June 7th, 2013
in Gary's blogging
Midday Market Commentary For 06-07-2013
Markets closed on a high note on low to moderate volume which begs the question: 'how did it do that”? It was mostly sideways during the afternoon, but towards the end it melted higher. I never saw it coming like this where most averages were up over 1%. Are back to wild swing again? I hope so as this makes day trading easier, but what if this is a warning of bad things to come?
Not much to add on this Friday except that I am going to have a doughnut on this National Doughnut Day.
Yeah, I know the wife will bitch, something about my weight and health, but after all this is almost like a Holiday or something.
Here are some sobering article that will keep you wondering all weekend.
Volatility is back - though the averge joe-sixpack would hardly know it as stocks see their second best day of the year.
The Dow Jones Industrial Average saw its widest weekly range in 2013 - 460 points low-to-high; even as it closes green. The Nikkei the same (with another ugly week). The USD saw its worst week in 19 months (as JPY carry unwinds hit) but the commodity complex was very dispersed.
Oil prices surged 4.6% on the week (so no tax cut there then!) while Silver prices plunged 3%. US Treasury prices close down for the sixth week in a row (for the first time since May 2009). The ramp in the late day today - which held us nicely green on the week in stocks - was absolutely ignored by credit markets which ended the week notably wider.
It used to be called the "New Paradigm", it is now the "New Normal" - aside from that everything else is still the same, Ben Bernanke's aspirations to overturn math, economics and the business cycle notwithstanding.
The only question is where on the red valuation line is the global market currently located, and how much longer can the central bankers reject the inevitable arrival of the first denial, then fear , then all other increasingly more unpleasant phases.
The DOW at 4:00 is at 15248 up 207 or 1.38%.
The SP500 is at 1643 up 21 or 1.28%.
SPY is at 164.51 up 1.78 or 1.09%.
The $RUT is at 987.62 up 8.16 or 0.83%.
NASDAQ is at 3469 up 45 or 1.32%.
NASDAQ 100 is at 2991 up 40 or 1.38%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been negative and the current bias is positive.
WTI oil is trading between 93.76 and 96.38 today. The session bias is bullish and is currently trading up at 96.19.
Brent crude is trading between 102.90 and 105.00 today. The session bias is bullish and is currently trading up at 104.72.
Gold fell from 1416.84 earlier to 1377.36 and is currently trading up at 1381.65.
Dr. Copper is at 3.268 fell from 3.342 earlier.
The US dollar is trading between 81.08 and 81.84 and is currently trading sideways at 81.67, the bias is currently neutral to bullish.
The 500 at the close. (Green line is a gap made at the opening.)
The DOW at the close.
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Written by Gary