Markets Showing Weak Side As Averages Melt Off Morning Highs

July 24th, 2013
in Gary's blogging, market open

Opening Market Commentary For 07-24-2013

Premarket was up again this morning but not as high as yesterday, if that means anything. CAT missed street views and that didn't seem to bother the futures.

Markets opened up where the SP500 was just shy of yesterday's historical high, but immediately started to melt downward on moderate volume which also started tapering off. Near term indicators are negative and directionless infuriating the traders who want to see some action.

Follow up:

By 10:00 the averages started to melt further down where, unlike yesterday, the DOW is in the red and the small caps are in the green. In any event, moderate volume might provide some fireworks before the day is over.


CAT Doesn't Bounce On Big Miss And Forecast Cut

"Overall end-user demand is similar to our previous outlook, but we now expect a more significant reduction in dealer machine inventory.  That's the main reason for the reduction in the sales and revenues outlook.

During the second quarter, dealers increased their utilization of inventory from our product distribution centers, which allows them to meet customer demand with less inventory.  With the sharp reduction in dealer inventory and the decline in mining, 2013 is turning out to be a tough year and we've already taken action to reduce costs.

During the first half of the year, we've had temporary factory shutdowns, rolling layoffs throughout much of the company, reductions in our flexible workforce, and we've reduced discretionary and program costs.

While we've taken significant action already, we will be taking additional cost reduction measures in the second half of 2013,"

There is a wedge between perception and reality that has been going on for some time now where the reality doesn't match this continued bull run.

The trading range has been so narrow that way too much money has to be put on the table just to get back meager gains. Do not fall into the trap of money burning a hole in your pocket, sit tight better days are coming. I keep hoping for increasing volumes to signal improved trading.

Swing trading is also at your own risk for all the reasons mentioned above although guessing overnight trades would have been most profitable over the past year. Again, guessing where the market is going to be tomorrow or next week, at this time anyway, can be a foolish and costly endeavor.

The DOW at 10:00 is at 15528 down 38 or -0.24%.

The SP500 is at 1690 down 3 or -0.15%.

SPY is at 168.98 down 0.16 or -0.09%.

The $RUT is at 1050 down 1.51 or -0.14%.

NASDAQ is at 3587 up 7 or 0.19%.

NASDAQ 100 is at 3040 up 9 or 0.30%.

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

How Oil Really Gets Priced

WTI oil is trading between 107.49 and 106.33 today. The session bias is bearish and is currently trading up at 106.65.

More Widening For The Brent/WTI Spread ahead?

Brent crude is trading between 108.60 and 107.25 today. The session bias is bearish and is currently trading up at 107.54.

Gold fell from 1347.90 earlier to 1383.18 and is currently trading up at 1336.15.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.217 rising from 3.165 earlier.

The US dollar is trading between 82.32 and 82.01 and is currently trading down at 82.23, the bias is currently neutral.

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

Written by Gary

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