Market Fall Fakes Out Bears As Bulls Take back Lost Ground

August 8th, 2013
in Gary's blogging, midday post

Midday Market Commentary For 08-08-2013

Markets slid lower in a fake out that took the bears by surprise when the BTFD folks jumped in and started to snatch up the 'bargains'. As of 12:15 the numbers are increasing steadily on moderate volume that suggest the bull are not quite done yet.

Not sure who or what is manipulating today's session, but I am not convinced that this melt-up is a solid as it might appear to some investors.

Follow up:

I do believe the small caps have some ways to go, but the large caps are running out of steam and it is only a matter of time when we see a correction.

The DailyFX says the stock market rally isn’t over yet and I agree to a point.

S&P 500 Could Turn Lower, but Not Quite Yet

Trading crowds remain incredibly short the SPX500, which tracks the fair value of the S&P 500 futures price.


Sudden Dollar Weakness Tapers Early Euphoria, Sends Market Sliding And Spikes Gold

The confused looks on traders faces is the "Taper-On" reaction in stocks (after celeberating last night's false Chinese trade data) as the USD loses steam.

Critically, the USD weakness (more usually associated with Taper-off (print-moar-on) is indicative of the ongoing collapse in the JPY-carry trade once again that is gaining momentum as data (and technicals) prompt a Taper sooner than later.

US equities are starting to catch down to foreign stocks (and domestic credit), Treasuries are bid (but the Taper?) on safe-haven buying, and gold and silver are spiking as the USD comes under attack.

The DOW at 12:15 is at 15495 up 24 or 0.15%.

The SP500 is at 1697 up 6 or 0.35%.

SPY is at 169.78 up 0.61 or 0.35%.

The $RUT is at 1049 up 5 or 0.47%.

NASDAQ is at 3673 up 19 or 0.52%.

NASDAQ 100 is at 3134 up 15 or 0.49%.

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

How Oil Really Gets Priced

WTI oil is trading between 104.96 and 102.28 today. The session bias is negative and is currently trading down at 102.70.

More Widening For The Brent/WTI Spread ahead?

Brent crude is trading between 107.85 and 105.85 today. The session bias is negative and is currently trading down at 106.17.

Gold rose from 1286.95 earlier to 1313.37 and is currently trading up at 1312.10.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.270 rising from 3.174 earlier.

The US dollar is trading between 81.40 and 80.93 and is currently trading down at 80.95, the bias is currently bearish.

More on HFT Computers. The question is when will the SEC do something here and start controlling the Dark Pools?

Australia Implements New Rules on Dark Pools and High Frequency Trading

Minister Assisting for Financial Services and Superannuation David Bradbury announced a series of new measures aimed at protecting investors and preserving stability in Australian markets. "We are already seeing benefits from those rules. For example the meaningful price improvement rule approved last year has resulted in a 40 per cent drop in below block size trading in dark pools in its first month of operation.

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

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