Markets Defy Gravity, Fasten Seat Belts

August 21st, 2012
in Gary's blogging

Midday Market Commentary For 08-21-2012

The SP500 remained at the 1424 level until 10:30 when it jumped to 1425 melting into the low 1426 region and then started to melt down all on low volume. The suspense hasn't diminished as we watch the market manipulators doing their thing melting the markets up. One thing is for certain is that gravity will eventually collapse this phoney rise.

By noon the markets made started a slow decent from the morning highs at about the same speed as the accent. By 12:30 the markets returned to a 'flat' status and investors wondering what is going to happen next. I think it is time to fasten your seat belt as one way or another this is going to be a ride.

Follow up:

The RRR** continued to be very narrow during the morning and any trades can not be safely assured being profitable with this continuing low volume. Swing trading is again at your own risk being the market is at a crossroads of sorts, I would prefer to sit on my hands rather than risk guessing incorrectly. This double top scenario has to be put to bed before venturing out to play. The one caveat is there is another high for the markets to reach. For the 500 it is at 1547 made on November 1st, 2007 and that would make a triple top in line with the first one made on 09-01-2000. As of this morning the 500 is only 120 points away and not an unrealistic goal to reach considering the 500 eased up 150 points since June this year some 80 days ago

The DOW at 12:30 is at 13274 up 2.62 or 0.02%.

The 500 is at 1420 up 2.15 or 0.15%.

The $RUT is at 821.24 up 4.73 or 0.58%.

SPY is at 142.44 up 0.25 or 0.18%.

The trend is neutral and the current bias is bearish.

 

WTI oil is at 97.07 trading between 95.88 and 97.60 and the bias is negative.

Brent crude is at 114.81 trading between 114.40 and 115.50 and the bias is negative.

Gold Breaks To Three Month Highs

Gold is up today at 1637.62 trading between 1619.70 and 1640.90 with a negative bias.

Dr. Copper is at 3.45 up from 3.37 earlier.

Earlier the USD tumbled from 82.46 to 81.81 and is currently at 81.90.

@zerohedge:

Fed's Lockhart Kills Hopes Of Further QEasing

As the S&P 500 makes new multi-year highs, the USD dumps, commodities surge, and AAPL just does what it does best; The Fed's Dennis Lockhart has just 'subtly' announced the walking-back of expectations of QE3 happening anytime soon, via Bloomberg:

  • *LOCKHART SAYS `MONETARY POLICY IS NOT A PANACEA'

  • *LOCKHART SAYS ECONOMIC DATA HAVE BEEN `FIRM' IN LAST MONTH

  • *LOCKHART SAYS HOUSING IS STABILIZING AND `ENCOURAGING'

  • *LOCKHART: MONTHLY UNEMPLOYMENT RISE SHOULDN'T BE EXAGGERATED

  • *LOCKHART SEES `MORE APPETITE FOR RISK'

and critically:

  • *LOCKHART SAYS DISINFLATION, DEFLATION NOT NOW A CONCERN

** RRR = Risk Reward Ratio

To contact me with suggestions or deserved praise:

gary@econintersect.com

Written by Gary









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