Midday Market Commentary For 07-31-2013
What rumor was started at 10:26? The averages jumped 0.30% in a matter of minutes where the DOW was up 0.70% at one point and the other indices followed suit. The DOW set a new record high along with the SP500, but then started melting downward totally confusing anyone trying to make sense of this mess.
By 1 pm it appears the averages are going to melt below yesterday's closing numbers before the session ends. Volume has fallen off to abysmal levels.
None of this news is really good for the markets.
One of the unpleasant side-effects for the Fed's forecasting abilities (insert laughter here), is that following today's GDP revisions, H1 annualized GDP is now 1.4%.
It means that there is no way that the economy can grow fast enough in the second half (especially with such early disappointments to the second half as the just released Chicago PMI miss) to meet the Fed's forecast growth of 2.3%-2.6%.
Which, in turn, means more egg on the face of Bernanke and the FOMC's 2013 forecasts. Which is precisely what Goldman just said.
The DOW at 1:15 is at 15530 up 9 or 0.06%.
The SP500 is at 1689 up 3.31 or 0.20%.
SPY is at 168.93 up 0.33 or 0.20%.
The $RUT is at 1045 up 1.94 or 0.19%.
NASDAQ is at 3627 up 11 or 0.30%.
NASDAQ 100 is at 3091 up 6 or 0.20%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is negative.
WTI oil is trading between 104.770 and 102.95 today. The session bias is bullish and is currently trading down at 104.52.
Brent crude is trading between 107.41 and 105.75 today. The session bias is bullish and is currently trading up at 107.25.
Gold fell from 1339.17 earlier to 1306.40 (gaping at 1326.20) and is currently trading up at 1309.25.
Dr. Copper is at 3.118 rising from 3.063 earlier.
The US dollar is trading between 81.75 and 82.28 and is currently trading up at 81.89, the bias is currently bearish.
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Written by Gary