Closing Market Commentary For 07-24-2013
The averages descended to a weak support and refused to go below that mark as noted by the lows of this session. If Mr. Market is going to fail the current bull run this is where it will be. The SP500 support is at 1682 and the DOW is at 15496. Falling below this support will a technical indicator we could go much lower.
By 4 pm the averages, on low volume, had morphed into a directionless session in which we will have to come back tomorrow and see how it continues.
The indicators are now pointing to a 35% sell, up from 25% and 57% buy, down from 60%. The overnight trades have been the best performers for the past year, however, now is the time to exercise diligent caution before blindly jumping on the bull train. The light some pundits see at the other end of the tunnel may be the bear train and I wouldn't recommend standing on the tracks.
Leavitt is saying the very same thing I've been saying for months except I will say the Risk Rewards Ratio is extremely narrow and damn risky.
. . . the market is beyond technical analysis. Overbought can stay overbought for a long time. Trendlines right now have little meaning. Normally a chart graphically tells us what’s going on in a stock, and trendlines tells us where buyers and sellers are likely sitting.
But not right now. The market is on a mission right now. Your best course of action is to continue playing the long side while noting the risk/rewards are not great, and the run will come to an end sooner or later.
Don’t over analyze. Recognize every once in a while you need to lay your TA tools down and just let the market do its thing. Now is one of those times.
The DOW at 4:00 is at 15542 down 25 or -0.1416.
The SP500 is at 1686 down 6.45 or -0.38%.
SPY is at 168.75 down 0.38 or -0.23%.
The $RUT is at 1044 down 8.37 or -0.80%.
NASDAQ is at 3579 up 0.33 or 0.01%.
NASDAQ 100 is at 3041 up 9.76 or 0.32%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is neutral to negative.
WTI oil is trading between 107.49 and 104.22 today. The session bias is bearish and is currently trading up at 105.25.
Brent crude is trading between 108.60 and 106.32 today. The session bias is bearish and is currently trading up at 107.05.
Gold fell from 1347.90 earlier to 1312.89 and is currently trading down at 1320.45.
Dr. Copper is at 3.183 rising from 3.165 earlier.
The US dollar is trading between 82.34 and 82.01 and is currently trading up at 82.40, the bias is currently neutral.
As the Detroit Mayor said recently, they may be the first major city to declare bankruptcy, but they won't be the last.
With the Detroit bankruptcy hearing under way (constitutional crises notwithstanding), we thought it useful to cut through the rhetoric, break-down the mutally-assured-destruction barriers, and peer into the cold-hard facts as the city looks to restructure its $18 billion in debt.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary