that it really comes down basic supply and demand. Additionally, there are many different terms that make discussions confusing. Bulls and buyers are different ways of saying high demand. Bears and sellers are high supply. But a benefit of charts is that they help identify areas where these groups are hanging out, no matter what you call them.

The battle of bulls and bears is what is called price discovery. As the forces of supply and demand wrestle, a price is determined. Tomorrow, will be a new battle.CHART OF THE DAY: NO MAN’S LAND. The S&P 500 (SPX—candlesticks) has bulls and bears drawing battle headtopics.com

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... [+]lines across the 4545 level and the 50-day moving average.Data Sources: ICE, S&P Dow Jones Indices. Chart source: The thinkorswim® platform.Subjective Value:Stock analysts use different techniques to try and determine the current and future value of a company. These include models like discounted cash flow, dividend discount, comparable company analysis, and bottom line. Many of the variables can change depending on what the analyst chooses to use as inputs. In the end, most analysts have learned similar models and use similar assumptions. This is one reason why there may be so many buyers or sellers at certain levels. Analysts and money managers are using the same models with similar inputs.

Of course, there are many reasons to buy and sell a stock outside of just valuation formulas. And new information, such as the loss or gain of a major client, could result in a change of valuation. Thus, the value of a stock can be subjective to many investors, which is one reason why you can see buying and selling at various prices and not just at certain valuation prices.

Accumulation & Distribution:Many money managers buy or sell an investment position that could be millions or even billions of dollars. When dealing with positions of this size, managers must be careful on how they buy or sell shares because if they put a lot of buy orders in at one time, the price of the stock will shoot up, and they’ll get various orders filled at prices well above what they had hoped.

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So, what these managers do is accumulate or distribute a little at a time, allowing the ebbs and flows of the market to help them get a better price. The savviest value investors will often start buying as a stock nears its downtrend and creates what’s called a basing pattern. This is usually a time when the stock’s price moves in an oscillating sideways pattern. Others buy on the way up, but then stop and allow the stocks to pullback a little before buying more. This is one reason many stocks have that staircase effect during an uptrend. headtopics.com

Thinking about your own trading, this is why we often talk of doing smaller trades at various price points, rather than “all in or all out”.Clumsy Language:When talking about buyers and sellers, investors can be a bit clumsy with their language. There really aren’t more buyers or more sellers. There’s always the same number of buyers and sellers or the trades can’t take place. What we really mean when we talk like that is there was a rush of demand and the price had to rise in order to find sellers to meet all of the buy orders. Or there was a rush of supply and the price had to drop in order to find enough buyers to fill the sell orders. In other words, more aggressive buyers or more aggressive sellers.

While the language isn’t precise, you can still get what the person is saying. So, if you’re tuning into a financial network or webcast, it’s easier to follow along if you understand the long and the short of what they’re saying.  TD Ameritrade® commentary for educational purposes only. Member SIPC.

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Stocks Trying To Hold On To Thursday’s Surge In Wake Of Disappointing Jobs ReportThe major stock indices rallied on Thursday, breaking a two-day losing streak. A disappointing jobs report could put the Fed’s plans at risk. The broad rally was led by an odd combination of sectors and industry groups. Support and resistance levels help to identify pockets of supply and demand. POTUS If you're in the white house, I say don't eat salad ;))) it was hard to arrange the cooks (not poisonous, it tastes bad) buy bitcoin now up to $58,000 next time I don't want to make you eat food that will turn you into oil 👁

Tech Stocks Close Lower as Omicron Concerns Weigh On MarketsMajor U.S. indexes gave up their strong early gains and turned lower, setting them on track to finish a bumpy week on Wall Street with losses. Stagflation inc

Stocks Finish Higher After Omicron-Driven SelloffThe Dow rose about 600 points and the S&P 500 added more than 1% despite uncertainty about the Omicron variant's potential impact on the economy You seem disappointed

Stocks Rise After Omicron-Driven SelloffThe Dow gained more than 600 points, rebounding from yesterday's Omicron-driven selloff as the market's weeklong volatility continued

Stocks making the biggest moves midday: Kroger, Boeing, Dollar General and moreThese are the stocks posting the largest moves in midday trading. Here’s my situation with Kroger…ordered $12,500 in gift cards so my nonprofit can give them to families in need. Money was wired 18 days ago and they couldn’t find it until yesterday. Haven’t gotten an email saying they’ve been shipped and was laughed at by customer service.

European stocks drop as Omicron fears keep markets on edgeEuropean stock indexes opened lower on Thursday, reversing gains from the previous session as a lack of information about the Omicron variant of COVID-19 left markets volatile, and as investors also bet on faster Fed tapering.