Late Afternoon Session Slide Spooks Investors

May 9th, 2013
in Gary's blogging

Closing Market Commentary For 05-09-2013

About 1:30 the indices broke out above the earlier high level and started to melt up on ridiculously low volume setting new historical highs in the process. But by 2:30 red volume began to rise and the averages started to plummet, well maybe -0.25% isn't exactly plummeting, but it was the most bearish excitement in a week anyway. By 3 pm the 'dippers' raced in and saved the moment and a tug of war ensued and clear winner except spooked investors. I have certain feelings about this market and they are not all positive.

Follow up:

I am sure that there are some traders out there that have made some serious income lately by guessing which way the market is going to go – I call these folks crooks. Only the manipulators and the insiders can safely navigate this casino. Tomorrow will be interesting.

This is the most hated high in history states Jeffrey Dow Jones in his recent blog. Understandably, the markets continue to rise but the sentiment is only slightly warm, with only 40.8% of respondents claiming to be bullish. This not the way one would think it would be in a market that has gone up for 6 months without any meaningful correction.

Marketfreude -- Lastly, a lot of us have missed out. We were too scared to get back in during 2009 or 2010 or maybe even 2011. Maybe we never got back in. It realize it sounds perverse, but because of that we have an active psychological interest in seeing the market fail. We said "no" to the stock market and the only way we'll be right and feel good about ourselves and the position we've dug our heels into is if the stock market fails. Every day the market and its bearded champion, Ben Bernanke, prove us wrong.”


Fewer And Fewer Stocks Are Driving This Rally

Intra-market breadth is deteriorating, suggesting fewer and fewer stocks are actually contributing to the current rally in global equities...

It seems that all that can break us from this current index-driven 'melt-up' is hot or frigid data that confirms the economy is breaking out of its languid range (though it appears credit is starting to make that decision earlier than stocks). (Read more)

The DOW at 4:00 is at 15082 down 22 or -0.15%.

The SP500 is at 1626 down 6 or -0.37%.

SPY is at 162.87 down 0.47 or -0.29%.

The $RUT is at 966.26 down 4 or -0.43%.

NASDAQ is at 3409 down 4 or -0.12%.

NASDAQ 100 is at 2961 down 7 or -0.24%. (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 bearish.

How Oil Really Gets Priced

WTI oil is trading between 96.66 and 95.37 today. The session bias is bearish and is currently trading down at 95.88.

More Widening For The Brent/WTI Spread ahead?

Brent crude is trading between 104.61 and 103.45 today. The session bias is bullish to neutral and is currently trading doen at 103.95.

Gold fell from 1474.75 earlier to 1452.44 and is currently trading down at 1454.75.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.329 falling from 3.378 earlier.

The US dollar is trading between 81.83 and 82.90 and is currently trading up at 82.81, the bias is currently bullish.

The 500 at the close.

The DOW at the close.

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Written by Gary

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