Closing Market Commentary For 08-08-2013
The afternoon session followed the same path the past 2 sessions chose to follow, interesting! The trading was moderate to light staying within a tight narrow band that only the HFT computers could make a profit. Traders for the most part have stayed away from this casino market as it could break without warning.
By 4 pm the averages had all moved into the green showing very modest gains. Whether or not the bull run will continue tomorrow or the next day, most analyst believe we have more to go before we see a massive correction. However, I expect the Markets to continue this pattern of three days again tomorrow.
Our indicators are showing a 60% buy and a 30% sell, however, I am not sure these numbers really reflect the current markets nor do they factor in any kind of financial 'Black Swan' that is swimming in the European waters. The notion that the Eurozone has turned the corner as many pundits are claiming is pure Wall Street BS irrationality.
However, just remember, the markets can remain irrational much longer than any investor can possibly ascertain. I anything is going to happen it may not happen for some time, however, something unexpected will happen in the future, panic will follow and the markets will fall – maybe even crash.
So the myth that this market is going to continue upwards and unabated is shallow thinking and will catch this insensible trader with his pants down, so to speak. The problem for investors now is that during these summertime blues is that they get complacent and fall asleep.
There is going to be a big correction even if some can't see it coming. The investment positions that are going to be lost can be yours if you simply wait for the sheeples to panic and sell. It is not a question of if this market will crash, it is a question of when.
With the highly anticipated upcoming September 17-18 FOMC meeting, we could be in store for some volatility and market weakness.
Again, I am not totally convinced that there is anything to the Hindenburg Oman. I can see the market is weak and I do not need an Oman to illistrate that fact.
In a little under 90 seconds, the venerable "Gloom, Boom, and Doom"er draws a number of eery similarities between the fundamental and technical backdrop before 1987's equity market collapse and the current environment.
With the 3rd Hindenburg Omen in 4 days suggesting anxiety is high, maybe he is on to something.
The DOW at 4:00 is at 15498 up 27 or 0.18%.
The SP500 is at 1697 up 6.57 or 0.39%.
SPY is at 169.87 up 0.62 or 0.37%.
The $RUT is at 1049 up 5 or 0.49%.
NASDAQ is at 3669 up 15 or 0.41%.
NASDAQ 100 is at 3130 up 11 or 0.37%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been slipping and the current bias is sideways.
WTI oil is trading between 104.96 and 102.28 today. The session bias is positive and is currently trading down at 103.75.
Brent crude is trading between 107.85 and 105.85 today. The session bias is positive and is currently trading down at 106.75.
Gold rose from 1286.95 earlier to 1313.37 and is currently trading down at 1311.40.
Dr. Copper is at 3.261 rising from 3.174 earlier.
The US dollar is trading between 81.40 and 80.90 and is currently trading down at 81.06, the bias is currently bearish.
More on HFT Computers. The question is when will the SEC do something in the U.S. concerning HFT and start controlling the Dark Pools?
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:
Written by Gary