Closing Market Commentary For 08-07-2013
Markets closed down after recovering from this mornings lows but now where near the gap of the opening.
Most pundits are claiming investors are concerned about the Fed tapering the QE, personally the sell off may have been concerned investors, but rise was a manipulative foot-work of the HFT computers and DaBoyz.
My thoughts exactly, this market can't keep going up indefinitely. This house of cards built by Dr. Ben and supported by his banker cronies will collapse sooner rather than later.
"You can't go up forever," noted Bob Pisani before piling on a series of excuses for the recent 'weakness' that quite frankly could have been used at any 1.1% drop in stocks of the last 3 years.
While stocks bounced off lows today and are making the headlines for a third down day for the first time in 2 months, the real story that most are ignoring is the surge in the JPY. The USD is legging lower confusing the 'Taper' chatter but it is the JPY strength that is dominating (up 3.6% against the USD in the last 4 days (and the Nikkei futures -800 from Friday's highs).
Treasuries rallied 3-4bps (and the curve flattened) as it seems the modest weakness in stocks is being met with some safe-haven demand. Despite bonds' bid, Homebuilders were battered (-4.5% on the week). Gold and silver strengthened off pre-open lows as WTI fell back to around $104.
VIX spiked to 13.9% at the open but ended around 13% at the close. Back to CNBC for the close: "off the lows," but not in credit Maria...
The DOW at 4:00 is at 15470 down 48 or -0.31%.
The SP500 is at 1691 down 6.46 or -0.38%.
SPY is at 169.35 down 0.38 or -0.22%.
The $RUT is at 1044 down 7.80 or -0.74%.
NASDAQ is at 3654 down 12 or -0.32%.
NASDAQ 100 is at 3118 down 3.51 or -0.11%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been turning to negative and the current bias is slightly positive.
WTI oil is trading between 105.77 and 104.10 today. The session bias is bearish and is currently trading down at 104.25.
Brent crude is trading between 107.08 and 108.17 today. The session bias is negative and is currently trading down at 107.33.
Gold rose from 1272.08 earlier to 1288.46 and is currently trading down at 1286.60.
Dr. Copper is at 3.184 rising from 3.129 earlier.
The US dollar is trading between 81.87 and 81.27 and is currently trading down at 81.31, the bias is currently bearish.
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Written by Gary