May 1st, 2013
in Gary's blogging
Midday Market Commentary For 05-01-2013
By noon the averages have settled into a sideways tug-o-war between the bulls and bears after falling to yesterday's midday level. Volume is light to moderate and little news to dictate any direction.
The big question investors have at this juncture is this the beginning of a test of the previous highs or are we going to see another 'correction' first?
The DOW at 12:15 is at 14777 down 63 or -0.42%.
The SP500 is at 1591 down 6 or -0.38%.
SPY is at 159.08 down 0.59 or -0.38%.
The $RUT is at 932.14 down 15 or -1.62%.
NASDAQ is at 3313 down 15 or -0.46%.
NASDAQ 100 is at 2882 down 5 or -0.31%. (A lot of analysts are currently watching the 100 for a heads and shoulder formation.)
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is neutral to bearish.
WTI oil is trading between 93.20 and 90.14 today. The session bias is bearish and is currently trading down at 90.22.
Brent crude is trading between 102.34 and 98.76 today. The session bias is bearish and is currently trading up at 99.16.
Gold fell from 1475.02 earlier to 1439.98 and is currently trading down at 1441.35.
Dr. Copper is at 3.076 falling from 3.186 earlier.
The US dollar is trading between 81.78 and 81.37 and is currently trading down at 81.60, the bias is currently neutral to bullish.
One of the New Normal responses to allegations, first started here in 2009 and subsequently everywhere, that all HFT does is to frontrun traditional market players (among many other evils).
Now that its conventional and flawed defense that it "provides liquidity" lies dead and buried, is that "everyone does it" so you must acquit because how can you possibly prosecute a technology that accounts for over 60% of all market volume and where if you throw one person in jail you would throw everyone in jail.
Today we learn that this indeed may be the case, and not only at the traditional locus of HFT frontrunning such as conventional exchanges for stocks such as the NYSE or even dark pools, but at the heart of the biggest futures exchange in the US, the CME where as the WSJ's Scott Patterson explains frontrunning by HFT algos is not only a way of life, but is perfectly accepted and even smiled upon.
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Written by Gary