Closing Market Commentary For 07-11-2013
Around 2:30 the averages, on low volume, started creeping upwards primarily due to the HFT computers. Although the big guns didn't reach historical highs today they did close above the closing highs of May 22 and 28. And that is scary, not necessarily bullish when you look at other factors, like low volume. The small caps did hit historical highs but overall the markets are looking more and more like the pre 2008 era.
The markets closed higher and without removing the gaps created this morning creating a bearish situation and no apparent solution at hand.
I can't see any negative factors that would drive the averages down, other than the meteoric rise and near 2% gains today. But I can also understand why they might drift higher. I am not at all comfortable with the market action as of late with the 500 making the largest 6 day advance in 2 years. My indicators are mixed with one set showing a 60% buy and a 20% sell and the other indicates an overall negative stance with a serious sell side.
I guess we will have to wait until the averages sail higher through this resistance or pull back. I have been burnt too many times over the last several years by trying to guess what Mr. Market has in mind.
Update: we have isolated the reason for the ramp. The latest stop hunt in the Stalingrad & Poorski 471 is attributed to the Chinese finance minister Lou who said that China H1 growth will be slower than 7.7%. Remember: the faster the global economy goes to hell in a handbasket, the faster global equities hit infinity.
Whoever said perfectly broken and centrally-planned markets were boring.
In this space we would normally insert a chart of the S&P500 here but that would just be waste of NSA spy server space: just imagine a flat line and then a sudden vertical spike higher to new all time record highs on absolutely no news.
The DOW at 4:00 is at 15461 up 169 or 1.11%.
The SP500 is at 1675 up 22.40 or 1.36%.
SPY is at 167.51 up 2.33 or 1.40%.
The $RUT is at 1033.18 up 12.76 or 1.25%.
NASDAQ is at 3578 up 57.54 or 1.63%.
NASDAQ 100 is at 3059 up 58.80 or 1.96%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is bullish.
WTI oil is trading between 107.45 and 104.83 today. The session bias is bearish and is currently trading down at 104.59.
Brent crude is trading between 108.92 and 107.28 today. The session bias is bearish and is currently trading down at 107.58.
Gold rose from 1248.01 earlier to 1297.03 and is currently trading sideways at 1283.95.
Dr. Copper is at 3.176 rising from 3.077 earlier.
The US dollar is trading between 84.43 and 82.60 and is currently trading up at 82.89, the bias is currently bearish. (Gap at 83.67 still hasn't been covered)
The 500 at the close. (green line show gaps)
The DOW at the close.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary