This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Can the Stock Market Continue to Rise With Contrary Indicators?

Stock quotes in this article: GLD, XLU, OIL, VIX.X, FCS, FANG, AKAM, WAGE

NEW YORK (TheStreet) -- As the Federal Reserve money-printing machines continue to work overtime, the stock market continued to move higher in response in Thursday trading.

The DJIA closed higher by 14.84 points at 16921.46 and the S&P 500 closed up 2.50 at 1959.48. The Russell 2000 index was up fractionally at 1184.03 and the Nasdaq was down 3.51 points to close at 4359.33.

The Russell 2000 closed at "Trend Neutral," my three-month or longer time frame. This is the first time since March that the index is not in "Trend Bearish" territory.

The big winners in Thursday's market were the gold stocks. As the Federal Reserve continues to signal an easing policy and money printing, the gold stocks are signaling growth slowing and inflation. The SPDR Gold Trust (GLD) was up a whopping 3.48% on Thursday. It has broken above its trend resistance line, according to my internal algorithm process. Take notice. I expect continued strength going forward.

The SPDR Select Sector Utilities ETF (XLU) was up again on Thursday and is now up 16% for the year to date. GLD is now up 9.3% YTD. The S&P Goldman Sachs Crude Oil Trust Index ETN (OIL) is up 11.4% YTD.

Wall Street pundits need to take notice. This is not your normal bull market in 2014. This is all about the Federal Reserve printing money that will ultimately end in an avalanche to the downside. It is no longer a question of if, but when, that avalanche will occur.

Another huge negative in the U.S. economy is that fact that U.S. real-wage (what you get paid in terms of wage growth minus accelerating inflation) just went negative for the first time in two years.

And to top it off in Thursday trading, CNN/Money's Fear/Greed Index stands at 94 (extreme greed) and the CBOE Market Volatility Index (VIX.X) closed at 10.62 (no fear) in this stock market.

Turning attention away from the evidence of growth slowing and inflation accelerating, traders need not focus on the macro, bearish trends. I say this because with a risk management process that is repeatable and reliable, we can trade in any type of market.

Case in point, most, if not all, of my recent trades have been from the short side. On Thursday, I covered my remaining Fairchild Semiconductor (FCS) short position. The entire trade was a win. I also covered my Diamondback Energy (FANG) short from Wednesday at a nice profit, also. This is all from my algorithm trading process at www.strategicstocktrade.com on which I am holding an open, free chat Friday. Opportunistic trading, both long and short, is what we are all about.

I added two new short positions at the close on Thursday in Akamai Technologies (AKAM) and WageWorks Inc. (WAGE).

At the time of publication the author was short AKAM and WAGE.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Gold Explodes While the S&P Remains in Breakout Territory

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs