Live market Commentary For 05-22-2012

May 22nd, 2012
in Gary's blogging

Market Closing Comments:

Markets closed in a similar manner to the opening. At 3:10 the markets under increasing red volume started to drop sharply and by 3:50 started to rise again to ¾ of the drop. Facebook melted down all day closing at 30.95 and this might be an omen for the market as well – stay tuned.

The DOW is at 12502.81 down 1.67 or -0.01%, the 500 is at 1316.63 up 0.64 or 0.05%, the $RUT is at 759.63 down 5.01 or -0.66% and SPY is at 131.92 down 0.06 or -0.05%. The trend is sideways and the current bias is down.

Gold closed at 1567, WTI oil ended the day at 91.41, Brent ended the day at 108.03 an Dr. Copper is at 3.46 falling 0.02. European markets closed sharply higher today with shares in France leading the region. The CAC 40 is up 1.88% while London's FTSE 100 is up 1.86% and Germany's DAX is up 1.65%. The USD closed at the high of 5-17 at 81.83. The charts below graphically tell the story.

Follow up:

The SP500 at the close. Notice the new channel and the spinning top candle. If confirmed tomorrow with a down day is typically signifies a reversal.

The $RUT at the close.

The DOW at the close. Same as the SP500.

The SPY at the close. Notice the steep bottom Bollinger band and enough sideways to allow a further decent. Tomorrow is going to be interesting.

The Indexes at the close. Notice the the $RUT is one of the big losers for the day.

Noon Market Commentary:

European markets close, US market volume falls to anemic levels and the markets rise. OMG, DaBoyz, HFT and the 'Five Fingered Financiers' are back with their manipulations. When is the SEC going to do something?

The DOW is at 12555 up 50.67 or 0.40%, the 500 is at 1325 up 9.45 or 0.73%, the $RUT is at 766.75 up 2.12 or 0.28% and SPY is at 132.86 up 0.89 or 0.69%. The near-term trend is up and the current bias is down.


Existing home sales rose 3.4% in April to a 4.62 million unit annual rate, the highest level since May 2010. Analysts were expecting sales to rise 3.1% to a 4.60 million unit rate.


Alexis Tsipras, the leader of Greek anti-austerity party Syriza, has said a rejection of the programme won't mean expulsion from the euro, and urges Germans to choose Greece for their holidays.

Tsipras - who is Berlin for talks with leaders of Germany’s anti-capitalist Left Party - says Greece needs policies that can be implemented, and attacks European leaders for their "anti-European policy".

Tsipras: "Greek public sector is not over-staffed... voting for Syriza means a chance to save the euro. If we win election, we will stop austerity programme."

After Opening Comments:

Better sit this one out. Opened down and then climbed back up to the original premarket highs. More later as this crazy market unfolds today. Volume was red and moderate at the opening but has fallen considerably but green. Facebook has fallen to 31.80 and is showing signs of falling more.

Premarket Comments:

The SP500 was up 6 points and has since dropped to 1317 which is still a positive bias, just weak. The DOW id down 7.00and the NASDAQ is even. Gold is at 1581, WTI oil is at 92.24 having been as high as 93.00 earlier, Brent is at 108.86 also had a high of 109.28 and Dr. Copper slid 0.01 to 3.50.

European markets are sharply higher today with shares in London leading the region. The FTSE 100 is up 1.16% while France's CAC 40 is up 1.10% and Germany's DAX is up 1.08%.


Speaking to reporters on the release of an IMF report urging the U.K. to print more money, agency head Lagarde pretty much makes an outright call for eurobonds. Such "fiscal-liability sharing" remains staunchly opposed to by Berlin (with Austria adding support today).

Stock futures are mixed and Europe is all green, with neither seeming to be particularly affected by Fitch's downgrade of Japan. S&P Benchmark +0.1%. Best Buy shot up over 8% following earnings but fell just as rapidly and is now just +0.2%. Facebook's (-3.3%) slide continues, while Express plummets 23% following a profit warning.


Eurozone warned 'severe recession' looming Best Buy profit falls, adj. earns tops Street view Ahead of the bell: Facebook US futures mixed with worrisome news from Asia Spain teachers, students strike over spending cuts


German Chancellor Angela Merkel has found it "astonishing" that her drive for European governments to balance their budgets has provoked such a debate.

The current discussion in Europe and even beyond its borders "gives the impression that, for us, saving, as such, is pleasurable", Merkel said.

It's just about not spending more than you collect. It's astonishing that this simple fact leads to such debates.

Markets are expected to open flat with a positive bias and awaiting news from across the 'Pond'.

To contact me with suggestions or deserved praise:

Written by Gary

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