May 1st, 2013
in Gary's blogging
Closing Market Commentary For 05-01-2013
According to news sources the afternoon market decline was because of a steep selloff in energy futures taking them down more than 3%. Most bearish investors believe it was an excuse waiting to happen and most likely a convenient manipulation of the HFT computers. It didn't take very long for the market to recover and the gyrate down again – and then up after the Fed's told everyone that 'things' are still improving.
Many investors are viewing today's action as a prelude to an attack to the markets previous highs coming to a market near you. The bears are waiting in the for the bull's swan song witch may come before this month is over.
The DOW at 4:00 is at 14700 down 139 or -0.94%.
The SP500 is at 1582 down 15 or -0.93%.
SPY is at 158.28 down 1.40 or -0.88%.
The $RUT is at 924.25 down 23 or -2.45%.
NASDAQ is at 3299 down 30 or -0.89%.
NASDAQ 100 is at 2873 down 14 or -0.49%. (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 90.95.
Brent crude is trading between 102.34 and 98.76 today. The session bias is bearish and is currently trading down at 99.83.
Gold fell from 1475.02 earlier to 1439.98 and is currently trading up at 1455.55.
Dr. Copper is at 3.067 falling from 3.186 earlier.
The US dollar is trading between 81.78 and 81.37 and is currently trading down at 81.66, the bias is currently neutral to bullish.
The 500 at the close.
The DOW at the close.
The report is likely to add fuel to the ongoing debate about whether or not the current market structure is tipped against retail investors in favor of sophisticated firms that deploy speedy trading technology.
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.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary