New SP500 Highs As Overbought Conditions Continue To Build

July 22nd, 2013
in Gary's blogging, market close

Closing Market Commentary For 07-22-2013

Markets closed quietly on low to moderate volume and again investors are waiting for direction regarding earnings reports.

By 4 pm there was little news or rumors on coming financials. The SP500 climbs to record close, its 23 this year. Overbought conditions continue to build as the DOW closes marginally higher and the Treasuries inch higher after home sales drop.

Follow up:

Earning are going to be the market mover this week – stay tuned.


What Lies In Store For Second Half Earnings

The chart below lays out what lies in store (no pun intended) second half earnings as indicated by companies themselves.

What it shows is that optimism in corporate earnings (ignoring the persistent optimism in the economy which always without fail, leaves everyone disappointed. Despite the fifth ongoing year of QE) is once again misplaced and that EPS are set to disappoint, especially if the stock buyback wave - certainly not facilitated by the rise in interest rates - is finally over.

The DOW at 4:00 is at 15545 up 1.81 or 0.01%.

The SP500 is at 1695 up 3.44 or 0.20%.

SPY is at 169.50 up 0.33 or 0.20%.

The $RUT is at 1053 up 2.93 or 0.28%.

NASDAQ is at 3600 up 12.78 or 0.34%.

NASDAQ 100 is at 3055 up 10.30 or 0.34%.

The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is sideways.

And you thought oil trading was on the up and up – haha.

UK and US regulators fine trader £3m for manipulation of oil market

A US oil trader has been hit with $4.5m (£3m) in fines and financial penalties by British and American regulators after he admitted using a high-speed trading programme to manipulate oil and gas markets for his own profit.

Mr. Coscia was cheating the market and other participants by using high frequency trading and the use of algorithms.

How Oil Really Gets Priced

WTI oil is trading between 108.59 and 106.50 today. The session bias is bearish and is currently trading down at 106.59.

More Widening For The Brent/WTI Spread ahead?

Brent crude is trading between 108.68 and 107.55 today. The session bias is bearish and is currently trading down at 108.13.

Gold rose from 1295.34 earlier to 1338.41 and is currently trading sideways at 1333.45.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.182 rising from 3.145 earlier.

The US dollar is trading between 82.66 and 82.13 and is currently trading up at 82.30, the bias is currently negative.

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

Written by Gary

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