July 13th, 2012
in Gary's blogging
Closing Market Commentary For 07-13-2012
Markets closed up after making a feeble attempt to milk its way up further from the afternoon sideways dance around 3:30 and then continued to battle it out with the bears trying to kick the bulls of the hill. No real news to complete Friday's session and I guess that is reason enough for DaBoyz to screw it to the uninformed. Someone is going to get fleeced soon enough and I hope it isn't my readers. There isn't enough greedy profits for anyone to glean at this point in my opinion. I have for now held onto my WMT and MCD, dumped my dogs and positioned myself in some shorts.
RRR** was favorable for trades and swing positions over the weekend as well. Ending session red and green volume is rated as low to moderate and the can is kicked down the road once more. So much for informed investors.
It is no secret to my associates and readers alike that I see the bears coming out of the forest in great numbers, I just can't see clearly in my foggy old crystal ball just when it is going to happen. If it was not for the meddling politicians and Keynesian bankers we would have seen the crumbling of the markets a long time ago. But as complaisant investors would have it, they 'trust' their elected officials to know what they are doing and continue to give them 'free stuff' and live off 'Hopium”. Not to completely disparage politicians, but they have to give you words of wisdom and a pat on the arse telling you everything is going to be O.K., when it really isn't – that's their job. The issue I have is their inability to handle current financial matters that now border on chaos, disruption and serious hardships for the sheeples . You know the financial issues I speak about, the same ones the idiot, self serving, schemers created in the first place.
This article by the Business Insider answers questions like, “In the face of the now-obvious negative outlook, the question we get most often is why the market has declined so little, and why it seems so resistant to bad news.”. This is a well written article and will be worth your while to read and assimilate.
In the last four major bear markets the decline started very slowly from the peak, and was interrupted by numerous rallies, but continued to gather steam, ending only after a scary waterfall decline toward the end. We suspect that the same pattern may happen this time around.
The DOW at 4:00 is at 12777 up 203.82 or 1.62%.
The 500 is at 1356 up 22.01 or 1.65%.
The $RUT is at 800.99 up 11.37 or 1.44%.
SPY is at 135.82 up 2.29 or 1.72%.
The trend is neutral and the current bias is up.
WTI oil is at 87.07 trading between 87.44 and 85.60 and the bias is negative.
Brent crude is at 102.83 trading between 103.35 and 100.50 and the bias is negative.
Gold is up today at 1588, trading between 1600 and 1567 with a neutral bias.
Dr. Copper is at 3.49 up from 3.39 earlier.
As reported earlier the USD tumbled from 83.92 to 83.37 at 10:30 and recovered to 83.47 where it remained for most of the day.
Stocks have moved mostly higher in early trading on Friday, regaining some ground after trending lower over the past week. The major averages have all moved to the upside, with the Dow rebounding after closing lower in each of the six previous sessions.
The major averages have pulled back off their highs for the session in the past few minutes but remain firmly positive. The Dow is up 102.93 points or 0.8 percent at 12,676.20, the Nasdaq is up 20.05 points or 0.7 percent at 2,886.24 and the S&P 500 is up 11.67 points or 0.9 percent at 1,346.43.
The early strength on Wall Street is partly due to a positive reaction to a report on Chinese economic growth in the second quarter. While the report showed that Chinese GDP increased at its slowest annual rate in over three years, the rate of growth was not as slow as some had feared.
Additionally, the report showed that Chinese GDP increased by 1.8 percent compared to the previous quarter, exceeding economist estimates for a 1.6 percent increase.
Traders have also reacted positively to quarterly results from financial giant JP Morgan (JPM), which reported better than expected second quarter earnings despite a massive trading loss.
JP Morgan said that the trading loss grew to $4.4 billion from its initial estimate of $2 billion but noted that its Chief Investment Office will no longer trade a synthetic credit portfolio.
Banking stocks have shown a strong upward move on the heels of the news from JP Morgan, with the KBW Bank Index up by 1.7 percent. JP Morgan is helping to lead the banking sector higher, advancing by 4.6 percent.
Chemical, steel, and oil service stocks are also seeing early strength, moving to the upside along with most of the major sectors.
The 500 at the close.
The DOW at the close.
** RRR = Risk Reward Ratio
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Written by Gary