Midday Market Commentary For 08-14-2013
By noon all of the morning activity slipped into a nonchalant, sideways moving, narrow and mostly lackluster market. Oh, did I mention low volume too. Yes, there were spurts of BTFDing but with identical selling to offset any gains.
We are definitely in a consolidation phase as one half of the market owners (funds and large holdings accounts) does not want to do anything while the other half (cash crowd and ma and pop investors) are teetering on selling.
If the small investors and other sheeple types panic at some point in the near future, we could see a real honest-to-god decent or 'correction' as some would put it. From 36 thousand feet, the view is raw and unappealing. Brush fires everywhere and not a water hose in sight.
I am not a real fan of the Hindenburg Oman and other similar 'Black Swan' events. But all things combined, such as the weak market, deteriorating EU members and phony data from China (and the US BLS), The HO just adds another check mark in the bears checklist.
As we noted last night, the current cluster of Hindenburg Omens is the most concentrated on record and today just made it worse.
Critically, the Hindenburg Omen's underlying construction is indicative of a market in deep confusion with momentum, advancers, decliners, new highs, and new lows all in divergence.
For the 6th day in the last 8, the market has flashed another warning that all is not well in this 'most levered ever' equity market.
The DOW at 1:00 is at 15362 down 90 or -0.58%.
The SP500 is at 1688 down 6 or -0.36%.
SPY is at 169.05 down 0.57 or -0.34%.
The $RUT is at 1050 down 2.04 or -0.19%.
NASDAQ is at 3677 down 7 or -0.19%.
NASDAQ 100 is at 3135 down 6 or -0.18%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been sideways with a negative slant and the current bias is sideway.
WTI oil is trading between 106.86 and 105.65 today. The session bias is bearish and is currently trading down at 106.48.
Brent crude is trading between 107.77 and 108.96 today. The session bias is neutral with a positive slant and is currently trading up at 108.74.
Gold rose from 1315.43 earlier to 1334.07 and is currently trading up at 1333.30.
Dr. Copper is at 3.337 rising from 3.295 earlier.
The US dollar is trading between 81.90 and 81.66 and is currently trading down at 81.76, the bias is currently sideways.
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Written by Gary